Nortech Systems(US:NSYS)2025-11-13 13:05Financial Performance - Net sales for Q3 2025 were $30.5 million, a decrease of 2.9% compared to $31.4 million in Q3 2024[5] - Gross profit increased by 31.0% to $5.0 million in Q3 2025 from $3.8 million in Q3 2024[5] - Net loss improved to $(146) thousand, or $(0.05) per basic share, compared to a net loss of $(739) thousand, or $(0.27) per basic share in Q3 2024, representing an 80.2% improvement[6] - Adjusted EBITDA for Q3 2025 was $1.3 million, up 776.2% from $0.1 million in Q3 2024[6] - For the nine months ended September 30, 2025, the net loss was $1,149,000 compared to a net income of $183,000 for the same period in 2024[16] - EBITDA for the nine months ended September 30, 2025, was $1,060,000, a decrease from $2,432,000 in the same period of 2024[17] - Adjusted EBITDA for the nine months ended September 30, 2025, was $1,326,000, down from $2,699,000 in the prior year[17] - The total net sales for the last twelve months ended in Q3 2025 were $120.8 million, a decline from $138.9 million in Q3 2023[18] - The adjusted gross profit margin for Q3 2025 was 13.1%, down from 15.4% in Q3 2024[18] Operational Metrics - The company reported a 90-day backlog of $31.3 million as of September 30, 2025, compared to $29.6 million as of September 30, 2024[6] - Operating expenses decreased by 5.2% to $4.1 million in Q3 2025 from $4.3 million in Q3 2024[5] - Cash used in operating activities for the nine months ended September 30, 2025, was $2,865,000, slightly improved from $3,043,000 in 2024[16] - The company experienced a significant increase in accounts receivable, with a change of $(3,875,000) for the nine months ended September 30, 2025[16] Assets and Liabilities - Total assets increased to $74.8 million as of September 30, 2025, up from $72.4 million as of December 31, 2024[13] - Current liabilities rose to $33.6 million as of September 30, 2025, compared to $21.4 million as of December 31, 2024[13] Certification and Strategic Outlook - The Monterrey, Mexico facility achieved AS9100:D certification, enhancing service offerings in aerospace and industrial markets[3] - The company is optimistic about leveraging operational performance in the nearshoring landscape with its North American and Asian footprint[3] Financing Activities - The company reported a net cash provided by financing activities of $3,218,000 for the nine months ended September 30, 2025, compared to $3,561,000 in 2024[16] - The cash balance at the end of the period was $1,271,000, compared to $1,239,000 at the end of the same period in 2024[16] - The company incurred $235,000 in severance charges during Q1 2025 related to a reduction in force[17]