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

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

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,

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)

1,073

5,097

Income tax expenses (tax benefit)

(53)

247

873

Net income (loss)

(310)

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,

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

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,

2025

2024

2025

2024

GAAP Net Income (loss)

(310)

826

4,224

Add back items:

Financial income (expenses), net

(479)

(271)

(1,274)

705

Income tax expenses (tax benefit)

(53)

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,

2025

2024

2025

2024

Cash flows from operating activities:

Net Income (loss)

(310)

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)

Decrease (increase) in trade receivables

(108)

1,230

(1,215)

(988)

Decrease (increase) in other receivables and prepaid expenses

(162)

(260)

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)

(2)

857

(403)

(3,722)

(1,995)

Net cash provided by operating activities

1,438

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

296

Dividend distribution

(1,276)

Issuance of shares, net

9,312

Net cash provided by (used in) financing activities

(1,240)

9,608

Effect of translation adjustments

287

331

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

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SOURCE Eltek Ltd.