Core Insights - Transcat, Inc. will participate in several investor conferences in November 2025, including the Baird 2025 Global Industrial Conference, Raymond James Sonoma Small Cap Summit, and Stephens Annual Investment Conference [1][2][4]. Group 1: Conference Details - The Baird 2025 Global Industrial Conference will take place on November 11-12, 2025, at the Ritz-Carlton in Chicago, IL, where CEO Lee Rudow will present on November 11 at 8:30 a.m. Central time [4]. - The Raymond James Sonoma Small Cap Summit is scheduled for November 17, 2025, at Meritage Resort and Spa in Sonoma, CA, with one-on-one meetings hosted by CEO Lee Rudow and CFO Thomas Barbato [4]. - The Stephens Annual Investment Conference will occur on November 19, 2025, at Grand Hyatt Nashville, TN, featuring one-on-one meetings with CFO Thomas Barbato and COO Michael West [4]. Group 2: Company Overview - Transcat, Inc. is a leading provider of calibration, reliability, maintenance optimization, and compliance services, primarily serving highly regulated industries such as Life Sciences, aerospace, defense, and utilities [5][6]. - The company operates calibration labs across the United States, Puerto Rico, Canada, and Ireland, offering both on-site and in-house services [5]. - Transcat also functions as a value-added distributor, marketing and selling new and used instruments, which enhances its service and distribution capabilities [6][8]. Group 3: Strategic Focus - The company's strategy includes leveraging its strong brand and unique value proposition to drive organic sales growth and expand its calibration market through acquisitions and capability investments [8].

Core Insights - Wall Street anticipates a year-over-year increase in earnings for Transcat, Inc. (TRNS) due to higher revenues, with a consensus EPS estimate of $0.46, reflecting a +31.4% change [1][3][19] - The upcoming earnings report on November 3 could significantly influence the stock price depending on whether the actual results meet or exceed expectations [2][20] Earnings Expectations - Revenues for the quarter are projected to be $79.07 million, which is a 16.6% increase from the previous year [3][19] - The consensus EPS estimate has been revised 4.65% higher in the last 30 days, indicating a positive reassessment by analysts [4][19] Earnings Surprise Prediction - The Zacks Earnings ESP for Transcat is -13.04%, suggesting a bearish outlook from analysts regarding the company's earnings prospects [12][19] - Despite the negative Earnings ESP, the company holds a Zacks Rank of 1 (Strong Buy), complicating predictions about beating the consensus EPS estimate [12][20] Historical Performance - In the last reported quarter, Transcat exceeded EPS expectations by +47.50%, but has only beaten consensus estimates once in the last four quarters [13][14] Conclusion - While Transcat is not positioned as a strong earnings-beat candidate, investors should consider other factors influencing stock performance ahead of the earnings release [17][20]

Core Viewpoint - Transcat, Inc. (TRNS) shares have increased by 7.6% recently, with analysts suggesting a potential upside of 34.6% based on a mean price target of $106.75 [1] Price Targets - The average price target for TRNS ranges from a low of $95.00 to a high of $116.00, with a standard deviation of $9.03, indicating a relatively high agreement among analysts [2] - The lowest estimate suggests a 19.8% increase, while the highest points to a 46.3% upside [2] Analyst Sentiment - Analysts are optimistic about TRNS's earnings prospects, as indicated by upward revisions in earnings estimates, which historically correlate with stock price movements [4][11] - The Zacks Consensus Estimate for the current year has risen by 4.1% over the past month, with no negative revisions [12] Zacks Rank - TRNS holds a Zacks Rank 1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks based on earnings estimate factors, suggesting strong potential for upside [13] Conclusion on Price Movement - While consensus price targets may not be entirely reliable, the direction they imply appears to be a good guide for potential price movement [14]

Group 1 - The company Transcat will host its second quarter fiscal year 2026 conference call and webcast [1] - The event is scheduled for Monday, November 3, 2025, at 4:30 p.m. Eastern Time [1]

Core Insights - Transcat (NASDAQ: TRNS) has experienced challenges despite doubling sales over the past decade through organic growth and M&A efforts, driven by strong demand [1] Group 1: Company Performance - Transcat has managed to double its sales over the last ten years, indicating a significant growth trajectory [1] - The growth has been supported by both organic growth and mergers & acquisitions [1] Group 2: Market Context - The company operates in a market characterized by solid demand, which has been a key factor in its sales growth [1]

Financial Data and Key Metrics Changes - Consolidated revenue increased by 15% to $76.4 million, driven by strong demand for calibration and rental services [7][15] - Adjusted EBITDA grew by 15% to $11.8 million, with a margin expansion of 10 basis points [17][18] - Net income decreased by $1.1 million to $3.3 million, primarily due to higher interest expenses and taxes [16] Business Line Data and Key Metrics Changes - Service revenue grew by 12%, marking the 65th consecutive quarter of year-over-year growth [8][15] - Distribution revenue increased by 19% to $27.3 million, with gross profits rising by 24% and gross margins expanding to 35.2% [13][15] - Total organic service growth, excluding Transcat Solutions, was 2% [9] Market Data and Key Metrics Changes - The acquisition of ESCO Calibration is expected to enhance Transcat's capabilities in specialized high-end electronic calibrations, particularly in regulated markets [10][11] - The company anticipates a return to high single-digit organic service revenue growth as the fiscal year progresses [21] Company Strategy and Development Direction - The company aims to leverage acquisitions to fortify its core calibration business and expand addressable markets [21] - Continuous process improvement and automation are identified as key drivers for future service margin expansion [21] - The focus remains on generating sustainable long-term value for shareholders [21] Management's Comments on Operating Environment and Future Outlook - The macro environment presents challenges, but the diversified portfolio and strategic acquisitions position the company well for future growth [21] - Management expects to progressively improve organic revenue growth during the fiscal year, barring further economic deterioration [21][58] Other Important Information - The company closed a new five-year credit facility that nearly doubles its capital resources, providing significant financial flexibility [19] - The integration of ESCO is expected to be swift, with anticipated sales and cost synergies [11][12] Q&A Session Summary Question: What drove the strong distribution results? - Management indicated consistent demand across both core distribution and rentals, suggesting that the growth is indicative of more than just pull-in revenue due to tariffs [26][27] Question: How does ESCO compare to Martin in terms of growth potential? - Management believes ESCO can be a similarly successful acquisition as Martin, with both companies having strong regional dominance but differing specialties [31][32] Question: What is the expected growth rate for ESCO? - Management characterized ESCO's growth rate as similar to Transcat's, indicating a high-quality company with consistent growth [38] Question: How will Transcat Solutions impact overall growth? - Management expects stabilization in the solutions business, contributing to high single-digit growth in the back half of the year [41][42] Question: Is there a potential for pricing power in the current market? - Management noted that there are opportunities for growth, particularly in outsourcing calibration services to in-house labs, which could enhance pricing power [85][88] Question: How does onshoring manufacturing in the U.S. affect Transcat? - Management confirmed that any onshoring of manufacturing is beneficial for Transcat, with ongoing discussions indicating potential future growth opportunities [72][76]

Financial Performance - Consolidated revenue increased by 15% year-over-year to $76.4 million[9, 12] - Service segment revenue grew by 12% to $49.1 million[9, 12] - Distribution segment revenue increased by 19% to $27.3 million[9, 12] - Consolidated gross profit increased by 14% to $25.8 million[15, 16] - Adjusted EBITDA increased by 15% to $11.8 million[9, 21, 23] - Net income decreased by 26% to $3.3 million[9, 19] Segment Performance - Service segment gross profit increased by 9% to $16.2 million[9, 15, 16] - Distribution segment gross profit increased by 24% to $9.6 million, with gross margin expansion of 130bps to 35.2%[9, 15, 16] - Distribution adjusted EBITDA increased by 49% to $4.8 million[21, 23] Strategic Initiatives - Transcat acquired Essco Calibration Laboratory for $84 million in cash[10] - A new 5-year $150 million syndicated secured credit facility was established[9, 10, 28]

[Performance Overview & Outlook](index=1&type=section&id=Performance%20Overview%20%26%20Outlook) This section provides an executive summary of the company's recent financial performance and strategic direction [Management Commentary & Strategy](index=1&type=section&id=Management%20Commentary%20%26%20Strategy) Management highlighted strong Q1 FY26 results with double-digit revenue growth, particularly a 19% increase in Distribution revenue driven by rentals, and the Essco Calibration acquisition strengthens their New England market presence - The company delivered solid performance in Q1 FY26, highlighted by **double-digit service revenue growth** and a **19% increase in distribution revenue**, driven by strong rentals performance[4](index=4&type=chunk) - Acquisitions remain a cornerstone of the growth strategy, exemplified by the recent acquisition of Essco Calibration, the largest in Transcat's history, aiming to create a dominant presence in the New England market[4](index=4&type=chunk) - The company is confident in a return to **high single-digit Service organic revenue growth** in the second half of Fiscal 2026, assuming no further economic uncertainty[4](index=4&type=chunk) [Q1 FY2026 Key Highlights](index=1&type=section&id=Q1%20FY2026%20Key%20Highlights) Transcat reported a 15% increase in Adjusted EBITDA to $11.8 million for Q1 FY26, with Service revenue growing 12% to $49.1 million and Distribution revenue up 19% to $27.3 million, achieving record gross margins of 35.2% Q1 FY26 Performance Highlights | Metric | Value | Growth vs. Q1 FY25 | | :--- | :--- | :--- | | **Adjusted EBITDA** | $11.8 Million | +15% | | **Service Revenue** | $49.1 Million | +12% | | **Distribution Revenue** | $27.3 Million | +19% | | **Distribution Gross Margin** | 35.2% | +130 bps | - Completed the acquisition of Essco Calibration Laboratory, which contributes **$22 million in annual, margin-accretive revenue**[5](index=5&type=chunk) [Financial Performance](index=2&type=section&id=Financial%20Performance) This section details the company's consolidated and segment-specific financial results for the reporting period [Consolidated Financial Results](index=2&type=section&id=Consolidated%20Financial%20Results) In Q1 FY26, consolidated revenue increased by 14.6% year-over-year to $76.4 million, while net income declined 26.0% to $3.3 million, primarily due to a 16.7% rise in operating expenses, despite a 15.2% growth in Adjusted EBITDA Q1 FY26 Consolidated Financials (YoY) | Metric | Q1 FY26 | Q1 FY25 | Change (%) | | :--- | :--- | :--- | :--- | | **Revenue** | $76.4M | $66.7M | +14.6% | | **Gross Profit** | $25.8M | $22.7M | +14.0% | | **Operating Income** | $5.3M | $5.1M | +4.7% | | **Net Income** | $3.3M | $4.4M | -26.0% | | **Diluted EPS** | $0.35 | $0.48 | -27.1% | | **Adjusted EBITDA** | $11.8M | $10.2M | +15.2% | | **Adjusted Diluted EPS** | $0.59 | $0.68 | -13.2% | - Operating expenses increased by **$2.9 million, or 16.7%**, driven by incremental expenses from acquired businesses, increased intangibles amortization, and higher sales-based incentives[8](index=8&type=chunk) [Service Segment Performance](index=3&type=section&id=Service%20Segment%20Performance) The Service segment's revenue grew 12.3% year-over-year to $49.1 million in Q1 FY26, including $6.4 million from acquisitions, but gross margin contracted by 100 basis points to 33.0%, leading to a 37.2% decrease in operating income Q1 FY26 Service Segment Financials (YoY) | Metric | Q1 FY26 | Q1 FY25 | Change (%) | | :--- | :--- | :--- | :--- | | **Revenue** | $49.1M | $43.8M | +12.3% | | **Gross Profit** | $16.2M | $14.9M | +8.9% | | **Gross Margin** | 33.0% | 34.0% | -100 bps | | **Operating Income** | $2.6M | $4.1M | -37.2% | | **Adjusted EBITDA** | $6.9M | $7.0M | -0.5% | - The **12.3% revenue growth** included **$6.4 million of incremental revenue from acquisitions**[12](index=12&type=chunk) [Distribution Segment Performance](index=3&type=section&id=Distribution%20Segment%20Performance) The Distribution segment delivered a strong performance in Q1 FY26, with revenue increasing 19.0% year-over-year to $27.3 million, driven by growth in rentals and products, leading to a 130 basis point expansion in gross margin to a record 35.2% Q1 FY26 Distribution Segment Financials (YoY) | Metric | Q1 FY26 | Q1 FY25 | Change (%) | | :--- | :--- | :--- | :--- | | **Revenue** | $27.3M | $22.9M | +19.0% | | **Gross Profit** | $9.6M | $7.8M | +23.7% | | **Gross Margin** | 35.2% | 33.9% | +130 bps | | **Operating Income** | $2.8M | $1.0M | +174.6% | | **Adjusted EBITDA** | $4.8M | $3.2M | +49.0% | - The strong revenue growth was driven by increased demand for rentals and products, with **higher-margin rentals contributing to the gross margin expansion**[15](index=15&type=chunk) [Financial Position and Cash Flow](index=4&type=section&id=Financial%20Position%20and%20Cash%20Flow) This section provides an overview of the company's balance sheet, liquidity, and cash flow activities [Balance Sheet and Liquidity](index=4&type=section&id=Balance%20Sheet%20and%20Liquidity) As of June 28, 2025, Transcat maintained a strong balance sheet with a leverage ratio of 0.82x and $46.8 million available for borrowing, subsequently securing a new $150 million syndicated credit facility to support the Essco acquisition and future growth Key Balance Sheet & Liquidity Metrics | Metric | June 28, 2025 | March 29, 2025 | | :--- | :--- | :--- | | **Cash and Cash Equivalents** | $1.9 million | $1.5 million | | **Total Debt** | $34.4 million | $32.7 million | | **Leverage Ratio** | 0.82x | 0.78x | - On July 29, 2025, the company replaced its $80 million credit facility with a new **5-Year $150 million syndicated secured credit facility**, nearly doubling its access to available capital[16](index=16&type=chunk)[17](index=17&type=chunk) [Cash Flow Overview](index=9&type=section&id=Cash%20Flow%20Overview) For the first three months of FY26, net cash provided by operating activities was $3.6 million, a decrease from $8.9 million in the prior year, with net cash used in investing activities at $4.6 million and net cash from financing activities at $1.9 million Q1 FY26 Cash Flow Summary (in thousands) | Cash Flow Activity | Q1 FY26 | Q1 FY25 | | :--- | :--- | :--- | | **Net Cash from Operating Activities** | $3,623 | $8,924 | | **Net Cash Used in Investing Activities** | ($4,598) | ($4,094) | | **Net Cash from Financing Activities** | $1,946 | ($1,935) | | **Net Increase in Cash** | $344 | $3,011 | [Non-GAAP Financial Measures](index=5&type=section&id=Non-GAAP%20Financial%20Measures) This section explains the company's use of non-GAAP financial measures and their reconciliation to GAAP equivalents [Definition and Rationale](index=5&type=section&id=Definition%20and%20Rationale) Transcat utilizes non-GAAP measures such as Adjusted EBITDA and Adjusted Diluted Earnings Per Share to provide investors with a clearer view of its core operating performance by excluding items like interest, taxes, depreciation, amortization, stock-based compensation, and acquisition-related expenses - The company presents Adjusted EBITDA to allow for evaluation of core operations by removing the impact of capital structure, asset base, taxes, and stock-based compensation[20](index=20&type=chunk) - Adjusted Diluted EPS is used to provide a basis for comparison between periods by excluding items not indicative of core operating performance, such as acquisition-related amortization and transaction expenses[21](index=21&type=chunk) [Appendix: Detailed Financial Statements](index=7&type=section&id=Appendix%3A%20Detailed%20Financial%20Statements) This appendix provides comprehensive financial statements and reconciliations for the reported period [Consolidated Statements of Income](index=7&type=section&id=Consolidated%20Statements%20of%20Income) The detailed income statement shows total revenue of $76.4 million and net income of $3.3 million for the quarter ended June 28, 2025, compared to $66.7 million and $4.4 million, respectively, for the prior-year period Consolidated Statements of Income (Unaudited, in thousands) | | First Quarter Ended June 28, 2025 | First Quarter Ended June 29, 2024 | | :--- | :--- | :--- | | **Total Revenue** | $76,424 | $66,707 | | **Gross Profit** | $25,821 | $22,655 | | **Operating Income** | $5,338 | $5,099 | | **Net Income** | $3,261 | $4,408 | | **Diluted Earnings Per Share** | $0.35 | $0.48 | [Consolidated Balance Sheets](index=8&type=section&id=Consolidated%20Balance%20Sheets) The balance sheet as of June 28, 2025, shows total assets of $392.5 million and total shareholders' equity of $292.5 million Consolidated Balance Sheets (Unaudited, in thousands) | | June 28, 2025 | March 29, 2025 | | :--- | :--- | :--- | | **Total Current Assets** | $79,654 | $78,009 | | **Total Assets** | $392,536 | $385,242 | | **Total Current Liabilities** | $27,280 | $34,037 | | **Total Liabilities** | $100,000 | $98,362 | | **Total Shareholders' Equity** | $292,536 | $286,880 | [Consolidated Statements of Cash Flows](index=9&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) The cash flow statement for the three months ended June 28, 2025, details a net cash inflow from operations of $3.6 million, an outflow from investing of $4.6 million, and an inflow from financing of $1.9 million Consolidated Statements of Cash Flows (Unaudited, in thousands) | | Three Months Ended June 28, 2025 | Three Months Ended June 29, 2024 | | :--- | :--- | :--- | | **Net Cash Provided by Operating Activities** | $3,623 | $8,924 | | **Net Cash Used in Investing Activities** | ($4,598) | ($4,094) | | **Net Cash Provided by/(Used in) Financing Activities** | $1,946 | ($1,935) | | **Net Increase in Cash and Cash Equivalents** | $344 | $3,011 | [Adjusted EBITDA Reconciliation](index=10&type=section&id=Adjusted%20EBITDA%20Reconciliation) The reconciliation table shows the calculation of Adjusted EBITDA, starting from Net Income ($3.3M) and adding back items like interest, taxes, D&A, and stock compensation to arrive at a total Adjusted EBITDA of $11.8 million for Q1 FY26 Q1 FY26 Adjusted EBITDA Reconciliation (in thousands) | | Q1 FY26 | | :--- | :--- | | **Net Income** | $3,261 | | + Interest Income | $440 | | + Tax Provision | $1,304 | | + Depreciation & Amortization | $5,605 | | + Transaction Expenses | $28 | | + Non-cash Stock Compensation | $1,130 | | **Adjusted EBITDA** | **$11,768** | [Adjusted Diluted EPS Reconciliation](index=12&type=section&id=Adjusted%20Diluted%20EPS%20Reconciliation) This table reconciles GAAP Net Income ($3.3M) to Adjusted Net Income ($5.5M) by adding back acquisition-related amortization and costs, resulting in an Adjusted Diluted EPS of $0.59 for Q1 FY26, compared to the GAAP Diluted EPS of $0.35 Q1 FY26 Adjusted Diluted EPS Reconciliation (in thousands, except per share) | | Q1 FY26 | | :--- | :--- | | **Net Income** | $3,261 | | + Amortization of Intangible Assets | $2,844 | | + Acquisition Deal Costs | $28 | | + Acquisition Stock Expense | $145 | | + Income Tax Effect at 25% | ($754) | | **Adjusted Net Income** | **$5,524** | | **Diluted Earnings Per Share** | **$0.35** | | **Adjusted Diluted Earnings Per Share** | **$0.59** | [Business Segment Data](index=13&type=section&id=Business%20Segment%20Data) This section provides a detailed breakdown of revenue, cost, gross profit, and operating income for both the Service and Distribution segments for Q1 FY26 compared to Q1 FY25 Q1 FY26 vs Q1 FY25 Segment Performance (in thousands) | Segment | Metric | Q1 FY26 | Q1 FY25 | Change (%) | | :--- | :--- | :--- | :--- | :--- | | **SERVICE** | **Revenue** | $49,144 | $43,778 | 12.3% | | | **Operating Income** | $2,567 | $4,090 | (37.2)% | | **DISTRIBUTION** | **Revenue** | $27,280 | $22,929 | 19.0% | | | **Operating Income** | $2,771 | $1,009 | 174.6% | | **TOTAL** | **Revenue** | $76,424 | $66,707 | 14.6% | | | **Operating Income** | $5,338 | $5,099 | 4.7% |

Core Insights - Transcat, Inc. reported revenue of $76.42 million for the quarter ended June 2025, marking a year-over-year increase of 14.6% and exceeding the Zacks Consensus Estimate of $72.43 million by 5.51% [1] - The company achieved an EPS of $0.59, up from $0.48 a year ago, representing a surprise of 47.5% compared to the consensus estimate of $0.40 [1] Revenue Breakdown - Distribution Sales reached $27.28 million, surpassing the three-analyst average estimate of $23.56 million, with a year-over-year change of 19% [4] - Service Revenue was reported at $49.14 million, slightly above the average estimate of $48.86 million, reflecting a year-over-year increase of 12.3% [4] Profit Metrics - Gross Profit from Distribution was $9.61 million, exceeding the average estimate of $7.3 million from three analysts [4] - Gross Profit from Service was reported at $16.21 million, which is close to the average estimate of $16.27 million [4] Stock Performance - Transcat's shares have returned -13.8% over the past month, contrasting with the Zacks S&P 500 composite's increase of 0.5% [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating potential for outperformance in the near term [3]

Core Viewpoint - Transcat, Inc. reported quarterly earnings of $0.59 per share, exceeding the Zacks Consensus Estimate of $0.40 per share, and showing an increase from $0.48 per share a year ago, resulting in an earnings surprise of +47.50% [1][2] Group 1: Earnings Performance - The company posted revenues of $76.42 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 5.51%, compared to $66.71 million in the same quarter last year [2] - Over the last four quarters, Transcat has surpassed consensus EPS estimates just once [2] Group 2: Stock Performance and Outlook - Transcat shares have declined approximately 28.5% since the beginning of the year, while the S&P 500 has gained 7.1% [3] - The current consensus EPS estimate for the upcoming quarter is $0.45 on revenues of $74.45 million, and for the current fiscal year, it is $1.90 on revenues of $302.41 million [7] Group 3: Industry Context - The Instruments - Control industry, to which Transcat belongs, is currently ranked in the top 26% of over 250 Zacks industries, indicating a favorable outlook [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, suggesting that the stock may outperform the market in the near future [5][6]