Transcat, Inc.

Please stand by, your program is about to begin. If you need audio assistance during today's program, please press star zero. Greetings and welcome to the TransCAT incorporated first quarter fiscal year 2026 financial results call. As a reminder, this conference call is being recorded. It is now my pleasure to introduce your host, John Howe, Senior Director of Financial Planning and Analysis. Thank you, John, you may begin.

Thank you, operator, and good morning, everyone. We appreciate your time and your interest in TransCAT. With me here on the call today is our President and CEO, Lee Rudeau, and our Chief Financial Officer, Tom Barbato. We will begin the call with some prepared remarks, and then we will open the call for questions. Our earnings release crossed the wire after markets closed yesterday. Both the earnings release and the slides that we will reference during our prepared remarks can be found on our website, transcat.com, in the investor relations section. If you would, please refer to slide two. As you are aware, we may make forward-looking statements during the formal presentation and Q&A portion of this teleconference. These statements apply to future events, which are subject to risks and uncertainties, as well as other factors that could cause the actual results to differ materially from where we are today. These factors are outlined in the news release, as well as the documents filed by the company with the SEC. You can find those on our website, where we regularly post information about the company, as well as on the SEC's website at sec.gov. We undertake no obligation to publicly update or correct any of the forward-looking statements contained in this call, whether as a result of new information, future events, or otherwise, except as required by law. Please review our forward-looking statements in conjunction with these precautionary factors. Additionally, during today's call, we will discuss certain non-GAAP measures, which we believe will be useful in evaluating our performance. You should not consider the presentation of this additional information in isolation, or as a substitute for results prepared in accordance with GAAP. We've provided reconciliations of non-GAAP to compared GAAP measures in the tables accompanying the earnings release. With that, I'll turn the call over to Lee.

Thank you, John. Good morning, everyone. Thank you for joining us on the call today. I'll begin with a few key messages that highlight our first quarter performance, the fiscal 2026. Our Q1 results yielded stronger than expected -over-year revenue and adjusted EBITDA growth. Consolidated revenue is up 15% to $76.4 million. The growth was primarily driven by consistent demand for our calibration and rental services. Adjusted EBITDA grew 15% as both service and distribution generated double-digit revenue growth. TransCAT's ability to deliver strong performance amidst a fair amount of economic uncertainty and volatility is a testament to the strength of our diversified portfolio. In addition, regulation, along with the high cost of failure, continues to drive demand for our calibration services with its associated recurring revenue streams. The team is very pleased with our strong start, and as we previously talked about, we expect performance to continue to get stronger as the fiscal 2026 year progresses. Looking a little closer at the service segment for the first quarter, we recorded our 65th straight quarter of -over-year service revenue growth. Martin calibration had another strong quarter, their second quarter as part of the TransCAT portfolio. Our integrated TransCAT and Martin sales teams captured revenue synergies throughout the Midwest region where we now have a strong presence with Martin's flagship calibration lab. Overall service revenue growth, overall service revenue grew 12% and was in line with our expectations. Total organic service growth, not including TransCAT solutions, was 2%. The balance of the total service revenue growth came from our combined effort with Martin to drive -over-year growth. We believe current new service sales activity levels are supportive of organic growth in historic range of high single digits as the year progresses. On August 5th, TransCAT acquired ESCO calibration. This is a deal we've worked on for over 10 years and very similar to Martin, represents TransCAT's ability to acquire the best of the best within the fragmented calibration services market. ESCO is the premier provider of specialized high-end electronic calibrations. While they primarily service New England's large concentration of highly regulated life science and aerospace and defense manufacturers, they service various other pockets of work throughout the country as one of the very few primary electronics calibration standards labs. ESCO is second to none in terms of quality of their operation. They have consistently invested in -the-art calibration capabilities to support both the aerospace and defense and life science industries. Their technical expertise and dedication to customer service is among the best we've ever seen, and now they are a TransCAT company. Believe me when I say they are difficult to compete with and we're excited to join our talented teams together. They are a perfect fit for TransCAT. Integration will be swift and we expect to achieve both sales and cost synergies as we integrate and leverage our combined forces. Turning to distribution, the heart of our distribution strategy is to be a strong differentiator by generating leads to foster consistent organic service growth. The unique combination of products, rentals, and services continues to amplify the overall TransCAT brand. Our first quarter distribution results driven by our unique suite of rental services were outstanding. Distribution revenue grew 19% in the quarter and totaled $27.3 million. Distribution gross profits grew 24% as gross margins expanded 130 basis points to 35.2%. The margin growth reflected the continued positive change in mix towards the high margin rentals within the distribution segment. Our balance sheet remains strong. We recently closed a five year credit facility that nearly doubles TransCAT's capital resources and provides ample capacity to execute our proven acquisition and growth strategies. Overall, TransCAT's first quarter results were strong despite the economic volatility. We are pleased to be off to a fast start in fiscal 2026. With that, I'll turn things over to Tom for a more detailed look at the first quarter financial performance.