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RCM TECHNOLOGIES, INC. (RCMT)·Q3 2026 Earnings Summary

Executive Summary

  • Q3 2026 results are not yet released; Wall Street consensus (S&P Global) expects Revenue ~$75.7M* and EPS ~$0.45*, based on a single estimate for each metric, implying mid-single-digit YoY revenue growth vs. Q3 2025 and a higher EPS run-rate as margin levers normalize* [Values retrieved from S&P Global].
  • Q3 2025 actuals: Revenue $70.3M, Gross Profit $19.4M, GAAP EPS $0.30; adjusted EBITDA $5.5M and adjusted diluted EPS $0.42, with record 2026 Engineering backlog and momentum in Healthcare cited by management .
  • Management guided post-Q3 2025 that Q4 2025 would deliver the highest quarterly gross profit and adjusted EBITDA of fiscal 2025, setting a stronger base entering 2026; watch conversion of record Engineering backlog and school-seasonality tailwinds in Healthcare .
  • Key watch items for the stock: excess medical costs (expected to persist into Q4 2025), cash collection/admin issues in schools, and visa timing for nurse pipeline—all cited in Q3 2025 commentary and Q&A .

What Went Well and What Went Wrong

What Went Well

  • Record Engineering backlog for 2026 as of end-October and continued Healthcare momentum, positioning for strong backlog conversion as infrastructure and energy projects ramp .
  • Engineering delivered strong performance in Q3 2025, with management highlighting best quarter in segment history and improved gross margin trajectory quarter-over-quarter .
  • Positive school-season trends in Healthcare (management referenced ~20.7% YoY school revenue growth in Q3 2025 commentary across sources), with expanding partner roster and deeper client commitments into the 2025–2026 school year .

What Went Wrong

  • Excess medical costs (~$1.8M YTD through Q3 2025) weighed on profitability and were expected to persist into Q4 2025 before structural mitigation benefits in 2026 .
  • Administrative cash collection issues with two large school clients impacted cash flow in Q3 2025, a near-term operational headwind the team is addressing .
  • Life Sciences/Data & Solutions gross profit declined modestly YoY in Q3 2025, with macro/regulatory shifts (tariffs, favored-nation drug pricing, process automation) cited as market context .

Financial Results

Headline Comparison: Prior Actuals vs. Consensus

MetricQ2 2025 ActualQ3 2025 ActualQ3 2026 Consensus
Revenue ($USD Millions)$78.2 $70.3 $75.7*
GAAP Diluted EPS ($)$0.50 $0.30 $0.45*
Gross Profit ($USD Millions)$22.3 $19.4 N/A
Adjusted EBITDA ($USD Millions)$8.1 $5.5 N/A
Adjusted Diluted EPS ($)$0.69 $0.42 N/A

Note: Q3 2026 consensus estimates marked with an asterisk (*) are Values retrieved from S&P Global.

Margins (Actuals)

MetricQ3 2025
Gross Profit Margin %27.6145%*
EBITDA Margin %6.3694%*
EBIT Margin %5.6025%*
Net Income Margin %3.2138%*

Note: Asterisk (*) indicates Values retrieved from S&P Global.

Segment Breakdown (Q3 2025 Actuals)

SegmentRevenue ($USD Millions)Commentary
Specialty Health Care$30.0 Strong school-seasonality tailwinds, expanding client roster .
Engineering$31.4 Best quarter in history; record 2026 backlog; grid infrastructure/EPC momentum .
Life Sciences, Data & Solutions$8.9 Facing macro/regulatory shifts impacting GP .

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Adjusted EBITDAQ4 2025Not quantified previouslyHighest quarterly adjusted EBITDA in FY2025 (management expectation) Raised (qualitative)
Gross ProfitQ4 2025Not quantified previouslyHighest quarterly gross profit in FY2025 (management expectation) Raised (qualitative)
Engineering BacklogFY 2026N/ARecord backlog as of end-October 2025 New disclosure
Q3 2026 GuidanceQ3 2026NoneNoneMaintained (no formal guidance issued)

Earnings Call Themes & Trends

TopicPrevious Mentions (Q1 2025)Previous Mentions (Q2 2025)Current Period (Q3 2025)Trend
Engineering backlog/energy infrastructureFocus on multi‑year contracts, tools/tech, A&D/customer adds Integrated growth strategy: EPC substations, utility upgrades, data center infra; IEEE leadership Record 2026 backlog; best Engineering quarter; grid/EPC ramp Improving
Healthcare (schools; immigration pipeline)School growth and resilience; share count reduction supports returns Confident school growth regardless of immigration; immigration could turn “good” into “incredible” 2026 School revenue up; ~300 nurses pipeline; visa timing uncertain; excess medical costs pressuring margins Mixed (top-line strong; costs/collections headwind)
LS&D (regulatory/macro shifts)Building Life Sciences Engineering Group; AI/analytics to unlock insights Digital transformation in regulated environments; predictive forecasting Tariffs/favored‑nation pricing/process automation headwinds; slight GP decline Soft
Cash flow/collectionsAdmin collection issues with two large school clients impacting CFO Watch resolution
AI/technology initiativesTools/tech integration for speed-to-market; multi-year contracts AI/analytics with real-time/predictive capabilities in Life Sciences; scalable growth Continued emphasis on analytics/compliance as differentiators Building capability

Management Commentary

  • “As we exit our seasonal third quarter, we are entering the fourth quarter from a position of strength, demonstrating record 2026 Engineering backlog as of the end of October and continued momentum in Healthcare.” — Bradley Vizi, Executive Chairman .
  • “We expect our fourth quarter will yield our highest quarterly gross profit and adjusted EBITDA in fiscal 2025, and we are excited about our momentum heading into 2026.” — Kevin Miller, CFO .
  • “We are building the use of AI analytics into our process, with a focus on generating deeper insights and supporting innovation across the enterprise.” — Q3 2025 call remarks .

Q&A Highlights

  • Nurse immigration pipeline: ~300 nurses ready pending visas; 50–60 could arrive if retrogression dates move; investments expected to benefit 2026 as the pendulum shifts back .
  • Excess medical costs: expected to persist into Q4 2025 before structural mitigation, with more material improvements targeted for 2026 .
  • Cash collections: administrative issues with two large school clients affected cash from operations in Q3 2025; management working to resolve .
  • Engineering outlook: after best quarter in segment history, backlog conversion and EPC/data center infra opportunities highlighted into 2026 .

Estimates Context

  • Wall Street consensus (S&P Global) for Q3 2026: Revenue ~$75.7M*, EPS ~$0.45*, based on 1 estimate each; limited coverage increases uncertainty around beats/misses* [Values retrieved from S&P Global].
  • Historically, Q3 2025 revenue was $70.3M and GAAP EPS $0.30, suggesting consensus embeds YoY revenue growth and higher EPS trajectory as cost factors abate .
  • Key variables that could drive estimate revisions near report: pace of Engineering backlog conversion, Healthcare school revenue and visa timing, and persistence of excess medical costs .

Key Takeaways for Investors

  • With limited consensus coverage for Q3 2026, monitor pre-announcement signals and backlog-to-revenue conversion to gauge potential top-line variance* [Values retrieved from S&P Global].
  • Engineering is the swing factor: record 2026 backlog plus EPC/grid infra ramp can offset Healthcare cost noise; sustained margin improvement would support EPS trajectory .
  • Healthcare watch items: excess medical costs and collections in schools; any evidence of stabilization or recovery would be a positive catalyst .
  • Visa timing for nurse pipeline could amplify 2026 growth—updates on retrogression and throughput are material to Healthcare profitability and staffing capacity .
  • LS&D remains a smaller drag under macro/regulatory shifts; any improvement or client wins here would be incremental to consolidated margins .
  • Trading setup: near-term reaction will hinge on delivery vs. light consensus and narrative on costs/collections; medium-term thesis centers on backlog conversion, disciplined capital structure, and segment mix improving ROE .

Important note:

  • Q3 2026 8-K 2.02 press release and earnings call transcript were not available to read in full at this time; prior quarter primary sources and company website press releases and transcripts were read and cited above where applicable .
  • Consensus estimates are from S&P Global and are marked with an asterisk (*) with the following disclaimer: Values retrieved from S&P Global.