Dj Transcat Inc, Inst Holders, 3Q 2025 (Trns)

The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how maintenance and repair distributors stocks fared in Q3, starting with WESCO .

Supply chain and inventory management are themes that grew in focus after COVID wreaked havoc on the global movement of raw materials and components. Maintenance and repair distributors that boast reliable selection and quickly deliver products to customers can benefit from this theme. While e-commerce hasn’t disrupted industrial distribution as much as consumer retail, it is still a real threat, forcing investment in omnichannel capabilities to serve customers everywhere. Additionally, maintenance and repair distributors are at the whim of economic cycles that impact the capital spending and construction projects that can juice demand.

The 9 maintenance and repair distributors stocks we track reported a satisfactory Q3. As a group, revenues beat analysts’ consensus estimates by 2%.

Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 10% since the latest earnings results.

WESCO

Based in Pittsburgh, WESCO provides electrical, industrial, and communications products and augments them with services such as supply chain management.

WESCO reported revenues of $6.20 billion, up 12.9% year on year. This print exceeded analysts’ expectations by 4.9%. Overall, it was a very strong quarter for the company with a solid beat of analysts’ organic revenue estimates and an impressive beat of analysts’ revenue estimates.

"We delivered very strong results in the third quarter and again outperformed the market with our leading portfolio of products, services, and solutions. Sales growth accelerated this year, with organic sales up 6% in the first quarter, 7% in the second quarter, and 12% in the third quarter." said John Engel, Chairman, President, and CEO.

WESCO pulled off the biggest analyst estimates beat of the whole group. Unsurprisingly, the stock is up 12.4% since reporting and currently trades at $256.69.

Is now the time to buy WESCO? Access our full analysis of the earnings results here, it’s free for active Edge members.

Best Q3: VSE Corporation

With roots dating back to 1959 and a strategic focus on extending the life of transportation assets, VSE Corporation provides aftermarket parts distribution and maintenance, repair, and overhaul services for aircraft and vehicle fleets in commercial and government markets.

VSE Corporation reported revenues of $282.9 million, up 3.4% year on year, outperforming analysts’ expectations by 2.3%. The business had a stunning quarter with an impressive beat of analysts’ EBITDA estimates.

Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 4.6% since reporting. It currently trades at $171.31.

Is now the time to buy VSE Corporation? Access our full analysis of the earnings results here, it’s free for active Edge members.

Weakest Q3: Global Industrial

Formerly known as Systemax, Global Industrial distributes industrial and commercial products to businesses and institutions.

Global Industrial reported revenues of $353.6 million, up 3.3% year on year, falling short of analysts’ expectations by 1%. It was a disappointing quarter as it posted a significant miss of analysts’ EBITDA and EPS estimates.

Global Industrial delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 22.8% since the results and currently trades at $27.11.

Read our full analysis of Global Industrial’s results here.

Fastenal

Founded in 1967, Fastenal provides industrial and construction supplies, including fasteners, tools, safety products, and many other product categories to businesses globally.

Fastenal reported revenues of $2.13 billion, up 11.7% year on year. This print was in line with analysts’ expectations. However, it was a slower quarter as it produced EPS in line with analysts’ estimates and a miss of analysts’ EBITDA estimates.

The stock is down 11% since reporting and currently trades at $40.75.

Read our full, actionable report on Fastenal here, it’s free for active Edge members.

Transcat

Serving the pharmaceutical, industrial manufacturing, energy, and chemical process industries, Transcat provides measurement instruments and supplies.

Transcat reported revenues of $82.27 million, up 21.3% year on year. This number surpassed analysts’ expectations by 3.5%. More broadly, it was a satisfactory quarter as it also produced an impressive beat of analysts’ revenue estimates but a significant miss of analysts’ EPS estimates.

Transcat delivered the fastest revenue growth among its peers. The stock is down 23.1% since reporting and currently trades at $54.32.

Read our full, actionable report on Transcat here, it’s free for active Edge members.

Wrapping up Q3 earnings, we look at the numbers and key takeaways for the maintenance and repair distributors stocks, including DXP and its peers.

Supply chain and inventory management are themes that grew in focus after COVID wreaked havoc on the global movement of raw materials and components. Maintenance and repair distributors that boast reliable selection and quickly deliver products to customers can benefit from this theme. While e-commerce hasn’t disrupted industrial distribution as much as consumer retail, it is still a real threat, forcing investment in omnichannel capabilities to serve customers everywhere. Additionally, maintenance and repair distributors are at the whim of economic cycles that impact the capital spending and construction projects that can juice demand.

The 9 maintenance and repair distributors stocks we track reported a satisfactory Q3. As a group, revenues beat analysts’ consensus estimates by 2%.

Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 10.4% since the latest earnings results.

DXP

Founded during the emergence of Big Oil in Texas, DXP provides pumps, valves, and other industrial components.

DXP reported revenues of $513.7 million, up 8.6% year on year. This print exceeded analysts’ expectations by 3%. Despite the top-line beat, it was still a mixed quarter for the company with a solid beat of analysts’ revenue estimates but a significant miss of analysts’ EPS estimates.

David R. Little, Chairman and Chief Executive Officer commented, "The Company posted excellent third quarter financial results, delivering solid sales, adjusted EBITDA, earnings per share and free cash flow. Third quarter results reflect the continued execution of our growth strategy. We continue to set new high watermarks as DXPeople. We are pleased with our sequential sales growth. This resulted in operating leverage that produced diluted earnings per share of $1.31. DXP’s fiscal year 2025 third quarter sales were $513.7 million, or an 8.6 percent growth over the same period in 2024. Adjusted EBITDA was $56.5 million in the quarter. During the third quarter of 2025, sales were $350.2 million for Service Centers, $100.6 million for Innovative Pumping Solutions, and $63.0 million for Supply Chain Services. Overall, we are very pleased with our performance and the progress DXP continues to make as a growth company. "

Unsurprisingly, the stock is down 29.8% since reporting and currently trades at $85.85.

Is now the time to buy DXP? Access our full analysis of the earnings results here, it’s free for active Edge members.

Best Q3: VSE Corporation

With roots dating back to 1959 and a strategic focus on extending the life of transportation assets, VSE Corporation provides aftermarket parts distribution and maintenance, repair, and overhaul services for aircraft and vehicle fleets in commercial and government markets.

VSE Corporation reported revenues of $282.9 million, up 3.4% year on year, outperforming analysts’ expectations by 2.3%. The business had a stunning quarter with an impressive beat of analysts’ EBITDA estimates and a solid beat of analysts’ adjusted operating income estimates.

Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 10.8% since reporting. It currently trades at $160.

Is now the time to buy VSE Corporation? Access our full analysis of the earnings results here, it’s free for active Edge members.

Weakest Q3: Global Industrial

Formerly known as Systemax, Global Industrial distributes industrial and commercial products to businesses and institutions.

Global Industrial reported revenues of $353.6 million, up 3.3% year on year, falling short of analysts’ expectations by 1%. It was a disappointing quarter as it posted a significant miss of analysts’ EBITDA and EPS estimates.

Global Industrial delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 23.3% since the results and currently trades at $26.93.

Read our full analysis of Global Industrial’s results here.

Transcat

Serving the pharmaceutical, industrial manufacturing, energy, and chemical process industries, Transcat provides measurement instruments and supplies.

Transcat reported revenues of $82.27 million, up 21.3% year on year. This number beat analysts’ expectations by 3.5%. More broadly, it was a satisfactory quarter as it also recorded an impressive beat of analysts’ revenue estimates but a significant miss of analysts’ EPS estimates.

Transcat delivered the fastest revenue growth among its peers. The stock is down 23.3% since reporting and currently trades at $54.03.

Read our full, actionable report on Transcat here, it’s free for active Edge members.

WESCO

Based in Pittsburgh, WESCO provides electrical, industrial, and communications products and augments them with services such as supply chain management.

WESCO reported revenues of $6.20 billion, up 12.9% year on year. This result topped analysts’ expectations by 4.9%. Overall, it was a very strong quarter as it also put up an impressive beat of analysts’ organic revenue estimates and a solid beat of analysts’ revenue estimates.

WESCO achieved the biggest analyst estimates beat among its peers. The stock is up 13% since reporting and currently trades at $257.98.

Read our full, actionable report on WESCO here, it’s free for active Edge members.

Market Update

In response to the Fed’s rate hikes in 2022 and 2023, inflation has been gradually trending down from its post-pandemic peak, trending closer to the Fed’s 2% target. Despite higher borrowing costs, the economy has avoided flashing recessionary signals. This is the much-desired soft landing that many investors hoped for. The recent rate cuts (0.5% in September and 0.25% in November 2024) have bolstered the stock market, making 2024 a strong year for equities. Donald Trump’s presidential win in November sparked additional market gains, sending indices to record highs in the days following his victory. However, debates continue over possible tariffs and corporate tax adjustments, raising questions about economic stability in 2025.

As the Q3 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the maintenance and repair distributors industry, including VSE Corporation and its peers.

Supply chain and inventory management are themes that grew in focus after COVID wreaked havoc on the global movement of raw materials and components. Maintenance and repair distributors that boast reliable selection and quickly deliver products to customers can benefit from this theme. While e-commerce hasn’t disrupted industrial distribution as much as consumer retail, it is still a real threat, forcing investment in omnichannel capabilities to serve customers everywhere. Additionally, maintenance and repair distributors are at the whim of economic cycles that impact the capital spending and construction projects that can juice demand.

The 9 maintenance and repair distributors stocks we track reported a satisfactory Q3. As a group, revenues beat analysts’ consensus estimates by 2%.

Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 7.9% since the latest earnings results.

Best Q3: VSE Corporation

With roots dating back to 1959 and a strategic focus on extending the life of transportation assets, VSE Corporation provides aftermarket parts distribution and maintenance, repair, and overhaul services for aircraft and vehicle fleets in commercial and government markets.

VSE Corporation reported revenues of $282.9 million, up 3.4% year on year. This print exceeded analysts’ expectations by 2.3%. Overall, it was a stunning quarter for the company with a solid beat of analysts’ EBITDA estimates.

“VSE delivered another quarter of record performance, reflecting the strength of our aviation aftermarket platform and disciplined execution of our 2025 operating plan,” said John Cuomo, President and Chief Executive Officer of VSE Corporation.

The market was likely pricing in the results, and the stock is flat since reporting. It currently trades at $178.35.

Is now the time to buy VSE Corporation? Access our full analysis of the earnings results here, it’s free for active Edge members.

MSC Industrial

Founded in NYC’s Little Italy, MSC Industrial Direct provides industrial supplies and equipment, offering vast and reliable selection for customers such as contractors

MSC Industrial reported revenues of $978.2 million, up 2.7% year on year, outperforming analysts’ expectations by 1.5%. The business had a very strong quarter with an impressive beat of analysts’ EBITDA estimates.

The market seems content with the results as the stock is up 2.6% since reporting. It currently trades at $89.27.

Is now the time to buy MSC Industrial? Access our full analysis of the earnings results here, it’s free for active Edge members.

Weakest Q3: Global Industrial

Formerly known as Systemax, Global Industrial distributes industrial and commercial products to businesses and institutions.

Global Industrial reported revenues of $353.6 million, up 3.3% year on year, falling short of analysts’ expectations by 1%. It was a disappointing quarter as it posted a significant miss of analysts’ EBITDA and EPS estimates.

Global Industrial delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 24.1% since the results and currently trades at $26.65.

Read our full analysis of Global Industrial’s results here.

Transcat

Serving the pharmaceutical, industrial manufacturing, energy, and chemical process industries, Transcat provides measurement instruments and supplies.

Transcat reported revenues of $82.27 million, up 21.3% year on year. This number surpassed analysts’ expectations by 3.5%. Aside from that, it was a satisfactory quarter as it also logged a solid beat of analysts’ revenue estimates but a significant miss of analysts’ EPS estimates.

Transcat pulled off the fastest revenue growth among its peers. The stock is down 19.6% since reporting and currently trades at $56.59.

Read our full, actionable report on Transcat here, it’s free for active Edge members.

W.W. Grainger

Founded as a supplier of motors, W.W. Grainger provides maintenance, repair, and operating (MRO) supplies and services to businesses and institutions.

W.W. Grainger reported revenues of $4.66 billion, up 6.1% year on year. This result met analysts’ expectations. Zooming out, it was a satisfactory quarter as it also recorded a solid beat of analysts’ adjusted operating income estimates but full-year revenue guidance slightly missing analysts’ expectations.

The stock is down 1.1% since reporting and currently trades at $945.61.

Read our full, actionable report on W.W. Grainger here, it’s free for active Edge members.

Market Update

As a result of the Fed’s rate hikes in 2022 and 2023, inflation has come down from frothy levels post-pandemic. The general rise in the price of goods and services is trending towards the Fed’s 2% goal as of late, which is good news. The higher rates that fought inflation also didn't slow economic activity enough to catalyze a recession. So far, soft landing. This, combined with recent rate cuts (half a percent in September 2024 and a quarter percent in November 2024) have led to strong stock market performance in 2024. The icing on the cake for 2024 returns was Donald Trump’s victory in the U.S. Presidential Election in early November, sending major indices to all-time highs in the week following the election. Still, debates around the health of the economy and the impact of potential tariffs and corporate tax cuts remain, leaving much uncertainty around 2025.

Transcat’s third quarter results reflected strong execution in its distribution and rental businesses, with revenue growth outpacing Wall Street expectations. Management attributed the growth to robust demand in the higher-margin rental segment, as well as the positive impact from recent acquisitions, including Essco Calibration and Martin Calibration. CEO Lee Rudow emphasized that “consolidated revenue increased 21%” and highlighted effective integration of acquired companies as a key factor. Despite these gains, the company’s non-GAAP profit per share fell short of analyst estimates due in part to higher costs, including those tied to its CEO succession plan.

Is now the time to buy TRNS? Find out in our full research report (it’s free for active Edge members).

Transcat (TRNS) Q3 CY2025 Highlights:

• Revenue: $82.27 million vs analyst estimates of $79.51 million (21.3% year-on-year growth, 3.5% beat)
• Adjusted EPS: $0.44 vs analyst expectations of $0.48 (9.1% miss)
• Adjusted EBITDA: $12.12 million vs analyst estimates of $11.61 million (14.7% margin, 4.4% beat)
• Operating Margin: 4.3%, down from 5.5% in the same quarter last year
• Market Capitalization: $516.3 million

While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions From Transcat’s Q3 Earnings Call

• Greg Palm (Craig-Hallum) asked about the drivers of rental business acceleration and visibility for the second half. CFO Tom Barbato credited integration of Axiom Test Equipment and internal execution, but tempered expectations for continued margin expansion, suggesting growth may moderate.
• Maxwell Michaelis (Lake Street Capital Markets) inquired about the Essco acquisition’s positives and negatives. CEO Lee Rudow responded that Essco exceeded expectations with strong management and seamless integration, with no significant obstacles encountered so far.
• Edward Jackson (Northland Securities) pressed for more disclosure on rental business financials and capital allocation. Barbato explained rental and distribution are operationally intertwined, making separate reporting challenging, but noted about a third of CapEx is allocated to rentals.
• Edward Jackson (Northland Securities) also asked about the solutions business’s impact on overall growth. Rudow said the business has stabilized as expected and should soon stop being a drag on top-line metrics.
• Martin Yang (Oppenheimer) questioned why new acquisitions are growing faster than legacy service operations. Rudow attributed this to the strong customer base in acquired regions, particularly in life sciences and medical devices, with expectations for continued but potentially moderating growth.

Catalysts in Upcoming Quarters

Looking ahead, the StockStory team will be monitoring (1) whether Transcat achieves its targeted acceleration in organic service growth as new customer contracts convert to revenue, (2) continued momentum and margin expansion in the rental and distribution businesses, and (3) progress on integration and performance of recent acquisitions. The impact of macroeconomic conditions, including tariffs and customer decision delays, will also be important to watch for sustained improvement.

Transcat currently trades at $55.35, down from $70.42 just before the earnings. Is the company at an inflection point that warrants a buy or sell? The answer lies in our full research report (it’s free for active Edge members).

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What Happened?

Shares of measurement equipment distributor Transcat fell 12% in the morning session after the company reported mixed third-quarter 2025 results that showed a miss on earnings per share and a steep decline in profit. 

While revenue grew by 21.3% to $82.3 million and surpassed expectations, investors focused on the weaker aspects of the report. The company's adjusted earnings per share of $0.44 missed analyst forecasts. More significantly, net income experienced a sharp decrease of 61.4% to $1.3 million compared to the prior year. This drop in profitability was linked to higher operating expenses from recent acquisitions. The company's operating margin also compressed, falling to 4.3% from 5.5% in the same quarter last year. The market's negative reaction suggested that the strong revenue growth was overshadowed by concerns about declining profitability and shrinking margins.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Transcat? Access our full analysis report here.

What Is The Market Telling Us

Transcat’s shares are somewhat volatile and have had 13 moves greater than 5% over the last year. But moves this big are rare even for Transcat and indicate this news significantly impacted the market’s perception of the business.

The previous big move we wrote about was 12 days ago when the stock gained 6.3% on the news that the stock extended recent gains in what appeared to be a technical move. The stock's rise marked the third consecutive day of gains. This upward trend followed a technical buy signal that was issued from a pivot bottom point earlier in the month, after which the stock had already risen over 7%. The continued buying activity, which occurred without any specific company announcements, suggested that investor sentiment was being driven by the stock's recent price performance and trading patterns rather than new fundamental information.

Transcat is down 43.9% since the beginning of the year, and at $59.55 per share, it is trading 46.9% below its 52-week high of $112.22 from November 2024. Investors who bought $1,000 worth of Transcat’s shares 5 years ago would now be looking at an investment worth $1,959.

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Measurement equipment distributor Transcat reported revenue ahead of Wall Streets expectations in Q3 CY2025, with sales up 21.3% year on year to $82.27 million. Its non-GAAP profit of $0.44 per share was 9.1% below analysts’ consensus estimates.

Is now the time to buy TRNS? Find out in our full research report (it’s free for active Edge members).

Transcat (TRNS) Q3 CY2025 Highlights:

• Revenue: $82.27 million vs analyst estimates of $79.51 million (21.3% year-on-year growth, 3.5% beat)
• Adjusted EPS: $0.44 vs analyst expectations of $0.48 (9.1% miss)
• Adjusted EBITDA: $12.12 million vs analyst estimates of $11.61 million (14.7% margin, 4.4% beat)
• Operating Margin: 4.3%, down from 5.5% in the same quarter last year
• Market Capitalization: $658.1 million

StockStory’s Take

Transcat’s third quarter results reflected strong execution in its distribution and rental businesses, with revenue growth outpacing Wall Street expectations. Management attributed the growth to robust demand in the higher-margin rental segment, as well as the positive impact from recent acquisitions, including Essco Calibration and Martin Calibration. CEO Lee Rudow emphasized that “consolidated revenue increased 21%” and highlighted effective integration of acquired companies as a key factor. Despite these gains, the company’s non-GAAP profit per share fell short of analyst estimates due in part to higher costs, including those tied to its CEO succession plan.

Looking forward, management expects renewed organic growth in the service segment as newly won accounts come online and recent acquisitions continue to perform. CEO Lee Rudow stated the company anticipates “returning to high single-digit organic service growth” in the second half of the year, supported by a strong acquisition pipeline and investments in technology, including artificial intelligence. However, CFO Tom Barbato cautioned that lingering macroeconomic uncertainty, such as tariffs and slower customer decision cycles, could continue to influence both growth rates and margins in the near term.

Key Insights from Management’s Remarks

Management attributed Q3’s top-line growth to distribution and rental momentum, while noting integration of recent acquisitions and ongoing economic uncertainty impacted margins and profitability.

• Rental channel momentum: The distribution segment benefited from high demand in its rental business, with management citing successful integration of Axiom Test Equipment and consistent performance in the Becnel rental operations as key contributors to growth and margin expansion.
• Acquisition integration: Recent acquisitions, particularly Essco Calibration and Martin Calibration, exceeded initial expectations. Leadership noted both have contributed double-digit growth and have been smoothly integrated, expanding Transcat’s geographic reach and customer base in life sciences and medical devices.
• Service segment stability: While organic service growth remained modest due to delayed customer decisions in an uncertain economic climate, core customer retention stayed high. Management highlighted that recent contract wins are expected to drive a return to higher growth in coming quarters.
• Solutions business stabilization: The solutions business, previously a drag on overall performance, has now stabilized. CEO Lee Rudow indicated that “declines have leveled off” and expects it to become a contributor rather than a headwind going forward.
• Margin headwinds: Profitability was pressured by higher interest expense, increased tax rates related to the CEO succession plan, and continued upfront costs from acquisitions. These factors were cited as reasons for the non-GAAP profit shortfall versus consensus.

Drivers of Future Performance

Transcat’s outlook is driven by expectations of service segment acceleration, ongoing rental strength, and integration of recent acquisitions, tempered by macroeconomic uncertainty.

• Service growth recovery: Management anticipates a shift to high single-digit organic growth in services as newly signed accounts begin generating revenue and as economic headwinds potentially ease. This growth is expected to help restore margins toward historical levels.
• Rental and distribution execution: The company plans to maintain momentum in its rental channel, leveraging integration benefits and capital investment in rental assets. While growth rates may moderate, management expects continued margin expansion in the distribution segment.
• Acquisition pipeline and integration: Ongoing acquisition activity is set to further expand Transcat’s capabilities and market share. However, management noted that sustained macroeconomic challenges, such as tariffs and slow decision-making cycles among customers, remain risks to both revenue growth and profitability.

Catalysts in Upcoming Quarters

Looking ahead, the StockStory team will be monitoring (1) whether Transcat achieves its targeted acceleration in organic service growth as new customer contracts convert to revenue, (2) continued momentum and margin expansion in the rental and distribution businesses, and (3) progress on integration and performance of recent acquisitions. The impact of macroeconomic conditions, including tariffs and customer decision delays, will also be important to watch for sustained improvement.

Transcat currently trades at $70.43, in line with $70.42 just before the earnings. Is there an opportunity in the stock?The answer lies in our full research report (it’s free for active Edge members).

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