Nortech Systems Incorporated announced its financial results for the fourth quarter ended December 31, 2024, with net sales totaling $29.8 million, a 10.1% decrease from $33.1 million in Q4 2023. The company reported a net loss of $1.0 million, compared to net income of $0.9 million in the prior year's fourth quarter.
Diluted earnings per share for Q4 2024 was a loss of $0.37, a decline from a profit of $0.33 in Q4 2023. Adjusted EBITDA for the quarter was $0.1 million, significantly down from $2.0 million in Q4 2023, reflecting continued operational pressures.
For the full year 2024, net sales were $128.1 million, an 8.0% decrease from $139.2 million in 2023, and the company posted a net loss of $1.4 million, a substantial reversal from net income of $7.4 million in 2023. Full-year diluted EPS was a loss of $0.47, compared to a profit of $2.53 in 2023, with Adjusted EBITDA falling to $3.3 million from $10.9 million.
Management attributed the Q4 sales impact to unexpected delays in defense customer approvals for transfers from the closed Blue Earth facility to the Bemidji plant. These delays involved additional protocols and requirements, with the majority of the approval backlog anticipated to clear during the second quarter of 2025.
The company completed a significant restructuring of its back office and plant operations during the third and fourth quarters of 2024. These strategic moves are designed to scale the business, improve efficiency, and reduce the ongoing cost structure, alongside investments in fiber optics technologies.
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