Q1 2026 Transcat Inc Earnings Call
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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 house, 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 rudo and our Chief Financial Officer. Tom barbado, 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 2,
as you are aware, we may make forward-looking statements during the formal presentation and Q&A portion of this teleconference,
Certainties, as well as other factors, 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 Gap. 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 year-over-year revenue and adjusted Eva dog 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 ibaa grew 15% as both service and distribution generated, double digit, Revenue growth, transcat 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 we 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 segments, for the first quarter, we recorded our 65th straight quarter of year-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 Transat Solutions.
Was 2%.
The balance of the total service Revenue growth came from our combined effort with Martin to drive year-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 Essco Calibration. This is a deal we've worked on for over 10 years.
And very similar to Martin represents transcat 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 are they primarily Service New England's, large concentration of Highly regulated, life science and Aerospace. And defense manufacturers, they serve as various other pockets of work throughout the country, as 1 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 state-of-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 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 Transat.
Integration will be Swift and we expect to achieve both sales and cost synergies as we integrate and leverage our combined forces.
Turning into distribution, the heart of our distribution strategy.
Growth.
The unique combination of products rentals and services continues to amplify the overall transcap brand.
Our first quarter distribution, results, driven by our unique Suite of rental services. We're outstanding.
Distribution Revenue, grew 19% in the quarter and total 27.3 million.
Distribution, grows profits, grew 24%, as gross, margins, expanded 130 basis points to 35.2%.
The margin growth reflected to continued, positive change in mix.
Towards a high margin rentals within the distribution segment.
Our balance sheet remains strong.
We recently closed a 5-year credit facility. That nearly doubles trans cast capital resources and provides ample capacity to execute our proven acquisition and growth strategies.
Overall transcat first quarter results, were strong, despite the economic volatility.
We are pleased to be off to a fast, start in fiscal 2026 and with that, I'll turn things over to Tom for more detailed, look at the first quarter financial performance.
Obviously, I'll start on slide 5 of the earnings deck, which provides detail regarding our revenue on a Consolidated basis. And by segments, for the first quarter of fiscal 2026,
First quarter Consolidated, revenue of 76.4. Million was up. 15% versus prior year as both segments, grew double digits
looking at it by segment service Revenue grew 12%, despite economic volatility, it was in line with expectations
Turning to distribution revenue of 27.3 million grew 19%. Primarily due to the strong performance from the higher margin, rental business.
Our turning the slide 6.
Our Consolidated gross profit for the first quarter of 25.8 million was up 14% from the prior year.
Service goes profit, increased 9% versus the prior year. We continue to leverage higher levels of technician productivity.
And our differentiated value proposition.
Distribution segment, gross profit of 9.6 million was up to 24% with 130 basis points of gross margin expansion, to a record 35.2%.
Driven by the higher margin. Rental mix.
Turning to slide 7, Q1 net income of $3.3 million decreased by $1.1 million versus the prior year, driven by higher interest expense and taxes.
Diluted earnings per share came in at 35 cents.
We report adjusted diluting earnings per share as well to normalize for the impact of upfront and ongoing acquisition related costs.
Q1 adjusted diluted earnings per. Share was 59 cents.
Flipping the slide 8 where we show our adjusted ibida and adjusted ibida margin.
We use adjusted ibida, which is non-gaap to gauge the performance of our business, because we believe it's the best measure of our operating performance and ability to generate cash.
As we continue to execute on our acquisition strategy, this metric the B becomes, even more important to highlight as it does adjust for 1 time deal related, transaction costs as well as the increased level of non-cash expenses expenses that will hit our income statement from acquisition purchase accounting.
First quarter Consolidated, adjusted, ibida of 11.8 million, increased 15% from the same quarter in the prior year.
With 10 basis points of margin expansion.
Distribution ibida increased, 49% driven by growth in rentals.
As always, a Reconciliation of adjusted ibida to operating income and net income, can be found in the supplemental section of this presentation.
Moving the slide 9 operating cash flow was lower versus prior year related to timing of certain working capital items.
Q1 Capital expenditures were 900,000 higher than prior year and continue to be centered around service segment, capabilities, rental, pool assets, technology, and future growth projects. The spend was in line with expectations.
Slide 10 highlights, our strong balance sheet, at the end of the quarter, we had total net debt of 32.5 million.
With a leverage ratio of 0.82 x.
Just after quarter end, we closed a new 5-year. Syndicated secured credit facility, led by MNT Bank.
And includes additional lenders, Wells Fargo and Bank of America.
This facility with America's top lenders, nearly doubles our access to available capital and provides significant financial flexibility.
Our existing revolver in term debt was paid off as part of this transaction.
Lastly, we'll fi we filed our 10q yesterday after the market closed with that. I'll turn it back to you lie. Thanks Tom.
Along with our ability to acquire top tier calibration providers that expand both our Geographic footprint and capabilities have solidified, our strong financial profile and differentiated transcat from the competition. We expect the progressively improve our service organic Revenue growth during the fiscal year. And as I stated earlier, barring any further economic deterioration, we anticipate a return to high single digit organic service, Revenue growth and the second half of fiscal 2026.
Acquisitions will continue to be important to fortify our core calibration business, as well as expand our addressable markets where it makes sense. We'll continue to leverage continuous, process Improvement, and automation, as key drivers of future, service margin expansion.
Likewise. We expect distribution margins to benefit over time as our rental Channel continues to be a higher percentage of the distribution Revenue mix. And as always, we focus on generating sustainable long-term value for our shareholders.
Our leadership team has never been more talented and capable, and we are well positioned to deliver strong results as our strategy continues to be differentiated and defendable.
With that operator, we can open the line for questions.
At this time, if you would like to ask a question, please press the star 1 on your telephone keypad. You may remove yourself from the
Time by pressing star 2 once again, it's star 1 to ask a question.
And our first question comes from Greg Palm with Greg Howland. Please go ahead.
Yeah, good morning. Thanks and, uh, congrats on the quarter and the, uh, recent acquisition.
Thanks Greg, thanks Greg.
I'm starting with the results. Uh, what really stood out was distribution, so maybe uh maybe a 2-part but uh, how how much of that? Well, I guess was any of that related to, to sort of, you know, pull in, you know, Revenue getting ahead of any kind of tariff related, you know, impacts and, you know, just kind of visibility levels going forward, kind of what you're seeing, you know, so far in fiscal Q2 and a little bit more color, would be great.
Hey, hey Greg, it's Tom. You know, I'll just say that you know, distribution, we continue to see, you know, consistent demand, both on the independent core distribution side, as well as rentals. So, um, you know, I think it it, uh,
I think it's indicative of, of something more than just, you know, kind of a pull in um, due to tariffs. So I'll just kind of leave it at that. But you know demand continues to
To be uh, consistent for us.
And and any specific, you know, part of that segments and markets that that, that drove the strength. It's just in light of the, you know, significant outperformance relative to, you know, sort of Prior quarters and and maybe you know also if you could hit on the on the gross margin was it was it skewed more towards Reynolds? Is that why we saw such a big jump in in margins relative to the last few quarters as well?
Yeah. That I mean the rentals had a really nice quarter and um, you know, that anytime we see, you know, rental growth, like we saw in q1, you know, we're going to see, you know, margins expand. Now that being said, you know, we shouldn't expect, you know, 35 Plus percent going forward, but we should expect, you know, meaningful, year-over-year growth in, um, in distribution margins, as we progress through the year. But I do, but I do think over time Greg and, you know, not not next quarter, which is, I think what time is alluding to? But over time, if you look forward a year, or 2 or even Beyond again, as, as as as Reynolds continues to grow, we anticipate it will because it's strategic for us and that's where we allocate Capital. As it grows, the margins are going to continue to grow. So that mix is is sort of a short term midterm, and long term play and we'll continue through time and um, you know,
You know that, that's that. That's why it's strategic for us.
Yeah. Okay.
And then I just wanted to spend a minute on on Esco. I don't know if this is a fair question but maybe kind of hoping to kind of compare in contrast to to Martin just knowing it's a similar Revenue but uh margin profile. Uh, that's obvious, Martin's obviously been a great acquisition, highly accretive. But you know what? What, what's similar, what's different, you know? Can it can it be a home run? Like, Martin has been so far.
Right. It it it can be and we and we anticipate and expect it will be. The companies are are similar in terms of size earnings, um, sort of dominance, if you will, I'm a little reluctant to use that word. But, you know, their strengths within a region 1 of the differences is that, um,
Electronic labs in the country, we happen to be 1 of them. They're a second 1. Um, but you can you can count them on 1 hand and so they've invested a lot of money to high-end Electronics which which lends itself to the highly regulated markets which which we serve
When you look at Martin, their strength is in dimensional and mechanical measurements which is very different and they they have a, they have a strength there that um, you know, definitely, um, resonates well within medical device. For example, when you think of Minneapolis, you think of, you know, metronics and Boston Science St. Jude and so they have different Suites of services. Now, they overlap, you know, if there was a Venn diagram, I would say 30, 40% overlap, but their Specialties are different. And so, um, we're going to leverage that difference within the regions with which with, uh, where they operate. And so I think they're similar, but different and the and the the difference is important to us.
Yeah. Okay, all right. Well uh, looking forward to seeing how things progressed there. Thanks for all the color.
Hey, thanks for the call. Thank you. And we'll take our next question from Max mallis with Lake Street Markets. Please go ahead.
Hey guys, thanks for taking my question and congrats on the quarter. I just want to start out with the Esco acquisition. Um,
How would you characterize their growth rate? I mean, would you put it into the service segment of trans? Scan of the high single-digit growth, or how would you characterize that? I guess.
I, I think I would characterize it similar to ours, you know, there are very high quality company. I've watched them grow for. I mean, many, many years, fairly consistently and you, what, what ultimately drives the growth is investment in your company, um, sales marketing capabilities. They've done that consistently. They've done a really nice job and investment people investment in people, it's all part of it. And and um, even even during our discussions and negotiations, I mean, the people part was really important to them and that fit like a glove with our value proposition, the way we approach business.
So yeah um that all you need all those things together. Max to get the growth over time and they they've done a lot of really good things and and and they've been they've got definitely generated consistent growth over time.
Awesome perfect. Hey we ship to the 2026 expectations when we talk about high single digit organic Revenue growth in the second half. I mean, what does that imply for the transcat solutions business? I mean, is the other side of the is the other parts of the uh service business going to be growing High, single digits, maybe low double digits, and then trans Solutions is going to be still declining or how do you expect that to kind of shake out throughout the rest of the year?
Yeah, it it implies stabilization in part in the solutions business which was our goal. I mean the solutions business
It's a, it's an important differentiator for us when we when we go to win, organic service business and we include the attributes of that that channel for us, those Suite of services it makes us a better company. It makes our value proposition better uh it resonates with our customers. So we're going to continue to drive that our goal this year with stabilization, and we're making good progress towards that goal. And that's all that's part of the story. When we think about high single digits in the back, half of the year that's a contributing factor, you know, in addition to the, the activity levels, we see now and the quoting levels, the win rates, you know, it, all it all works together, but yes, Solutions is a part of it.
And um, we expect it to be, you know, stable in the back half of the year.
Awesome. Thanks for taking my questions, guys.
Thank you, Max.
Thank you. We'll check our next question from Martin Yang with Oppenheimer. Please go ahead.
All right, thanks for taking my question, first. Uh, a few questions, um, Esco sales, um can you maybe give us more context on the timing uh what helped to push the deal forward? Um, you know, is it uh is do they have a incentivized seller on the board or in management? Um you know what helped to uh finalized the deal.
so um you know the deal is finalized because I think the the owner of the company um,
Any better. So, um, it it all worked and together and um, it was a matter of time, so you know, we're really pleased.
Got it. And then, uh, within escos business, is there any, uh, rental or distribution components or is it all services, calibration service? Very, very little very little. Um, it's it's primarily all core calibration services,
All right. Um, and then can you comment on maybe core distribution versus rental, um, is core distribution still? Uh, declining year-over-year basis, any, uh, is there any Divergence of the the growth rate between rental and, uh, corporate distribution?
we we saw we saw growth in both core distribution and rentals um in the uh in the quarter, you know, both both parts of that uh that uh segment performed well and um you know, as I mentioned earlier in in response to Greg's questions we continue to see
You know, consistent demand, um on both both sides of that segment as well in the Q2.
But if we take a longer-term view, do you think, you know, is there any updated thought on core distribution? Is it a moderately declining business, stable, or do you see potential for the core to start growing again?
No. Our our our view Martin is is consistent with with with, with p with our past few. And that is
Our strategy is to grow Services, um, because the recurring revenue streams during my regulation. Rentals is also part of our core strategy, uh, to continue to grow that allocate Capital. Um, when it comes to court distribution,
We what we want to do is we want to maintain it, it's going to get less capital investment because oh, over the long term, uh the returns aren't as high as we'd like them to be and it and the opportunity isn't as great as the other areas, but we do think it's important. It is a differentiator and we want to maintain it at its current levels. If it were over the long term to decrease a few points here and there, that's fine. Because that would reflect um, our Capital allocation that's what we would expect. It's doing really well right now but it's not going to change our view on its strategic value. Its strategic value is to support our service growth over time because that differentiates us and we're going to keep doing that. And that's that's what that's where we see um that business going.
Got it. Uh, last question for me on your conference level.
For, um, the return to a single-digit organic growth, um, maybe if I ask you to rank the relevant factors that build that confidence, how important, how important is the stabilization of, uh, Transit Solutions in that equation? And what are the other factors that gave you the confidence?
well, I mean when you look at long term,
You know, organic growth rates, you're looking number 1 at capabilities. You know what work can we do? And where can we do it? And when you think about Martin and Esco, just as an example, since they're their recent acquisitions, every time you make an acquisition like that, you're creating a foundation that's going to Foster higher organic growth in the future because you've got more capabilities in the region and you're going to be more competitive. So that's a factor our ongoing investment in process Improvement, um, capabilities,
Improving turnaround time. So that the the industry best that's also going to improve organic growth rates and it's going to um improve customer satisfaction and retention, which is also a major component of organic growth rates uh Solutions is just 1 of those elements that on certain accounts and certain opportunities that's going to give us a competitive advantage on other accounts. It's not going to be a factor. So it's just 1 of the many things we do over time and make us just a little bit better marginally in some places significantly in others. And um,
It's all part of it. So at the end of the day, it's going to be capabilities geography, service levels, retention and uniqueness of our value proposition. I think they all work together and our goal is to continue to get better in as many or each of those elements as we can over time. And I think, I think our confidence, you know, kind of is, is somewhat dependent on, you know, kind of the the macro, you know, kind of uncertainty in the trend. And that we're seeing on that front continuing and know, you know, further erosion of it, right? So right, I mean, you know, difficult macro environments, you know, you may see organic growth in the mid single digits or the low single digits. But over time, you know, if you go back over like the last 5 years, I think we're close to 8%, you know? That's, that's what we would expect as things normalized, but you're always going to have the es and flows of the economy. Um, but it's still a really nice business model. Almost regardless.
For me.
Thank you.
Our next question comes from, Ted Jackson with Northland Securities. Please go ahead.
Thanks.
Congratulations.
Thanks. Ted. Thank you so much. My my first question to you guys. Um, so the the outperformance on a mental distribution and I I think I know the answer to this from the you know previous questions in your and how you responded to them but we should view the first quarter kind of a Baseline and you know you should we it's not a um like we think about the goal for for rental distribution. It should continue to grow from that base you know like say you know fall back to
The lack of a better term trend line, and third quarter, and then hit the and then go from there.
Growth and rentals should not be viewed as an anomaly. I mean, it's it's our it's part of our strategic plan to grow our rental business core distribution, had a great quarter and you know, of course we like that. Uh, but if, if Court distribution, kind of over time becomes sort of moderated by the fact that it's not strategic for us. As in the same way the rentals and services, you would expect that to be. Um, it may continue to have a, a terrific Year may continue just to moderate and and and have an average year. But again, we allocate Capital towards where we get the highest returns and and that's going to be rentals and service. And so we would expect both those to grow.
that's not an anomaly, you know, the
Growth that we have. Yeah. But I understand, you know, you know, you've almost 20%, you know, which is way above kind of the norm. So it's like, you know, just making sure that I'm listening to you and understanding your answer. Um,
Secondly um with regards to growth and a return to high single digit growth. Um you know, you're going to have a a period of just, you know, bluntly speaking better comparables. As you laugh through all the issues that went on with Nexa. So, when we think about organic growth, you know, absolutely Acquisitions. Then I I assume it would be fair to
assume that as we roll through this year that your growth rate Falls being equal would accelerate as the drag from
Nexa phase that a good way to think about it is like, you know what I'm saying? Like, okay.
Yep, that that is correct.
And and, and would there be a case, then, you know, get in the Acquisitions that as we get to the back half of this year, you're, you know, reported growth rate should be well into the double digits with, you know, you have, you know, 2 really large Acquisitions. You know what I mean? I'm talking to the services here really, but you sound going with this that that you really set up for some very, very good time. Correct? Correct. And then, um,
Okay. And then my last question is, as we look at um this um fabulous, new acquisition that you've done, um, what it follow like a similar.
Seasonal Cadence as your core Services business as we think about putting that Revenue into our models. Would we, you know, basically you know, for you know conversation, say 202 million dollars in a layered in on top on a, on a poetic basis to okay. That's great. I mean, all 3 years assumption. Yeah. Well, all 3 of your assumptions are are, are, are correct. And on point um, it'll follow the same Cycles as our business and um, yeah you know, um every I agree with what you said across the board
So and actually I did forget I have 1 more question 1 was it's a little more fun, you know? And and so for all the fun that the, um, world is having with Trump and, you know, the government change in policies and
idea of bringing manufacturing back, you know, 1 area that he's putting a lot of effort into is, you know, a lot of things with targets of reshoring of, you know,
Life Sciences Pharmaceuticals in particular, I mean? And so I guess the question is is, is, are you seeing any activity? That is, um, driving the your, you know, your customer base to expand
Operations in the US. And would that be a Tailwind for transcat? If we think out, you know, maybe not this year but you see I'm going over longer term that you know, if they make more Pharmaceuticals in the country they start bringing them back. That should be good for you. Everything I mean is, is that true and are there other areas and are you seeing any kind of dialogue?
Look, I I'll be very clear any and all on showing a Manufacturing in the United States.
Is good for transcat period.
Any dialogue around that happening and it, you know, currently, and the answer is also. Yes, and we've got, we've got several companies that were, we do a lot of business with the United States. And we are definitely hearing, um, you know, we're we're going to be opening x amount of facilities over the next 5 years. And, um, I mean, I can I can count several just off the top of my head now between that and them actually being, uh, up and running and creating opportunities for us on on, you know, for our business that's going to take time that as you know. Um, but but we are thinking about it. It is a good thing for us. It's going to help our business long term, um, and we're excited about it. But, you know, I don't want to get too excited because we're not talking about Tailwind in this year. I mean, it could start next year and the year after. But, you know, it's something that we we absolutely are keeping an eye on and it's absolutely an opportunity for Transat.
okay, thanks for answering my questions and again congratulations on the quarter and yeah,
thank you, thanks. Ted. Appreciate it.
Our next question comes from Scott Buck with HC Wainwright. Please go ahead.
Hi. Good morning guys. Thanks for taking my my questions.
Lie. I'm curious, first on Esco, what kind of customer overlap is there with your, you know, the legacy Transcat business? Just trying to get my arms around what potential cross-selling opportunities look like.
Okay. Um as far as overlap they're about 5 times larger is than than our facility and our revenue streams in that area. So we do we do run a Boston facility and as far as capabilities go we overlap in capabilities a lot. But you know we're doing about 1 fifth of business that they're doing. I think we we bring those operations together sooner rather than later. We leverage our strengths with their strengths and um you know, we'll be better together so that that's um,
That's what I would say. It's so far as the region itself. Um, together we're going to be very competitive, you know, it's it's hard for me to even visualize um why we wouldn't continue to grow and and when where and when we want to, so I don't want to be overconfident but we're in that position and so um and then you know, you want to expand. I mean I when I look at Esko they are very strong but what they don't have that we have is capital and so you know, we're a public company and we know how to allocate Capital. So if we leverage their strengths, their expertise, their standards lab and feed them with capital so that we can capitalize on the opportunities we have together. That's what's going to be unique.
And as good. And as strong as they are, there's still a small privately held company. And now they join forces with us and together. I think, you know, I'd like the prospects. So that's what we're excited about.
Great, that's helpful. And then I'm I'm curious, you know, the company obviously has grown meaningfully over the last uh last few years.
Where are you in terms of your kind of industry market share, and are there opportunities to, you know, shift pricing higher with your current market position?
Well, it's it's difficult to come up with market share because there's just not a lot of good public information.
Uh, Scott. Around that, but, um, you know,
So I I guess it's it's a certain degree, we don't know. Now, there's a lot of In-House as far as opportunities for growth about a third of the market roughly, our in-house Calibration Labs, and for those kind of labs, you know, we do their overflow work, we do their standards work, and we supplement their labor, you know, during certain times. But there's always an opportunity with every 1 of those labs to Outsource them. We call them cbls client-based Labs so we're going to continue to go after that market. Our value proposition around that market is very strong. I don't, I don't, I can't think of a single competitor that has a, a strength around, you know, Outsourcing in-house Labs. Um, like we do, so we're going to continue. There's a big opportunity there over time. Um, you've got the OEM business, right? You got original equipment manufacturers, the key sites, the Agilent, the well you know, uh tektronix. You've got, you've got the
Companies, Rody Schwarz and, and they could do their own cows of of their products. But but but if you go into an average plant and there's a thousand or 10,000 instruments and you and you're managing a 100 vendors transact can come in and do it all. So our value proposition is very strong in terms of, you know, competing against individual oems within a plant and then you got the third party Market which is where we are, where Esco was where Martin is. And, um, that's still a, you know, a very big Market. Obviously, our market share is increasing as we make these big Acquisitions, um, but but we've got we got a pretty good Runway ahead of us and, you know, we're going to make sure we do the best we can.
Great. I appreciate the other color guys, and congrats again on the results.
Appreciate that. Thank you.
That concludes our question-and-answer session. I would now like to turn it back over to Lee Rudow for closing remarks.
Offering us on the call today. Relative to IR, we're going to be busy on August 12th. We'll be attending the Oppenheimer Technology Conference and participating in a fireside chat format Q&A. On September 18th, we will be attending the D.A. Davidson Conference in Nashville. That's new for us. On November 17th, we will be attending the Raymond James Conference in Sonoma, California. It's also new for us. And, you know, for any of you who are attending any of those conferences, feel free to check in on us or really reach out to us anytime. Tom and I make ourselves available. We appreciate everybody's interest in Transcat and joining us on the call today. Take care.
Thank you, and let's conclude today's program. We appreciate your participation, and you may disconnect at any time.
Mhm.