Revenue performance remains volatile with a 14.2% decline in 2026Q2, though gross margins have shown resilience by consistently hovering between 28% and 35% over the historical period.
| Sales/Revenue | 78.53M | 43.8M | 41.35M | 20.61M | 29.81M |
| Revenue Growth % | - | 5.91% | 100.68% | -30.88% | - |
| Cost of Goods Sold | 53.58M | 29.06M | 26.65M | 14.48M | 21.07M |
| COGS % of Revenue | - | 66.35% | 64.43% | 70.28% | 70.67% |
| Gross Profit | 24.96M | 14.74M | 14.71M | 6.12M | 8.74M |
| Gross Margin % | 31.78% | 33.65% | 35.57% | 29.72% | 29.33% |
| Gross Profit Growth % | - | 0.2% | 140.21% | -29.97% | - |
| Operating Expenses | 19.09M | 12.5M | 10.54M | 3.51M | 6.12M |
| OpEx % of Revenue | - | 28.54% | 25.5% | 17.01% | 20.54% |
| Selling, General & Admin | 18.92M | 10.9M | 9.45M | 6.16M | 5M |
| SG&A % of Revenue | - | 24.9% | 22.85% | 29.9% | 16.76% |
| Research & Development | 178.38K | 156.95K | 76.39K | 45.81K | 89.07K |
| R&D % of Revenue | - | 0.36% | 0.18% | 0.22% | 0.3% |
| Other Operating Expenses | 0 | 1.44M | 1.02M | 0 | 11.67K |
| Operating Income | 5.48M | 2.24M | 4.16M | 2.62M | 2.5M |
| Operating Margin % | 6.98% | 5.11% | 10.07% | 12.71% | 8.4% |
| Operating Income Growth % | - | -46.27% | 59.03% | 4.53% | - |
| EBITDA | 8.81M | 4.14M | 5.69M | 3.14M | 3.59M |
| EBITDA Margin % | 11.22% | 9.45% | 13.75% | 15.24% | 12.04% |
| EBITDA Growth % | - | -27.21% | 81.04% | -12.5% | - |
| D&A (Non-Cash Add-back) | 3.33M | 1.9M | 1.52M | 522.61K | 1.08M |
| EBIT | 5.7M | 2.66M | 4.36M | 4.78M | 2.5M |
| Net Interest Income | -13.8K | 50.96K | -214.46K | -142.5K | -119.18K |
| Interest Income | 217.92K | 300.13K | 0 | 0 | 0 |
| Interest Expense | 283.54K | 200.64K | 214.46K | 142.5K | 119.18K |
| Other Income/Expense | 343.5K | 220.59K | -16.02K | 2.18M | 11.31K |
| Pretax Income | 5.83M | 2.46M | 4.15M | 2.63M | 2.52M |
| Pretax Margin % | 7.42% | 5.61% | 10.03% | 12.74% | 8.44% |
| Income Tax | 837.89K | 219.95K | 792.21K | 476.42K | 439.01K |
| Effective Tax Rate % | 14.38% | 8.95% | 19.1% | 18.14% | 17.45% |
| Net Income | 4.91M | 2.24M | 3.36M | 2.15M | 2.08M |
| Net Margin % | 6.25% | 5.11% | 8.11% | 10.43% | 6.97% |
| Net Income Growth % | - | -33.31% | 56.1% | 3.49% | - |
| Net Income (Continuing) | 4.99M | 2.24M | 3.36M | 3.93M | 2.08M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 0.34 | 0.16 | 0.27 | 0.15 | 0.17 |
| EPS Growth % | - | -40.74% | 80% | -11.76% | - |
| EPS (Basic) | - | 0.16 | 0.27 | 0.15 | 0.17 |
| Diluted Shares Outstanding | 14.5M | 13.61M | 12.5M | 14.5M | 12.5M |
| Basic Shares Outstanding | 14.5M | 13.96M | 12.5M | 14.5M | 12.5M |
| Dividend Payout Ratio | - | - | 59.61% | 53.5% | 45.74% |
Singapore construction sector concentration
As evidenced by the provided financial data, RECT's top-line performance has exhibited significant volatility, with revenue contracting by 14.2% in 2026Q2 following a period of substantial growth, suggesting that the company's transactional business model remains highly sensitive to the cyclical nature of Singaporean infrastructure project timelines.
The inconsistent revenue trajectory indicates that RECT lacks a recurring revenue base, leaving it vulnerable to the timing of construction tenders and labor availability. Investors should monitor whether the recent contraction reflects a structural slowdown in the Singaporean construction market or merely a temporary lull in project-based procurement cycles.
According to the reported income statements, RECT has maintained gross margins generally hovering between 28% and 35%, which suggests that the company's proprietary brand strategy provides a degree of pricing power that helps buffer against the inherent volatility of its industrial distribution business model.
The ability to sustain these margins despite revenue swings implies that the company's safety-certified products are viewed as non-discretionary by its client base. However, the compression observed in 2026Q2 to 28.7% warrants further investigation into whether competitive pressures or rising input costs are beginning to erode the effectiveness of its house-brand strategy.
Based on the historical income statement figures, RECT's operating margins have failed to scale consistently with revenue, as evidenced by the 2025Q2 operating margin of 6.1% despite strong top-line growth, indicating that the company's overhead structure may be too rigid to capture meaningful economies of scale.
The lack of clear operating leverage suggests that the company's SG&A expenses are growing in tandem with, or faster than, its gross profit. This trend may indicate that the costs associated with maintaining a public listing and managing a complex distribution network are currently offsetting the benefits of its proprietary brand portfolio.
Financial statements reveal that RECT's net income margins have fluctuated significantly, reaching 10.8% in 2026Q2 while dropping to 4.0% in 2024Q4, which raises questions regarding the sustainability of its bottom-line performance in the absence of a more diversified or recurring revenue stream.
Short-term spikes in net income appear to be decoupled from consistent operational improvements, suggesting that non-operating items or tax variances may be influencing the bottom line. Investors should be cautious of the company's reliance on a single geographic market, as any regulatory shift or downturn in Singaporean construction could rapidly impair its current profitability profile.
Quick answers to the most common questions about buying RECT stock.
For fiscal year 2025, Rectitude Holdings Ltd Ordinary Shares (RECT) reported total revenue of $43.8M. This represents a 46.9% increase compared to $29.8M in 2022.
Rectitude Holdings Ltd Ordinary Shares (RECT) is profitable, generating $2.2M in net income for the fiscal year ending 2025 with a net profit margin of 5.1%.
Rectitude Holdings Ltd Ordinary Shares (RECT) reported an operating income of $2.2M, resulting in an operating profit margin of 5.1%. This margin reflects the operational efficiency of the business before interest and taxes.
Rectitude Holdings Ltd Ordinary Shares (RECT) generated $14.7M in gross profit for the year, representing a gross profit margin of 33.7%. This demonstrates the company's core pricing power and production efficiency.