Nortech Systems Incorporated reported a net sales figure of $118.4 million for the fiscal year ending December 31, 2025, reflecting a decrease of 7.6% from the previous year's sales of $128.1 million. The decline in revenue was attributed primarily to inventory re-balancing with existing customers and delays in customer product launches, particularly in the Medical Device and Aerospace and Defense sectors, which saw decreases of 7.8% and 24.4%, respectively. In contrast, the Medical Imaging segment experienced a 6.7% increase in sales, driven by higher volumes from existing customers.
The company's gross profit increased to $18.0 million, resulting in a gross margin of 15.2%, up from 13.1% in 2024. This improvement was largely due to enhanced plant utilization following restructuring efforts and a favorable sales mix. Operating income for 2025 was reported at $975, compared to an operating loss of $195 in 2024. However, the company recorded a net loss of $252, or $0.09 per share, an improvement from the net loss of $1.3 million, or $0.47 per share, in the prior year.
Nortech Systems has made significant operational changes, including the closure of its Blue Earth, Minnesota facility and the consolidation of operations into its Bemidji facility. The company also reported a total order backlog of $77.3 million as of December 31, 2025, a 17.4% increase from the previous year, indicating a positive outlook for future sales driven by increased customer demand. The company’s workforce consisted of 685 full-time and 28 part-time employees as of the end of 2025, with no employees covered by union agreements.
Looking ahead, Nortech Systems plans to continue its strategic focus on expanding its capabilities and footprint in the EMS industry, particularly in the medical device sector, which accounts for over 50% of its net sales. The company is also pursuing opportunities for acquisitions and joint ventures to enhance its service offerings and competitive edge. Despite the challenges posed by supply chain disruptions and fluctuating customer demand, the company remains committed to improving operational efficiency and maintaining strong customer relationships.
About NORTECH SYSTEMS INC
Nortech Systems Incorporated provides engineering design and contract manufacturing services for complex electromedical, electromechanical, aerospace, defense, and industrial products. The company specializes in medical devices, wire and cable assemblies, printed circuit boards, and higher-level assemblies, serving OEMs worldwide. Its value-added solutions focus on quality, cost efficiency, and supply chain management, leveraging global facilities in the U.S., Mexico, and China to meet diverse customer needs.
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