Transcat (TRNS) Q4 2025 earnings summary

Executive summary

• Fiscal 2025 consolidated revenue rose 7.3% to $278.4 million, with Q4 revenue up 9% to $77.1 million, driven by strong calibration demand, rental growth, and acquisitions.

• Full-year net income increased 6.4% to $14.5 million, with diluted EPS of $1.57 and adjusted diluted EPS of $2.29.

• Adjusted EBITDA for the year was $39.7 million, up 2.9%, and operating free cash flow reached $25.8 million, up $6.5 million year-over-year.

• The acquisition of Martin Calibration, the largest in company history, added over $25 million in calibration service revenue and expanded capabilities.

• Automation and process improvements contributed to productivity and margin expansion.

Financial highlights

• Q4 gross profit was $25.9 million, up 8%, with gross margin at 33.6%; full-year gross profit was $89.5 million, up 7%.

• Q4 net income was $4.5 million, down from $6.9 million due to a prior-year non-cash gain; full-year net income was $14.5 million, up from $13.6 million.

• Q4 adjusted diluted EPS was $0.64 (down from $0.66); full-year adjusted diluted EPS was $2.29 (down from $2.35).

• Service segment Q4 revenue up 11.3% to $52.0 million; distribution segment Q4 revenue up 4% to $25.1 million.

• Operating free cash flow for the year was $25.8 million, up 31%.

Outlook and guidance

• High single-digit organic growth in the service segment is expected as macroeconomic volatility subsides.

• Rental business is anticipated to grow in line with historical high single-digit trends, with investments supporting expansion.

• Net capital expenditures for fiscal 2026 are projected at $14–$16 million.

• Fiscal 2026 income tax rate expected in the 27% to 29% range.

• Continued focus on automation, productivity, and strategic acquisitions to drive long-term value.