RCM Technologies unveils NEXT for ethanol expansion
RCM Technologies (Nasdaq: RCMT) has launched its New Ethanol eXpansion Technology (NEXT) program, aiming to boost ethanol production capacity by over 20% annually without major equipment overhauls. Developed by RCM Thermal Kinetics, NEXT enhances energy efficiency and supports rising global ethanol demand. The company, with a $146 million market cap, has secured a $65 million credit facility and expects continued growth across its sectors.
PENNSAUKEN, N.J. – RCM Technologies , Inc. (NasdaqGM: NASDAQ:RCMT), a $146 million market cap company with annual revenues of $272.5 million, announced the launch of its New Ethanol eXpansion Technology (NEXT) program, aimed at increasing production capacity and energy efficiency in ethanol plants. The NEXT program, developed by RCM Thermal Kinetics, a division of RCM Technologies, promises to enhance production by over 20% annually without the need for major equipment overhauls.
The technology is designed to meet the rising international fuel ethanol demand, which is expected to grow by 173% from 2021 through 2030. NEXT provides a solution that could potentially increase production for a plant currently producing 100 million gallons of ethanol per year by an additional 20 million gallons. According to InvestingPro analysis, RCM Technologies maintains strong profitability with a 29.3% gross margin and has demonstrated impressive returns over the past five years.
RCM Technologies’ approach involves advanced engineering concepts adapted from the refining industry, facilitating strategic equipment upgrades and a detailed hydraulic balance across critical systems. This program aims to improve operational efficiency and plant profitability, and can be implemented during short plant turnarounds to avoid disrupting production schedules.
David Loschiavo, General Manager of RCM Thermal Kinetics, stated that NEXT leverages patented energy integration technology to enhance productivity while contributing to a more sustainable industry future.
RCM Technologies operates at the crossroads of resources, critical infrastructure, and industry modernization, providing services in various sectors including Health Care, Engineering, Aerospace & Defense, Process & Industrial, Life Sciences, and Data & Solutions.
The announcement includes forward-looking statements subject to risks, uncertainties, and other factors that could cause actual results to differ materially from those projected. These statements are based on current expectations and assumptions made by the company in light of industry experience and perceptions of historical trends, current conditions, and anticipated future developments.
For further information on the NEXT program, RCM Technologies directs interested parties to their website. This news article is based on a press release statement from RCM Technologies, Inc. The company maintains a healthy current ratio of 1.63 and has demonstrated solid financial management, as reflected in its Altman Z-Score of 4.63.
In other recent news, RCM Technologies has announced the results of its annual stockholders’ meeting, electing four directors to its board and ratifying its independent auditor for the upcoming fiscal year. The company also secured an expanded credit facility of $65 million with Citizens Bank, offering increased financial flexibility through December 2029. In the realm of analyst attention, Benchmark upgraded RCM Technologies’ stock target from $33.00 to $37.00, maintaining a Buy rating, following strong third-quarter results. These results included a 4% growth in revenue and a 10% growth in Adjusted EBITDA. RCM Technologies’ Specialty Healthcare segment is expected to see a 20% revenue increase during the 2024-25 school year due to expansions in school districts. Despite a gross profit decline in the Life Sciences, Data & Solutions division, the company is investing in technology and sales to bolster its capabilities, anticipating sustained growth in both Healthcare and Engineering sectors. These are among the recent developments at RCM Technologies.
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Source : Investing.com
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