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NSYS

Nortech Systems Incorporated

NSYS

Nortech Systems Incorporated • NASDAQ
$6.85 ▲ 0.59% (+0.04)
Market Cap $19.09 M
52w High $12.40
52w Low $6.50
Dividend Yield 0%
P/E -7.21
Volume 1.29K
Outstanding Shares 2.79M

Income Statement

Period Revenue Operating Expense Net Income Net Profit Margin Earnings Per Share EBITDA
Q3-2025 $30.482M ▼ $4.08M ▼ $-146K ▼ -0.479% ▼ $-0.05 ▼ $1.248M ▲
Q2-2025 $30.675M ▲ $4.095M ▼ $313K ▲ 1.02% ▲ $0.11 ▲ $1.073M ▲
Q1-2025 $26.895M ▼ $4.691M ▲ $-1.316M ▲ -4.893% ▲ $-0.48 ▲ $-1.266M ▼
Q4-2024 $28.62M ▼ $4.049M ▼ $-1.478M ▼ -5.164% ▼ $-0.54 ▼ $-889K ▼
Q3-2024 $31.407M $4.302M $-739K -2.353% $-0.27 $-33K

Balance Statement

Period Cash & Short-term Total Assets Total Liabilities Total Equity
Q3-2025 $1.271M ▲ $74.757M ▼ $41.4M ▼ $33.357M ▼
Q2-2025 $652K ▼ $74.825M ▲ $41.437M ▲ $33.388M ▲
Q1-2025 $1.162M ▲ $73.533M ▲ $40.701M ▲ $32.832M ▼
Q4-2024 $916K ▼ $72.435M ▼ $38.43M ▼ $34.005M ▼
Q3-2024 $1.239M $76.966M $41.276M $35.69M

Cash Flow Statement

Period Net Income Cash From Operations Cash From Investing Cash From Financing Net Change Free Cash Flow
Q3-2025 $-146K ▼ $-92K ▼ $345K ▲ $360K ▲ $619K ▲ $-242K ▼
Q2-2025 $313K ▲ $157K ▲ $-90K ▲ $-588K ▼ $-510K ▼ $58K ▲
Q1-2025 $-1.316M ▲ $-2.93M ▼ $-268K ▲ $3.446M ▲ $246K ▲ $-3.198M ▼
Q4-2024 $-1.478M ▼ $793K ▲ $-292K ▼ $-796K ▼ $-323K ▼ $503K ▲
Q3-2024 $-739K $-1.585M $40K $1.218M $-303K $-1.545M

Revenue by Products

Product Q1-2025Q2-2025Q3-2025
Aerospace and Defense
Aerospace and Defense
 $0 ▲$0 ▲$0 ▲
Industrial
Industrial
 $10.00M ▲$10.00M ▲$10.00M ▲
Medical Device
Medical Device
 $10.00M ▲$10.00M ▲$10.00M ▲
Medical Imaging
Medical Imaging
 $10.00M ▲$10.00M ▲$10.00M ▲

Five-Year Company Overview

Income Statement

Income Statement Revenue has trended modestly upward over the last several years, then slipped slightly in the most recent year. Gross profit has grown roughly in line with sales, but overall margins remain thin, which is typical for an electronics manufacturing services provider. Operating and net income hover around break-even in most years, with only a couple of clearly profitable periods. Earnings per share swing from positive to negative, showing that even small changes in costs, mix, or volumes can move results sharply. Overall, the income statement points to a small, scale-sensitive business with improving but still fragile profitability.

Balance Sheet

Balance Sheet The balance sheet shows a compact company with gradually expanding assets and shareholders’ equity over time, though both remain modest. Debt levels are present but not extreme, suggesting some reliance on borrowing while avoiding heavy leverage. Reported cash balances are very low in the data provided, implying a limited cushion and a need to manage working capital and bank lines carefully. The capital structure leaves less room for large shocks but also avoids the burden of excessive debt, making balance-sheet discipline important for stability.

Cash Flow

Cash Flow Cash generation is somewhat inconsistent. Operating cash flow is positive in some years and close to flat in others, reflecting the underlying volatility seen in earnings. Free cash flow tends to hover near break-even, with only a small dip into negative territory at one point, which indicates tight but generally workable funding of day-to-day needs. Capital spending appears light, which fits an asset-light or highly outsourced model but may also mean that growth and modernisation must be achieved with relatively small incremental investments. Overall, the company runs with a fairly thin cash flow buffer.

Competitive Edge

Competitive Edge Nortech operates in a crowded electronics manufacturing space but focuses on demanding niches: medical, aerospace and defense, and complex industrial applications. These markets value reliability, certification, and regulatory expertise, which raises switching costs and can deepen customer relationships. The company’s full-service model—from design input through manufacturing and lifecycle support—helps embed it in customer projects rather than just competing on price. Its global footprint and near-shoring strategy add flexibility on cost and supply chain. However, its relatively small scale means it faces significant competition from much larger EMS players, potential customer concentration, and limited bargaining power, so execution and specialization are critical to sustaining its position.

Innovation and R&D

Innovation and R&D Nortech is leaning heavily into advanced connectivity as its differentiator. Patented technologies in flexible circuits and rugged, fiber-based interconnects aim to solve signal integrity and reliability problems in harsh or sensitive environments, such as medical imaging rooms and military systems. This portfolio, including non-magnetic and hybrid optical–electrical solutions, gives the company a technical angle that many generic manufacturers lack. Its R&D efforts appear focused and patent-driven, with a clear push toward higher-value, engineered solutions and integration of digital and IoT capabilities. The main opportunity is to turn this innovation into broader adoption and stickier customer programs; the main risk is that commercialization may lag the technology and that ongoing R&D investment is required to stay ahead.

Summary

Nortech is a small, specialized electronics manufacturer that has slowly grown its top line and improved its capabilities but still operates on very thin margins with uneven profitability. The balance sheet and cash flows are serviceable but not robust, leaving less room for major setbacks and making disciplined execution essential. Strategically, the company is trying to move up the value chain by focusing on mission-critical applications, lifecycle support, and differentiated interconnect technologies protected by patents. If it can deepen its presence in regulated medical and aerospace and defense markets and successfully scale its advanced connectivity offerings, its competitive position could strengthen. At the same time, its modest size, earnings volatility, and limited financial cushion remain key uncertainties that observers should keep in mind when tracking future progress.

NEWS

November 13, 2025 · 8:05 AM UTC

Nortech Systems Reports Third Quarter Results

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November 5, 2025 · 9:00 AM UTC

Nortech Systems Incorporated to Report Third Quarter 2025 Financial Results and Hold a Conference Call on November 13, 2025

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November 4, 2025 · 7:30 AM UTC

Nortech Systems Incorporated Earns AS9100 Certification for Monterrey, Mexico Facility

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September 16, 2025 · 7:45 AM UTC

Nortech Systems Achieves Enhanced Fiber Optic Performance

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