Transcat ( (TRNS) ) has released its Q4 earnings. Here is a breakdown of the information Transcat presented to its investors.
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Transcat, Inc. is a leading provider of accredited calibration services, cost control and optimization services, and distribution and rental of professional-grade handheld test, measurement, and control instrumentation, primarily serving regulated industries such as life sciences, aerospace, and defense.
In its fiscal fourth quarter and full year 2025 financial results, Transcat reported a notable increase in service revenue, driven by strong performance in its calibration business and strategic acquisitions. The company achieved an 11% increase in service revenue for Q4, contributing to a 7% rise in total annual revenue.
Key financial highlights include a 9% increase in adjusted EBITDA for the fourth quarter, reaching $12.7 million, and a 7.3% increase in total annual revenue to $278 million. The service segment saw a gross margin expansion of 50 basis points, attributed to improved productivity and automation. However, the company experienced a decrease in net income and operating income due to higher operating expenses.
Despite macroeconomic uncertainties, Transcat’s management remains optimistic about the company’s resilience and growth potential. The business model, supported by regulatory standards and a diversified client base, is expected to continue delivering organic growth and shareholder value.
Looking ahead, Transcat plans to leverage its acquisition expertise and focus on strategic opportunities to drive long-term growth, while maintaining strong execution and capitalizing on its robust business model.