Business
Eltek Ltd. Reports 2026 First Quarter Financial Results
Eltek Ltd. Reports 2026 First Quarter Financial Results
About this update from Eltek Ltd.
PETACH TIKVA, Israel , May 19, 2026 /PRNewswire/ -- Eltek Ltd. (NASDAQ: ELTK), a leading global manufacturer of high-quality printed circuit boards, today announced its financial results for the quarter ended March 31, 2026 . First Quarter 2026 Highlights Revenues of $10.4 million Operating loss of $1.9 million Net loss of $2.9 million or $0.42 per fully diluted share Net cash used in operating activities amounted to $0.4 million . The continuous sharp depreciation of the U.S. dollar against the Israeli shekel 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 $1.3 million in reported NIS-based operating expenses, compared to the first quarter of 2025. In addition, the Company's operations during the quarter were affected by the challenging security environment in the region, including temporary disruptions to regular work routines and reduced operational availability at certain times. "As we indicated in April 2026 , our operating results for the quarter were adversely affected by the late phasing of the Company's order backlog during the quarter, although our backlog has grown significantly. In addition, we experienced certain temporary logistical constraints, which contributed to the results for the quarter," said Eli Yaffe , CEO of Eltek . "The continued growth in our order backlog reflects the underlying strength in demand for our products. While the timing of backlog execution impacted our results in the first quarter, we remain confident in our ability to convert this backlog into revenue over the coming periods. At the same time, we are actively addressing the logistical challenges and expect conditions to improve gradually," concluded Mr. Yaffe . First Quarter 2026 GAAP Financial Results Revenues for the first quarter of 2026 were $10.4 million , compared to $12.8 million in the first quarter of 2025. Gross loss for the first quarter of 2026 was $1.9 million compared to gross profit of $2 .2 (17% of revenues) in the first quarter of 2025. Operating loss for the first quarter of 2026 was $3.3 million compared to operating profit of $0.7 million in the first quarter of 2025. Net loss for the first quarter of 2026 was $2.9 million or $0.42 per fully diluted share compared to net income of $1.0 million or $0.15 per fully diluted share in the first quarter of 2025. Cash and short-term bank deposits amounted to $11.1 million as of March 31, 2026 , with no outstanding debt. First Quarter 2026 Non-GAAP Financial Results EBITDA loss for the first quarter of 2026 was $2 .7 million compared to EBITDA of $1.2 million (9% of revenues) in the first quarter of 2025. 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, Tuesday, May 19, 2026 , at 8:30am Eastern Time ( 15:30pm Israel Time , 5:30am 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: 1-866-860-9642Israel: 03-918-0691International: +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 [email protected] +972-3-939-5023 Eltek Ltd. Consolidated Statements of Income U.S. dollars in thousands (except per share data) Three months ended March 31 , 2026 2025 Revenues 10,436 12,756 Costs of revenues (12,288) (10,544) Gross profit (loss) (1,852) 2,212 Research and development, expenses, net - (50) Selling, general and administrative expenses (1,415) (1,437) Operating income (loss) (3,267) 725 Financial income (expenses), net (94) 504 Income (loss) before income taxes (3,361) 1,229 Income tax expenses (tax benefit) (508) 227 Net Income (loss) (2,853) 1,002 Earnings per share: Basic net income (loss) per ordinary share (0.42) 0.15 Diluted net income (loss) per ordinary share (0.42) 0.15 Weighted average number of ordinary shares used to compute basic net income (loss) per ordinary share (in thousands) 6,719 6,714 Weighted average number of ordinary shares used to compute diluted net income (loss) per ordinary share (in thousands) 6,786 6,785 Eltek Ltd. Consolidated Balance Sheets U.S. dollars in thousands March 31 , December 31 , 2026 2025 Assets Current assets: Cash and cash equivalents 11,054 2,481 Short-term bank deposits - 9,643 Trade receivables (net of allowance for credit losses) 11,338 14,789 Inventories 9,373 11,154 Other accounts receivable and prepaid expenses 699 607 Total current assets 32,464 38,674 Long term assets: Severance pay fund 71 65 Deferred tax assets, net 913 387 Operating lease right-of-use assets 11,851 6,272 Total long term assets 12,835 6,724 Property and equipment, net 22,647 20,862 Total Assets 67,946 66,260 Liabilities and Shareholder's equity Current liabilities: Trade payables 5,032 6,047 Other accounts payable and accrued expenses 5,913 6,565 Short-term operating lease liabilities 494 1,100 Total current liabilities 11,439 13,712 Long-term liabilities: Accrued severance pay 528 515 Long-term operating lease liabilities 11,629 5,296 Total long-term liabilities 12,157 5,811 Shareholders' equity: Ordinary shares, NIS 3.0 par value authorized 10,000,000 shares, issued and outstanding 6,719,827 at March 31, 2026 and December 31, 2025 6,012 6,012 Additional paid-in capital 32,662 32,662 Foreign currency translation adjustments 6,462 6,111 Capital reserve 3,134 3,019 Retained earnings (accumulated deficit) (3,920) (1,067) Total shareholders' equity 44,350 46,737 Total liabilities and shareholders' equity 67,946 66,260 Eltek Ltd. Unaudited Non-GAAP EBITDA Reconciliations U.S. dollars in thousands Three months ended March 31 , 2026 2025 GAAP net Income (loss) (2,853) 1,002 Add back items: Financial (income) expenses, net 94 (504) Income tax expenses (tax benefit) (508) 227 Depreciation and amortization 590 465 Non-GAAP EBITDA (EBITDA loss) (2,677) 1,190 Eltek Ltd. Consolidated Statements of Cash Flows U.S. dollars in thousands Three months ended March 31 , 2026 2025 Cash flows from operating activities: Net Income (loss) (2,853) 1,002 Adjustments to reconcile net income to net cash flows provided by operating activities: Depreciation 590 465 Accrued interest, net (69) (128) Share-based compensation 115 138 Decrease (increase) in deferred tax assets (530) 82 106 557 Decrease (increase) in operating lease right-of-use assets 149 1 Decrease (increase) in trade receivables 3,618 (355) Decrease (increase) in other receivables and prepaid expenses (88) (67) Decrease (increase) in inventories 1,895 (330) Increase (decrease) in trade payables (2,507) (862) Increase (decrease) in other liabilities and accrued expenses (714) 173 Increase (decrease) in employee severance benefits, net 9 7 2,362 (1,433) Net cash provided by (used in) operating activities (385) 126 Cash flows from investing activities: Purchase of fixed assets (739) (1,137) Withdrawal of (investment in) short-term bank deposits, net 9,712 534 Net cash provided by (used in) investing activities 8,973 (603) Cash flows from financing activities: Exercise of options - - Repayment of long-term loans from bank - - Issuance of shares, net - - Net cash provided by (used in) financing activities - - Effect of translation adjustments (15) (632) Net increase (decrease) in cash and cash equivalents 8,573 (1,109) Cash and cash equivalents at the beginning of the period 2,481 7,575 Cash and cash equivalents at the end of the period 11,054 6,466 Logo: https://mma.prnewswire.com/media/881148/Eltek_Logo.jpg View original content: https://www.prnewswire.com/news-releases/eltek-ltd-reports-2026-first-quarter-financial-results-302776009.html SOURCE Eltek Ltd.