Eltek Ltd. Reports Strong Second-Quarter 2025 Results
20% Quarter-over-quarter revenue growth; gross margin expands to 24%
PETACH TIKVA, Israel, Aug. 14, 2025 /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 quarter ended June 30, 2025.
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Second Quarter 2025 Highlights
Q2 2025 Q2 2024 %
Revenues (*)
$12.5 million
$10.5 million +20 %
Gross margin 24.1 % 15.6 % +8.5 %
Operating income
$1.5 million
$0.4 million +259 %
Financial income (expense)
$(1.0) million
$0.5 million n/m
(*) Revenues for the six months ended June 30, 2025 totaled $25.3 million, up 14%
from $22.2 million in the 2024 period.
Eli Yaffe, Chief Executive Officer, stated:
"Strong momentum across our defense and medical segments drove significant year-over-year growth, highlighted by double-digit revenue increases. Continued operational improvements and a favorable product mix (compared to Q2 2024) contributed to a substantial increase in gross margin and operating profit, which reached $1.5 million - more than triple the amount recorded in the same period last year.
We remain committed to expanding our production capacity. All the equipment that was delivered to date has been successfully installed and is performing in accordance with specifications. Construction to accommodate the core of our investment plan - the new 60-meter coating lines is progressing smoothly, on schedule, and without any material impact on ongoing production operations. Following a recent scheduling update from our coating lines supplier, we have been informed of an additional delay in the delivery of the first line. We now expect the first line to arrive at our facility toward the end of 2025.
With staffing up approximately 10% since January, we continue our efforts to meet growing demand while maintaining best-in-class lead times.
The sharp appreciation of the Israeli shekel during the quarter resulted in a non-cash financial expense of $1.0 million. Given that the majority of our revenues are denominated in U.S. dollars, we have proactively updated our pricing model to better align with our NIS-based expenses. The impact of the currency fluctuation will be reflected in future customer orders, helping to protect our margins moving forward."
Second Quarter 2025 GAAP Financial Results
Revenues for the second quarter of 2025 were $12.5 million compared to $10.5 million in the second quarter of 2024.
Gross profit for the second quarter of 2025 was $3.0 million (24% of revenues) compared to $1.6 million (16% of revenues) in the second quarter of 2024.
Operating profit for the second quarter of 2025 was $1.5 million compared to operating profit of $0.4 million in the second quarter of 2024.
Financial expenses for the second quarter of 2025 were $1.0 million compared to financial income of $0.5 million in the second quarter of 2024. Financial expenses primarily resulted from the 9% erosion of the U.S. dollar against the NIS.
Net income for the second quarter of 2025 was $0.4 million or $0.05 per fully diluted share compared to net income of $0.8 million or $0.11 per fully diluted share in the second quarter of 2024.
Second Quarter 2025 Non-GAAP Financial Results
EBITDA for the second quarter of 2025 was $2.0 million (15.6% of revenues) compared to EBITDA of $0.8 million (7.6% of revenues) in the second quarter of 2024.
Six Months Ended June 30, 2025 GAAP Financial Results
Revenues for the first six months of 2025 were $25.3 million compared to $22.2 million in the first six months of 2024.
Gross profit for the first six months of 2025 was $5.2 million (21% of revenues) compared to $4.9 million (22% of revenues) in the first six months of 2024.
Operating profit for the first six months of 2025 was $2.2 million compared to operating profit of $2.1 million in the first six months of 2024.
Financial expenses for the first six months of 2025 were $0.5 million compared to financial income of $0.8 million in the first six months of 2024. Financial expenses primarily resulted from the erosion of the U.S. dollar against the NIS.
Net profit for the first six months of 2025 was $1.4 million or $0.20 per fully diluted share compared to net profit of $2.5 million or $0.38 per fully diluted share in the first six months of 2024.
Six Months Ended June 30, 2025 Non-GAAP Financial Results
EBITDA for the first six months of 2025 was a $3.1 million (12% of revenues) compared to EBITDA of $2.9 million (13% of revenues) in the first six months 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, Thursday, August 14, 2024, at 9:00am Eastern Time (16:00pm Israel Time, 6:00am 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 Statement
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 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
Eltek Ltd.
Consolidated Statements of Income
U.S dollars in thousands (except per share data)
Three months
ended Six months ended
June 30, June 30,
2025 2024 2025 2024
Revenues 12,529 10,466 25,285 22,249
Costs of revenues (9,510) (8,830) (20,054) (17,361)
Gross profit 3,019 1,636 5,231 4,888
Research and development expenses, net (47) (50) (62)
Selling, general and administrative expenses (1,563) (1,184) (3,000) (2,700)
Operating profit 1,456 405 2,181 2,126
Financial income (expense), net (1,012) 489 (508) 839
Income before income tax 444 894 1,673 2,965
Income tax expenses 79 143 306 475
Net income 365 751 1,367 2,490
Earnings per share:
Basic net income per ordinary share 0.05 0.11 0.20 0.38
Diluted net income per ordinary share 0.05 0.11 0.20 0.38
Weighted average number of ordinary shares used to compute
basic net income per ordinary share (in thousands) 6,715 6,706 6,715 6,541
Weighted average number of ordinary shares used to compute
diluted net income per ordinary share (in thousands) 6,784 6,764 6,785 6,628
Eltek Ltd.
Consolidated Balance Sheets
U.S dollars in thousands
June 30, December 31,
2025 2024
Assets
Current assets:
Cash and cash equivalents 1,770 7,575
Short-term bank deposits 9,385 9,663
Trade receivables (net of allowance for credit losses) 14,480 11,786
Inventories 12,874 9,488
Other accounts receivable and prepaid expenses 404 602
Total current assets 38,913 39,114
Long term assets:
Severance pay fund 61 56
Deferred tax assets, net 334 496
Operating lease right of use assets 6,409 5,911
Total long term assets 6,804 6,463
Property and equipment, net 18,703 14,578
Total Assets 64,420 60,155
Liabilities and Shareholder's equity
Current liabilities:
Trade payables 7,197 7,367
Other accounts payable and accrued expenses 5,527 5,136
Short-term operating lease liabilities 1,047 827
Total current liabilities 13,771 13,330
Long-term liabilities:
Accrued severance pay 525 443
Long-term operating lease liabilities 5,477 5,190
Total long-term liabilities 6,002 5,633
Shareholders' equity:
Ordinary shares of NIS 3.0 par value - Authorized: 10,000,000 shares at June 6,012 6,011
30, 2025 and December 31, 2024; Issued and outstanding: 6,715,624 shares
at June 30, 2025 and 6,714,040 shares at December 31, 2024
Additional paid-in capital 32,634 32,627
Foreign currency translation adjustments 3,750 664
Capital reserve 2,777 2,507
Accumulated deficit (526) (617)
Total shareholders' equity 44,647 41,192
Total liabilities and shareholders' equity 64,420 60,155
Eltek Ltd.
Unaudited Non-GAAP EBITDA Reconciliations
U.S dollars in thousands
Three months Six months
ended ended
June 30, June 30,
2025 2024 2025 2024
GAAP net income 365 751 1,367 2,490
Add back items:
Financial income, net 1,012 (489) 508 (839)
Income tax expenses 79 143 306 475
Depreciation and amortization 500 388 966 753
Non-GAAP EBITDA 1,956 793 3,147 2,879
Eltek Ltd.
Consolidated Statement of Cash flow
U.S dollars in thousands
Three months Six months
ended ended
June 30, June 30,
2025 2024 2025 2024
Cash flows from operating activities:
Net Income 365 751 1,367 2,490
Adjustments to reconcile net income to net cash flows
provided by operating activities:
Depreciation 500 388 967 753
Unrealized financing expenses (income), net 595 (98) 466 (186)
Share-based compensation 132 154 270 286
Decrease in deferred tax assets 120 (100) 202 91
1,347 344 1,905 944
Decrease (increase) in operating lease right-of-use assets (1) 2 3
Decrease (increase) in trade receivables (1,378) (219) (1,733) 517
Decrease (increase) in other receivables and prepaid expenses 314 234 247 309
Decrease (increase) in inventories (2,282) (169) (2,612) (565)
Increase (decrease) in trade payables (1,138) 955 (2,000) (536)
Increase (decrease) in other liabilities and accrued expenses (201) (48) (28) (249)
Increase (decrease) in employee severance benefits, net 39 (48) 46 (30)
(4,647) 707 (6,080) (551)
Net cash provided by (used in) operating activities (2,935) 1,802 (2,808) 2,883
Cash flows from investing activities:
Purchase of fixed assets (1,743) (3,215) (2,880) (5,947)
Withdrawal of (investment in) short-term bank deposits, net (132) 534 (6,534)
Net cash used in investing activities (1,743) (3,347) (2,346) (12,481)
Cash flows from financing activities:
Exercise of options 8 16 8 261
Dividend distribution (1,276) (1,276)
Issuance of shares, net 9,312
Net cash provided by (used in) financing activities (1,268) 16 (1,268) 9,573
Effect of translation adjustments 1,250 (204) 617 (376)
Net increase (decrease) in cash and cash equivalents (4,696) (1,733) (5,805) (401)
Cash and cash equivalents at the beginning of the period 6,466 10,610 7,575 9,278
Cash and cash equivalents at the end of the period 1,770 8,877 1,770 8,877
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SOURCE Eltek Ltd.
