Transcat Posts 16% Revenue Jump in Q4, Eyes Latin America Push

Benzinga reported Tuesday that calibration and testing services firm Transcat posted a 16% jump in consolidated quarterly revenue, reaching $89.3 million in its fiscal fourth quarter of 2026. Full-year revenue growth came in at 19%.

Service Segment Leads the Charge

Transcat’s service arm was the standout performer. Service revenue expanded 18% in the fourth quarter alone. Over the full fiscal year, that figure rose 20%. Management attributed the gains to persistent demand across regulated industries and the contribution of recent acquisitions folded into the business.

Gross profit grew 18% during the quarter. Gross margin edged higher by 50 basis points compared with the prior-year period. Adjusted EBITDA for the full year climbed 23%, signaling that profitability kept pace with the revenue acceleration.

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A Historic Step Into Latin America

Perhaps the most strategically significant move disclosed on the call was the acquisition of SCM Metrology and Laboratories. The deal represents Transcat’s first operational presence in Latin America, an entirely new geography for the company. President and CEO Jamie Irich framed the move as consistent with the company’s broader acquisition playbook, which targets geographic expansion alongside capability building.

The push southward underscores a deliberate effort to diversify beyond Transcat’s traditional North American customer base in pharmaceutical, aerospace, and other heavily regulated sectors.

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Background: A Calibration Business Built on Acquisitions

Transcat has long operated a dual-segment model, pairing its calibration services business with a distribution arm selling precision measurement equipment. Over the past several years, the company has used targeted acquisitions to deepen its service network across North America. The SCM deal is a natural extension of that approach, just with a wider geographic ambition.

Chief Financial Officer Tom Barbato fielded analyst questions around the rental business heading into fiscal 2027, though specific rental segment growth figures from Q4 were not released in detail prior to publication.

Outlook Cautiously Optimistic

Management signaled that the first quarter of fiscal 2027 was off to a solid start. Analysts from Craig Hallum and Lake Street Capital Markets both pressed on whether any demand was being pulled forward. Barbato indicated the pipeline looks durable without flagging unusual front-loading.

The company intends to keep prioritizing organic service revenue growth, further M&A, and the adoption of technology and AI tools to improve operating efficiency across its lab network.

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