Transcat Q2 2022 Earnings Report
Key Takeaways
Transcat reported excellent second quarter results driven by broad-based revenue strength and solid operational execution across both operating segments. Consolidated revenue increased by 21.1% to $50.4 million, and adjusted EBITDA increased by 35.5% to $7.1 million.
Service segment revenue grew 20.3% with gross margin increasing 70 basis points to a record 32.9%.
Organic revenue growth was 14.0% due to strong demand in highly regulated end markets like life sciences.
Distribution segment revenue grew 22.2% exceeding pre-pandemic levels.
NEXA acquisition expands reach into asset management services, complementing core calibration offerings.
Transcat
Transcat
Transcat Revenue by Segment
Forward Guidance
Transcat expects continued strong organic growth and anticipates Service total revenue growth to be similar to the second quarter, with roughly half of the growth coming organically and the other half from acquisition. Distribution revenue is expected to grow in the low teens.
Positive Outlook
- Strong balance sheet
- Sustainable Service segment gross margins
- Active M&A pipeline
- Unique and enhanced value proposition
- New customer pipeline positions us well for continued strong organic growth
Revenue & Expenses
Visualization of income flow from segment revenue to net income