Transcat, Inc. (TRNS)

Transcat's stock experienced several events over the past six months. The stock dropped significantly after weak fourth-quarter results for fiscal year 2025. Transcat reported strong fiscal first-quarter 2026 financial results with double-digit revenue and gross profit growth. Transcat acquired Essco Calibration Laboratory to expand its market presence. A CEO succession plan was announced, with Lee D. Rudow set to retire in March 2026. Transcat closed a new 5-year, $150 million syndicated secured credit facility to support growth. Several analysts issued research reports and updated ratings for TRNS. The stock has shown some volatility. Transcat is scheduled to host its second-quarter fiscal year 2026 conference call and webcast on November 3, 2025.

Transcat's demand experiences some seasonality, particularly in its Service segment. Demand for calibration services and rental business decreases in December due to holiday closures and reduced staffing at customer sites. Service revenue typically rebounds in January as customers resume operations. The core calibration business generally experiences consistent demand due to regulatory standards. Strategic acquisitions can influence demand patterns by expanding the customer base and service offerings.

Transcat, Inc., founded in 1964 and based in Rochester, New York, specializes in accredited calibration and laboratory instrument services, along with distributing professional test, measurement, and control instrumentation. It operates through Service and Distribution segments. The Service segment offers calibration, repair, inspection, and consulting services for industries requiring precise measurement and quality control, ensuring compliance with standards like ISO/IEC 17025. Transcat focuses on regulated sectors such as life sciences, aerospace and defense, industrial manufacturing, energy and utilities, and chemical manufacturing. The Distribution segment sells and rents test and measurement instruments from over 500 manufacturers, aiming to be a single-source provider with product selection assistance and technical support. The majority of Transcat's revenue comes from its Service segment.

Transcat operates a network of calibration laboratories across the United States, Canada, and internationally, including Puerto Rico and Ireland. This network enables the company to efficiently provide on-site, mobile, pickup and delivery, and in-house services to a broad customer base.

Transcat maintains a strong brand reputation based on quality, reliability, and technical expertise in calibration services and instrument distribution. The company emphasizes quality and compliance, meeting regulatory requirements and customer expectations, particularly in regulated industries. Strategic acquisitions, such as Martin Calibration and Essco Calibration Laboratory, have strengthened its presence and service portfolio. Strong financial performance in fiscal first-quarter 2026 positively reflects on the company. While weak fourth-quarter fiscal year 2025 results temporarily impacted investor sentiment, the business model's resilience and subsequent positive reports suggest a stable reputation.

Transcat, Inc. has a mixed ownership structure, predominantly held by institutional investors. Institutional shareholders hold a significant portion of shares, around 95.89% as of May 2025, with major holders including Conestoga Capital Advisors, LLC, and Neuberger Berman Group LLC. E. Lee Garelick is the largest individual shareholder, owning 2.55% of the company. Individual insiders hold a smaller percentage, and retail investors also hold a notable percentage of shares.