olivLaw · US equity research
Nortech Systems Incorporated NSYS
Electronic Components, NEC · SIC 3679 · Vertical: Electronic Components, NEC (SIC 3679)
Nortech Systems is a provider of engineering and contract manufacturing services for electromedical devices, electromechanical systems and assemblies, headquartered in Minnesota. The company reported net sales of 118.4 million USD in fiscal 2025, and in the second quarter of 2026 sales rose to 33.5 million USD, supported by a total backlog of 93.8 million USD at June 30, 2026.
At the close of 04 Nov 2026, Nortech Systems Incorporated (NSYS) stock was 10.92 USD (−3.36% on the day), with market capitalisation 31.2 m USD, P/E 29.4 on diluted EPS of 0.37 USD over the last 12 months, beta 0.32, 52-week range 6.80–17.66 USD. Latest reported quarter (Q2 2026): revenue of 33.5 m USD (+9.3% YoY), net income of 316.0 k USD (+1.0% YoY), diluted EPS 0.11 USD.
Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.
Price history
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Technical reading
- RSI (14)
- 50.1
- neutral
- Bollinger (20, 2)
- 9.82 – 11.57
- in the upper half of the band · %B 0.63 · band width 16.4%
- SMA 50 / 200
- 11.15 / 12.31
- downtrend (price < SMA50 < SMA200)
- MACD (12, 26, 9)
- -0.09 / -0.20
- MACD above signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | S&P 500 | vs S&P 500 | Vertical median | |
|---|---|---|---|---|
| 1 month | −1.2% | −1.1% | −0.1 pp | — |
| 3 months | −22.6% | −0.5% | −22.1 pp | — |
| 6 months | −17.3% | +4.4% | −21.7 pp | — |
| Year to date | +47.0% | +12.3% | +34.7 pp | — |
| 1 year | +12.8% | +13.5% | −0.7 pp | +9.6% |
| 3 years | +31.3% | +76.4% | −45.2 pp | +61.4% |
| 5 years | +2.9% | +63.7% | −60.8 pp | — |
Price returns, dividends excluded.
Quarterly results
Latest quarter: Q2 2026 · 30 Jun 2026
Quarterly margins
Quarterly statements · USD
| Fiscal year | Q3 '24 | Q4 '24 | Q1 '25 | Q2 '25 | Q3 '25 | Q4 '25 | Q1 '26 | Q2 '26 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 31.4 m | -85.1 m | 13.4 m | 30.7 m | 30.5 m | 105.7 m | 11.8 m | 33.5 m |
| Cost of revenue | 27.6 m | 25.8 m | 23.8 m | 25.8 m | 25.5 m | 25.2 m | 25.6 m | 27.8 m |
| Gross profit | 3.8 m | 2.8 m | 3.1 m | 4.8 m | 5.0 m | 5.1 m | 4.7 m | 5.7 m |
| Research & development | 284.0 k | 298.0 k | 326.0 k | 302.0 k | 266.0 k | 278.0 k | 310.0 k | 346.0 k |
| Operating income | -467.0 k | -1.2 m | -1.6 m | 742.0 k | 945.0 k | 901.0 k | 47.0 k | 623.0 k |
| Depreciation & amortisation | 434.0 k ≈ | — | 347.0 k | 331.0 k ≈ | 308.0 k ≈ | — | 303.0 k | 315.0 k ≈ |
| Interest expense | 216.0 k | 196.0 k | 214.0 k | 257.0 k | 273.0 k | 220.0 k | 256.0 k | 197.0 k |
| Pre-tax income | -683.0 k | -1.4 m | -1.8 m | 485.0 k | 672.0 k | 681.0 k | -209.0 k | 426.0 k |
| Income tax | 56.0 k | 55.0 k | -511.0 k | 172.0 k | 818.0 k | -216.0 k | -175.0 k | 110.0 k |
| Net income | -739.0 k | -1.5 m | -1.3 m | 313.0 k | -146.0 k | 897.0 k | -34.0 k | 316.0 k |
| Diluted EPS | -0.27 | -0.66 ≈ | -0.48 | 0.12 | -0.05 | 0.32 ≈ | -0.01 | 0.11 |
| Operating cash flow | -1.6 m ≈ | 793.0 k | -2.9 m | 157.0 k ≈ | -92.0 k ≈ | 5.6 m | -1.6 m | -888.0 k ≈ |
| Capex | -40.0 k ≈ | 290.0 k | 268.0 k | 99.0 k ≈ | 150.0 k ≈ | 144.0 k | 228.0 k | 95.0 k ≈ |
≈ derived quarter (cumulative difference / share-days average)
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Today's P/E sits at the 74 percentile of its own 19-quarter history (min 3.4, median 11.4, max 713.0; quarters with earnings only).
Fiscal years
| Fiscal year | 2018 | 2019 | 2020 | 2021 | 2022 | ⚠ 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 113.4 m | 116.3 m | 104.1 m | 115.2 m | 134.1 m | 13.4 m | 14.4 m | 118.4 m |
| Revenue YoY | +0.9% | +2.6% | −10.5% | +10.6% | +16.5% | — | +7.0% | +723.6% |
| Net income | 166.0 k | -1.2 m | -1.5 m | 7.2 m | 2.0 m | 6.9 m | -1.3 m | -252.0 k |
| Net income YoY | unavailable | −839.8% | unavailable | unavailable | −71.9% | — | −118.8% | unavailable |
| Diluted EPS | 0.06 | -0.46 | -0.58 | 2.54 | 0.70 | 2.38 | -0.47 | -0.09 |
| Diluted EPS YoY | unavailable | −866.7% | unavailable | unavailable | −72.4% | — | −119.7% | unavailable |
| net % | 0.1% | -1.1% | -1.5% | 6.2% | 1.5% | 51.2% | -9.0% | -0.2% |
| Free cash flow | 1.0 m | 278.0 k | 878.0 k | -5.8 m | 3.0 m | 485.0 k | -3.5 m | 2.1 m |
The series breaks before 2023: earlier years come from the original reports of the issuer of that time, later years from a subsequent filing that restated the perimeter (a separation, discontinued operations). The year-on-year change across the break is not shown.
Reported results vs expectations
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Balance sheet & financial health
Fiscal year 2025 · 31 Dec 2025
- Cash
- 1.7 m USD
- Financial debt
- unavailable USD
- Net debt
- unavailable USD
- Equity
- 34.5 m USD
- Total assets
- 71.9 m USD
- Debt / equity
- unavailable
- Current ratio
- 1.88x
- ROE
- -0.7%
- ROA
- -0.3%
- FCF margin
- 1.8%
Financial statements (source on every figure)
Revenue and net income (USD)
Margins
Income statement · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Revenue | 104.1 m | 115.2 m | 134.1 m | 13.4 m | 14.4 m | 118.4 m | SEC (XBRL)· 26 Mar 2026verified |
| Cost of revenue | 94.4 m | 99.3 m | 113.6 m | 116.2 m | 111.4 m | 100.4 m | SEC (XBRL)· 26 Mar 2026verified |
| Gross profit | 9.7 m | 15.9 m | 20.5 m | 23.1 m | 16.7 m | 18.0 m | SEC (XBRL)· 26 Mar 2026verified |
| Research & development | 0 | 483.0 k | 1.5 m | 1.2 m | 1.2 m | 1.2 m | SEC (XBRL)· 26 Mar 2026verified |
| Operating income | -616.0 k | 2.3 m | 3.9 m | 6.0 m | -195.0 k | 975.0 k | SEC (XBRL)· 26 Mar 2026verified |
| Interest expense | 620.0 k | 430.0 k | 411.0 k | 487.0 k | 744.0 k | 964.0 k | SEC (XBRL)· 26 Mar 2026verified |
| Pre-tax income | -1.2 m | 8.0 m | 3.5 m | 5.5 m | -939.0 k | 11.0 k | SEC (XBRL)· 26 Mar 2026verified |
| Income tax | 310.0 k | 859.0 k | 1.5 m | -1.4 m | 356.0 k | 263.0 k | SEC (XBRL)· 26 Mar 2026verified |
| Net income | -1.5 m | 7.2 m | 2.0 m | 6.9 m | -1.3 m | -252.0 k | SEC (XBRL)· 26 Mar 2026verified |
| Diluted EPS | -0.58 | 2.54 | 0.70 | 2.38 | -0.47 | -0.09 | SEC (XBRL)· 26 Mar 2026verified |
| Weighted average diluted shares | 2.7 m | 2.8 m | 2.9 m | 2.9 m | 2.8 m | 2.8 m | SEC (XBRL)· 26 Mar 2026verified |
Balance sheet · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Cash | 352.0 k | 643.0 k | 1.0 m | 960.0 k | 916.0 k | 1.7 m | SEC (XBRL)· 26 Mar 2026verified |
| Receivables | 15.6 m | 14.5 m | 16.0 m | 19.3 m | 14.9 m | 17.0 m | SEC (XBRL)· 26 Mar 2026verified |
| Inventories | 13.9 m | 19.4 m | 22.4 m | 21.7 m | 21.6 m | 20.7 m | SEC (XBRL)· 26 Mar 2026verified |
| Current assets | 41.0 m | 51.8 m | 54.9 m | 58.8 m | 55.3 m | 56.2 m | SEC (XBRL)· 26 Mar 2026verified |
| Property, plant & equipment, net | 6.4 m | 5.8 m | 6.4 m | 6.5 m | 6.2 m | 5.2 m | SEC (XBRL)· 26 Mar 2026verified |
| Intangibles (excl. goodwill) | 1.2 m | 501.0 k | 422.0 k | 263.0 k | 89.0 k | 71.0 k | SEC (XBRL)· 26 Mar 2026verified |
| Total assets | 57.6 m | 67.1 m | 69.5 m | 75.1 m | 72.4 m | 71.9 m | SEC (XBRL)· 26 Mar 2026verified |
| Accounts payable | 11.2 m | 12.7 m | 14.8 m | 15.9 m | 11.6 m | 12.8 m | SEC (XBRL)· 26 Mar 2026verified |
| Short-term debt | 1.2 m | 0 | — | — | — | — | SEC (XBRL)· 17 Mar 2022verified |
| Long-term debt | 5.9 m | — | — | — | — | — | SEC (XBRL)· 23 Mar 2021verified |
| Current liabilities | 19.5 m | 22.3 m | 26.4 m | 26.6 m | 21.4 m | 29.8 m | SEC (XBRL)· 26 Mar 2026verified |
| Total liabilities | 38.9 m | 41.0 m | 41.5 m | 39.8 m | 38.4 m | 37.4 m | SEC (XBRL)· 26 Mar 2026verified |
| Equity | 18.7 m † | 26.1 m † | 28.1 m † | 35.3 m † | 34.0 m † | 34.5 m † | SEC (XBRL)· 26 Mar 2026verified |
† equity attributable to the parent's shareholders: in these years the issuer no longer reports the total including non-controlling interests.
Cash flow · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Operating cash flow | 1.4 m | -4.5 m | 5.4 m | 1.8 m | -2.3 m | 2.7 m | SEC (XBRL)· 26 Mar 2026verified |
| Capex | 485.0 k | 1.3 m | 2.4 m | 1.3 m | 1.3 m | 661.0 k | SEC (XBRL)· 26 Mar 2026verified |
| Free cash flow | 878.0 k ≈ | -5.8 m ≈ | 3.0 m ≈ | 485.0 k ≈ | -3.5 m ≈ | 2.1 m ≈ | SEC (XBRL)· 26 Mar 2026derived |
| Investing cash flow | 5.5 m | -730.0 k | -2.4 m | -1.3 m | -1.3 m | -157.0 k | SEC (XBRL)· 26 Mar 2026verified |
| Financing cash flow | -4.0 m | 3.9 m | -2.7 m | -1.3 m | 2.8 m | -1.9 m | SEC (XBRL)· 26 Mar 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
4 indicators that do not apply to the sector.
Valuation
olivLaw classification
Score: 51 / 100
A scoring methodology on indicators and valuation, not investment advice.
Closing price
04 Nov 2026Source: olivLaw, closing series
Market cap: 31.2 m USD
Key indicators
Coverage and freshness
Score by group
- Quality13
- Growth33
- Valuation100
- Balance sheet58
Estimated value range
The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 11.84 – 380.82 USD.
Valuation assumptions are editorial choices, not measured; beta is not measured.
Method ranges (USD per share)
— — Mid · ▏ Price
Valuation methods
- DCF (discounted cash flow)11.84 – 18.43 (Mid 14.38)WACC 9.0% · starting FCFF 3.1 m USD · terminal value share of EV 73%The WACC × g sensitivity gives the method's bounds; these are not probabilities.Reverse DCF: starting growth implied by the price (fading linearly to terminal growth, everything else fixed): -14.8%
- Peers: EV/Sales75.30 – 380.82 (Mid 235.24)5 companies used · median multiple 3.7x · quartiles 1.2x – 6.0xAEIS, MVIS, OST, VREX, VRT
- Peers: EV/EBITDAunavailable · input data missing
Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.
Assumptions (illustrative, editorial)
- Risk-free rate
- 4.3%
- Equity risk premium
- 5.0%
- Beta (default)
- 1.00
- Cost of equity
- 9.3%
- Terminal growth
- 2.5%
Factor scorecard
Neutral profile · Score 51/100
| Factor | Value | Score | Weight used |
|---|---|---|---|
| Gross margin · Quality | 11.3% | 0 (on a fixed band) | 12% |
| EBIT margin · Quality | 1.4% | 36 (vs peers) | 10% |
| FCF margin · Quality | 1.3% | 5 (on a fixed band) | 10% |
| Revenue CAGR 3Y · Growth | -4.1% | 0 (on a fixed band) | 19% |
| Revenue growth (YoY) · Growth | 723.6% | 100 (vs peers) | 10% |
| Net debt / EBITDA · Balance sheet | unavailable | unavailable | — |
| Current ratio · Balance sheet | 1.8x | 58 (on a fixed band) | 7% |
| EV/Sales · Valuation | 0.2x | 100 (vs peers) | 19% |
| FCF yield · Valuation | 7.9% | 100 (on a fixed band) | 14% |
| Shareholder yield (distributions) · Returns | unavailable | unavailable | — |
Factors without a value were dropped; the remaining weights were renormalised.
Score groups
- Balance sheet· partial58/100 · 1/2 factors with a value
- Growth33/100 · 2/2 factors with a value
- Quality13/100 · 3/3 factors with a value
- Returns· partialunavailable · 0/1 factors with a value
- Valuation100/100 · 2/2 factors with a value
A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.
Memo
NORTECH SYSTEMS INCORPORATED (NSYS). Latest full fiscal year: 2025; data up to 2026-06-30.
Figures computed from the financial statements: revenue 118.4 m USD in 2025; YoY growth 723.6%; net margin 0.6%; ROE 3.0%.
The estimated value range is 43.57–199.62 USD per share (median of 2 methods, agreement: low); assumptions are illustrative. Against the central value of 124.81 USD, the price of 10.92 USD leaves a potential of 1,042.9% (value / price − 1) and a margin of safety of 91.3% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.
olivLaw score 51/100, methodological classification: neutral profile (score, margin of safety and method agreement together; not a judgement of the right price). Groups assessed only in part: balance, returns. Not investment advice.
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- Revenue growth (YoY): 723.6%
- EV/Sales: 0.2x
- FCF yield: 7.9%
- The price is below the estimated value range
What contradicts it
- Gross margin: 11.3%
- FCF margin: 1.3%
- Revenue CAGR 3Y: -4.1%
- The valuation methods diverge
Not assessed (insufficient data or a ratio without meaning): Net debt / EBITDA, Shareholder yield (distributions).
Versus the vertical median
Electronic Components, NEC (SIC 3679) · same industry (4-digit SIC) · compared with 12 companies
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| VRTVertiv Holdings Co | 79.1 bn | 38.4 | 46.6% | 16.0% | +27.7% | +14% / +371% |
| AEISAdvanced Energy Industries, Inc. | 8.6 bn | 30.4 | 19.9% | 12.7% | +21.4% | +0% / +123% |
| PIImpinj, Inc. | 5.6 bn | — | -3.8% | -2.5% | −1.4% | +5% / +116% |
| VICRVicor Corporation | 1.9 bn | 41.7 | 23.5% | 32.2% | +26.1% | +78% / +335% |
| VREXVarex Imaging Corp | 779.3 m | 35.4 | 4.6% | 2.6% | +4.1% | +60% / −2% |
| MPTIM-tron Industries, Inc. | 277.8 m | 23.5 | 12.4% | 16.3% | +11.0% | +24% / +85% |
| ESPEspey Mfg. & Electronics Corp. | 152.7 m | 12.9 | 20.1% | 24.2% | +4.9% | +29% / +197% |
| LGLLgl Group Inc | 84.6 m | — | -0.6% | -5.0% | −2.9% | +15% / +38% |
| MVISMicroVision, Inc. | 42.2 m | — | -197.8% | -2,230.6% | −74.3% | −91% / −97% |
| NSYSNortech Systems Incorporated | 31.2 m | 29.4 | 3.0% | 0.6% | +723.6% | +13% / +31% |
| OSTOstin Technology Group Co., Ltd. | 23.7 m | — | -169.1% | -26.0% | +22.2% | −97% / −99% |
| NEONNeonode Inc. | 10.5 m | 1.3 | 48.6% | 397.8% | −33.7% | −72% / −52% |
| LPLLG Display Co., Ltd. | — | — | -37.2% | -9.6% | +24.8% | −39% / −45% |
1- and 3-year price returns: for NSYS from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
The engine has no published run for this company yet.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.
Estimated price (USD)
| Estimated price | Bear | Base | Bull |
|---|---|---|---|
| 1 years | 5.74 Total return -47% · Per year -47% | 10.19 Total return -7% · Per year -7% | 15.42 Total return 41% · Per year 41% |
| 3 years | 4.65 Total return -57% · Per year -25% | 9.38 Total return -14% · Per year -5% | 15.70 Total return 44% · Per year 13% |
| 5 years | 3.77 Total return -65% · Per year -19% | 8.63 Total return -21% · Per year -5% | 15.99 Total return 46% · Per year 8% |
- Exit P/E± 2.34
- Net margin± 1.64
- Annual revenue growth± 1.47
- Annual dilution± 0.14
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
In brief
Nortech Systems is a provider of engineering and contract manufacturing services for electromedical devices, electromechanical systems and assemblies, headquartered in Minnesota. The company reported net sales of 118.4 million USD in fiscal 2025, and in the second quarter of 2026 sales rose to 33.5 million USD, supported by a total backlog of 93.8 million USD at June 30, 2026.
SWOT
Strengths
- The company holds multiple quality certifications, including for medical devices and aerospace, and operates plants in three countries 1.
- The customer base spans four end markets, which helps reduce the effect of fluctuations in any single sector 1.
- Total backlog grew significantly in fiscal 2025 and in the first half of 2026, offering visibility into future demand 12.
Weaknesses
- The company depends heavily on one major customer, which accounted for a large share of net sales 1.
- Margins have been low in the past, and interest costs and restructuring charges have weighed on results 1.
- The company has significant exposure to Mexican VAT refund receivables, whose collection can be delayed 1.
Opportunities
- Demand for nearshoring and regional production could bring new programs from customers reconfiguring their supply chains 13.
- Fiber-optic technology and expansion in aerospace and defense could open segments with better margins 13.
- The new credit facility could support working capital needed for growing order volumes 1.
Threats
- Dependence on customer orders and frequent specification changes could affect scheduling and inventory costs 1.
- Price pressure from competitors with excess capacity could reduce the company's margins 1.
- A breach of covenants in the new credit facility could lead to acceleration of obligations if EBITDA declines 1.
Risks
- Customer concentrationhigh
One customer accounted for a very large share of net sales, and losing it could seriously affect results 1.
- Credit covenantshigh
If EBITDA or cash flow declines, the company could fail to comply with covenants of its credit facility, with a risk of accelerated repayment 1.
- Mexico and China exposuremedium
Foreign operations are exposed to regulatory changes, tariffs and currency risk, and Mexican VAT refunds have been delayed 1.
- Component shortagesmedium
Supply chain disruptions could lead to delivery delays and extra costs, which could affect customer relationships 1.
- Majority shareholder controllow
A group of majority shareholders can control board composition and strategic decisions, even where their interests differ from other shareholders 1.
Investment thesis
What would need to be true (bull case)
- Higher sales and gross margin in the first half of 2026, together with a growing backlog, could indicate an operational recovery 23.
- Positioning in nearshoring and high-reliability markets could support new long-term contracts 13.
- Diversification across four end markets could reduce the impact of a slowdown in any single sector 1.
What would break the thesis
- Net sales declined in fiscal 2025 and profitability remained fragile, which could limit the company's ability to sustain growth 1.
- Dependence on one major customer and tight credit covenants could expose the company to liquidity shocks 1.
- Competitive pressure and delayed collection of Mexican VAT refunds could continue to weigh on margins and cash flow 1.
What to watch
- Backlog and sales trend in aerospace and defenseQ3 2026
- Compliance with covenants of the new credit facility2026
- Gross margin trend after restructuringQ4 2026
- Collection of Mexican VAT receivablesnext 10-K
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
The business
Nortech Systems Incorporated, organized in 1990 and headquartered in Maple Grove, Minnesota, provides engineering design and manufacturing solutions for electromedical devices, electromechanical systems, assemblies and components 1. Its services cover design, testing, prototyping, manufacturing, supply chain management and post-market services 1. Customers are original equipment manufacturers in medical device, medical imaging, aerospace and defense, and industrial markets 1.
The company operates facilities in Minnesota, Monterrey in Mexico and Suzhou in China, and its strategy aims to move from a transactional, price-driven model to a solution-based model with customer or supplier-managed inventory 1. Quality certifications include ISO 9001, ISO 13485 and AS9100, and the Milaca facility is FDA registered 1.
In the first half of 2026, results benefited from higher net sales and a higher gross margin, while incentive compensation expense weighed on costs 2. In March 2026 the company entered a new credit facility with Associated Bank 1.
Segments
Medical Device
Net sales to medical device customers were 31.9 million USD in fiscal 2025, down from the prior year, but rose to 10.3 million USD in the second quarter of 2026 12.
Medical Imaging
Medical imaging was the largest segment in fiscal 2025 with net sales of 40.0 million USD, and in the first half of 2026 it grew 13.5 percent 12.
Aerospace and Defense
The aerospace and defense segment declined in fiscal 2025, but total backlog rose by June 30, 2026, mainly due to orders in this market 2.
Market context
The contract electronics manufacturing market is described by the company as dynamic, high-technology and globally regulated 1. Customers increasingly seek regional production, and Nortech has noted growing interest in nearshoring 13.
Total order backlog grew 17.4 percent in fiscal 2025 compared with 2024, and reached 93.8 million USD at June 30, 2026 13.
Trends
- Nearshoring and regional productiontailwind
Customers reducing supply chain risk could move production closer to end markets, which could favor the US, Mexico and China operations if they stay competitive.
- Stricter FDA quality rulesmixed
The transition to the new FDA quality management regulation, effective February 2026, could bring adaptation costs, although the company believes its ISO certifications prepare it well.
- Trade tariffsheadwind
Changes in tariffs and trade policy can raise component costs and shift customer geographic preferences, with effects in both directions.
- Production relocationmixed
Moving programs between plants caused temporary disruption in the industrial segment, but could support capacity utilization over the longer term.
Competitive position
Competition includes small closely held contract manufacturers, large global full-service providers, customers' in-house production and foreign manufacturers 1. The company believes larger competitors have more resources and economies of scale, while customers' in-house operations remain an outsourcing opportunity 1.
Competitive factors include manufacturing capabilities, pricing, quality, delivery schedules, customer service and value-added engineering 1. Price pressure is heightened by competitors with excess capacity 1.
- Large global full-service EMS providers
Large contract manufacturers with broad geographic reach, which the company says focus mainly on higher volume engagements 1.
- Foreign contract manufacturers
Providers with lower labor costs that can hold a price advantage over the company 1.
- Small closely held contract manufacturers
Smaller operations that the company considers a limited competitive threat in its markets 1.
- OEM in-house manufacturing
Customers that build their own products are both competition and a potential outsourcing source 1.
Links, dependencies and risks
Who the company is tied to, from its own SEC filings (customers, suppliers, production, partners, competitors, countries, regulation), from the 5 %+ holders' statements (13D/13G) and from what other companies say about it. Click a node for its evidence; on a listed company the graph moves to it.
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News & filings
In the press
No news in our archive over the last 180 days.
SEC filings
- Quarterly report12 Aug 2026
- Current report12 Aug 2026Results of operations · Financial statements and exhibits
- Current report14 May 2026Shareholder vote
- Current report13 May 2026Results of operations · Financial statements and exhibits
- Quarterly report13 May 2026
- Proxy statement01 Apr 2026
- Current report26 Mar 2026Results of operations · Financial statements and exhibits
- Annual report26 Mar 2026
- Current report23 Mar 2026Material agreement · Financial statements and exhibits
- Current report06 Mar 2026Material agreement · Financial statements and exhibits
Sources
- [1] Form 10-K, fiscal year ended 2025-12-31 · SEC / Nortech Systems Incorporated · 26 Mar 2026
- [2] Form 10-Q, quarter ended 2026-06-30 · SEC / Nortech Systems Incorporated · 12 Aug 2026
- [3] Form 8-K, results release (exhibit 99.1) · SEC / Nortech Systems Incorporated · 12 Aug 2026
Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.