Transcat (TRNS) Q4 2026 earnings summary

Executive summary

• Fiscal Q4 revenue increased 16% year-over-year to $89.3M; full-year revenue up 19% to $331.9M, driven by strong service and distribution segments.

• Adjusted EBITDA rose 16% in Q4 to $14.8M; full-year Adjusted EBITDA up 23% to $48.7M, reflecting operational execution and margin expansion.

• Full-year net income was $5.4M, or $0.57 per diluted share; Adjusted Diluted EPS was $1.84.

• Strategic M&A, including the acquisition of SCM Metrology and Laboratories, expanded operational presence into Latin America and regulated markets.

• Focus remains on service organic growth, margin expansion, M&A, and rentals growth.

Financial highlights

• Q4 consolidated revenue rose 16% year-over-year to $89.3M; full-year revenue up 19% to $331.9M.

• Q4 gross profit was $30.5M, up 18% year-over-year; Q4 gross margin expanded 50bps to 34.1%.

• Adjusted EBITDA grew 16% in Q4 and 23% for the year; adjusted EBITDA margin expanded 40bps year-over-year.

• Q4 diluted EPS was $0.21; adjusted diluted EPS was $0.56. Full-year diluted EPS was $0.57; adjusted diluted EPS was $1.84.

• Operating free cash flow for fiscal 2026 was $19.6M, down from $25.8M in FY25, due to working capital investments.

Outlook and guidance

• High single-digit service organic revenue growth expected for fiscal 2027, assuming stable macro conditions.

• Rental business anticipated to continue low double-digit organic growth, supporting distribution segment performance.

• Strategic M&A remains a key growth pillar, with focus on expanding geographic reach and regulated markets.

• Fiscal 2027 income tax rate projected between 31% and 33%.

• Optimism for fiscal 2027 and beyond, driven by momentum in service and rental segments.