Nortech Systems (NSYS) Q4 2025 earnings summary

Executive summary

• Achieved net sales of $30.3 million in Q4 2025, up 5.9% year-over-year from $28.6 million in Q4 2024.

• Net income reached $897 thousand in Q4 2025, reversing a loss of $1.48 million in Q4 2024.

• Adjusted EBITDA was $1.2 million in Q4 2025, compared to a loss of $585 thousand in Q4 2024.

• 90-day backlog increased to $27.3 million as of December 31, 2025, from $26.5 million a year earlier.

• Closed $17.2 million in new debt financing, supporting future growth and operational flexibility.

Financial highlights

• Full-year 2025 net sales were $118.4 million, down 7.6% from $128.1 million in 2024.

• Gross profit for Q4 2025 was $5.07 million, up 79.5% year-over-year; full-year gross profit was $18.0 million, up 7.7%.

• Operating expenses for Q4 2025 were $4.17 million, nearly flat year-over-year; full-year operating expenses were $17.0 million.

• Q4 2025 basic EPS was $0.32, compared to $(0.54) in Q4 2024.

• Cash flow from operations was $2.74 million in 2025, compared to $(2.25) million in 2024.

Outlook and guidance

• Management expects continued improvement in gross margins, manufacturing efficiency, and quality metrics.

• Optimism about sustained performance improvement, supported by growing backlog and successful program transfers.

• Well-positioned to benefit from nearshoring trends and enhanced competitiveness in aerospace and high-reliability markets.