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Dec 24, 2022
Transcat Q3 2023 Earnings Report
Reported a 20% EBITDA increase with 19% service revenue growth and strong gross margin expansion.
Key Takeaways
Transcat reported a strong third quarter with a 12.8% increase in consolidated revenue, driven by a 19% increase in service revenue and a 3.7% increase in distribution sales. Gross margins expanded by 180 basis points, and adjusted EBITDA increased by 20.5%.
Service revenue increased by 19.0%, with organic service revenue growth of 12.0%.
Consolidated gross margins expanded by 180 basis points year over year.
Distribution segment revenue increased by 3.7%, with gross margin expanding 370 basis points to 26.2%.
The company added e2b Calibration, enhancing its capabilities in the aviation industry.
Transcat
Transcat
Transcat Revenue by Segment
Revenue by Segment
Service Revenue
CapyFin.comDistribution Revenue
CapyFin.com Forward Guidance
Transcat anticipates continued organic service revenue growth in the high-single digit range and expects gross margin improvement to continue.
Positive Outlook
- Unique value proposition expected to drive competitive advantage.
- Recurring revenue streams and high levels of regulation to support Service segment performance.
- Active acquisition pipeline to drive Service growth.
- Continued organic Service revenue growth expected in the high-single digit range.
- Gross margin improvement expected to continue.
Revenue & Expenses
Visualization of income flow from segment revenue to net income