Eltek Ltd. Reports 2026 First Quarter Financial Results

Eltek Ltd. Reports 2026 First Quarter Financial Results 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

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: 1-866-860-9642

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

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

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

Additional paid-in capital

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

(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)

106

557

Decrease (increase) in operating lease right-of-use assets

149

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

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

SOURCE Eltek Ltd.