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Jun 29, 2024

Transcat Q1 2025 Earnings Report

Transcat reported strong first-quarter results, marked by significant gross margin expansion and EBITDA growth.

Key Takeaways

Transcat's first quarter of fiscal year 2025 showed strong performance with a 10% increase in consolidated revenue, driven by consistent demand in regulated markets and successful integration of acquisitions. Gross margins expanded by 310 basis points, and adjusted EBITDA grew by 20.4%.

Consolidated revenue increased by 10.1% to $66.7 million.

Gross profit rose by 21.1% to $22.7 million, with gross margin expanding by 310 basis points.

Adjusted EBITDA increased by 20.4% to $10.2 million.

Net income per diluted share increased to $0.48, compared to $0.38 last year.

Total Revenue
$66.7M
Previous year: $60.6M
+10.1%
EPS
$0.68
Previous year: $0.52
+30.8%
Gross Margin
3.1%
Previous year: 30.8%
-89.9%
Gross Profit
$22.7M
Previous year: $18.7M
+21.4%
Cash and Equivalents
$22.7M
Previous year: $4.75M
+377.6%
Free Cash Flow
$5.25M
Previous year: $4.77M
+10.1%
Total Assets
$324M
Previous year: $241M
+34.2%

Transcat

Transcat

Transcat Revenue by Segment

Forward Guidance

Transcat anticipates another year of organic Service revenue growth in the high single-digit to low double-digit range, normalized for the extra week in fiscal 2024, and gross margin expansion. The company will continue to leverage expertise and acquisitions for synergistic growth.

Positive Outlook

  • Expects organic Service revenue growth in the high single-digit to low double-digit range.
  • Anticipates gross margin expansion.
  • Will continue automation of calibration processes and productivity improvements.
  • Plans to leverage expertise and track record for synergistic growth opportunities.
  • Will focus on strategic, accretive acquisitions.

Revenue & Expenses

Visualization of income flow from segment revenue to net income