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

About this update from Eltek Ltd.

PETACH TIKVA, Israel , March 9, 2026 /PRNewswire/ -- Eltek Ltd. (NASDAQ: 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 [email protected] +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 equivalents 357 (973) (5,094) (1,703) Cash and cash equivalents at the beginning of the period 2,124 8,548 7,575 9,278 Cash and cash equivalents at the end of the period 2,481 7,575 2,481 7,575 Logo - https://mma.prnewswire.com/media/881148/Eltek_Logo.jpg View original content: https://www.prnewswire.com/news-releases/eltek-ltd-reports-full-year-and-fourth-quarter-2026-financial-results-302708023.html SOURCE Eltek Ltd.

View stock analysis, news, and events for Eltek Ltd.