Transcat ( (TRNS) ) has released its Q2 earnings. Here is a breakdown of the information Transcat presented to its investors.
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Transcat, Inc. is a prominent provider of calibration, reliability, and maintenance optimization services, primarily serving the life sciences, aerospace, defense, energy, and utilities sectors. The company also operates as a value-added distributor of test and measurement instruments across North America.
In its fiscal second quarter of 2026, Transcat reported robust financial results, highlighted by a 21% increase in revenue to $82.3 million. The company also saw a significant rise in adjusted EBITDA, which grew by 37% to $12.1 million, driven by strong demand in both service and distribution segments.
Key financial metrics for the quarter included a 20% increase in service revenue to $52.8 million and a 24% rise in distribution revenue to $29.4 million. The distribution segment particularly benefited from a 530 basis point expansion in gross margin to 33.2%, attributed to increased demand for higher-margin rentals. Despite these gains, net income decreased by 61.4% to $1.3 million, impacted by higher operating expenses related to recent acquisitions.
Looking ahead, Transcat’s management remains optimistic about the company’s growth prospects, despite macroeconomic uncertainties. The company expects continued service revenue growth, particularly in the New England and Midwest markets, and aims to achieve high single-digit service organic revenue growth in the latter half of fiscal 2026. Transcat’s strategic acquisitions and diversified portfolio are expected to support its long-term shareholder value.