Tue, May 27, 8:08 PM (26 days ago)
**Summary of Transcat, Inc. (TRNS) 10-K for the Fiscal Year Ended March 29, 2025** **Financial Performance:** - **Revenue:** $278.4 million, up 7.3% from $259.5 million in 2024. - **Net Income:** $14.5 million, a 6.4% increase from $13.6 million in 2024. - **Earnings Per Share (EPS):** $1.57, down from $1.63 in 2024. - **Gross Margin:** 32.1%, a 20 basis point decrease from 32.3% in 2024. - **Operating Income:** $17.9 million, down from $19.8 million in 2024. **Segment Performance:** - **Service Segment:** Revenue of $181.4 million, up 7.0% from 2024, accounting for 65.2% of total revenue. - **Distribution Segment:** Revenue of $97.0 million, up 7.8% from 2024, accounting for 34.8% of total revenue. **Strategic Overview:** - **Acquisitions:** Completed two acquisitions in 2025 (Martin and Becnel) and three in 2024 (Axiom, SteriQual, and TIC-MS). - **Operational Excellence:** Continued investments in technology, automation, and process improvements. - **Market Position:** Focus on highly regulated industries, particularly life science, aerospace, and defense. **Future Outlook:** - **Growth Strategy:** Continued focus on organic growth and strategic acquisitions. - **Market Resilience:** Belief in the resilience of the business model due to the highly regulated markets served. - **Financial Outlook:** Expects income tax rate to range between 27.0% and 29.0% in fiscal 2026. **Risk Factors:** - **Economic Conditions:** Sensitivity to inflation, interest rates, and economic downturns. - **Competition:** Significant competition in both Service and Distribution segments. - **Regulatory Risks:** Compliance with various regulations and potential impacts of changes in tax laws. - **Operational Risks:** Dependence on key personnel, cybersecurity threats, and supply chain disruptions. **Financial Condition:** - **Liquidity:** Adequate liquidity and capital resources, with access to a revolving credit facility. - **Debt:** $32.7 million owed to secured creditor, with $1.8 million borrowed under a term loan. **Market Position Changes:** - **Customer Base:** Approximately 30,000 customers, with 20% to 25% transacting through both segments. - **Market Share:** No single customer accounted for 5% or more of total revenue. **Note:** Amounts are in thousands, 000s.