Shares of Transcat (NASDAQ: TRNS) surged 19.38% in intraday trading on Tuesday following the release of the company's fiscal fourth quarter and full year 2025 financial results, which exceeded expectations on several key metrics.
The provider of calibration and testing instruments reported a robust 11% increase in Q4 service revenue, reaching $52 million. This growth was accompanied by a 13% rise in service gross profit and a 50 basis point expansion in service gross margins to 36.2%. Notably, the company's Q4 adjusted EBITDA climbed 9% to $12.7 million, driven by strength in the calibration business. For the full fiscal year 2025, Transcat's revenue grew 7% to $278 million, with growth observed in both its service and distribution segments.
Adding to the positive sentiment, H.C. Wainwright analyst Scott Buck maintained a Buy rating on Transcat stock following the earnings release. The analyst's continued bullish stance appears to be based on the company's strong financial performance and strategic positioning in the market. This vote of confidence from Wall Street, combined with the better-than-expected financial results, likely contributed to the significant stock price jump as investors reacted to the encouraging news.
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