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Nortech Systems Incorporated, a leading provider of engineering and manufacturing solutions for complex electromedical and electromechanical products serving the medical imaging, medical device, industrial and aerospace & defense markets, reported financial results for the first quarter ended March 31, 2025.
2025 Q1 Highlights:
- Net sales of $26.9 million
- Net loss of ($1.3) million, or ($0.48) per diluted share
- Adjusted earnings before interest, taxes, depreciation, and amortization (“EBITDA”) of ($1.0) million loss
- 90-day backlog of $26.7 million as of March 31, 2025
Management Commentary
“Over the past few quarters, we have successfully transitioned and stabilized our business, allowing for smoother operational flow and setting a solid foundation for future growth. Nortech has taken steps to consolidate our operations to focus on driving profitability and growth within our core market segments. These strategic moves are designed to better scale the business, improve efficiency, and reduce our ongoing cost structure.” said Jay D. Miller, President and CEO. “We made tough decisions that have depressed our short-term revenues and EBITDA but have strategically positioned the Company for long-term growth and innovation specifically in the aerospace & defense and medical imaging markets.”
“The Company experienced delays in our defense customers’ approvals for transfers from our closed Blue Earth facility to our Bemidji plant, and those transfers continue to progress steadily. We continue to anticipate clearing the majority of this approval backlog during the second quarter of 2025. Additionally, our research and development programs, particularly in fiber optic technologies, reflect our commitment to provide customers with technologies that are lighter, faster and more sustainable. This commitment has been evident by the issuance of two new patents in the past year,” Miller added.
“We continue to be impressed by the dedication and collaboration demonstrated by our employees across all locations to do the hard work necessary to achieve our goals. The team’s unwavering commitment enables us to overcome challenges and embrace innovation,” Miller said.
“We’re also closely following changes in regulations, trade policies, and geopolitical factors for potential impacts in our key market segments. We believe the strategic repositioning of our global operations in the past year has further strengthened the Company’s ability to respond to our customers’ needs to near-shore their supply chains. We are well-prepared to shift production closer to key markets, improving efficiency and strengthening our ability to handle global challenges and uncertainties.”
