Nortech Systems Reports Q2 Results; $30.7 Million in Net Sales

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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 second quarter ended June 30, 2025.

2025 Q2 Highlights:

• Net sales of $30.7 million
• Net income of $313 thousand, or $0.12 per diluted share
• Adjusted earnings before interest, taxes, depreciation, and amortization ("EBITDA") of $1.1 million
• 90-day backlog of $26.6 million as of June 30, 2025

Management Commentary

"Our second quarter results are testament to the dedication, resilience, and execution of our entire team. Despite lower revenues compared with the second quarter of 2024, we delivered improved earnings and a positive EBITDA this quarter-near-term evidence that our restructuring efforts and cost discipline are paying off. Increased plant utilization and improved manufacturing efficiencies across transferred programs are building the operational foundation we need for sustained performance improvement," said President & CEO, Jay D. Miller.

"Operationally, we've increased plant efficiency, improved utilization across transferred programs, and made strategic inventory shifts-reducing raw materials while investing in finished goods to support key customers' stocking programs. Backlog levels have reached anticipated targets, and our stocking programs are enhancing delivery, quality, and logistics." Miller added, "Importantly, we're growing our order backlog at a time when many manufacturers are seeing theirs decline. This momentum, combined with rising customer approvals and enhanced logistics performance, positions us well for continued growth."

"Looking ahead, we remain cautiously optimistic. Our position in the nearshoring landscape-both in Mexico and China-is strong, and recent news articles in the New York Times and Wall Street Journal underscores the strategic advantage Mexico holds in today's tariff environment. With our intellectual property in fiber optic and digital technologies, we're well aligned with projected future demand for fiber products in the Aerospace & Defense market segment. We're also taking a forward-looking stance on materials-shifting focus from copper to fiber to mitigate cost pressures and align with our long-term strategy to produce lighter, faster, more sustainable and more affordable technology," Miller said.