Transcat Q2 revenue up 21%, adjusted EBITDA beats estimates

Transcat

03/11/2025 21:17

Overview

Calibration services provider Transcat's Q2 2026 revenue grows 21.3%, driven by service and distribution segments

Adjusted EBITDA beats analyst expectations, rising 37%

Adjusted EPS for Q2 missed consensus estimates

Outlook

Transcat expects continued service revenue growth in New England and Midwest markets

Company anticipates high single-digit service organic revenue growth in H2 fiscal 2026

Transcat sees uncertainty in macro environment as a challenge for growth

Result Drivers

SERVICE REVENUE GROWTH - Service revenue increased 19.9% to $52.8 mln, driven by acquisitions

RENTALS DEMAND - Distribution revenue grew 24% to $29.4 mln due to growth in rentals and products

GROSS MARGIN EXPANSION - Distribution gross margin expanded 530 bps to 33.2% due to high-margin rentals

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Adjusted EPS
Miss
$0.44
$0.50 (4 Analysts)
Q2 EPS
$0.14
Q2 Adjusted EBITDA
Beat
$12.12 mln
$11.60 mln (5 Analysts)
Q2 Gross Profit
$26.76 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the business support services peer group is "buy"

Wall Street's median 12-month price target for Transcat Inc is $111.00, about 34.5% above its October 31 closing price of $72.65

The stock recently traded at 30 times the next 12-month earnings vs. a P/E of 37 three months ago

Press Release: ID:nBw9hp2Rna

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)