Transcat Leaders Highlight Service-Driven Growth in CEO Interview

Transcat Inc. CEO Lee Rudow and CFO Tom Barbato discussed the company's service-driven growth model, customer loyalty, and successful acquisitions in a recent interview. They also outlined strategies for organic and acquisitive growth. The interview was featured in The Wall Street Resource CEO Interview.

Transcat | 10-Q: FY2026 Q2 Revenue Beats Estimate at USD 82.27 M

Transcat’s Earnings Call: Growth Amid Challenges

Transcat's recent earnings call revealed robust revenue growth of 21% to $83 million, driven by successful acquisitions and a strong distribution segment. However, net income declined by $2 million due to increased expenses and economic uncertainties. The company is investing in AI and technology to enhance operations and customer retention. Despite challenges, Transcat remains optimistic about future growth, expecting a return to high single-digit organic service growth supported by a strong acquisition pipeline and a new credit facility.

Transcat Reports Strong Q2 2026 Financial Growth

Transcat, Inc. reported strong Q2 2026 financial results with a 21% revenue increase to $82.3 million and a 37% rise in adjusted EBITDA to $12.1 million. Service revenue grew by 20% to $52.8 million, while distribution revenue rose by 24% to $29.4 million. Despite a 61.4% drop in net income to $1.3 million due to higher operating expenses, management remains optimistic about future growth, particularly in New England and Midwest markets, aiming for high single-digit organic revenue growth in the latter half of fiscal 2026.

Transcat Q2 revenue up 21%, adjusted EBITDA beats estimates

Transcat reported a 21.3% increase in Q2 2026 revenue, driven by service and distribution segments. Adjusted EBITDA rose 37%, surpassing analyst expectations, while adjusted EPS fell short of consensus. The company anticipates continued service revenue growth in New England and the Midwest, with high single-digit organic growth expected in H2 fiscal 2026. Distribution revenue grew 24% due to increased rentals. Analysts maintain a "buy" rating, with a median 12-month price target of $111.00, reflecting a potential 34.5% upside from its recent closing price of $72.65.