Nortech Systems Inc (NASDAQ: NSYS)

Nortech Systems Incorporated is a provider of engineering design and manufacturing solutions for complex electromedical devices, electromechanical systems, assemblies, and components. Headquartered in Maple Grove, Minnesota, the company operates facilities in the United States, Mexico, and China. It delivers a full suite of services that includes project management, design, testing, prototyping, manufacturing, supply chain management, and post market support. Nortech serves original equipment manufacturers in the medical device, medical imaging, aerospace and defense, and industrial sectors.

The company generates revenue primarily through contract manufacturing services, where it builds products to customers’ unique design specifications. Its offerings encompass engineering design, prototype development, low to moderate volume production, and supply chain management. Over 50% of its net sales are derived from medical related markets, including medical device and medical imaging customers. Additional revenue comes from aerospace and defense, as well as industrial clients who require high mix, low volume manufacturing. The company also earns revenue from design and engineering fees charged for early stage product development and from supply chain optimization services that help customers reduce lead times and inventory costs.

The company operates through the following segments: Contract Manufacturing.

• Contract Manufacturing: This segment provides engineering design and manufacturing solutions for complex electromedical devices, electromechanical systems, assemblies, and components, offering services such as project management, design, testing, prototyping, manufacturing, supply chain management, and post market support.

Within the electronic manufacturing services industry, Nortech positions itself as a specialist in low to moderate volume, high mix production for regulated markets. It competes against small local contract manufacturers, large global EMS providers, and customers’ in house facilities, but its focus on quality certifications such as ISO 9001, ISO 13485, AS9100, and FDA registration differentiates it from many rivals. The company’s ability to manage complex electromedical and aerospace projects, combined with its geographically diversified footprint in the United States, Mexico, and China, provides a competitive advantage in serving OEMs that require reliable, compliant partners. Its commitment to continuous improvement, lean manufacturing techniques, and investment in advanced equipment enables Nortech to maintain high quality standards while adapting to changing customer demands.

Nortech’s customer base consists of original equipment manufacturers operating in the medical device, medical imaging, aerospace and defense, and industrial industries. While the filing discloses that 1 customer accounted for 32.2% of net sales in 2025 and 27.7% in 2024, it does not name that customer. The company relies on long term partnerships with OEMs that value its engineering expertise, quality systems, and flexible manufacturing capabilities. Geographically, the company serves customers across North America, Europe, and Asia, leveraging its facilities in the United States, Mexico, and China to meet regional content requirements and reduce shipping times.