Nortech Systems Incorporated reported net sales of $30.7 million for the second quarter ended June 30, 2025, marking a 9.5% year-over-year decline. Despite the lower revenue, the company achieved a net income of $0.3 million, a 99.4% increase from the prior year's second quarter.
Diluted earnings per share for Q2 2025 improved to $0.12, up from $0.05 in Q2 2024. Adjusted EBITDA for the quarter was positive $1.1 million, an increase from $0.6 million in Q2 2024, demonstrating a return to profitability on this metric.
Gross profit improved by 4.8% year over year, and operating expenses fell by 4.2%, contributing to operating income nearly doubling compared to the prior year. Management stated that restructuring efforts and cost discipline are paying off, with increased plant utilization and improved manufacturing efficiencies across transferred programs.
The company reported that backlog levels have reached anticipated targets and are growing, alongside rising customer approvals and enhanced logistics performance. Nortech also highlighted its strong position in the nearshoring landscape in Mexico and China, and its strategic shift from copper to fiber technology to mitigate cost pressures and align with long-term strategy.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.