Transcat Reports 16% Q4 Revenue Growth to $89.3M, Adds Latin America Unit
TRNS•Transcat Inc posted a 16% increase in fourth-quarter revenue to $89.3 million and delivered full-year consolidated sales of $331.9 million, up 19%, led by double-digit growth in service and distribution segments. The company acquired SCM Metrology in Costa Rica to establish its first Latin American presence, while planning operational efficiency improvements.
1. Strong Q4 and Full-Year Revenue Growth
Transcat Inc achieved 16% consolidated revenue growth in fiscal Q4 with sales of $89.3 million and reported a 19% increase to $331.9 million for the full fiscal year, driven by double-digit gains in both service and distribution segments.
2. Operational Efficiency and Margin Expectations
Management is targeting operational efficiency enhancements through Lean Six Sigma practices under CEO Jaime Irick’s leadership, focusing on cycle time reductions and customer-facing process improvements. CFO Thomas Barbato expects service gross margins to normalize in the first half of fiscal 2027 as onboarding costs stabilize.
3. Latin America Expansion via SCM Acquisition
Transcat’s acquisition of SCM Metrology and Laboratories in Costa Rica establishes its first operational base in Latin America. The move supports the company’s M&A strategy to expand into new geographies and service life sciences and medical device customers in free trade zones.
4. Rental Segment and M&A Strategy
The rental business continues to deliver low double-digit organic growth, boosting distribution segment performance. Leadership is evaluating additional M&A opportunities in Northern California, Dallas, Atlanta, and the mid-Atlantic region to further diversify its geographic footprint.
