Nortech ( (NSYS) ) has released its Q1 earnings. Here is a breakdown of the information Nortech presented to its investors.
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Nortech Systems Incorporated is a prominent provider of engineering and manufacturing solutions for complex electromedical and electromechanical products, primarily serving the medical imaging, medical device, industrial, and aerospace & defense markets. Headquartered in Maple Grove, Minnesota, Nortech operates across the U.S., Latin America, and Asia, offering vertically integrated manufacturing and supply chain capabilities.
In its first quarter of 2025, Nortech Systems reported net sales of $26.9 million, reflecting a 21.4% decrease compared to the same period in 2024. The company also reported a net loss of $1.3 million, or $0.48 per diluted share, and an adjusted EBITDA loss of $1.0 million. Despite these figures, the company maintains a 90-day backlog of $26.7 million, indicating ongoing demand for its products.
Key financial metrics highlight a challenging quarter for Nortech, with a gross profit of $3.1 million, down 43.5% from the previous year, and an increase in operating expenses by 9.3%. The company attributes these results to strategic decisions aimed at consolidating operations and focusing on core market segments, which have temporarily impacted revenues and EBITDA. Notably, Nortech is progressing with the transfer of operations from its closed Blue Earth facility to the Bemidji plant, which is expected to clear approval backlogs in the second quarter of 2025.
Looking ahead, Nortech’s management remains optimistic about the company’s strategic repositioning efforts, particularly in the aerospace & defense and medical imaging markets. The company is committed to innovation, as evidenced by recent advancements in fiber optic technologies and the issuance of two new patents. Nortech is also adapting to regulatory and geopolitical changes, enhancing its ability to respond to customer needs by potentially shifting production closer to key markets.