NSYS · Nortech Systems Incorporated

Nortech Systems delivered sequential improvement in its first quarter of 2026, with net sales rising 12.7% year-over-year to $30.3 million, fueled by strategic restructuring and program transfers to optimized facilities. Gross profit surged 52.8% to $4.7 million, highlighting gains in manufacturing efficiency, gross margins, and quality metrics as emphasized by President & CEO Jay D. Miller. Operating expenses held steady at $4.7 million, down slightly from prior year, enabling operational income of $47 thousand versus a $1.6 million loss. This progress marked the fourth consecutive period of positive operating and EBITDA results, with Adjusted EBITDA flipping to $350 thousand from a $1.0 million loss. Balance sheet strength improved with total assets at $76.6 million and cash rising to $2.0 million, supported by $17.2 million in debt financing closed in March. Backlog expansion to $90.8 million total and $31.5 million in 90-day visibility signals revenue tailwinds, particularly in growing Aerospace & Defense segment via the Bemidji facility. New SVP of Global Operations Andrew Walko is contributing early impact. Management expressed optimism on nearshoring advantages with North American and Asian footprints, positioning for sustained growth amid ongoing strategy execution. No forward guidance was provided, but backlog growth and facility optimizations underpin second-half momentum.