Transcat (TRNS) Stock Forecast & Price Target

Transcat Inc. demonstrated robust financial performance in its recent quarters, with total sales rising 2.4% year-over-year from $65.2 million in 3Q24 to $66.8 million in 3Q25, indicating steady demand within its service and distribution segments. The company's fiscal year 2025 forecast includes a significant 9.0% growth in total sales to $301.8 million, bolstered by acquisitions that contribute roughly three percentage points to this growth, further enhancing its market position. Additionally, projections for FY25 suggest a 1.8% increase in adjusted EPS to $2.28 and a substantial 20.0% growth in adjusted EBITDA to $45.7 million, reflecting strong operational efficiency and the positive impact of synergies in its business operations.

Transcat Inc. reported a flat service revenue of $41.6 million for the third quarter of fiscal 2025, which represents a 5.7% decrease from the previous quarter and a 3.8% decline in organic services revenue year-over-year, falling short of long-term growth expectations. The company's management has subsequently reduced its fiscal year 2025 outlook to indicate low-single-digit to mid-single-digit declines in organic service revenue, suggesting ongoing challenges in revenue generation. Additionally, the firm experienced a significant reduction in gross margins within its distribution segment, driven by lower-than-expected service growth, further highlighting the strain on its financial performance.