Transcat CEO Lee Rudow to retire in March 2026

ROCHESTER, N.Y. - Transcat, Inc. (NASDAQ:TRNS), an $851 million market cap company trading at $91.2 per share, announced Monday that Chief Executive Officer Lee D. Rudow plans to retire in March 2026 after more than a decade leading the test measurement, control and calibration company. According to InvestingPro data, the company maintains strong financial health with a "GOOD" overall rating.

According to the company’s press release, Rudow will continue in his current role until his retirement date and then transition to an advisory position until 2027 to ensure leadership continuity.

The board has formed a search committee to identify potential successors and is considering both internal and external candidates.

"It has been a great honor for me to have the opportunity to lead Transcat and be a part of building an incredible organization," Rudow said in the statement. He noted that after 40 years in the calibration industry, "the time is right for me to pass the baton."

Transcat Chairman Gary Haseley credited Rudow with delivering "unprecedented growth and transformative acquisitions" during his 14 years with the company, including over 10 years as CEO.

Chief Financial Officer Tom Barbato affirmed the company’s positive outlook, stating that Transcat expects to return to high single-digit service organic revenue growth in the second half of fiscal 2026. This outlook aligns with the company’s current performance, as InvestingPro data shows revenue growth of 8.49% and four analysts revising their earnings estimates upward for the upcoming period.

The company has recently completed two acquisitions, Martin Calibration and Essco, which management believes positions Transcat to capture increased market share.

Transcat provides accredited calibration and related services to regulated industries, particularly life sciences, and operates as a distributor of measurement instruments primarily in North America. The company maintains a healthy financial position with a current ratio of 2.92, though it trades at a relatively high P/E multiple of 62.8. For deeper insights into Transcat’s valuation and growth prospects, investors can access comprehensive analysis through InvestingPro’s detailed research reports, which cover over 1,400 US stocks.

In other recent news, Transcat Inc. reported financial results for the first quarter of fiscal 2026 that exceeded analysts’ expectations. The company achieved an adjusted earnings per share of $0.59, surpassing the projected $0.40. Revenue for the quarter was $76.4 million, which was higher than the anticipated $72.28 million. Additionally, H.C. Wainwright reiterated its Buy rating on Transcat, highlighting the positive impact of increased automation in the company’s service segment. This automation has improved service segment margins to the mid-30% range from the low-30% range over the past few years. Oppenheimer maintained its Perform rating on Transcat following discussions with the company’s leadership. During these discussions, Transcat’s management reaffirmed a long-term revenue target of $500 million annually. This target is expected to be driven by recurring service revenue growth, strategic acquisitions, and efficiency improvements through automation.

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