Nortech Systems Q2 2026: Sales Up 9.3%, Backlog Hits $93.8M
NSYS has more than doubled off its 52-week low of $6.5 on light trading volume (0.2× avg).
Summary
Nortech Systems reported Q2 2026 net sales of $33.5M, up 9.3% year-over-year, with net income of $316K. Total backlog reached $93.8M, up 19.8% from a year ago.
Key Events · Earnings and Guidance · NSYS
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Q2 Revenue Up 9.3%
Net sales of $33.54M for Q2 2026, up from $30.68M in Q2 2025, driven by 36% growth in Medical Device and 12.2% growth in Medical Imaging.
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Profitability Improves
Net income of $316K in Q2 2026 versus $313K a year ago. For the first half, net income was $282K compared to a loss of $1.003M in H1 2025.
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Gross Margin Expands
Gross margin improved to 17.0% from 15.8% in Q2 2025, reflecting higher volumes and better cost absorption.
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Backlog Grows 19.8%
Total backlog of $93.8M as of June 30, 2026, up from $78.4M a year ago, with 90-day backlog up 25.8%.
Analysis · NSYS · Manufacturing
A solid quarter for Nortech Systems, with revenue growth across medical markets and a swing to profitability for the first half. The company's backlog grew nearly 20% year-over-year, providing visibility into future revenue. The new Associated Bank facility replaces the prior Bank of America revolver and provides additional liquidity headroom. While the company remains small and customer concentration is high, the improving financial trajectory and strengthened balance sheet are notable.
At the time of this filing, NSYS was trading at $15.21 on NASDAQ in the Manufacturing sector, with a market capitalization of approximately $42.5M. The 52-week trading range was $6.50 to $18.01. This filing was assessed with positive market sentiment and an importance score of 7 out of 10.