Transcat Reports Strong Fiscal Second Quarter 2027 Financial Results with Double-Digit Service Organic Revenue* Growth and Significant Service Gross Margin Expansion

Jaime Irick, President and CEO of Transcat

“Our fiscal second quarter results demonstrate strong execution across each pillar of our core strategy: driving strong Service organic revenue growth, expanding Service gross margins, executing strategic acquisitions, and growing Rentals consistently,”

Jaime Irick, President and CEO of Transcat

“Fiscal second quarter 2027 marked our seventieth consecutive quarter of Service revenue growth.”

Jaime Irick, President and CEO of Transcat

“Strength in our Calibration business lifted Service revenue 23%, including 16% Service organic revenue* growth, and drove 220 bps of year over year Service gross margin expansion, up from 90 bps in the first quarter.”

Jaime Irick, President and CEO of Transcat

“Distribution revenue grew 10%, fueled by continued strength in Rentals and Product sales.”

Jaime Irick, President and CEO of Transcat

“Revenue momentum, combined with productivity gains, enabled a 23% increase in adjusted EBITDA* and 70 bps of Adjusted EBITDA margin* expansion.”

Jaime Irick, President and CEO of Transcat

“We believe we are gaining market share in calibration services through organic growth, disciplined M&A and a more productive sales organization, further widening our already substantial competitive moat.”

Jaime Irick, President and CEO of Transcat

“Our August acquisition of Southeastern Biomedical advances our strategy of building scale in regulated, high cost-of-failure end markets, where accredited calibrations are mission-critical to patient safety and regulatory compliance.”

Jaime Irick, President and CEO of Transcat

“Looking ahead, we remain optimistic about the Service segment’s momentum, supported by high customer retention, conversion of new business wins into revenue, and continued strong demand in life sciences, aerospace and defense, and the other regulated end markets we serve.”

Jaime Irick, President and CEO of Transcat

“For the full fiscal year 2027, assuming the broader economic environment remains stable, we now expect Service organic revenue growth in the low double digits, up from our prior outlook of high single digits, along with Service gross margin expansion.”

Jaime Irick, President and CEO of Transcat

“We expect year-over-year Service gross margin expansion of at least 100 bps in the second half, driven by initiatives to continuously improve customer-facing business processes by applying proven Lean principles, optimizing business mix and pricing, and utilizing technology, including AI, to improve productivity and deliver greater value to customers.”

Tom Barbato, Chief Financial Officer of Transcat

“Transcat delivered excellent fiscal second quarter results, with total revenue increasing 18%, translating into gross profit growth of 22%, operating income growth of 44%, and net income growth of 90%.”

Tom Barbato, Chief Financial Officer of Transcat

“Gross margin expanded 110 bps to 33.6% and Adjusted EBITDA* margin expanded 70 bps to 15.4%, reflecting strong profit flow-through and operating leverage.”

Tom Barbato, Chief Financial Officer of Transcat

“Fiscal year-to-date operating free cash flow has grown 46% year over year, further strengthening our financial position.”

Tom Barbato, Chief Financial Officer of Transcat

“Our cash generation and strong balance sheet will provide greater flexibility to accelerate investment in organic growth initiatives while pursuing strategic M&A opportunities.”

Tom Barbato, Chief Financial Officer of Transcat

“Moreover, our continued momentum with financial performance and line of sight to new large customer wins enables the Company to increase our full-year Service organic revenue* growth outlook to low double digits.”