William Duberstein's questions to RCM TECHNOLOGIES (RCMT) leadership • Q2 2025
Question
William Duberstein inquired about the margin profile of new engineering contracts, the reasons for the Q2 increase in receivables, and whether immigration is currently a limiting factor for growth.
Answer
The company explained that engineering margins are driven more by project mix (especially subcontractor costs) than by introductory pricing for new clients. The Q2 receivables spike was an idiosyncratic timing issue with two large clients that has since been mostly resolved. While the company can grow without it, favorable immigration for nurses would provide a significant upside and could turn a good year into an "incredible" one.