Transcat Q4 Revenue Up 15.8%, Adjusted EBITDA Grows 16% with LatAm Expansion

TRNS•

2026-05-26

Transcat’s Q4 revenue rose 15.8% to $89.3 million with service revenue climbing 18.4% (7% organic) and distribution revenue up 10.5%. Adjusted EBITDA expanded 16% to $14.8 million as gross margin widened 50 bps, and the SCM Metrology acquisition adds Latin America presence.

1. Fourth Quarter Financial Performance

Consolidated revenue reached $89.3 million, a 15.8% increase from last year’s quarter, driven by organic service growth and recent acquisitions. Net income was $1.9 million, down 56.4%, while adjusted EBITDA rose 16.0% to $14.8 million, reflecting disciplined cost control and higher‐margin mix.

2. Service and Distribution Segment Results

Service segment revenue grew 18.4% to $61.6 million, including 7% organic growth and $5.8 million from acquisitions, marking 68 consecutive quarters of service revenue gains. Distribution revenue increased 10.5% to $27.8 million, supported by an 11% surge in sales and a strategic shift toward higher-margin rentals.

3. Margin Expansion and Profitability

Gross profit expanded 17.6% to $30.5 million, lifting overall gross margin by 50 basis points to 34.1%. Service gross margin sequentially improved by 670 bps, and distribution margin widened by 280 bps, driven by pricing discipline and rental offerings.

4. Strategic Acquisition and Outlook

The acquisition of SCM Metrology and Laboratories establishes the company’s first operational presence in Latin America, reinforcing its acquisition‐led growth strategy. Management expects high single-digit service organic revenue growth in Fiscal 2027, underpinned by customer retention, new business conversions and ongoing M&A activity.