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.
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: 1-866-860-9642Israel: 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 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 FreundChief Financial
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
