TRNS

Transcat returns to organic growth and margin expansion in Q1 FY2027, but higher interest expense cuts net income by 59%.

Organic service revenue grew again, and gross margin expanded. Revenue rose 21.6% to $89.3 million and gross margin reached 34.1%, the highest in at least five years, driven by a return to organic growth and a favorable mix of higher-margin rentals. The company is growing profitably at the gross level, but $110.4 million in variable-rate debt means interest costs are consuming those gains.