Nortech Systems Reports Positive Q2 2025 Earnings

Nortech ( (NSYS) ) has released its Q2 earnings. Here is a breakdown of the information Nortech presented to its investors.

Nortech Systems Incorporated is a leading provider of engineering and manufacturing solutions for complex electromedical and electromechanical products, primarily serving the medical imaging, medical device, industrial, and aerospace & defense markets. The company is headquartered in Maple Grove, Minnesota, and operates six manufacturing locations and design centers across the U.S., Latin America, and Asia.

In its latest earnings report for the second quarter of 2025, Nortech Systems reported net sales of $30.7 million and a net income of $313 thousand, translating to $0.12 per diluted share. The company also achieved an adjusted EBITDA of $1.1 million and maintained a 90-day backlog of $26.6 million as of June 30, 2025.

Key highlights from the report include a 99.4% increase in net income compared to the same quarter in 2024, despite a 9.5% decrease in net sales. The company attributes this improvement to successful restructuring efforts and cost discipline, which have enhanced plant utilization and manufacturing efficiencies. Additionally, Nortech has strategically shifted its inventory focus, reducing raw materials while investing in finished goods to support key customer programs.

Looking ahead, Nortech Systems remains cautiously optimistic about its growth prospects. The company is well-positioned in the nearshoring landscape, particularly in Mexico and China, and is aligning its intellectual property with future demand in the aerospace and defense market. By shifting its production focus from copper to fiber, Nortech aims to mitigate cost pressures and support its long-term strategy for more sustainable and affordable technology solutions.