Nortech Sees Sales Momentum Continuing Into 2027 and Beyond

Nortech Systems Incorporated expects sales momentum to extend into 2027 and beyond, with management pointing to technology developments, supply-chain stabilization and customer orders as support.

Nortech’s total backlog was $92.8 million as of Sept. 30, including $17.2 million in revenue already recognized in contract assets. The company’s third-quarter results also showed gross margin rising 130 basis points year over year to 17.8% from 16.5%.

Nortech used cash to buy materials for its backlog and anticipated production.

Management identified unfavorable customer and geographic mix, industrial-market softness, a supplier quality issue and production-transfer disruptions as risks to margins and cash conversion. Uncertainty around tariff recoveries and trade policy was also cited as a risk.