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EarningsQ2 2026 Earnings Report
NSYS Q2 2026 EPS Results
Actual EPS$0.10
Consensus EPS―
Beat/Miss―
One Year Ago EPS$0.11
NSYS Q2 2026 Revenue Results
Actual Revenue$33.54M
Expected Revenue―
Beat/Miss―
YoY Revenue Growth+9.34%
Earnings Announcement Details
QuarterQ2 2026
Date08/12/2026
TimeAfter Close
Conference CallWednesday, August 12, 2026
NSYS Upcoming Earnings
Nortech Systems's next earnings date is estimated for November 11, 2026, based on past reporting schedules.
Q2 2026 Earnings Call Audio
NSYS Q2 2026 Earnings Call
0:00 / 0:00
Q2 2026 Earnings Slide Deck
No slide deck is available for this earnings event.
Q2 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call presented a largely constructive operational and financial picture: revenue grew 9.3% YoY, gross margin improved by 120 basis points, backlog increased significantly (90-day backlog +25.8% YoY; total backlog +19.8% YoY), and the company achieved a year-to-date operating turnaround from a loss to positive operating income. Offsetting these positives are meaningful near-term costs and risks — notably materially higher incentive and stock-based compensation that increased operating expenses, short-term declines in aerospace and industrial sales, working capital pressure (low cash balance and inventory build to support backlog), and uncertainty around tariff recoveries and supply chain constraints. Overall the improvements in revenue, margin, backlog and YTD profitability outweigh the listed challenges, suggesting constructive momentum with manageable near-term headwinds.Company Guidance
Revenue Growth
Net sales increased 9.3% year-over-year to $33.5 million in Q2 2026 (up $2.9 million vs Q2 2025).
Backlog Strength
90-day shipment backlog was $33.4 million (up 6.3% from the beginning of the quarter and up 25.8% YoY). Total order backlog was $93.8 million (up 3.4% from the beginning of the quarter and up 19.8% YoY), driven by aerospace & defense and medical imaging orders.
Improved Gross Margin
Gross margin improved to 17.0% in Q2 2026, up 120 basis points from 15.8% in Q2 2025, with gross profit of $5.7 million versus $4.8 million a year ago; first six months margin noted as a company record.
Year-to-Date Operating Turnaround
Operating income for the first six months of 2026 was $670,000 compared with an operating loss of $871,000 in the same prior year period, reflecting higher gross profit and improved operating leverage.
Segment Momentum — Medical
Medical device sales increased 36% YoY, and medical imaging sales rose 12.2% YoY, led by higher customer demand, ramped new programs and a stocking program that improved availability.
Lower Interest Costs and Improved Capital Structure
Net interest expense declined to $197,000 in Q2 2026 from $257,000 in Q2 2025, driven by lower average borrowings and a new financing arrangement; revolving credit balance $7.6 million with $3.6 million unused availability.
Operational Capacity and Nearshoring Positioning
Company reports ample capacity across U.S., Monterrey (Mexico) and Suzhou (China) facilities with ability to expand production without significant CapEx; positioning benefits from nearshoring (USMCA) and Monterrey maquiladora operations.
Strategic Investments and Leadership
Addition of a Vice President of Supply Chain to address component constraints and lead supply planning; continued investment in engineering, innovation (Power Over Fiber, digital diagnostics) and AI skills development.
Profitability — Quarterly and YTD Net Income
Q2 net income of $316,000 ($0.11 per diluted share) versus $313,000 ($0.12) in Q2 2025; year-to-date net income of $282,000 ($0.09) versus a net loss of $1.0 million ($0.36) in the prior year period.
NSYS Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed