MINNEAPOLIS, March 26, 2026 (GLOBE NEWSWIRE) -- Nortech Systems Incorporated (Nasdaq: NSYS) (“Nortech” or the “Company”), 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 fourth quarter ended December 31, 2025.
2025 Q4 Highlights:
●Net sales of $30.3 million in Q4 2025 vs. $28.6 million in Q4 2024 ●Net income of $897 thousand, or $0.32 per basic share in Q4 2025 vs. $(1,478) thousand, or $(0.54) per basic share in Q4 2024 ●Adjusted earnings before interest, taxes, depreciation, and amortization (“EBITDA”) of $1.2 million in Q4 2025 vs. ($585) thousand loss in Q4 2024 ●90-day backlog of $27.3 million as of December 31, 2025 vs. $26.5 million as of December 31, 2024 ●Company closes on $17.2 million debt financingManagement Commentary
“Nortech delivered another quarter of meaningful operational and financial progress, marking our third consecutive period of positive operating and EBITDA results reflecting the positive execution of our strategic restructuring initiatives. The continued improvements we are seeing in gross margins, manufacturing efficiency, and world-class quality metrics reflect the disciplined execution of our long-term strategy and the dedication of our global team,” said President & CEO, Jay D. Miller.
“Our growing customer backlog, combined with the successful transfer of key programs to our optimized facilities, is strengthening the foundation for sustained performance improvement. We are especially proud of the AS9100:D certification achieved at our Monterrey facility - a significant milestone that further enhances our competitiveness in aerospace, and other high-reliability markets. With the closure of our new debt financing last week, and our strong North American and Asian footprint, we believe we are well-positioned to support customers pursuing nearshore manufacturing strategies. I am grateful for the hard work of our employees across the globe, and we remain optimistic about the opportunities ahead as we continue to execute our strategy into 2026,” Miller said.
Summary Financial Information
The following table provides summary financial information comparing the fourth quarter 2025 (“Q4 2025”) financial results to the same quarter in 2024 (“Q4 2024”) as well as the year ended December 31, 2025 (“2025”) with the year ended December 31, 2024 (“2024”).
($ in thousands) Q4 2025 Q4 2024 %Change 2025 2024 %
Change Net sales $30,313 $28,620 5.9% $118,365 $128,133 (7.6)%Gross profit $5,066 $2,822 79.5% $18,006 $16,722 7.7%Operating expenses $4,165 $4,049 2.9% $17,031 $16,917 0.7%Net income (loss) $897 $(1,478) 160.7% $(252) $(1,295) (80.5)%EBITDA $1,203 $(889) 235.3% $2,263 $1,543 46.7%Adjusted EBITDA $1,203 $(585) 305.6% $2,529 $2,114 19.6%
Conference Call
The Company will hold a live conference call and webcast at 7:30 a.m. central time on Friday, March 27, to discuss the Company’s 2025 fourth quarter results. The call will be hosted by Jay D. Miller, Chief Executive Officer and President and Andrew D. C. LaFrence, Chief Financial Officer and Senior Vice President of Finance. To access the live audio conference call, US participants may call 888-506-0062 and international participants may call 973-528-0011. Participant Access Code: 726639. Participants may also access the call via webcast at: https://www.webcaster5.com/Webcast/Page/2814/53646.
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About Nortech Systems Incorporated
Nortech Systems is a leading provider of design and manufacturing solutions for complex electromedical devices, electromechanical systems, assemblies, and components. Nortech primarily serves the medical imaging, medical device, aerospace & defense, and industrial markets. Its design services span concept development to commercial design, and include medical device, software, electrical, mechanical, and biomedical engineering. Its manufacturing and supply chain capabilities are vertically integrated around wire, cable, and interconnect assemblies, printed circuit board assemblies, as well as system-level assembly, integration, and final test. Headquartered in Maple Grove, Minn., Nortech currently has six manufacturing locations and design centers across the U.S., Latin America, and Asia. Nortech Systems is traded on the NASDAQ Stock Market under the symbol NSYS. Nortech’s website is www.nortechsys.com.
Forward-Looking Statements
This press release contains forward-looking statements made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995 including without limitation statements regarding future financial results including increased gross margin, our ability to generate positive EBITDA, increased plant utilization and manufacturing efficiency, growth of our backlog, continuing improvement of quality metrics, success in moving production from on facility to another Company owned facility, nearshoring as a strategic advantage, successful execution of our long-term strategy, our enhanced competitiveness in aerospace, defense, and other high-reliability markets, effects of restructuring and consolidating manufacturing facilities, sustained long-term health and growth, and optimism about customer pipeline. While this release is based on management’s best judgment and current expectations, actual results may differ materially from those expressed or implied and involve a number of risks and uncertainties. Important factors that could cause actual results to differ materially from the forward-looking statements include, without limitation: (1) commodity cost increases coupled with challenges in raising prices and/or customer pressure to reduce prices; (2) supply chain disruptions leading to shortages of critical components; (3) volatility in market conditions which may affect demand for the Company’s products; (4) increased competition and/or reduced demand; (5) changes in the reliability and efficiency of operating facilities or those of third parties; (6) risks related to the availability of labor; (7) the unanticipated loss of any key member of senior management; (8) geopolitical, economic, financial and business conditions including changing tariff environment; (9) the Company’s ability to steadily improve manufacturing output and product quality; (10) the impact of global health epidemics on our customers, employees, manufacturing facilities, suppliers, the capital markets and our financial condition; (11) challenges with customers with respect to moving production from one facility to another Company-owned facility or (12) financing cost increases and continued availability. Some of the above-mentioned factors are described in further detail in the section entitled “Risk Factors” in our annual and quarterly reports, as applicable. You should assume the information appearing in this document is accurate only as of the date hereof, or as otherwise specified, as our business, financial condition, results of operations and prospects may have changed since such date. Except as required by applicable law, including the securities laws of the United States and the rules and regulations of the United States Securities and Exchange Commission, we undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, to reflect actual results or changes in factors or assumptions affecting such forward-looking statements.
Reconciliation of Generally Accepted Accounting Principles (“GAAP”) Measures to Non-GAAP Financial Measure
EBITDA is a non-GAAP financial measure used by management that we believe provides useful information to investors because it reflects ongoing performance excluding certain non-recurring items during comparable periods and facilitates comparisons between peer companies since interest, taxes, depreciation, and amortization can differ greatly between different organizations as a result of differing capital structures and tax strategies. EBITDA is defined as net income (loss) plus interest expense, plus income tax expense plus depreciation expense and amortization expense. EBITDA should be considered in addition to, not as a substitute for, or superior to, financial measures calculated in accordance with GAAP. Adjusted EBITDA reflects the impact of restructuring and non-recurring items. EBITDA and Adjusted EBITDA are not a measurement of our financial performance under GAAP and should not be considered an alternative to net sales or net income (loss), as applicable, or any other performance measures derived in accordance with GAAP and may not be comparable to other similarly titled measures of other businesses. EBITDA and Adjusted EBITDA have limitations as an analytical metric, and you should not consider it in isolation or as a substitute for analysis of our operating results as reported under GAAP.
NORTECH SYSTEMS INCORPORATED AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
AND COMPREHENSIVE INCOME (LOSS)
(UNAUDITED)
(IN THOUSANDS, EXCEPT SHARE AND PER SHARE DATA)
NORTECH SYSTEMS INCORPORATED AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
AS OF DECEMBER 31, 2025 AND DECEMBER 31, 2024
(UNAUDITED)
(IN THOUSANDS, EXCEPT SHARE DATA)
2025 DECEMBER 31,
2024 ASSETS Current assets: Cash $1,655 $916 Accounts receivable, less allowances of $161 and $196, respectively 16,998 14,875 Inventories, net 20,695 21,638 Contract assets 15,184 13,792 Prepaid assets and other assets 1,618 4,094 Total current assets 56,150 55,315 Property and equipment, net 5,203 6,232 Operating lease assets 7,016 8,139 Deferred tax assets 3,394 2,575 Other intangible assets, net 156 174 Total assets $71,919 $72,435 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Line of credit $7,000 $- Accounts payable 12,809 11,582 Accrued payroll and commissions 1,822 1,841 Customer deposits 5,386 5,140 Current portion of operating leases 1,332 1,175 Current portion of finance lease obligations 274 143 Other accrued liabilities 1,221 1,547 Total current liabilities 29,844 21,428 Long-term liabilities: Long-term line of credit - 8,634 Long-term operating lease obligations, net of current portion 6,476 7,773 Long-term finance lease obligations, net of current portion 626 311 Other long-term liabilities 426 284 Total long-term liabilities 7,528 17,002 Total liabilities 37,372 38,430 Shareholders’ equity: Preferred stock, $1 par value; 1,000,000 shares authorized; 250,000 shares issued and outstanding 250 250 Common stock - $0.01 par value; 9,000,000 shares authorized; 2,786,134 and 2,760,793 shares issued and outstanding, respectively 28 28 Additional paid-in capital 17,855 17,329 Accumulated other comprehensive loss (709) (977)Retained earnings 17,123 17,375 Total shareholders’ equity 34,547 34,005 Total liabilities and shareholders’ equity $71,919 $72,435
NORTECH SYSTEMS INCORPORATED AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
(IN THOUSANDS)
RECONCILIATION OF NET INCOME (LOSS) TO EBITDA AND ADJUSTED EBITDA
DECEMBER 31, YEARS ENDED
DECEMBER 31, 2025 2024 2025 2024 ($ in thousands) Net income (loss) $897 $(1,478) $(252) $(1,295)Interest 220 196 964 744 Taxes (216) 55 263 356 Depreciation 298 333 1,270 1,649 Amortization 4 5 18 89 EBITDA 1,203 (889) 2,263 1,543 Restructuring charges - 304 266 571 ADJUSTED EBITDA $1,203 $(585) $2,529 $2,114
There were no material adjustments to EBITDA in the quarter ended December 31, 2025. Adjustment to EBITDA for the year ended December 31, 2025 include ($ in thousands):
Adjustment to EBITDA in 2024 include ($ in thousands):
●In connection with the Blue Earth facility closure, we incurred $304 and $571 of retention bonus and other expenses in the quarter and year ended December 31, 2024, respectively, which expense amount is not included in Adjusted EBITDA.2022 Q1
2023 Q2
2023 Q3
2023 Q4
2023 Q1
2024 Q2
2024 Q3
2024 Q4
2024 Q1
2025 Q2
2025 Q3
2025 Q4
2025 Net Sales $134.1 $138.3 $140.8 $138.9 $139.3 $138.7 $137.5 $135.6 $128.1 $120.8 $117.6 $116.7 $118.4 Gross Profit $ - Adjusted 20.5 21.9 22.4 21.4 23.1 23.1 22.2 20.7 16.7 14.4 14.6 15.8 18.0 Gross Margin % - Adjusted 15.3% 15.8% 15.9% 15.4% 16.6% 16.6% 16.1% 15.3% 13.1% 11.9% 12.4% 13.5% 15.2% EBITDA - Adjusted $5.8 $6.7 $6.8 $6.0 $8.0 $8.1 $7.3 $5.9 $2.1 $(0.5) $(0.4) $0.7 $2.5
Contact
Andrew D. C. LaFrence
Chief Financial Officer and Senior Vice President of Finance
[email protected]
952-345-2243