Press Release: Eltek Ltd. Reports Full Year and Fourth Quarter 2026 Financial Results

Dow Jones
03/09

PETACH TIKVA, Israel, March 9, 2026 /PRNewswire/ -- Eltek Ltd. $(ELTK)$, a global manufacturer and supplier of technologically advanced solutions in the field of printed circuit boards (PCBs), today announced its financial results for the full year and fourth quarter ended December 31, 2025.

Full Year and Fourth Quarter 2025 Highlights

   -- Revenues: Revenues for 2025 were $51.8 million, an increase of 11% ($5.3 
      million) compared to 2024. 
 
   -- Profitability: Net income reached $0.8 million in 2025 compared to $4.2 
      million in 2024. EBITDA reached $4.5 million compared to $5.9 million in 
      2024. 
 
   -- Q4 Highlights: Revenue for the fourth quarter amounted to $13.2 million, 
      compared to $10.8 million in the corresponding period of the previous 
      year. Loss for the quarter was $0.3 million, while EBITDA totaled $0.7 
      million. 

Transition Period and Future Growth Outlook:

2025 was a challenging year, during which the Company's manufacturing operations underwent significant transformation as part of the Company's preparation for the integration of its new plating lines. As part of this process, entire production systems were relocated to new facility space, accompanied by the replacement and upgrading of machinery.

These extensive operational changes, while strategically important for the Company's long-term growth, led at times to complex operational challenges that were reflected in lower profitability during the year. In parallel, the Company experienced workforce-related challenges, including the recruitment and training of personnel required to operate and support the new equipment, as well as the retention of skilled employees with critical expertise.

In addition, the sharp depreciation of the U.S. dollar against the Israeli shekel--from NIS 3.65 per dollar to NIS 3.19 per dollar, representing a decline of approximately 13% - had a material impact on the Company's operating results. This currency movement increased the Company's shekel-denominated expenses when translated into U.S. dollars, resulting in an increase of approximately $2.2 million in reported NIS-based operating expenses.

Market Trends and Outlook:

Global demand for high-performance printed circuit boards (PCBs) continues to strengthen, particularly in the defense and medical technology sectors, where reliability and multi-layer complexity are mission critical. Elevated global defense budgets, modernization of electronic warfare and radar systems, and increasing deployment of unmanned and autonomous platforms are driving sustained demand for advanced HDI and rigid-flex solutions. The medical market is expanding rapidly, fueled by growth in diagnostic imaging, minimally invasive systems, implantable devices and wearable technologies, all of which require compact, high-reliability PCB architectures.

The Company's strategic capital expenditures program is directly aligned with these market dynamics. Investments in new plating lines and upgraded production infrastructure are designed to expand capacity, enhance technological capabilities and support increasingly complex product families required by customers in these high-growth segments.

Management Statement:

Eli Yaffe, CEO of Eltek, stated, "Our investment program over the past year reflects our strong conviction in the long-term growth of the high-performance PCB market, particularly in the defense, medical and high-end industrial sectors. These industries require advanced technological capabilities, uncompromising quality standards and increasing production sophistication -- areas in which we are strategically strengthening our position.

The expansion and modernization of our manufacturing infrastructure are designed not only to increase capacity, but also to support more complex, higher-value product families aligned with evolving customer requirements. While the transition period presents ongoing operational challenges, we view these investments as foundational to our next phase of growth."

2025 Full Year GAAP Financial Results

Revenues for 2025 were $51.8 million compared to $46.5 million in 2024.

Gross profit for 2025 was $8.0 million (15 % of revenues) compared to $10.3 million (22% of revenues) in 2024.

Operating profit for 2025 was $2.3 million compared to operating profit of $4.4 million in 2024.

Financial expenses for 2025 were $1.3 million compared to financial income of $0.7 million in 2024. The financial expenses derive primarily from the erosion of the U.S. Dollar against the NIS during the year.

Net profit for 2025 was $0.8 million or $0.12 per fully diluted share compared to net profit of $4.2 million or $0.63 per fully diluted share in 2024.

2025 Full Year Non-GAAP Financial Results

EBITDA for 2025 was a $4.5 million (9% of revenues) compared to EBITDA of $5.9 million (13% of revenues) in 2024.

Fourth Quarter 2025 GAAP Financial Results

Revenues for the fourth quarter of 2025 were $13.2 million compared to $10.8 million in the fourth quarter of 2024.

Gross profit for the fourth quarter of 2025 was $1.2 million (9% of revenues) compared to $1.9 million (18% of revenues) in the fourth quarter of 2024.

Operating profit for the fourth quarter of 2025 was $0.1 million compared to operating profit of $0.4 million in the fourth quarter of 2024.

Financial expenses for the fourth quarter of 2025 were $0.5 million, compared to financial expenses of $0.3 million in the fourth quarter of 2024. The financial expenses derive primarily from the erosion of the U.S. Dollar against the NIS during the quarter.

Net loss for the fourth quarter of 2025 was $0.3 million compared to net profit of $23 thousand in the fourth quarter of 2024.

Fourth Quarter 2025 Non-GAAP Financial Results

EBITDA for the fourth quarter of 2025 was $0.7 million (5% of revenues) compared to EBITDA of $0.8 million (7% of revenues) in the fourth quarter of 2024.

About our Non-GAAP Financial Information

The Company reports financial results in accordance with U.S. GAAP and herein provides EBITDA, a non-GAAP measure. This non-GAAP measure is not in accordance with, nor is it a substitute for, GAAP measures. This non-GAAP measure is intended to supplement the Company's presentation of its financial results that are prepared in accordance with GAAP. The Company uses the non-GAAP measure presented to evaluate and manage the Company's operations internally. The Company is also providing this information to assist investors in performing additional financial analysis. Reconciliation between the Company's results on a GAAP and non-GAAP basis is provided in a table below.

Conference Call

Today, Monday, March 9, 2026, at 9:30am Eastern Time (15:30pm Israel Time, 6:30am Pacific Time), Eltek will conduct a conference call to discuss the results. The call will feature remarks by Eli Yaffe, Chief Executive Officer and Ron Freund, Chief Financial Officer.

To participate, please call the following teleconference numbers. Please allow for additional time to connect prior to the call:

 
United States:   1-866-860-9642 
Israel:          03-918-0691 
International:   +972-3-918-0691 
 

To Access a Replay of the Call

A replay of the call will be available for 30 days on the Investor Info section on Eltek's corporate website at http://www.nisteceltek.com approximately 24 hours after the conference call is completed.

About Eltek

Eltek -- "Innovation Across the Board", is a global manufacturer and supplier of technologically advanced solutions in the field of printed circuit boards (PCBs) and is an Israeli leading company in this industry. PCBs are the core circuitry of most electronic devices. Eltek specializes in the manufacture and supply of complex and high-quality PCBs, HDI, multilayered and flex-rigid boards for the high-end market. Eltek is ITAR compliant and has AS-9100 and NADCAP Electronics certifications. Its customers include leading companies in the defense, aerospace and medical industries in Israel, the United States, Europe and Asia.

Eltek was founded in 1970. The Company's headquarters, R&D, production and marketing center are located in Israel. Eltek also operates through its subsidiary in North America and by agents and distributors in Europe, India, South Africa and South America.

For more information, visit Eltek's web site at www.nisteceltek.com

Forward Looking Statements

Some of the statements included in this press release may be forward-looking statements that involve a number of risks and uncertainties including, but not limited to expected results in future quarters, the impact of currency movements between the US Dollar exchange rate against the Israeli Shekel, the impact of the Coronavirus on the economy and our operations, risks in product and technology development and rapid technological change, product demand, the impact of competitive products and pricing, market acceptance, the sales cycle, changing economic conditions and other risk factors detailed in the Company's Annual Report on Form 20-F and other filings with the United States Securities and Exchange Commission. Any forward-looking statements set forth in this press release speak only as of the date of this press release. The information found on our website is not incorporated by reference into this press release and is included for reference purposes only.

Investor Contact

Ron Freund

Chief Financial Officer

Investor-Contact@nisteceltek.com

+972-3-939-5023

(Tables follow)

 
                             Eltek Ltd. 
                 Consolidated Statements of Income 
             (In thousands US$, except per share data) 
 
 
 
                        Three months ended    Twelve months ended 
                       --------------------  --------------------- 
                           December 31,          December 31, 
                       --------------------  --------------------- 
                          2025       2024       2025       2024 
                       ----------  --------  ----------  --------- 
 
 
Revenues                   13,238    10,758      51,790     46,527 
Costs of revenues        (12,081)   (8,824)    (43,806)   (36,188) 
                       ----------  --------  ----------  --------- 
 
Gross profit                1,157     1,934       7,984     10,339 
 
Research and 
 development 
 expenses, net                  -     (108)        (50)      (187) 
Selling, general and 
 administrative 
 expenses                 (1,041)   (1,468)     (5,587)    (5,760) 
                       ----------  --------  ----------  --------- 
 
Operating income              116       358       2,347      4,392 
 
Financial income 
 (expenses), net            (479)     (271)     (1,274)        705 
                       ----------  --------  ----------  --------- 
 
Income (loss) before 
 income taxes               (363)        87       1,073      5,097 
 
Income tax expenses 
 (tax benefit)               (53)        64         247        873 
                       ----------  --------  ----------  --------- 
 
Net income (loss)           (310)        23         826      4,224 
                       ==========  ========  ==========  ========= 
 
 
Earnings per share: 
Basic net income 
 (loss) per ordinary 
 share                     (0.05)  -               0.12       0.64 
                       ==========  ========  ==========  ========= 
 
Diluted net income 
 (loss) per ordinary 
 share                     (0.05)  -               0.12       0.63 
                       ==========  ========  ==========  ========= 
 
Weighted average 
number of ordinary 
shares used to 
compute 
basic net income 
 (loss) per ordinary 
 share (in 
 thousands)                 6,720     6,713       6,716      6,626 
                       ==========  ========  ==========  ========= 
 
Weighted average 
number of ordinary 
shares used to 
compute 
diluted net income 
 (loss) per ordinary 
 share (in 
 thousands)                 6,796     6,782       6,789      6,701 
                       ==========  ========  ==========  ========= 
 
 
 
                           Eltek Ltd. 
                  Consolidated Balance Sheets 
                       (In thousands US$) 
 
 
                                    December 31,  December 31, 
                                    ------------  ------------ 
                                        2025          2024 
                                    ------------  ------------ 
 
Assets 
 
Current assets: 
Cash and cash equivalents                  2,481         7,575 
Short-term bank deposits                   9,643         9,663 
Trade receivables (net of 
 allowance for credit losses)             14,789        11,786 
Inventories                               11,154         9,488 
Other accounts receivable and 
 prepaid expenses                            607           602 
                                    ------------  ------------ 
 
Total current assets                      38,674        39,114 
                                    ------------  ------------ 
 
Long term assets: 
Severance pay fund                            65            56 
Deferred tax assets, net                     387           496 
Operating lease right-of-use 
 assets                                    6,272         5,911 
Total long term assets                     6,724         6,463 
                                    ------------  ------------ 
 
Property and equipment, net               20,862        14,578 
                                    ------------  ------------ 
 
Total Assets                              66,260        60,155 
                                    ============  ============ 
 
Liabilities and Shareholder's 
equity 
 
Current liabilities: 
Trade payables                             6,047         7,367 
Other accounts payable and accrued 
 expenses                                  6,565         5,136 
Short-term operating lease 
 liabilities                               1,100           827 
 
Total current liabilities                 13,712        13,330 
                                    ------------  ------------ 
 
Long-term liabilities: 
Accrued severance pay                        515           443 
Long-term operating lease 
 liabilities                               5,296         5,190 
                                    ------------  ------------ 
 
Total long-term liabilities                5,811         5,633 
                                    ------------  ------------ 
 
Shareholders' equity: 
Ordinary shares, NIS 3.0 par value 
 authorized 10,000,000 shares, 
 issued and outstanding 6,719,827 
 at December 31, 2025 and 
 6,714,040 at December 31, 2024            6,012         6,011 
Additional paid-in capital                32,662        32,627 
Foreign currency translation 
 adjustments                               6,111           664 
Capital reserves                           3,019         2,507 
Accumulated deficit                      (1,067)         (617) 
Total shareholders' equity                46,737        41,192 
Total liabilities and 
 shareholders' equity                     66,260        60,155 
                                    ============  ============ 
 
 
                              Eltek Ltd. 
               Unaudited Non-GAAP EBITDA Reconciliation 
                          (In thousands US$) 
 
 
 
                          Three months ended    Twelve months ended 
                         --------------------  --------------------- 
                             December 31,          December 31, 
                         --------------------  --------------------- 
                           2025       2024         2025       2024 
                         ---------  ---------  ------------  ------- 
 
 
GAAP Net Income (loss)       (310)         23           826    4,224 
Add back items: 
 
Financial income 
 (expenses), net             (479)      (271)       (1,274)      705 
Income tax expenses 
 (tax benefit)                (53)         64           247      873 
Depreciation and 
 amortization                  574        405         2,104    1,546 
                         ---------  ---------  ------------  ------- 
Non-GAAP EBITDA                690        763         4,451    5,938 
 
 
 
 
 
                             Eltek Ltd. 
               Consolidated Statements of Cash Flows 
                         (In thousands US$) 
 
 
                        Three months ended    Twelve months ended 
                       --------------------  --------------------- 
                           December 31,          December 31, 
                       --------------------  --------------------- 
                         2025       2024       2025        2024 
                       ---------  ---------  ---------  ---------- 
 
Cash flows from 
operating 
activities: 
 
Net Income (loss)          (310)         23        826       4,224 
Adjustments to 
reconcile net income 
to net cash flows 
provided by 
operating 
activities: 
Depreciation                 574        405      2,104       1,546 
Accrued interest, net        269      (392)        746       (463) 
Share-based 
 compensation                111        161        512         607 
Decrease (increase) 
 in deferred tax 
 assets                     (63)        217        166         621 
                             891        391      3,528       2,311 
                       ---------  ---------  ---------  ---------- 
 
Decrease (increase) 
 in operating lease 
 right-of-use assets, 
 net                        (16)        (2)          3           2 
Decrease (increase) 
 in trade 
 receivables               (108)      1,230    (1,215)       (988) 
Decrease (increase) 
 in other receivables 
 and prepaid 
 expenses                  (162)      (260)         75         341 
Decrease (increase) 
 in inventories            1,472    (2,711)      (283)     (3,532) 
Increase (decrease) 
 in trade payables         (814)        378    (2,951)         929 
Increase (decrease) 
 in other liabilities 
 and accrued 
 expenses                    542        966        641       1,255 
Increase 
 (decrease) in 
 employee severance 
 benefits, net              (57)        (4)          8         (2) 
                             857      (403)    (3,722)     (1,995) 
                       ---------  ---------  ---------  ---------- 
 
Net cash provided by 
 operating 
 activities                1,438         11        632       4,540 
                       ---------  ---------  ---------  ---------- 
 
 
Cash flows from 
investing 
activities: 
Purchase of fixed 
 assets                  (1,085)    (1,592)    (5,351)     (9,506) 
proceeds from 
 (Investment in) 
 short-term bank 
 deposits, net                 -        303        534     (6,365) 
Net cash used in 
 investing 
 activities              (1,085)    (1,289)    (4,817)    (15,871) 
                       ---------  ---------  ---------  ---------- 
 
 
Cash flows from 
financing 
activities: 
Exercise of options            -         18         36         296 
Dividend distribution          -          -    (1,276)           - 
Issuance of shares, 
 net                           -          -          -       9,312 
Net cash provided by 
 (used in) financing 
 activities                    -         18    (1,240)       9,608 
                       ---------  ---------  ---------  ---------- 
 
Effect of translation 
 adjustments                   4        287        331          20 
 
Net increase 
 (decrease) in cash 
 and cash 

(MORE TO FOLLOW) Dow Jones Newswires

March 09, 2026 07:30 ET (11:30 GMT)

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