Transcat (NASDAQ: TRNS) shares surged 5.08% in after-hours trading on Monday following the release of its fiscal fourth quarter and full year 2025 financial results. The company's performance exceeded analyst expectations, demonstrating robust growth in key areas of its business.

The Rochester, New York-based company reported adjusted earnings per share of $0.64 for the quarter, significantly beating the analyst consensus estimate of $0.37. Although this represents a slight decrease from $0.66 per share in the same period last year, the strong beat likely contributed to investor enthusiasm. Transcat's quarterly revenue also impressed, coming in at $77.13 million, surpassing the analyst estimate of $76.39 million and marking an 8.77% increase from the previous year.

Transcat's service revenue, a crucial component of its business, grew by 11% to reach $52 million in Q4. The company also reported a 13% rise in service gross profit, driven by double-digit revenue growth and improvements in productivity and automation. Additionally, the calibration business showed strong performance, contributing to a 9% increase in adjusted EBITDA, which rose to $12.7 million. These positive results, coupled with the company's solid financial position, including a leverage ratio of 0.78x and $49.1 million available from its credit facility, likely fueled investor confidence and drove the after-hours stock price increase.