Transcat (TRNS) Stock Forecast & Price Target

Transcat Inc. demonstrated a positive growth trajectory, with total sales increasing by 2.4% year-over-year, reaching $66.8 million in 3Q25, alongside distribution sales rising 6.5% to $25.2 million. For the full fiscal year 2025, the company anticipates total sales growth of 9.0%, estimating revenues to reach $301.8 million, bolstered by acquisitions contributing to approximately three percentage points of this growth. Furthermore, projections indicate a 1.8% growth in adjusted EPS to $2.28 and a significant 20.0% increase in adjusted EBITDA to $45.7 million, highlighting a robust operational performance and improving financial metrics.

Transcat Inc. demonstrated flat service revenue of $41.6 million in Q3 2025, indicating a stagnation compared to the prior year and a decline of 5.7% from the previous quarter, which raises concerns about the firm’s ability to generate growth in its Service segment. Additionally, organic services revenue fell by 3.8% year-over-year, significantly underperforming against the company’s long-term growth guidance of high-single-digit to low-double-digit growth, suggesting challenges in maintaining revenue momentum. Management has also lowered its fiscal year 2025 outlook to low-single-digit to mid-single-digit growth, further reflecting a pessimistic trend in both revenue expectations and margins within the distribution segment, as evidenced by a 240 basis point decline in gross margins.