Transcat Q2 FY2027 net income rises 90.1% to $2.4M
Service organic revenue growth was 16%, and the full-year outlook increased from high single digits to low double digits, assuming a stable broader economy.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Form Type
8-K
Rhea-AI Filing Summary
Transcat, Inc. (TRNS) reported fiscal 2027 second-quarter revenue of $97.1 million, up 18.0% year over year. Service revenue rose 22.6% to $64.8 million, while Distribution revenue rose 9.8% to $32.3 million. Net income increased 90.1% to $2.4 million, operating income rose 43.6% to $5.0 million, and adjusted EBITDA, a non-GAAP measure, rose 23.1% to $14.9 million. Service gross margin was 34.4%, up 220 basis points; Distribution gross margin was 32.0%, down 120 basis points, and Distribution operating income fell 47.3% to $1.4 million.
Service revenue included $3.5 million of acquired revenue, while Service organic revenue grew 16%; Transcat also reported its August acquisition of Southeastern Biomedical. For the six months ended September 26, 2026, operating cash flow was $19.0 million and operating free cash flow was $10.9 million, up 46% year over year. Long-term debt was $116.9 million as of September 26, 2026.
Assuming the broader economic environment remains stable, management expects fiscal 2027 Service organic revenue growth in the low double digits, up from high single digits, and Service gross margin expansion. Management expects at least 100 basis points of Service gross margin expansion in the second half.
2 points · 0 major0 major · 1 point
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Positive
- Moderate pointTotal revenue rose 18.0% to $97.1 million in fiscal Q2 2027.
- Moderate pointNet income increased 90.1% to $2.4 million in fiscal Q2 2027.
Negative
- Moderate pointDistribution operating income fell 47.3% to $1.4 million in fiscal Q2 2027.
Filing Explained
At
8-K Event Classification
2 items: 2.02, 9.01
2 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, or exhibit attachments filed with this report.
Key Figures
Total revenue: $97.1 million
Service revenue: $64.8 million
Net income: $2.4 million
+4 more
7 metrics
Total revenue
$97.1 million
Fiscal 2027 second quarter; up 18.0% year over year
Service revenue
$64.8 million
Fiscal 2027 second quarter; up 22.6% year over year
Net income
$2.4 million
Fiscal 2027 second quarter; up 90.1% year over year
Adjusted EBITDA
$14.9 million
Fiscal 2027 second quarter; up 23.1% year over year; non-GAAP measure
Diluted earnings per share
$0.25
Fiscal 2027 second quarter; compared with $0.14 in the prior-year quarter
Service organic revenue growth
16%
Fiscal 2027 second quarter
Operating free cash flow
$10.9 million
Six months ended September 26, 2026; up 46% year over year
Key Terms
Service Organic Revenue Growth, Adjusted EBITDA, Operating free cash flow, Net debt
4 terms
Service Organic Revenue Growth financial
"Service Organic Revenue Growth is not a measure of financial performance under GAAP"
Adjusted EBITDA financial
"Adjusted Operating Income and Adjusted EBITDA are not measures of financial performance under GAAP"
Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.
Operating free cash flow financial
"Operating free cash flow (net cash provided by operations less capital expenditures)"
Operating free cash flow is the cash a company generates from its core business after paying for the everyday costs needed to keep and grow the business, including spending on equipment or facilities. It matters to investors because it shows how much real, available money a company has to pay dividends, reduce debt, buy back shares, or reinvest—like the cash left in your wallet after paying household bills and necessary repairs, revealing financial health beyond accounting profits.
Net debt financial
"net debt (debt less cash and cash equivalents)"
Net debt is the total amount a company owes after subtracting the cash and assets it has that can be used to pay off that debt. It shows how much debt is truly a burden, helping investors understand if a company is financially healthy or heavily borrowed. Think of it like calculating how much money you owe after using your savings to pay part of it.
Earnings Snapshot
Total revenue: $97.1 million · Guidance included
Fiscal 2027 second quarter ended September 26, 2026
Total revenue
$97.1 million
Up 18.0% year over year
Net income
$2.4 million
Up 90.1% year over year
Service revenue
$64.8 million
Up 22.6% year over year
Adjusted EBITDA
$14.9 million
Up 23.1% year over year
Diluted earnings per share
$0.25
Up 78.6% year over year
Guidance
For fiscal 2027, management expects Service organic revenue growth in the low double digits and Service gross margin expansion, assuming a stable economic environment; it expects at least 100 basis points of Service gross margin expansion in the second half.
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What was TRNS's revenue in fiscal Q2 2027?
Transcat reported $97.1 million in total revenue, up 18.0% year over year. Service revenue was $64.8 million, up 22.6%, and Distribution revenue was $32.3 million, up 9.8%.
How much did TRNS earn in fiscal Q2 2027?
Net income was $2.4 million, up 90.1% year over year, and diluted earnings per share was $0.25, compared with $0.14 in the prior-year quarter.
What is Transcat's fiscal 2027 outlook?
Assuming a stable broader economic environment, management expects Service organic revenue growth in the low double digits, up from high single digits, and Service gross margin expansion. It expects at least 100 basis points of Service gross margin expansion in the second half.
AI-generated analysis. How Rhea-AI works. Not financial advice.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
| Date of Report (Date of earliest event reported) | ||||||||
| (Exact name of registrant as specified in its charter) | ||
| (State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) | ||||||
| (Address of principal executive offices) | (Zip Code) | ||||
| Registrant's telephone number, including area code | |||||
| (Former name or former address, if changed since last report) | ||
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |||||
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02Results of Operations and Financial Condition.
On November 3, 2026, Transcat, Inc. (the “Company”) issued a press release announcing its financial results for its fiscal year 2027 second quarter ended September 26, 2026. The press release is attached to this Form 8-K as Exhibit 99.1.
In addition, on November 3, 2026, the Company posted slides to the Investor Relations section of its website that will accompany the Company’s earnings conference call and webcast at 4:30 p.m. Eastern Time today. The slides are attached to this Form 8-K as Exhibit 99.2.
The information furnished pursuant to this Item 2.02, including Exhibits 99.1 and 99.2, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities under such section and shall not be deemed to be incorporated by reference into any filing of the Company under the Securities Act of 1933, as amended, or the Exchange Act.
Item 9.01Financial Statements and Exhibits.
(d) Exhibits.
| Exhibit No. | Description | ||||||||||
99.1 | Transcat, Inc. Press Release dated November 3, 2026 | ||||||||||
99.2 | Slides for the November 3, 2026 Earnings Conference Call and Webcast | ||||||||||
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) | ||||||||||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| TRANSCAT, INC. | ||||||||
| Dated: November 3, 2026 | By: | /s/ Thomas L. Barbato | ||||||
| Thomas L. Barbato | ||||||||
| Senior Vice President of Finance and Chief Financial Officer | ||||||||
Exhibit 99.1
 | NEWS RELEASE | ||||
Transcat, Inc. 35 Vantage Point Drive • Rochester • NY • 14624 • Phone: (585) 352-7777
Transcat Reports Strong Fiscal Second Quarter 2027 Financial Results with Double-Digit Service Organic Revenue* Growth and Significant Service Gross Margin Expansion
•Q2’27 Service Revenue Increased 23% to $64.8 Million
•Q2'27 Service Gross Margin Expanded 220 Basis Points to 34%
•Q2’27 Distribution Revenue Grew 10% to $32.3 Million on Strong Demand for Rentals
•Q2'27 Total Revenue Increased 18% to $97.1 Million
•Management to Host Conference Call Today at 4:30 p.m. Eastern Time
ROCHESTER, NY, November 3, 2026 – Transcat, Inc. (Nasdaq: TRNS) (“Transcat” or the “Company”), a leader in test, measurement, control and calibration, has reported its financial and operational results for its fiscal second quarter ended September 26, 2026 (the “second quarter”) of fiscal year 2027.
Management Commentary
"Our fiscal second quarter results demonstrate strong execution across each pillar of our core strategy: driving strong Service organic revenue growth, expanding Service gross margins, executing strategic acquisitions, and growing Rentals consistently,” said Jaime Irick, President and CEO. “Fiscal second quarter 2027 marked our seventieth consecutive quarter of Service revenue growth. Strength in our Calibration business lifted Service revenue 23%, including 16% Service organic revenue* growth, and drove 220 bps of year over year Service gross margin expansion, up from 90 bps in the first quarter. Distribution revenue grew 10%, fueled by continued strength in Rentals and Product sales.
“Revenue momentum, combined with productivity gains, enabled a 23% increase in adjusted EBITDA* and 70 bps of Adjusted EBITDA margin* expansion. We believe we are gaining market share in calibration services through organic growth, disciplined M&A and a more productive sales organization, further widening our already substantial competitive moat.
“Our August acquisition of Southeastern Biomedical advances our strategy of building scale in regulated, high cost-of-failure end markets, where accredited calibrations are mission-critical to patient safety and regulatory compliance. Southeastern is known for its quality and customer-first approach in supporting hospital networks across the southeastern United States and beyond. That reputation builds on our established leadership in biomedical calibration and extends our reach to a much larger geography, with the same focus on quality and timely service for customers in these critical end markets.
“Looking ahead, we remain optimistic about the Service segment’s momentum, supported by high customer retention, conversion of new business wins into revenue, and continued strong demand in life sciences, aerospace and defense, and the other regulated end markets we serve. For the full fiscal year 2027, assuming the broader economic environment remains stable, we now expect Service organic revenue growth in the low double digits, up from our prior outlook of high single digits, along with Service gross margin expansion. We expect year-over-year Service gross margin expansion of at least 100 bps in the second half, driven by initiatives to continuously improve customer-facing business processes by applying proven Lean principles,
optimizing business mix and pricing, and utilizing technology, including AI, to improve productivity and deliver greater value to customers. These initiatives are beginning to deliver results, reinforcing our confidence in continued progress as we create repeatable levers to expand margins and support sustained growth. These initiatives are beginning to deliver results, reinforcing our confidence in continued progress. Together, they advance our vision for Transcat to be as well known for operational excellence as we have historically been for growth,” concluded Mr. Irick.
*See Note 1 for a description of the non-GAAP financial measures and the accompanying tables for reconciliations.
Second Quarter Fiscal 2027 Results
(Results are compared with the second quarter of the fiscal year ended March 28, 2026 (“fiscal 2026”))
| ($ in thousands) | Change | ||||||||||||||||||||||
| FY27 Q2 | FY26 Q2 | $ | % | ||||||||||||||||||||
| Service Revenue | $ | 64,770 | $ | 52,836 | $ | 11,934 | 22.6 | % | |||||||||||||||
| Distribution Revenue | 32,320 | 29,436 | 2,884 | 9.8 | % | ||||||||||||||||||
| Revenue | $ | 97,090 | $ | 82,272 | $ | 14,818 | 18.0 | % | |||||||||||||||
| Gross Profit | $ | 32,630 | $ | 26,762 | $ | 5,868 | 21.9 | % | |||||||||||||||
| Gross Margin | 33.6 | % | 32.5 | % | |||||||||||||||||||
| Operating Income | $ | 5,033 | $ | 3,505 | $ | 1,528 | 43.6 | % | |||||||||||||||
| Operating Margin | 5.2 | % | 4.3 | % | |||||||||||||||||||
| Net Income | $ | 2,413 | $ | 1,269 | $ | 1,144 | 90.1 | % | |||||||||||||||
| Net Margin | 2.5 | % | 1.5 | % | |||||||||||||||||||
| Adjusted Net Income* | $ | 6,086 | $ | 4,155 | $ | 1,931 | 46.5 | % | |||||||||||||||
| Adjusted Net Margin* | 6.3 | % | 5.1 | % | |||||||||||||||||||
| Adjusted EBITDA* | $ | 14,909 | $ | 12,115 | $ | 2,794 | 23.1 | % | |||||||||||||||
| Adjusted EBITDA* Margin | 15.4 | % | 14.7 | % | |||||||||||||||||||
| Diluted EPS | $ | 0.25 | $ | 0.14 | $ | 0.11 | 78.6 | % | |||||||||||||||
| Adjusted Diluted EPS* | $ | 0.64 | $ | 0.44 | $ | 0.20 | 45.5 | % | |||||||||||||||
Consolidated revenue was $97.1 million, an increase of $14.8 million, or 18.0%, driven by growth in both service and distribution segments. Consolidated gross profit was $32.6 million, an increase of $5.9 million, or 21.9%, while gross margin increased 110 bps when compared to the prior year period.
Operating expenses were $27.6 million, an increase of $4.3 million, or 18.7%, driven by incremental expenses from acquired businesses, including intangible assets amortization expense, increased stock-based compensation expense, and executive transition costs.
Net income was $2.4 million, and Adjusted EBITDA* was $14.9 million, which represented an increase of $2.8 million, or 23.1%, primarily driven by strong revenue growth. Diluted earnings per share was $0.25 compared to diluted earnings per share of $0.14 in the same quarter last year. Adjusted Diluted Earnings Per Share* was $0.64 versus $0.44 last year.
*See Note 1 for a description of the non-GAAP financial measures and the accompanying tables for reconciliations.
Service Segment Second Quarter Results
Represents the accredited calibration, repair, inspection and laboratory instrument services business (66.7% of total revenue for the second quarter of fiscal 2027).
| ($ in thousands) | Change | ||||||||||||||||||||||
| FY 2027 Q2 | FY 2026 Q2 | $ | % | ||||||||||||||||||||
| Service Segment Revenue | $ | 64,770 | $ | 52,836 | $ | 11,934 | 22.6 | % | |||||||||||||||
| Gross Profit | $ | 22,272 | $ | 16,993 | $ | 5,279 | 31.1 | % | |||||||||||||||
| Gross Margin | 34.4 | % | 32.2 | % | |||||||||||||||||||
| Operating Income | $ | 3,672 | $ | 920 | $ | 2,752 | 299.1 | % | |||||||||||||||
| Operating Margin | 5.7 | % | 1.7 | % | |||||||||||||||||||
| Adjusted Operating Income* | $ | 10,564 | $ | 7,279 | $ | 3,285 | 45.1 | % | |||||||||||||||
| Adjusted Operating Margin* | 16.3 | % | 13.8 | % | |||||||||||||||||||
* See Note 1 for a description of the non-GAAP financial measures and the accompanying tables for reconciliations.
Service segment revenue was $64.8 million, an increase of $11.9 million, or 22.6%, and included $3.5 million of incremental revenue from acquisitions. The segment gross margin was 34.4%, an increase of 220bps from the prior year.
Distribution Segment Second Quarter Results
Represents the sale and rental of new and used professional grade handheld test, measurement and control instrumentation (33.3% of total revenue for the second quarter of fiscal 2027).
| ($ in thousands) | Change | ||||||||||||||||||||||
| FY 2027 Q2 | FY 2026 Q2 | $ | % | ||||||||||||||||||||
| Distribution Segment Revenue | $ | 32,320 | $ | 29,436 | $ | 2,884 | 9.8 | % | |||||||||||||||
| Gross Profit | $ | 10,358 | $ | 9,769 | $ | 589 | 6.0 | % | |||||||||||||||
| Gross Margin | 32.0 | % | 33.2 | % | |||||||||||||||||||
| Operating Income | $ | 1,361 | $ | 2,585 | $ | (1,224) | (47.3 | %) | |||||||||||||||
| Operating Margin | 4.2 | % | 8.8 | % | |||||||||||||||||||
| Adjusted Operating Income* | $ | 4,614 | $ | 5,048 | $ | (434) | (8.6 | %) | |||||||||||||||
| Adjusted Operating Margin* | 14.3 | % | 17.1 | % | |||||||||||||||||||
*See Note 1 for a description of the non-GAAP financial measures and the accompanying tables for reconciliations.
Distribution segment revenue was $32.3 million, which represented an increase of $2.9 million, or 9.8%. The revenue increase was driven by continued strength in rentals and product sales. Distribution segment gross margin was 32.0%, which is an increase over the first quarter of fiscal 2027 but a decrease of 120bps compared to the prior year period. The decrease is primarily driven by lower-margin used equipment sales that enable reinvestment in our rental asset portfolio.
Balance Sheet and Cash Flow Overview
On September 26, 2026, the Company had $5.8 million in cash and cash equivalents on hand and $33.1 million available for borrowing, subject to covenant restrictions, under its secured revolving credit facility. Net cash provided by operations for the six months ended September 26, 2026 and September 27, 2025 was $19.0 million and $16.5 million, respectively. Operating free cash flow* for the six months ended September 26, 2026 was $10.9 million.
Total long-term debt as of September 26, 2026 was $116.9 million versus $99.9 million on March 28, 2026.
Tom Barbato, Transcat’s Chief Financial Officer, added, “Transcat delivered excellent fiscal second quarter results, with total revenue increasing 18%, translating into gross profit growth of 22%, operating income growth of 44%, and net income growth of 90%. Gross margin expanded 110 bps to 33.6% and Adjusted EBITDA* margin expanded 70 bps to 15.4%, reflecting strong profit flow-through and operating leverage. Fiscal year-to-date operating free cash flow has grown 46% year over year, further strengthening our financial position. Our cash generation and strong balance sheet will provide greater flexibility to accelerate investment in organic growth initiatives while pursuing strategic M&A opportunities. Moreover, our continued momentum with financial performance and line of sight to new large customer wins enables the Company to increase our full-year Service organic revenue* growth outlook to low double digits.”
*See Note 1 for a description of the non-GAAP financial measures and the accompanying tables for reconciliations.
Fiscal Second Quarter 2027 Results Webcast and Conference Call
Transcat will host a conference call and webcast on Tuesday, November 3, 2026, at 4:30 p.m. ET. Management will review the financial and operating results for the second quarter, as well as the Company’s strategy and outlook. A question-and-answer session will follow the formal discussion. The review will be accompanied by a slide presentation, which will be available at www.transcat.com/investor-relations. The conference call can be accessed by calling (833) 419-0865. Alternatively, the webcast can be monitored at www.transcat.com/investor-relations.
Tuesday, November 3, 2026
4:30 p.m. Eastern Time
Dial-in – Toll-Free US / Canada: 1-833-419-0865
Dial-in – Toll / International: 1-785-838-9333
Conference ID: TRANSCAT (THIS CONFERENCE ID WILL BE REQUIRED FOR ENTRY)
Webcast and accompanying slide presentation:
https://viavid.webcasts.com/starthere.jsp?ei=1778889&tp_key=13ef016dde
A telephonic replay will be available from 8:30 p.m. ET on the day of the conference call through Tuesday, November 17, 2026. To listen to the archived call, dial 1-844-512-2921 from the US or Canada, or 1-412-317-6671 from international locations, and enter conference ID number 11162777 or access the webcast replay at https://www.transcat.com/investor-relations, where a transcript will be posted once available.
NOTE 1 – Non-GAAP Financial Measures
In addition to reporting service revenue, net income, operating income, diluted earnings per share, net cash provided by operating activities and long-term debt, which are U.S. generally accepted accounting principle ("GAAP") measures, we present service organic revenue, adjusted net income, adjusted EBITDA, adjusted EBITDA margin, adjusted operating income, adjusted diluted earnings per share, operating free cash flow and net debt, which are non-GAAP measures. Management uses these non-GAAP measures as indicators to better assess comparability between periods and as a basis for planning and forecasting because management believes these non-GAAP measures reflect our core business operations. These non-GAAP measures are not calculated through the application of U.S. GAAP and are not required forms of disclosure by the SEC. As such, they should not be considered a substitute for the corresponding GAAP measures and, therefore, they should not be used in isolation, but in conjunction with the GAAP measures. The use of any non-GAAP measure may produce results that vary from the GAAP measure and may not be comparable to a similarly defined non-GAAP measure used by other companies. See the accompanying tables for reconciliations.
About Transcat
Transcat, Inc. is a leading provider of accredited calibration, reliability, maintenance optimization, quality and compliance, validation, Computerized Maintenance Management System (CMMS), and pipette services. The Company is focused on providing best-in-class services and products to highly regulated industries, particularly the life sciences industry, which includes pharmaceutical, biotechnology, medical device, and other FDA-regulated businesses, as well as aerospace and defense, and energy and utilities. Transcat provides periodic on-site services, mobile calibration services, pickup and delivery, in-house services at its Calibration Service Centers strategically located across the United States and Internationally. In addition, Transcat operates calibration labs in imbedded customer-site locations. The breadth and depth of measurement parameters addressed by Transcat’s ISO/IEC 17025 scopes of accreditation are believed to be the best in the industry.
Transcat also operates as a leading value-added distributor that markets, sells and rents new and used national and proprietary brand instruments to customers primarily in North America. The Company believes its combined Service and Distribution segment offerings, experience, technical expertise, and integrity create a unique and compelling value proposition for its customers.
Transcat’s strategy is to leverage its strong brand and unique value proposition that includes its comprehensive instrument service capabilities, Cost, Control and Optimizations services, and leading distribution platform to drive organic sales growth. The Company will also look to expand its addressable calibration market through acquisitions and capability investments to further realize the inherent leverage of its business model. More information about Transcat can be found at Transcat.com.
Safe Harbor Statement
This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are not statements of historical fact and thus are subject to risks, uncertainties and assumptions. Forward-looking statements relate to expectations, estimates, beliefs, assumptions and predictions of future events and are identified by words such as “anticipate,” “assuming,” “believe,” “can,” “continue,” “expect,” “focus,” “looking ahead,” “may,” “opportunity,” “outlook,” “potential,” “strategy,” "vision," “will,” and other similar words. All statements addressing operating performance, events or developments that Transcat expects or anticipates will occur in the future, including but not limited to statements relating to anticipated revenue, profit margins, sales operations, capital expenditures, cash flows, operating income, growth strategy, segment growth, potential acquisitions, integration of acquired businesses, market position, customer preferences, outlook and changes in market conditions in the industries in which Transcat operates are forward-looking statements. Forward-looking statements should be evaluated in light of important risk factors and uncertainties. These risk factors and uncertainties include those more fully described in Transcat’s Annual Report and Quarterly Reports filed with the Securities and Exchange Commission, including under the heading entitled “Risk Factors.” Should one or more of these risks or uncertainties materialize or should any of the Company’s underlying assumptions prove incorrect, actual results may vary materially from those currently anticipated. In addition, undue reliance should not be placed on the Company’s forward-looking statements, which speak only as of the date they are made. Except as required by law, the Company disclaims any obligation to update, correct or publicly announce any revisions to any of the forward-looking statements contained in this news release, whether as the result of new information, future events or otherwise.
Investor Relations
Chris Tyson
Executive Vice President
MZ Group - MZ North America
Phone: (949) 491-8235
TRNS@mzgroup.us
www.mzgroup.us
FINANCIAL TABLES FOLLOW.
TRANSCAT, INC.
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(In Thousands, Except Per Share Amounts)
| Second Quarter Ended | Six Months Ended | ||||||||||||||||||||||
| September 26, 2026 | September 27, 2025 | September 26, 2026 | September 27, 2025 | ||||||||||||||||||||
| Service Revenue | $ | 64,770 | $ | 52,836 | $ | 127,329 | $ | 101,980 | |||||||||||||||
| Distribution Revenue | 32,320 | 29,436 | 62,706 | 56,716 | |||||||||||||||||||
| Total Revenue | 97,090 | 82,272 | 190,035 | 158,696 | |||||||||||||||||||
| Cost of Service Revenue | 42,498 | 35,843 | 83,879 | 68,778 | |||||||||||||||||||
| Cost of Distribution Revenue | 21,962 | 19,667 | 42,792 | 37,335 | |||||||||||||||||||
| Total Cost of Revenue | 64,460 | 55,510 | 126,671 | 106,113 | |||||||||||||||||||
| Gross Profit | 32,630 | 26,762 | 63,364 | 52,583 | |||||||||||||||||||
| Selling, Marketing and Warehouse Expenses | 11,751 | 10,627 | 23,125 | 20,142 | |||||||||||||||||||
| General and Administrative Expenses | 15,846 | 12,630 | 31,487 | 23,598 | |||||||||||||||||||
| Total Operating Expenses | 27,597 | 23,257 | 54,612 | 43,740 | |||||||||||||||||||
| Operating Income | 5,033 | 3,505 | 8,752 | 8,843 | |||||||||||||||||||
| Interest Expense | 1,586 | 1,269 | 3,157 | 1,720 | |||||||||||||||||||
| Interest Income | (2) | (5) | (5) | (16) | |||||||||||||||||||
| Other Expense | 269 | 212 | 235 | 545 | |||||||||||||||||||
| Total Interest and Other Expense, net | 1,853 | 1,476 | 3,387 | 2,249 | |||||||||||||||||||
| Income Before Provision for Income Taxes | 3,180 | 2,029 | 5,365 | 6,594 | |||||||||||||||||||
| Provision for Income Taxes | 767 | 760 | 1,621 | 2,064 | |||||||||||||||||||
| Net Income | $ | 2,413 | $ | 1,269 | $ | 3,744 | $ | 4,530 | |||||||||||||||
| Basic Earnings Per Share | $ | 0.26 | $ | 0.14 | $ | 0.40 | $ | 0.49 | |||||||||||||||
| Basic Average Shares Outstanding | 9,390 | 9,321 | 9,361 | 9,319 | |||||||||||||||||||
| Diluted Earnings Per Share | $ | 0.25 | $ | 0.14 | $ | 0.40 | $ | 0.48 | |||||||||||||||
| Diluted Average Shares Outstanding | 9,547 | 9,399 | 9,470 | 9,392 | |||||||||||||||||||
TRANSCAT, INC.
CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In Thousands, Except Share and Per Share Amounts)
| September 26, 2026 | March 28, 2026 | ||||||||||
| ASSETS | |||||||||||
| Current Assets: | |||||||||||
| Cash and Cash Equivalents | $ | 5,758 | $ | 4,942 | |||||||
| Accounts Receivable, less allowance for credit losses of $986 and $851 as of September 26, 2026 and March 28, 2026, respectively | 70,287 | 65,170 | |||||||||
| Other Receivables | 1,539 | 672 | |||||||||
| Inventory | 14,859 | 13,705 | |||||||||
| Prepaid Expenses and Other Current Assets | 7,438 | 7,973 | |||||||||
| Total Current Assets | 99,881 | 92,462 | |||||||||
| Property and Equipment, net | 58,588 | 57,801 | |||||||||
| Goodwill | 233,961 | 218,185 | |||||||||
| Intangible Assets, net | 79,789 | 77,706 | |||||||||
| Right to Use Assets | 32,926 | 32,365 | |||||||||
| Other Assets | 1,911 | 1,968 | |||||||||
| Total Assets | $ | 507,056 | $ | 480,487 | |||||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||||
| Current Liabilities: | |||||||||||
| Accounts Payable | $ | 21,125 | $ | 17,931 | |||||||
| Accrued Compensation and Other Current Liabilities | 17,770 | 21,697 | |||||||||
| Total Current Liabilities | 38,895 | 39,628 | |||||||||
| Long-Term Debt | 116,885 | 99,885 | |||||||||
| Deferred Tax Liabilities, net | 11,545 | 10,167 | |||||||||
| Lease Liabilities | 29,387 | 29,000 | |||||||||
| Other Liabilities | 1,168 | 1,188 | |||||||||
| Total Liabilities | 197,880 | 179,868 | |||||||||
| Commitments and Contingencies (Note 6) | |||||||||||
| Shareholders' Equity: | |||||||||||
| Common Stock, par value $0.50 per share, 30,000,000 shares authorized; 9,404,380 and 9,333,953 shares issued and outstanding as of September 26, 2026 and March 28, 2026, respectively | 4,702 | 4,670 | |||||||||
| Capital in Excess of Par Value | 204,620 | 199,115 | |||||||||
| Accumulated Other Comprehensive Loss | (931) | (923) | |||||||||
| Retained Earnings | 100,785 | 97,757 | |||||||||
| Total Shareholders' Equity | 309,176 | 300,619 | |||||||||
| Total Liabilities and Shareholders' Equity | $ | 507,056 | $ | 480,487 | |||||||
TRANSCAT, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(In Thousands)
| Six Months Ended | |||||||||||
| September 26, 2026 | September 27, 2025 | ||||||||||
| Cash Flows from Operating Activities: | |||||||||||
| Net Income | $ | 3,744 | $ | 4,530 | |||||||
| Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: | |||||||||||
| Net Loss on Disposal of Property and Equipment | 237 | 77 | |||||||||
| Noncash Lease Expense | 3,176 | 2,034 | |||||||||
| Deferred Income Taxes | 184 | 11 | |||||||||
| Depreciation and Amortization | 13,803 | 12,092 | |||||||||
| Amortization of Deferred Financing Costs | 77 | 26 | |||||||||
| Provision for Accounts Receivable and Inventory Reserves | 209 | 258 | |||||||||
| Stock-Based Compensation Expense | 4,194 | 2,970 | |||||||||
| Changes in Assets and Liabilities, net of acquisitions: | |||||||||||
| Accounts Receivable and Other Receivables | (4,721) | (3,550) | |||||||||
| Inventory | 1,162 | 1,798 | |||||||||
| Prepaid Expenses and Other Assets | 645 | 1,039 | |||||||||
| Accounts Payable | 2,436 | (1,573) | |||||||||
| Accrued Compensation and Other Current Liabilities | (3,189) | (3,035) | |||||||||
| Lease Liabilities | (2,992) | (722) | |||||||||
| Net Cash Provided by Operating Activities | 18,965 | 16,504 | |||||||||
| Cash Flows from Investing Activities: | |||||||||||
| Purchase of Property and Equipment | (8,070) | (9,030) | |||||||||
| Business Acquisitions, net of Cash Acquired | (25,878) | (82,526) | |||||||||
| Net Cash Used in Investing Activities | (33,948) | (91,556) | |||||||||
| Cash Flows from Financing Activities: | |||||||||||
| Proceeds from Revolving Credit Facility, net of Lender Fees | 37,345 | 131,036 | |||||||||
| Repayment of Revolving Credit Facility | (20,345) | (50,042) | |||||||||
| Repayments of Term Loan | - | (1,816) | |||||||||
| Payments of Deferred Financing Costs | - | (366) | |||||||||
| Issuance of Common Stock, net of Direct Costs | 2,120 | 491 | |||||||||
| Repayment of Financing Leases | (190) | - | |||||||||
| Taxes Paid Related to Net Share Settlement of Equity Awards | (3,140) | (110) | |||||||||
| Net Cash Provided by Financing Activities | 15,790 | 79,194 | |||||||||
| Effect of Exchange Rate Changes on Cash and Cash Equivalents | 9 | (576) | |||||||||
| Net Increase in Cash and Cash Equivalents | 816 | 3,565 | |||||||||
| Cash and Cash Equivalents at Beginning of Period | 4,942 | 1,517 | |||||||||
| Cash and Cash Equivalents at End of Period | $ | 5,758 | $ | 5,082 | |||||||
TRANSCAT, INC.
Adjusted EBITDA Reconciliation Table
(In thousands)
(Unaudited)
| Fiscal 2027 | |||||||||||||||||||||||||||||
| Q1 | Q2 | Q3 | Q4 | YTD | |||||||||||||||||||||||||
| Net Income | $ | 1,331 | $ | 2,413 | $ | - | $ | - | $ | 3,744 | |||||||||||||||||||
| Interest Expense, Net | 1,568 | 1,584 | - | - | 3,152 | ||||||||||||||||||||||||
| Tax Provision | 854 | 767 | - | - | 1,621 | ||||||||||||||||||||||||
| Depreciation & Amortization | 6,914 | 6,889 | - | - | 13,803 | ||||||||||||||||||||||||
Executive Transition Costs (1) | 736 | 568 | - | - | 1,304 | ||||||||||||||||||||||||
Transaction Expenses (2) | 628 | 472 | - | - | 1,100 | ||||||||||||||||||||||||
| Non-cash Stock Compensation | 1,978 | 2,216 | - | - | 4,194 | ||||||||||||||||||||||||
| Adjusted EBITDA* | $ | 14,009 | $ | 14,909 | $ | - | $ | - | $ | 28,918 | |||||||||||||||||||
Adjusted EBITDA Margin # | 15.1% | 15.4% | 15.2% | ||||||||||||||||||||||||||
| Fiscal 2026 | |||||||||||||||||||||||||||||
| Q1 | Q2 | Q3 | Q4 | YTD | |||||||||||||||||||||||||
| Net Income (Loss) | $ | 3,261 | $ | 1,269 | $ | (1,101) | $ | 1,947 | $ | 5,376 | |||||||||||||||||||
| Interest Expense, Net | 440 | 1,264 | 1,500 | 1,375 | 4,579 | ||||||||||||||||||||||||
| Tax Provision | 1,304 | 760 | (338) | 887 | 2,613 | ||||||||||||||||||||||||
| Depreciation & Amortization | 5,605 | 6,487 | 7,130 | 6,950 | 26,172 | ||||||||||||||||||||||||
Executive Transition Costs (1) | - | - | 771 | 935 | 1,706 | ||||||||||||||||||||||||
Transaction Expenses (2) | 28 | 496 | 45 | 175 | 744 | ||||||||||||||||||||||||
| Non-cash Stock Compensation | 1,130 | 1,839 | 2,061 | 2,519 | 7,549 | ||||||||||||||||||||||||
| Adjusted EBITDA* | $ | 11,768 | $ | 12,115 | $ | 10,068 | $ | 14,788 | $ | 48,739 | |||||||||||||||||||
Adjusted EBITDA Margin # | 15.4% | 14.7% | 12.0% | 16.6% | 14.7% | ||||||||||||||||||||||||
*See Note 1 for a description of the non-GAAP financial measures.
# Calculated by dividing Adjusted EBITDA* by Revenue.
(1) Costs incurred in connection with the CEO transition plan.
(2) Expenses incurred in connection with acquisitions.
TRANSCAT, INC.
Operating Income Reconciliation Table
(In thousands)
(Unaudited)
| Fiscal 2027 | |||||||||||||||||||||||||||||
| Segment Breakdown | Q1 | Q2 | Q3 | Q4 | YTD | ||||||||||||||||||||||||
| Service Operating Income | $ | 2,280 | $ | 3,672 | $ | - | - | 5,952 | |||||||||||||||||||||
| Depreciation & Amortization | 5,005 | 4,953 | - | - | 9,958 | ||||||||||||||||||||||||
Executive Transition Costs (1) | 491 | 379 | - | - | 870 | ||||||||||||||||||||||||
Transaction Expenses (2) | 524 | 349 | - | - | 873 | ||||||||||||||||||||||||
| Non-cash Stock Compensation | 1,328 | 1,211 | - | - | 2,539 | ||||||||||||||||||||||||
| Service Adjusted Operating Income* | $ | 9,628 | $ | 10,564 | $ | - | $ | - | $ | 20,192 | |||||||||||||||||||
| Distribution Operating Income | $ | 1,439 | $ | 1,361 | $ | - | - | 2,800 | |||||||||||||||||||||
| Depreciation & Amortization | 1,909 | 1,936 | - | - | 3,845 | ||||||||||||||||||||||||
Executive Transition Costs (1) | 245 | 189 | - | - | 434 | ||||||||||||||||||||||||
Transaction Expenses (2) | 104 | 123 | - | - | 227 | ||||||||||||||||||||||||
| Non-cash Stock Compensation | 650 | 1,005 | - | - | 1,655 | ||||||||||||||||||||||||
| Distribution Adjusted Operating Income* | $ | 4,346 | $ | 4,614 | $ | - | $ | - | $ | 8,961 | |||||||||||||||||||
Fiscal 2026 | |||||||||||||||||||||||||||||
| Segment Breakdown | Q1 | Q2 | Q3 | Q4 | YTD | ||||||||||||||||||||||||
| Service Operating Income (Loss) | $ | 2,566 | $ | 920 | $ | (2,052) | $ | 3,508 | $ | 4,943 | |||||||||||||||||||
Depreciation & Amortization | 3,763 | 4,562 | 5,175 | 5,143 | 18,643 | ||||||||||||||||||||||||
Executive Transition Costs (1) | - | - | 519 | 630 | 1,149 | ||||||||||||||||||||||||
Transaction Expenses (2) | 28 | 496 | 45 | 175 | 744 | ||||||||||||||||||||||||
Non-cash Stock Compensation | 801 | 1,301 | 1,459 | 1,746 | 5,307 | ||||||||||||||||||||||||
| Service Adjusted Operating Income* | $ | 7,159 | $ | 7,279 | $ | 5,146 | $ | 11,202 | $ | 30,786 | |||||||||||||||||||
| Distribution Operating Income | $ | 2,772 | $ | 2,585 | $ | 2,140 | $ | 824 | $ | 8,320 | |||||||||||||||||||
Depreciation & Amortization | 1,842 | 1,925 | 1,955 | 1,807 | 7,529 | ||||||||||||||||||||||||
Executive Transition Costs (1) | - | - | 252 | 305 | 557 | ||||||||||||||||||||||||
Transaction Expenses (2) | - | - | - | - | - | ||||||||||||||||||||||||
Non-cash Stock Compensation | 329 | 538 | 602 | 773 | 2,242 | ||||||||||||||||||||||||
| Distribution Adjusted Operating Income* | $ | 4,942 | $ | 5,048 | $ | 4,949 | $ | 3,709 | $ | 18,648 | |||||||||||||||||||
*See Note 1 for a description of the non-GAAP financial measures.
(1) Costs incurred in connection with the CEO transition plan.
(2) Expenses incurred in connection with acquisitions.
TRANSCAT, INC.
Adjusted Net Income and Diluted EPS Reconciliation Table
(Unaudited)
| Fiscal 2027 | |||||||||||||||||||||||||||||
| (In Thousands, Except Per Share Amounts) | Q1 | Q2 | Q3 | Q4 | YTD | ||||||||||||||||||||||||
| Net Income | $ | 1,331 | $ | 2,413 | $ | - | $ | - | $ | 3,744 | |||||||||||||||||||
| Amortization Expense | 3,598 | 3,602 | - | - | 7,201 | ||||||||||||||||||||||||
Executive Transition Costs (1) | 736 | 568 | - | - | 1,304 | ||||||||||||||||||||||||
Transaction Expenses (2) | 628 | 472 | - | - | 1,100 | ||||||||||||||||||||||||
Acquisition Stock Expense (3) | 186 | 197 | - | - | 383 | ||||||||||||||||||||||||
| Income Tax Effect | (1,627) | (1,166) | - | - | (3,016) | ||||||||||||||||||||||||
| Adjusted Net Income* | $ | 4,852 | $ | 6,086 | $ | - | $ | - | $ | 10,716 | |||||||||||||||||||
| Diluted Average Shares Outstanding | 9,473 | 9,547 | - | 9,470 | |||||||||||||||||||||||||
| Diluted Earnings Per Share | $ | 0.14 | $ | 0.25 | $ | - | $ | - | $ | 0.40 | |||||||||||||||||||
| Amortization Expense | 0.38 | 0.38 | - | - | 0.76 | ||||||||||||||||||||||||
Executive Transition Costs (1) | 0.08 | 0.06 | - | - | 0.14 | ||||||||||||||||||||||||
Transaction Expenses (2) | 0.06 | 0.05 | - | - | 0.11 | ||||||||||||||||||||||||
Acquisition Stock Expense (3) | 0.02 | 0.02 | - | - | 0.04 | ||||||||||||||||||||||||
| Income Tax Effect | (0.17) | (0.12) | - | - | (0.32) | ||||||||||||||||||||||||
| Adjusted Diluted Earnings Per Share* | $ | 0.51 | 0.64 | - | - | $ | 1.13 | ||||||||||||||||||||||
| Fiscal 2026 | |||||||||||||||||||||||||||||
| Q1 | Q2 | Q3 | Q4 | YTD | |||||||||||||||||||||||||
| Net Income (Loss) | $ | 3,261 | $ | 1,269 | $ | (1,101) | $ | 1,947 | $ | 5,376 | |||||||||||||||||||
| Amortization Expense | 2,844 | 3,461 | 3,977 | 3,488 | 13,770 | ||||||||||||||||||||||||
Executive Transition Costs (1) | - | - | 771 | 935 | 1,706 | ||||||||||||||||||||||||
Transaction Expenses (2) | 28 | 496 | 45 | 175 | 744 | ||||||||||||||||||||||||
Acquisition Stock Expense (3) | 145 | 226 | 291 | 290 | 952 | ||||||||||||||||||||||||
| Income Tax Effect | (754) | (1,297) | (1,601) | (1,598) | (5,251) | ||||||||||||||||||||||||
| Adjusted Net Income* | $ | 5,524 | $ | 4,155 | $ | 2,382 | $ | 5,237 | $ | 17,297 | |||||||||||||||||||
| Diluted Average Shares Outstanding | 9,389 | 9,399 | 9,329 | 9,398 | 9,380 | ||||||||||||||||||||||||
| Diluted Earnings (Loss) Per Share | $ | 0.35 | $ | 0.14 | $ | (0.12) | $ | 0.21 | $ | 0.57 | |||||||||||||||||||
| Amortization Expense | 0.30 | 0.37 | 0.43 | 0.37 | 1.47 | ||||||||||||||||||||||||
Executive Transition Costs (1) | - | - | 0.08 | 0.10 | 0.18 | ||||||||||||||||||||||||
Transaction Expenses (2) | - | 0.05 | - | 0.02 | 0.08 | ||||||||||||||||||||||||
Acquisition Stock Expense (3) | 0.02 | 0.02 | 0.03 | 0.03 | 0.10 | ||||||||||||||||||||||||
| Income Tax Effect | (0.08) | (0.14) | (0.17) | (0.17) | (0.56) | ||||||||||||||||||||||||
| Adjusted Diluted Earnings Per Share* | $ | 0.59 | $ | 0.44 | $ | 0.26 | $ | 0.56 | $ | 1.84 | |||||||||||||||||||
*See Note 1 for a description of the non-GAAP financial measures.
# Calculated by dividing Adjusted EBITDA* by Revenue.
(1) Costs incurred in connection with the CEO transition plan.
(2) Expenses incurred in connection with acquisitions.
(3) Stock compensation expense incurred that is related to grants to employees that were acquired with recent acquisitions.
TRANSCAT, INC.
Additional Information - Business Segment Data
(Dollars in thousands)
(Unaudited)
| Change | |||||||||||||||||||||||
| SERVICE | FY 2027 Q2 | FY 2026 Q2 | $ | % | |||||||||||||||||||
| Service Revenue | $ | 64,770 | $ | 52,836 | $ | 11,934 | 22.6 | % | |||||||||||||||
| Cost of Revenue | 42,498 | 35,843 | 6,655 | 18.6 | % | ||||||||||||||||||
| Gross Profit | $ | 22,272 | $ | 16,993 | $ | 5,279 | 31.1 | % | |||||||||||||||
| Gross Margin | 34.4 | % | 32.2 | % | |||||||||||||||||||
| Selling, Marketing & Warehouse Expenses | $ | 7,421 | $ | 6,825 | $ | 596 | 8.7 | % | |||||||||||||||
| General and Administrative Expenses | 11,179 | 9,248 | 1,931 | 20.9 | % | ||||||||||||||||||
| Operating Income | $ | 3,672 | $ | 920 | $ | 2,752 | 299.1 | % | |||||||||||||||
| % of Revenue | 5.7 | % | 1.7 | % | |||||||||||||||||||
| Change | |||||||||||||||||||||||
| DISTRIBUTION | FY 2027 Q2 | FY 2026 Q2 | $ | % | |||||||||||||||||||
| Distribution Revenue | $ | 32,320 | $ | 29,436 | $ | 2,884 | 9.8 | % | |||||||||||||||
| Cost of Revenue | 21,962 | 19,667 | 2,295 | 11.7 | % | ||||||||||||||||||
| Gross Profit | $ | 10,358 | $ | 9,769 | $ | 589 | 6.0 | % | |||||||||||||||
| Gross Margin | 32.0 | % | 33.2 | % | |||||||||||||||||||
| Selling, Marketing & Warehouse Expenses | $ | 4,330 | $ | 3,803 | $ | 527 | 13.9 | % | |||||||||||||||
| General and Administrative Expenses | 4,667 | 3,381 | 1,286 | 38.0 | % | ||||||||||||||||||
| Operating Income | $ | 1,361 | $ | 2,585 | $ | (1,224) | (47.3 | %) | |||||||||||||||
| % of Revenue | 4.2 | % | 8.8 | % | |||||||||||||||||||
| Change | |||||||||||||||||||||||
| TOTAL | FY 2027 Q2 | FY 2026 Q2 | $ | % | |||||||||||||||||||
| Total Revenue | $ | 97,090 | $ | 82,272 | $ | 14,818 | 18.0 | % | |||||||||||||||
| Total Cost of Revenue | 64,460 | 55,510 | 8,950 | 16.1 | % | ||||||||||||||||||
| Gross Profit | $ | 32,630 | $ | 26,762 | $ | 5,868 | 21.9 | % | |||||||||||||||
| Gross Margin | 33.6 | % | 32.5 | % | |||||||||||||||||||
| Selling, Marketing & Warehouse Expenses | $ | 11,751 | $ | 10,627 | $ | 1,124 | 10.6 | % | |||||||||||||||
| General and Administrative Expenses | 15,846 | 12,630 | 3,216 | 25.5 | % | ||||||||||||||||||
| Operating Income | $ | 5,033 | $ | 3,505 | $ | 1,528 | 43.6 | % | |||||||||||||||
| % of Revenue | 5.2 | % | 4.3 | % | |||||||||||||||||||
TRANSCAT, INC.
Service Organic Revenue, Operating Free Cash Flow, and Net Debt
(Dollars in thousands)
(Unaudited)
| Service Organic Revenue | |||||||||||||||||||||||
| Second Quarter Ended | |||||||||||||||||||||||
| September 26, | September 27, | Change | |||||||||||||||||||||
| 2026 | 2025 | $ | % | ||||||||||||||||||||
| Service Revenue | $ | 64,770 | $ | 52,836 | $ | 11,934 | 23 | % | |||||||||||||||
| Less: Acquired Revenue | (3,514) | - | |||||||||||||||||||||
| Less: Freight Billed to Customer | (881) | (706) | |||||||||||||||||||||
| Service Organic Revenue * | $ | 60,375 | $ | 52,130 | $ | 8,245 | 16 | % | |||||||||||||||
| Operating Free Cash Flow | |||||||||||
| Six Months Ended | |||||||||||
| September 26, | September 27, | ||||||||||
| 2026 | 2025 | ||||||||||
| Net cash provided by operations | $ | 18,965 | $ | 16,504 | |||||||
| Capital Expenditures | (8,070) | (9,030) | |||||||||
| Operating Free Cash Flow* | $ | 10,895 | $ | 7,474 | |||||||
| Net Debt | |||||||||||
| September 26, | March 28, | ||||||||||
| 2026 | 2026 | ||||||||||
| Long-Term Debt | $ | 116,885 | $ | 99,885 | |||||||
| Less: Cash and Cash Equivalents | (5,758) | (4,942) | |||||||||
| Net Debt * | $ | 111,127 | $ | 94,943 | |||||||
*See Note 1 for a description of the non-GAAP financial measures.
1 Financial ResultsQ2 Fiscal 2027 Jaime A. Irick President and CEO Tom L. Barbato Chief Financial Officer NASDAQ: TRNS November 3, 2026 Exhibit 99.2
2 Safe Harbor Statement This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than historical fact are forward-looking statements. Forward-looking statements are not statements of historical fact and thus are subject to risks, uncertainties and assumptions. Forward-looking statements are identified by words such as “may,” “potential,” “should,” “strategy,” “assuming,” “opportunity,” “will,” “expect,” “anticipate,” “believe,” “plan,” “outlook,” “continue,” and other similar expressions or variations thereof. All statements addressing operating performance, events or developments that Transcat expects or anticipates will occur in the future, including but not limited to statements relating to outlook, anticipated revenue, profit margins, sales operations, capital expenditures, cash flows, operating income, growth strategy, potential acquisitions, integration of acquired businesses, market position, customer preferences, and changes in market conditions in the industries in which Transcat operates are forward-looking statements. Forward-looking statements should be evaluated in light of important risk factors and uncertainties. These risk factors and uncertainties include those more fully described in Transcat’s Annual Report and Quarterly Reports filed with the Securities and Exchange Commission, including under the heading entitled “Risk Factors.” Should one or more of these risks or uncertainties materialize, or should any of the Company’s underlying assumptions prove incorrect, actual results may vary materially from those currently anticipated. In addition, undue reliance should not be placed on the Company’s forward-looking statements, which speak only as of the date they are made. Except as required by law, the Company disclaims any obligation to update, correct or publicly announce any revisions to any of the forward-looking statements contained in this news release, whether as the result of new information, future events or otherwise. This presentation includes some non-GAAP financial measures, which the Company believes are useful in evaluating our performance. You should not consider the presentation of this additional information in isolation or as a substitute for results prepared in accordance with GAAP. The Company has provided a discussion of these non- GAAP financial measures and reconciliations of comparable GAAP to non-GAAP measures in tables found in the Supplemental Information portion of this presentation. © 2026 Transcat Inc.
3 Q2 FY27 Summary Consolidated Results • Service Revenue increased 23% in Q2 to $64.8M • Service Organic Revenue* grew 16% in Q2 driven by high customer retention and continued strong demand in life sciences, aerospace/defense, and other regulated end markets we serve • Q2 Service Gross Profit grew 31% from prior year to $22.3M • Service Gross Margin expanded 220 bps to 34% in Q2 reflecting the inherent operating leverage in our Service model, along with focus on operational excellence and maturing of new customer relationships • Q2 Distribution Revenue grew 10% on continued strength in rentals and product sales • Q2 Distribution Gross Margin decreased to 32% due to revenue mix • Q2 Revenue grew 18% vs prior year to $97.1M • Q2 Net Income of $2.4M or $0.25 per diluted share • Adjusted EBITDA* increased 23% from prior year to $14.9M in Q2 • Adjusted Diluted EPS* of $0.64 increased 46% from prior year Service Segment Distribution Segment *See supplemental slides for a description of these non-GAAP financial measures, Adjusted EBITDA, Adjusted Diluted EPS and Service Organic Revenue reconciliations and other important information regarding Adjusted EBITDA, Adjusted Diluted EPS and Service Organic Revenue.
4 Revenue ($ in millions) All figures are rounded to the nearest tenth of a million. Therefore, totals shown in graphs may not equal the sum of the segments. *See supplemental slides for a description of this non-GAAP financial measure, Service Organic Revenue reconciliations and other important information regarding Service Organic Revenue. • Consolidated Q2 revenue up 18%, with both segments delivering compelling growth • Service revenue Q2 growth of 23%, including 16% Q2 service organic revenue* growth and incremental inorganic contribution from acquisitions • Distribution Q2 revenue growth of 10% on continued strong demand in Product and Rentals $52.8 $64.8 Q2 FY26 Q2 FY27 Service Segment $29.4 $32.3 Q2 FY26 Q2 FY27 Distribution Segment $82.3 $97.1 Q2 FY26 Q2 FY27 Consolidated 18%10%23%
5 Gross Profit and Margin • Consolidated Gross Profit of $32.6M for Q2 increased 22% from prior year; Q2 Gross Margin increased 110 bps to 33.6% • Service Gross Margin in Q2 increased 220 bps to 34.4%, reflecting the inherent operating leverage in our Service model, along with focus on operational excellence and maturing of new customer relationships • Distribution Gross Margin in Q2 of 32.0% improved sequentially from Q1, but declined year over year primarily driven by lower-margin used equipment sales that enables reinvestment in our Rental asset portfolio All figures are rounded to the nearest tenth of a million. Therefore, totals shown in graphs may not equal the sum of the segments. ($ in millions) 32.2% 34.4% $17.0 $22.3 Q1 FY26 Q2 FY27 Service Segment 32.5% 33.6% $26.8 $32.6 Q2 FY26 Q2 FY27 Consolidated 33.2% 32.0% $9.8 $10.4 Q2 FY26 Q2 FY27 Distribution Segment 22%6%31%
6 Net Income, Diluted EPS, Adjusted Diluted EPS* • Q2 Adjusted Diluted EPS* of $0.64 vs $0.44 in the prior year quarter • Q2 Net Income of $2.4M grew 90% from prior year ($ in millions, except EPS) *See supplemental slides for a description of this non-GAAP financial measure, Adjusted Diluted EPS reconciliation and other important information regarding Adjusted Diluted EPS. $1.3 $2.4 Q2 FY26 Q2 FY27 Net Income $0.14 $0.25 Q2 FY26 Q2 FY27 Diluted EPS $0.44 $0.64 Q2 FY26 Q2 FY27 Adjusted Diluted EPS* 90% 79% 46%
7 Adjusted Operating Income*, EBITDA*, and Margin ($ in millions) * See supplemental slides for a description of these non-GAAP financial measures, reconciliations and other important information regarding non-GAAP measures. All figures are rounded to the nearest tenth of a million. Therefore, totals shown in graphs may not equal the sum of the segments. • Consolidated Adjusted EBITDA* grew 23% in Q2 with Adjusted EBITDA margin* expanding 70bps • Service Segment Adjusted Operating Income* up 45% in Q2 • Distribution Segment Adjusted Operating Income* decreased 9% as growth in Gross Profit did not offset executive transition costs, as well as costs that are not directly tied to ongoing operations 13.8% 16.3% $7.3 $10.6 Q2 FY26 Q2 FY27 Service Adjusted Operating Income* 45% 14.7% 15.4% $12.1 $14.9 Q2 FY26 Q2 FY27 Consolidated Adjusted EBITDA* 17.1% 14.3% $5.0 $4.6 Q2 FY26 Q2 FY27 Distribution Adjusted Operating Income* (9%) 23%
8 Operating Free Cash Flow ** In addition to reporting net cash provided by operations, a U.S. generally accepted accounting principle (“GAAP”) measure, we present operating free cash flow (net cash provided by operations less capital expenditures), which is a non-GAAP measure. We believe operating free cash flow is an important liquidity measure that reflects the cash generated by the business, after the purchases of technology, capabilities and assets, that can then be used for, among other things, strategic acquisitions, investments in the business, and funding ongoing operations. Operating free cash flow is not a measure of financial performance under GAAP and is not calculated through the application of GAAP. As such, it should not be considered as a substitute or alternative for the GAAP measure of net cash provided by operations and, therefore, should not be used in isolation of, rather in conjunction with, the GAAP measure. Operating free cash flow, as presented, may produce results that vary from the GAAP measure and may not be comparable to a similarly defined non-GAAP measure used by other companies. • Operating Free Cash Flow** of $10.9M for Q2 reflects higher cash from operations and slightly lower capital expenditures • Capital expenditures of $8.1M primarily support continued investment in Service capabilities and rental pool assets Six Months Ended Note: Components may not add to totals due to rounding September 26, 2026 September 27, 2025 Net cash provided by operations $19.0 $16.5 Capital expenditures (CapEx) (8.1) (9.0) Operating free cash flow (FCF)** $10.9 $7.5 ($ in millions)
9 Balance Sheet Supports Growth Strategy • 2.18x leverage ratio at quarter-end (Total debt to TTM Adjusted EBITDA*) • $33.1M available from credit facility at quarter-end * See supplemental slides for a description of the non-GAAP financial measures, the Adjusted EBITDA and net debt reconciliations and other important information regarding Adjusted EBITDA and net debt. ** In addition to reporting debt, a U.S. generally accepted accounting principle (“GAAP”) measure, we present net debt (debt less cash and cash equivalents), which is a non-GAAP measure. We believe net debt is an important measure of financial leverage. Net debt is not a measure of financial performance under GAAP and is not calculated through the application of GAAP. As such, it should not be considered as a substitute or alternative for the GAAP measure of debt and, therefore, should not be used in isolation of, rather in conjunction with, the GAAP measure. Net debt, as presented, may produce results that vary from the GAAP measure and may not be comparable to a similarly defined non-GAAP measure used by other companies. Capitalization Note: Components may not add to totals due to rounding September 26, 2026 March 28, 2026 Cash & Cash Equivalents $5.8 $4.9 Total Debt $116.9 $99.9 Total net debt** $111.1 $95.0 Shareholders’ equity $309.2 $300.6 Total capitalization $426.1 $400.5 Debt/total capitalization 27.4% 24.9% Net debt*/total capitalization 26.1% 23.7% ($ in millions)
10 * Outlook provided as of November 3, 2026 ** See supplemental slides for a description of this non-GAAP financial measure, Service Organic Revenue reconciliations and other important information regarding Service Organic Revenue. Outlook* 2027 Expectations Service segment: For the fiscal 2027 full year, we expect Service organic revenue** growth in the low double digits, up from our prior outlook of high single digits, along with Service gross margin expansion, assuming a stable economic environment Total Transcat: We expect the fiscal 2027 income tax rate to be in the range of 28%-30%. Mid-to-long Term Outlook • Highly fragmented, large market opportunity highlights path to $500M revenue and top-tier margins in 3-5 years • Consistent strong organic growth, operational excellence and strategic acquisitions remain the centerpiece of our strategy and drive continued market share gains • Margin expansion by improving customer-facing business processes, including applying proven Lean principles, optimizing business mix and pricing, and utilizing technology, including AI, to improve productivity and deliver greater value to customers • Acquisitions that strengthen our value proposition remain central to our go-forward strategy • Rentals growth in the low double digits over time
11 Financial ResultsQ2 Fiscal 2027 NASDAQ: TRNS Questions & Answers TRANSCAT, INC 35 Vantage Point Drive Rochester, NY 14624 Investor Relations Chris Tyson Executive Vice President MZ Group - MZ North America 949-491-8235 TRNS@mzgroup us November 3, 2026
12 Conference Call and Webcast Playback • Replay Number: 1-844-512-2921 (US & Canada) 1-412-317-6671 (international) passcode: 11162777 Telephone replay available through Tuesday, November 17, 2026 • Webcast: https://viavid.webcasts.com/starthere.jsp?ei=1778889&tp_key=13ef016dde • Webcast / Presentation / Replay available at https://www.transcat.com/investor-relations
13 Supplemental Information
14 ($ in thousands) Service Organic Revenue* In addition to reporting service revenue growth, a U.S. GAAP measure, we present Service Organic Revenue Growth (current period service revenue less freight billed to customer less acquired revenue less prior period service revenue/prior period service revenue less freight billed to customer less divested revenue times 100). Acquired revenue is revenue generated from acquisitions for twelve months subsequent to the acquisition date. Divested revenue is revenue in the prior period related to businesses that were divested in the last twelve months. The Company’s management believes service organic revenue growth is an important measure of operating performance because the measure provides a basis for comparison of our business operations across periods to assess core operating performance. As such, the Company uses service organic revenue growth as a measure of performance when evaluating its Service segment and as a basis for planning and forecasting. Service Organic Revenue Growth is not a measure of financial performance under GAAP and is not calculated through the application of GAAP. As such, it should not be considered as a substitute or alternative for the GAAP measure of service revenue and, therefore, should not be used in isolation of, but in conjunction with, the GAAP measure. Service Organic Revenue Growth, as presented, may produce results that vary from the GAAP measure and may not be comparable to a similarly defined non-GAAP measure used by other companies.
15 Adjusted EBITDA* and Operating Income* Reconciliation In addition to reporting operating income and net income, U.S. generally accepted accounting principle (“GAAP”) measures, we present Adjusted Operating Income (operating income plus depreciation and amortization, non-cash compensation expense, acquisition related transaction expenses and executive transition costs) and Adjusted EBITDA (earnings before interest, income taxes, depreciation and amortization, executive transition costs, acquisition related transaction expenses and non-cash stock compensation expense), which are non-GAAP measures. We believe Adjusted Operating Income and Adjusted EBITDA are important measures of our operating performance because they allow management, investors and others to evaluate and compare the performance of our core operations from period to period by removing the impact of the capital structure (interest), tangible and intangible asset base (depreciation and amortization), taxes, stock-based compensation expense, executive transition costs and other items, as applicable, which is not always commensurate with the reporting period in which it is included. As such, we use Adjusted EBITDA as a measure of performance and as a basis for planning and forecasting. We use Adjusted Operating Income as a measure of performance when evaluating our business segments. Adjusted Operating Income and Adjusted EBITDA are not measures of financial performance under GAAP and are not calculated through the application of GAAP. As such, these measures should not be considered as a substitute or alternative for the GAAP measures of operating income and net income and, therefore, should not be used in isolation of, rather in conjunction with, the GAAP measures. Adjusted Operating Income and Adjusted EBITDA, as presented, may produce results that vary from the GAAP measures and may not be comparable to similarly defined non-GAAP measures used by other companies. ($ in thousands) FY 2027 Q2 FY 2026 Q2 Net Income $ 2,413 $ 1,269 +Interest Expense,Net 1,584 1,264 +Tax Provision 767 760 + Depreciation & Amortization 6,889 6,487 + Executive Transition Costs 568 - + Transaction Expense 472 496 + Non-cash Stock Compensation 2,216 1,839 Adjusted EBITDA* $ 14,909 $ 12,115 ($ in thousands) FY 2027 Q2 FY 2026 Q2 Service Operating Income $ 3,672 $ 920 + Depreciation & Amortization 4,953 4,562 + Executive Transition Costs 379 — + Transaction Expense 349 496 + Noncash Stock Compensation 1,211 1,301 Service Adjusted Operating Income* $ 10,564 $ 7,279 Distribution Operating Income $ 1,361 $ 2,585 + Depreciation & Amortization 1,936 1,925 + Executive Transition Costs 189 — + Transaction Expense 123 — + Noncash Stock Compensation 1,005 538 Distribution Adjusted Operating Income* $ 4,614 $ 5,048
16 ($ in thousands) Adjusted Diluted EPS* Reconciliation In addition to reporting Earnings Per Share, a GAAP measure, we present Adjusted Diluted Earnings Per Share (net income plus acquisition related amortization expense, acquisition related transaction and integration expenses, executive transition costs and acquisition amortization of backlog divided by average diluted shares outstanding), which is a non-GAAP measure. Our management believes Adjusted Diluted EPS is an important measure of our operating performance because it provides a basis for comparison of our business operations between current, past and future periods by excluding items that we do not believe are indicative of our core operating performance. Adjusted Diluted Earnings Per Share is not a measure of financial performance under GAAP and is not calculated through the application of GAAP. As such, it should not be considered as a substitute or alternative for the GAAP measure of Earnings Per Share and, therefore, should not be used in isolation of, but in conjunction with, the GAAP measure. Adjusted Diluted Earnings Per Share, as presented, may produce results that vary from the GAAP measure and may not be comparable to a similarly defined non-GAAP measure used by other companies.