STOCK TITAN
  1. Home
  2. Sec-filings
  3. NSYS
  4. [8-K] NORTECH SYSTEMS INC Reports Material Event

Nortech Systems (Nasdaq: NSYS) grows Q2 2026 sales and backlog

Filing Impact
(Moderate)
Filing Sentiment
(Neutral)
Form Type
8-K

Rhea-AI Filing Summary

Nortech Systems Incorporated reported higher revenue for the quarter ended June 30, 2026. Net sales were $33.5 million in Q2 2026, up 9.3% from $30.7 million in Q2 2025, with gross profit rising to $5.7 million and gross profit for the first half of 2026 up 31.5% year over year.

Q2 2026 net income was $316 thousand, or $0.11 per basic share, roughly flat versus $313 thousand, or $0.12 per basic share, a year earlier. For the first six months, net income improved to $282 thousand from a loss of $1.0 million in 2025, and Adjusted EBITDA increased to $1.3 million from $73 thousand. However, Q2 EBITDA and Adjusted EBITDA of $938 thousand declined 12.6% from Q2 2025.

The company highlighted a strong order pipeline, with a 90‑day backlog of $33.4 million and total backlog of $93.8 million as of June 30, 2026, up 20% from a year earlier. Cash and restricted cash totaled $1.7 million, operating cash flow for the first half was a use of $2.4 million, and total assets were $80.0 million against total liabilities of $44.6 million.

Positive

  • Net sales grew 9.3% year over year in Q2 2026 to $33.5 million, and YTD 2026 net sales increased 10.9% to $63.9 million, indicating solid top-line expansion.
  • YTD 2026 net income improved to $282 thousand from a $1.0 million loss in 2025, and Adjusted EBITDA rose to $1.3 million from $73 thousand, a substantial profitability turnaround.
  • Total backlog reached $93.8 million as of June 30, 2026, up 20% year over year, with a 90‑day backlog of $33.4 million, supporting visibility into future revenue.

Negative

  • Q2 2026 EBITDA and Adjusted EBITDA declined 12.6% year over year to $938 thousand, reflecting near-term margin pressure despite higher revenue.
  • Cash flow from operating activities remained negative at $(2.4) million for the first half of 2026, following $(2.8) million used in the prior-year period.

Filing Explained

Existing holders’ percentage ownership is lower absent offsets because June 30 common shares exceeded the year-end count: 2,853,766 versus 2,786,134.

The Form 8-K furnishes Nortech’s second-quarter results and financial statements through June 30, 2026, so the disclosed reporting for that period is complete. Its balance sheet reports $1,380 thousand of cash, $7,868 thousand of lines of credit, and $1,636 thousand of long-term term-loan debt.

Common shares issued and outstanding totaled 2,853,766 on June 30, 2026, versus 2,786,134 on December 31, 2025. Issuing additional shares increases the total share count and reduces an existing holder’s percentage ownership absent offsetting changes, so the higher reported count represents a dilutive ownership change for existing common holders.

The six-month cash-flow statement reports $2,449 thousand of net cash used in operating activities, $35,061 thousand of line-of-credit proceeds, $34,198 thousand of line-of-credit repayments, and $2,200 thousand of term-loan proceeds; these figures show financing activity alongside the operating cash use.

Item 2.02 Results of Operations and Financial Condition Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01 Financial Statements and Exhibits Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Q2 2026 Net Sales $33,540 Net sales in thousands for the quarter ended June 30, 2026; up 9.3% year over year
Q2 2026 Net Income $316 Net income in thousands for the quarter ended June 30, 2026; $313 thousand in Q2 2025
Q2 2026 EBITDA $938 EBITDA and Adjusted EBITDA in thousands for Q2 2026; down 12.6% from Q2 2025
YTD 2026 Net Income $282 Net income in thousands for six months ended June 30, 2026; versus $(1,003) thousand in 2025
Total Backlog $93,800 Total backlog in thousands as of June 30, 2026; up 20% from June 30, 2025
Operating Cash Flow YTD 2026 $(2,449) Net cash used in operating activities in thousands for six months ended June 30, 2026
Total Assets $80,045 Total assets in thousands as of June 30, 2026
Total Liabilities $44,571 Total liabilities in thousands as of June 30, 2026
Adjusted EBITDA financial
"Adjusted earnings before interest, taxes, depreciation, and amortization (“EBITDA”) of $938 thousand in Q2 2026"
Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.
backlog financial
"Total backlog of $93.8 million as of June 30, 2026 , up 20% from June 30, 2025"
A backlog is the amount of work or orders that a company has received but hasn't completed yet. It’s like a restaurant with many dishes to serve; the backlog shows how many orders are still waiting to be finished. It matters because a large backlog can indicate strong demand or potential delays in delivering products or services.
restructuring charges financial
"Restructuring charges | | | - | | | | - | | | | - | | | | 266 |"
Restructuring charges are costs that a company pays when it changes how it operates, like closing factories or laying off employees. These expenses are often one-time and happen to help the company become more efficient in the long run. They matter because they can affect the company's profits and how investors see its future prospects.
term loan financial
"Term loan, net of debt issuance costs | | | 1,636 | | | | - |"
A term loan is a type of loan that is borrowed for a set period of time, with a fixed schedule for repaying the money, usually in regular payments. It matters to investors because it represents a company's borrowing costs and financial stability; reliable repayment of these loans can indicate strong financial health, while difficulties may signal potential risks.
contract assets financial
"Contract assets | | | 16,979 | | | | 15,184 |"
Contract assets are amounts a company has earned by doing work or delivering goods under a customer agreement but has not yet billed or collected because certain contract conditions remain. Think of it as completed work sitting in a company’s toolbox waiting for an invoice trigger. For investors, growing contract assets signal future cash and revenue potential but also raise questions about timing, cash collection risk and the real strength of reported sales.
nearshoring technical
"continued customer interest in nearshoring and regional manufacturing strategies"
Nearshoring is the practice of moving production, services, or suppliers to a nearby country instead of keeping them far away, like relocating a workshop from across the ocean to the next-door neighborhood. For investors it matters because shorter distances usually lower shipping costs, speed up delivery, reduce disruption risk, and can change a company’s expenses and profit outlook—similar to how a closer supplier makes a local shop more reliable and cheaper to run.
Q2 2026 Net Sales $33,540 Up 9.3% from $30,675 in Q2 2025
Q2 2026 Net Income $316 Up 1.0% from $313 in Q2 2025
YTD 2026 Net Sales $63,856 Up 10.9% from $57,570 in YTD 2025
YTD 2026 Net Income $282 Improved from $(1,003) in YTD 2025
Q2 2026 Adjusted EBITDA $938 Down 12.6% from $1,073 in Q2 2025
YTD 2026 Adjusted EBITDA $1,288 Up from $73 in YTD 2025

AI-generated analysis. How Rhea-AI works. Not financial advice.

See more from StockTitan in Google Search and AI answers. Adds StockTitan as a preferred source · opens Google
Add on Google
Understanding 8-K Material Events →

FAQ

How did Nortech Systems (NSYS) perform financially in Q2 2026?
Nortech Systems reported Q2 2026 net sales of $33.5 million, up 9.3% from $30.7 million in Q2 2025. Net income was $316 thousand, or $0.11 per basic share, compared with $313 thousand, or $0.12 per share, a year earlier.

What were Nortech Systems’ year-to-date 2026 results compared with 2025?
For the six months ended June 30, 2026, net sales were $63.9 million versus $57.6 million in 2025, and net income was $282 thousand compared with a loss of $1.0 million in the prior-year period.

How did EBITDA and Adjusted EBITDA trend for NSYS in Q2 and YTD 2026?
In Q2 2026, EBITDA and Adjusted EBITDA were $938 thousand, down 12.6% from $1.1 million in Q2 2025. Year-to-date 2026, EBITDA and Adjusted EBITDA were $1.3 million, compared with $73 thousand Adjusted EBITDA in 2025.

What is Nortech Systems’ backlog as of June 30, 2026?
As of June 30, 2026, Nortech Systems reported a 90-day backlog of $33.4 million and total backlog of $93.8 million, representing a 20% increase in total backlog from June 30, 2025.

What does the cash flow statement show for NSYS in the first half of 2026?
For the six months ended June 30, 2026, Nortech Systems used $2.4 million in operating cash flow, used $323 thousand in investing activities, and generated $2.8 million from financing activities, resulting in cash and restricted cash of $1.7 million at period end.

How has Nortech Systems’ gross profit changed year over year?
In Q2 2026, gross profit was $5.7 million versus $4.8 million in Q2 2025, an increase of 17.9%. For the first half of 2026, gross profit was $10.4 million compared to $7.9 million in the prior-year period, up 31.5%.
false 0000722313 0000722313 2026-08-12 2026-08-12 iso4217:USD xbrli:shares iso4217:USD xbrli:shares

 

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT PURSUANT

TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

 

Date of Report (Date of earliest event reported): August 12, 2026

 

NORTECH SYSTEMS INCORPORATED

(Exact name of registrant as specified in charter)

 

Minnesota   0-13257   41-1681094
(State or other jurisdiction   (Commission   IRS Employer
of incorporation)   File Number)   Identification No.)

 

7550 Meridian Circle N, Maple Grove, MN 55369

(Address of principal executive offices)

 

(952) 345-2244

(Registrant’s telephone number, including area code)

 

Not Applicable

(Former name or former address, if changed from last report)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

 

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
   
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
   
☐ Pre-commencement communications pursuant to Rule 14-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
   
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240. 13e-4(c))

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class:   Trading Symbol(s)   Name of each exchange on which registered:
Common Stock, par value $.01 per share   NSYS   NASDAQ Capital Market

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

 

Emerging growth company ☐

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 

 

 

 

 

 

Item 2.02 Results of Operations and Financial Condition

 

The Registrant issued a news release on August 12, 2026, entitled “Nortech Systems Reports Second Quarter Results” regarding its consolidated results and financial condition for the second quarter ended June 30, 2026. A copy of this news release is attached hereto as Exhibit 99.1.

 

Item 9.01 Financial Statements and Exhibits

 

99.1   News Release dated August 12, 2026 (furnished)
104   Cover Page Interactive Data File (embedded within the Inline XBRL document)

 

 

 

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

Date: August 12, 2026

 

  Nortech Systems Incorporated
  (Registrant)
   
  /s/ Andrew D. C. LaFrence
 

Andrew D. C. LaFrence

  Chief Financial Officer and SVP Finance

 

 

 

Exhibit 99.1

 

 

Nortech Systems Reports Second Quarter Results

 

MINNEAPOLIS – August 12, 2026 – Nortech Systems Incorporated (Nasdaq: NSYS) (“Nortech” or the “Company”), a leading provider of engineering and manufacturing solutions for complex electromedical and electromechanical products serving the medical imaging, medical device, industrial, and aerospace & defense markets, reported financial results for the second quarter ended June 30, 2026.

 

2026 Q2 Highlights:

 

  ● Net sales of $33.5 million in Q2 2026 vs. $30.7 million in Q2 2025
  ● Net income of $316 thousand, or $0.11 per basic share in Q2 2026 vs. $313 thousand, or $0.12 per basic share in Q2 2025
  ● Adjusted earnings before interest, taxes, depreciation, and amortization (“EBITDA”) of $938 thousand in Q2 2026 vs. $1.1 million in Q2 2025
  ● 90-day backlog of $33.4 million as of June 30, 2026 vs. $26.6 million as of June 30, 2025
  ● Total backlog of $93.8 million as of June 30, 2026, up 20% from June 30, 2025

 

Management Commentary

 

“Nortech delivered a solid second quarter, with year-over-year revenue growth, improved gross margins, and continued positive operating income reflecting the benefits of our restructuring actions and disciplined execution,” said President & CEO, Jay D. Miller.

 

“We are encouraged by the continued strength of our bookings and our backlog, which we view as an important leading indicator of future business prospects, including opportunities in attractive markets such as Aerospace and Defense as well as Medical. We are also seeing continued customer interest in nearshoring and regional manufacturing strategies, where our North American footprint, combined with our China operations, positions Nortech well to support customers’ evolving supply chain needs. As we move through the second half of 2026, we remain focused on converting strong customer engagement into sustainable growth and long-term value.”

 

Summary Financial Information

 

The following table provides summary financial information comparing the second quarter 2026 (“Q2 2026”) financial results to the same quarter in 2025 (“Q2 2025”) as well as the six-month period ended June 30, 2026 (“YTD 2026”) with the same period in 2025 (“YTD 2025”).

 

($ in thousands)   Q2 2026     Q2 2025     % Change     YTD 2026     YTD 2025     % Change  
Net sales   $ 33,540     $ 30,675       9.3 %   $ 63,856     $ 57,570       10.9 %
Gross profit   $ 5,703     $ 4,837       17.9 %   $ 10,405     $ 7,915       31.5 %
Operating expenses   $ 5,080     $ 4,095       24.1 %   $ 9,735     $ 8,786       10.8 %
Net income (loss)   $ 316     $ 313       1.0 %   $ 282     $ (1,003 )     (128.1 )%
EBITDA   $ 938     $ 1,073       (12.6 )%   $ 1,288     $ (193 )     (767.4 )%
Adjusted EBITDA   $ 938     $ 1,073       (12.6 )%   $ 1,288     $ 73       1,664 %

 

 

 

 

Conference Call

 

The Company will hold a live conference call and webcast at 3:30 p.m. central time on Wednesday, August 12, to discuss the Company’s 2026 second quarter results. The call will be hosted by Jay D. Miller, Chief Executive Officer and President and Andrew D. C. LaFrence, Chief Financial Officer and Senior Vice President of Finance. To access the live audio conference call, US participants may call 888-506-0062 and international participants may call 973-528-0011. Participant Access Code: 979013. Participants may also access the call via webcast at: https://www.webcaster5.com/Webcast/Page/2814/54239.

 

###

 

About Nortech Systems Incorporated

 

Nortech Systems is a leading provider of design and manufacturing solutions for complex electromedical devices, electromechanical systems, assemblies, and components. Nortech primarily serves the medical imaging, medical device, aerospace & defense, and industrial markets. Its design services span concept development to commercial design, and include medical device, software, electrical, mechanical, and biomedical engineering. Its manufacturing and supply chain capabilities are vertically integrated around wire, cable, and interconnect assemblies, printed circuit board assemblies, as well as system-level assembly, integration, and final test. Headquartered in Maple Grove, Minn., Nortech currently has six manufacturing locations and design centers across the U.S., Latin America, and Asia. Nortech Systems is traded on the NASDAQ Stock Market under the symbol NSYS. Nortech’s website is www.nortechsys.com.

 

Forward-Looking Statements

 

This press release contains forward-looking statements made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995 including without limitation statements regarding strength and growth of bookings and backlog, future business prospects, opportunities in aerospace and defense and medical markets, converting strong customer engagement into sustainable growth and long-term value, future financial results including increased gross margin, our ability to generate positive EBITDA, nearshoring as a strategic advantage, successful execution of our long-term strategy, our enhanced competitiveness in aerospace, defense, and other high-reliability markets, and effects of restructuring and consolidating manufacturing facilities. While this release is based on management’s best judgment and current expectations, actual results may differ materially from those expressed or implied and involve a number of risks and uncertainties. Important factors that could cause actual results to differ materially from the forward-looking statements include, without limitation: (1) commodity cost increases coupled with challenges in raising prices and/or customer pressure to reduce prices; (2) supply chain disruptions leading to shortages of critical components; (3) volatility in market conditions which may affect demand for the Company’s products; (4) increased competition and/or reduced demand; (5) changes in the reliability and efficiency of operating facilities or those of third parties; (6) risks related to the availability of labor; (7) the unanticipated loss of any key member of senior management; (8) geopolitical, economic, financial and business conditions including changing tariff environment; (9) the Company’s ability to steadily improve manufacturing output and product quality; (10) the impact of global health epidemics on our customers, employees, manufacturing facilities, suppliers, the capital markets and our financial condition; (11) challenges with customers with respect to moving production from one facility to another Company owned facility or (12) financing cost increases and continued availability. Some of the above-mentioned factors are described in further detail in the section entitled “Risk Factors” in our annual and quarterly reports, as applicable. You should assume the information appearing in this document is accurate only as of the date hereof, or as otherwise specified, as our business, financial condition, results of operations and prospects may have changed since such date. Except as required by applicable law, including the securities laws of the United States and the rules and regulations of the United States Securities and Exchange Commission, we undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, to reflect actual results or changes in factors or assumptions affecting such forward-looking statements.

 

Reconciliation of Generally Accepted Accounting Principles (“GAAP”) Measures to Non-GAAP Financial Measure

 

EBITDA is a non-GAAP financial measure used by management that we believe provides useful information to investors because it reflects ongoing performance excluding certain non-recurring items during comparable periods and facilitates comparisons between peer companies since interest, taxes, depreciation, and amortization can differ greatly between different organizations as a result of differing capital structures and tax strategies. EBITDA is defined as net income (loss) plus interest expense, plus income tax expense plus depreciation expense and amortization expense. EBITDA should be considered in addition to, not as a substitute for, or superior to, financial measures calculated in accordance with GAAP. Adjusted EBITDA reflects the impact of restructuring and non-recurring items. EBITDA and Adjusted EBITDA are not a measurement of our financial performance under GAAP and should not be considered an alternative to net sales or net income (loss), as applicable, or any other performance measures derived in accordance with GAAP and may not be comparable to other similarly titled measures of other businesses. EBITDA and Adjusted EBITDA have limitations as an analytical metric, and you should not consider it in isolation or as a substitute for analysis of our operating results as reported under GAAP.

 

 

 

 

NORTECH SYSTEMS INCORPORATED AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

AND COMPREHENSIVE INCOME (LOSS)

(UNAUDITED)

(IN THOUSANDS, EXCEPT SHARE AND PER SHARE DATA)

 

    THREE MONTHS ENDED     SIX MONTHS ENDED  
    JUNE 30,     JUNE 30,  
    2026     2025     2026     2025  
                         
Net sales   $ 33,540     $ 30,675     $ 63,856     $ 57,570  
Cost of goods sold     27,837       25,838       53,451       49,655  
Gross profit     5,703       4,837       10,405       7,915  
Operating expenses:                                
Selling     1,484       1,204       2,815       2,388  
General and administrative     3,250       2,589       6,264       5,504  
Research and development     346       302       656       628  
Restructuring charges     -       -       -       266  
Total operating expenses     5,080       4,095       9,735       8,786  
Income (loss) from operations     623       742       670       (871 )
Other expense:                                
Interest expense, net     (197 )     (257 )     (453 )     (471 )
Income (loss) before income taxes     426       485       217       (1,342 )
Income tax expense (benefit)     110       172       (65 )     (339 )
Net income (loss)   $ 316     $ 313     $ 282     $ (1,003 )
                                 
Net income (loss) per common share:                                
Basic (in dollars per share)   $ 0.11     $ 0.12     $ 0.10     $ (0.36 )
Weighted average number of common shares outstanding - basic (in shares)     2,805,183       2,773,598       2,795,659       2,767,263  
Diluted (in dollars per share)   $ 0.11     $ 0.12     $ 0.09     $ (0.36 )
Weighted average number of common shares outstanding - diluted (in shares)     2,999,002       2,954,765       3,007,439       2,767,263  
                                 
Other comprehensive income (loss)                                
Foreign currency translation   $ 21     $ 124     $ 90     $ 130  
Comprehensive income (loss), net of tax   $ 337     $ 437     $ 372     $ (873 )

 

 

 

 

NORTECH SYSTEMS INCORPORATED AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

AS OF JUNE 30, 2026 AND DECEMBER 31, 2025

(UNAUDITED)

(IN THOUSANDS, EXCEPT SHARE DATA)

 

    JUNE 30,
2026		     DECEMBER 31,
2025		  
ASSETS                
Current assets:                
Cash   $ 1,380     $ 1,655  
Restricted cash     294       -  
Accounts receivable, less allowance for credit losses of $154 and $161, respectively     19,850       16,998  
Inventories, net     24,512       20,695  
Contract assets     16,979       15,184  
Prepaid assets and other assets     1,279       1,618  
Total current assets     64,294       56,150  
Property and equipment, net     4,977       5,203  
Operating lease assets, net     6,420       7,016  
Deferred tax assets     3,963       3,394  
Other intangible assets, net     147       156  
Deferred line of credit issuance costs, net     244       -  
Total assets   $ 80,045     $ 71,919  
                 
LIABILITIES AND SHAREHOLDERS’ EQUITY                
Current liabilities:                
Lines of credit   $ 7,868     $ 7,000  
Current portion of term loan, net of debt issuance costs     432       -  
Accounts payable     14,949       12,809  
Accrued payroll and commissions     2,808       1,822  
Customer deposits     6,848       5,386  
Current portion of operating leases     1,246       1,332  
Current portion of finance lease obligations     243       274  
Other accrued liabilities     1,644       1,221  
Total current liabilities     36,038       29,844  
Long-term liabilities:                
Term loan, net of debt issuance costs     1,636       -  
Long-term operating lease obligations     5,929       6,476  
Long-term finance lease obligations     534       626  
Other long-term liabilities     434       426  
Total long-term liabilities     8,533       7,528  
Total liabilities     44,571       37,372  
Shareholders’ equity:                
Preferred stock, $1 par value; 1,000,000 shares authorized; 250,000 shares issued and outstanding     250       250  
Common stock - $0.01 par value; 9,000,000 shares authorized; 2,853,766 and 2,786,134 shares issued and outstanding, respectively     29       28  
Additional paid-in capital     18,409       17,855  
Accumulated other comprehensive loss     (619 )     (709 )
Retained earnings     17,405       17,123  
Total shareholders’ equity     35,474       34,547  
Total liabilities and shareholders’ equity   $ 80,045     $ 71,919  

 

 

 

 

NORTECH SYSTEMS INCORPORATED AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

(IN THOUSANDS)

 

    SIX MONTHS ENDED JUNE 30,  
    2026     2025  
CASH FLOWS FROM OPERATING ACTIVITIES                
Net income (loss)   $ 282     $ (1,003 )
Adjustments to reconcile net income (loss) to net cash used in operating activities:                
Depreciation and amortization     618       678  
Compensation on stock-based awards     320       235  
Change in allowance for credit losses     (7 )     10  
Change in inventory reserves     (311 )     351  
Deferred taxes     (569 )     (700 )
Changes in current operating items:                
Accounts receivable     (2,705 )     (2,842 )
Inventories     (3,530 )     2,714  
Contract assets     (1,795 )     (1,192 )
Prepaid expenses and other assets     338       (1,647 )
Accounts payable     2,077       295  
Accrued payroll and commissions     978       (94 )
Customer deposits     1,463       36  
Other accrued liabilities     392       386  
Net cash used in operating activities     (2,449 )     (2,773 )
                 
CASH FLOWS FROM INVESTING ACTIVITIES                
Proceeds from sale of property and equipment     -       9  
Purchases of property and equipment     (323 )     (367 )
Net cash used in investing activities     (323 )     (358 )
                 
CASH FLOWS FROM FINANCING ACTIVITIES                
Proceeds from lines of credit     35,061       51,405  
Payments to line of credit     (34,198 )     (48,485 )
Proceeds from term loan     2,200       -  
Payments of debt issuance costs     (290 )     -  
Principal payments on term loan     (110 )     -  
Principal payments on financing leases     (124 )     (85 )
Stock award exercises     235       23  
Net cash provided by financing activities     2,774       2,858  
                 
Effect of exchange rate changes on cash and restricted cash     17       9  
                 
Net change in cash and restricted cash     19       (264 )
Cash and restricted cash - beginning of period     1,655       916  
Cash and restricted cash - end of period   $ 1,674     $ 652  

 

 

 

 

RECONCILIATION OF NET INCOME (LOSS) TO EBITDA AND ADJUSTED EBITDA

 

   

THREE MONTHS ENDED

JUNE 30,

    

SIX MONTHS ENDED

JUNE 30,

  
    2026     2025     2026     2025  
                         
($ in thousands)                                
Net income (loss)   $ 316     $ 313     $ 282     $ (1,003 )
Interest     197       257       453       471  
Taxes     110       172       (65 )     (339 )
Depreciation     311       327       609       669  
Amortization     4       4       9       9  
EBITDA     938       1,073       1,288       (193 )
Restructuring charges     -       -       -       266  
ADJUSTED EBITDA   $ 938     $ 1,073     $ 1,288     $ 73  

 

There were no material adjustments to EBITDA in the three or six months ended June 30, 2026 and the three months ended June 30, 2025. Adjustment to EBITDA for the six months ended June 30, 2025 include ($ in thousands):

 

  ● During the first quarter of 2025, we incurred $235 of severance charges for a February 2025 reduction in force to align staffing to our forecasted net sales and $31 of expenses related to our closed Blue Earth facility, which expense amount is not included in Adjusted EBITDA.

 

($ in millions)   Last Twelve Months (“LTM”) Ended in Quarter(1)  
    Q2
2023		     Q3
2023		     Q4
2023		     Q1
2024		     Q2
2024		     Q3
2024		     Q4
2024		     Q1
2025		     Q2
2025		     Q3
2025		     Q4
2025		     Q1
2026		     Q2
2026		  
Net Sales   $ 140.8     $ 138.9     $ 139.3     $ 138.7     $ 137.5     $ 135.6     $ 128.1     $ 120.8     $ 117.6     $ 116.7     $ 118.4     $ 121.8     $ 124.7  
                                                                                                         
Gross Profit $ - Adjusted     22.4       21.4       23.1       23.1       22.2       20.7       16.7       14.4       14.6       15.8       18.0       19.6       20.5  
Gross Margin % - Adjusted     15.9 %     15.4 %     16.6 %     16.6 %     16.1 %     15.3 %     13.1 %     11.9 %     12.4 %     13.5 %     15.2 %     16.1 %     16.4 %
                                                                                                         
EBITDA - Adjusted   $ 6.8     $ 6.0     $ 8.0     $ 8.1     $ 7.3     $ 5.9     $ 2.1     $ (0.5 )   $ (0.4 )   $ 0.7     $ 2.5     $ 3.9     $ 3.7  

 

 (1)For the last twelve-month periods ended June 30, 2026 and June 30, 2025, the Company recorded management incentive compensation expense (reversal of expense) of $647 thousand and ($527) thousand, respectively.

 

Contact

 

Andrew D. C. LaFrence

Chief Financial Officer and Senior Vice President of Finance

alafrence@nortechsys.com

952-345-2243

 

 

 

Source: View Original Filing on SEC EDGAR

Filing Exhibits & Attachments

5 documents

Press Releases

Other Documents