Transcat, Inc. reported a total revenue of $278.4 million for the fiscal year ending March 29, 2025, marking a 7.3% increase from $259.5 million in the previous fiscal year. The growth was primarily driven by acquisitions, including Martin Calibration and Becnel Rental Tools, which contributed $10.4 million in revenue. Service revenue reached $181.4 million, up 7.0% year-over-year, while distribution sales increased by 7.8% to $97.0 million. Despite the revenue growth, net income rose to $14.5 million, a modest increase from $13.6 million in fiscal 2024, resulting in diluted earnings per share of $1.57, down from $1.63.
The company experienced significant operational changes during the fiscal year, completing two acquisitions in its Service segment and one in its Distribution segment. The acquisitions of Martin and Becnel were part of Transcat's strategy to enhance its service capabilities and expand its geographic reach. The integration of these businesses is ongoing, with management focusing on leveraging synergies to improve operational efficiency. Additionally, Transcat has continued to invest in its proprietary asset management software, CalTrak®, and its online customer portal, C3®, to enhance service delivery and customer engagement.
Transcat serves approximately 30,000 customers across various industries, including life sciences, aerospace, and industrial manufacturing. The company operates 33 calibration service centers in the U.S., Puerto Rico, Canada, and Ireland, and has a workforce of 1,245 employees. The Service segment accounted for 65.2% of total revenue, with 86% generated from in-house calibration services. The company reported a gross margin of 32.1%, slightly down from 32.3% in the previous year, attributed to lower margins in the Transcat Solutions business.
Looking ahead, Transcat anticipates continued organic growth in its Service segment, projecting high single-digit revenue growth as market conditions normalize. The company remains focused on automation and productivity improvements to enhance margins. Despite macroeconomic uncertainties, including inflation and potential tariffs, Transcat's business model is considered resilient due to the regulatory nature of its services. The company expects its effective tax rate to range between 27.0% and 29.0% for fiscal 2026, reflecting anticipated tax credits and discrete benefits related to share-based compensation.
About TRANSCAT INC
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