RCM Technologies Reports 5.8% Revenue Growth to $278.4 Million for Fiscal Year Ending December 28, 2024

RCM Technologies, Inc. reported a revenue increase of 5.8% for the fiscal year ending December 28, 2024, totaling $278.4 million, compared to $263.2 million in the previous fiscal year. The growth was primarily driven by a $6.4 million increase in the Specialty Health Care segment and an $11.8 million rise in the Engineering segment, although the Life Sciences, Data and Solutions segment experienced a decline of $3.1 million. Despite the revenue growth, net income fell to $13.3 million, down from $16.8 million in the prior year, reflecting a decrease in operating income and an increase in selling, general, and administrative expenses.

The company's cost of services rose by 6.5% to $198.6 million, resulting in a gross profit margin of 28.7%, slightly down from 29.1% in the previous year. Selling, general, and administrative expenses increased to $56.8 million, representing 20.4% of revenue, compared to 19.8% in the prior year. The increase in expenses was attributed to investments in sales and recruiting infrastructure aimed at driving future growth.

Operationally, RCM Technologies assigned approximately 3,140 personnel in the Specialty Health Care segment, 510 in Engineering, and 200 in Life Sciences, Data and Solutions as of December 28, 2024. The company operates through 27 offices across North America and Europe, with about 7.8% of its revenue generated from international operations. The company continues to focus on enhancing its service offerings and expanding its market presence, particularly in the healthcare and engineering sectors, where demand is expected to grow due to ongoing technological advancements and regulatory changes.

Looking ahead, RCM Technologies remains committed to its growth strategy, which includes pursuing selective acquisitions and expanding its service capabilities. The company has filed a registration statement for an offering of up to $100 million in securities and has entered into an At Market Issuance Sales Agreement to sell up to $50 million worth of common stock. The company believes that its diversified service offerings and strategic focus will help mitigate potential economic downturns and position it for future growth. However, it acknowledges the risks associated with economic fluctuations, competition, and regulatory changes that could impact its operations and financial performance.