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RCM Technologies (Nasdaq: RCMT) has a credible growth point in its favor: engineering revenue rose to $120.486 million in fiscal 2025 from $96.459 million in fiscal 2024. The company also reported higher consolidated revenue and net income in the second quarter of 2026. But those results do not establish that RCMT shares are cheap, or that engineering growth will continue. The available figures support a growth thesis more clearly than a buy verdict.
What RCM Technologies does
RCM Technologies is a services company with three operating segments: Specialty Health Care; Engineering; and Life Sciences, Data and Solutions. Its engineering business provides design and engineering services in energy, process and industrial, and aerospace markets, along with consulting and project solutions. The other segments provide healthcare staffing and teletherapy, and technology and industry-specific services, respectively. These are service businesses rather than consumer product lines. (RCM Technologies fiscal 2025 Form 10-K)
| Fiscal 2025 segment | Share of company revenue |
|---|---|
| Specialty Health Care | 51.4% |
| Engineering | 37.7% |
| Life Sciences, Data and Solutions | 10.9% |
Engineering is substantial, but it is not the company’s largest segment. Results for the consolidated business therefore should not be treated as a direct measure of engineering performance.
What the engineering growth figures show
RCM reported fiscal 2025 engineering revenue of $120.486 million, compared with $96.459 million in fiscal 2024. The annual filing reports $58.743 million of time-and-material revenue and $61.743 million of fixed-fee revenue for the segment in fiscal 2025. (Fiscal 2025 Form 10-K)
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The revenue increase is evidence of growth over that reported period, not proof that the growth is durable or profitable at a higher rate. The figures alone do not show that engineering margins improved. The comparison also needs a calendar qualification: fiscal 2025 ended January 3, 2026 and contained 53 weeks, while fiscal 2024 contained 52.
Latest reported results: growth at the company level
In results announced August 13, 2026, for the thirteen weeks ended July 4, RCM reported revenue of $93.8 million, up 20.0% from $78.2 million in the comparable prior-year quarter. GAAP net income increased to $4.9 million from $3.8 million, and diluted earnings per share rose to $0.68 from $0.50. Adjusted EBITDA, a company-defined non-GAAP measure, was $9.3 million versus $8.1 million, a reported increase of 14.8%. (RCM Technologies second-quarter 2026 results)
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For the first 26 weeks, revenue was $176.9 million, up 8.7%, and GAAP net income was $8.7 million compared with $8.0 million. These are consolidated figures; they do not establish the engineering segment’s growth rate for the quarter or half-year.
Why the low-valuation claim is not established
A share price by itself cannot show that a stock is undervalued. The investor-relations quote display showed $40.67 dated September 28, 2026, but that historical quote is not the October 3 price and does not supply an earnings, cash-flow, or enterprise-value multiple. (RCM Technologies investor relations)
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Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Risks to weigh alongside the growth case
Customer exposure
At January 3, 2026, three clients each represented more than 10% of accounts receivable; the largest Engineering client represented 17.2%. This is a share of receivables, not a share of revenue. A major client’s payment timing or business changes could matter to collections, but this statistic should not be read as a measure of segment sales concentration. (Fiscal 2025 Form 10-K)
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Different business cycles
RCM spans healthcare staffing and engineering services, which face different demand conditions and business cycles. Consolidated growth can therefore conceal divergent performance among segments. The annual engineering figures show reported revenue growth, but the available quarterly consolidated results do not resolve whether that segment’s momentum continued.
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