Overview

* Calibration services provider Transcat's Q2 2026 revenue grows 21.3%, driven by service and distribution segments

* Adjusted EBITDA beats analyst expectations, rising 37%

* Adjusted EPS for Q2 missed consensus estimates

Outlook

* Transcat ( TRNS ) expects continued service revenue growth in New England and Midwest markets

* Company anticipates high single-digit service organic revenue growth in H2 fiscal 2026

* Transcat ( TRNS ) sees uncertainty in macro environment as a challenge for growth

Result Drivers

* SERVICE REVENUE GROWTH - Service revenue increased 19.9% to $52.8 mln, driven by acquisitions

* RENTALS DEMAND - Distribution revenue grew 24% to $29.4 mln due to growth in rentals and products

* GROSS MARGIN EXPANSION - Distribution gross margin expanded 530 bps to 33.2% due to high-margin rentals

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Miss $0.44 $0.50 (4

Adjusted Analysts

EPS )

Q2 EPS $0.14

Q2 Beat $12.12 $11.60

Adjusted mln mln (5

EBITDA Analysts

)

Q2 Gross $26.76

Profit mln

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the business support services peer group is "buy"

* Wall Street's median 12-month price target for Transcat Inc ( TRNS ) is $111.00, about 34.5% above its October 31 closing price of $72.65

* The stock recently traded at 30 times the next 12-month earnings vs. a P/E of 37 three months ago

Press Release:

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)