Transcat (TRNS) Stock Forecast & Price Target

Transcat Inc. has demonstrated a robust performance, with total sales increasing by 2.4% year-over-year in 3Q25, reaching $66.8 million, and a significant 9.0% projected growth in total sales for FY25, amounting to $301.8 million. The company's distribution segment has shown particular strength, achieving a 6.5% increase in sales for 3Q25 compared to the same period the previous year, contributing positively to revenue growth. Additionally, Transcat is set to experience a solid rise in financial metrics, forecasting a 1.8% increase in adjusted EPS to $2.28 and a remarkable 20.0% growth in adjusted EBITDA to $45.7 million.

Transcat Inc reported flat service revenue of $41.6 million in the third quarter of fiscal 2025, which did not show any growth compared to the prior year and represented a decline of 5.7% from the previous quarter. The company's organic services revenue declined by 3.8% year-over-year, falling short of its long-term growth guidance of high single-digit to low double-digit growth, which raises concerns about its future performance. Additionally, management has revised its fiscal 2025 outlook downward to low single-digit to mid-single-digit growth, indicating a continued weakness in organic service revenue and lower gross margin expectations, which negatively impacts overall profitability.