Nortech Systems(US:NSYS)2025-11-13 22:30Financial Data and Key Metrics Changes - Net sales for Q3 2025 totaled $30.5 million, representing a 2.9% decrease from $31.4 million in Q3 2024 [9] - Gross profit for Q3 2025 was $5 million, or 16.5% of net sales, compared to $3.8 million, or 12.2% of net sales in the same prior year quarter [10][11] - Adjusted EBITDA for Q3 2025 was $1.3 million, significantly up from $143,000 in Q3 2024, reflecting improved efficiencies and productivity [17] Business Line Data and Key Metrics Changes - Aerospace and defense net sales decreased by $1.4 million due to increased production in the latter half of 2024 and delays in product approvals [9] - Medical imaging net sales increased by 8.7% or $832,000 compared to the same quarter in 2024, driven by the transfer of customer programs [10] Market Data and Key Metrics Changes - Customer backlog was $77.3 million as of September 30, 2025, consistent with the backlog at June 30, 2025 [10] - The company is well-positioned in North America, particularly with its Monterrey operations under the USMCA framework, reducing exposure to tariffs [4] Company Strategy and Development Direction - The company is focused on strengthening its balance sheet and reducing inventory investments in 2025 [19] - Investments in regulatory capabilities have been made to leverage future growth, including achieving AS 9100D and CMMC 2.0 certifications [5][19] - The strategic plan emphasizes engineering expertise, product innovation, and sustainability, particularly in fiber optic technology [20][23] Management Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about positioning in the nearshoring landscape and the potential for continued sales momentum in 2025 and beyond [26] - The company believes it has overcome revenue and earning headwinds from changes in customer ordering patterns and delays in aerospace and defense programs [18] Other Important Information - The company incurred a net loss of $146,000 in Q3 2025 due to increased income tax expenses [12] - Cash flow increased to $1.3 million as of September 30, 2025, up from $916,000 at the end of 2024 [15] Q&A Session Summary - There were no questions from the line during the Q&A session [27]