Transcat Q2 results beat estimates on calibration services growth, rentals demand
TRNS•Transcat fiscal Q2 revenue rose 18% to $97.09 million, adjusted EPS was $0.64, and adjusted EBITDA was $14.90 million, all above analyst estimates. The company raised its FY27 Service organic revenue growth outlook to low double digits and expects at least 100 basis points of Service gross margin expansion in the second half.
1. Quarterly results
Transcat reported fiscal Q2 revenue of $97.09 million, compared with analyst estimates of $92.46 million. Adjusted EPS of $0.64 beat the $0.46 estimate, while adjusted EBITDA of $14.90 million topped the $13.35 million estimate.
2. Growth and outlook
Service revenue increased 23%, driven by calibration services, and service gross margin expanded. Distribution revenue grew 10%, supported by rentals demand and product sales. Transcat raised its FY27 Service organic revenue growth outlook to low double digits from high single digits and expects at least 100 basis points of Service gross margin expansion in the second half of FY27.
