Eltek (NASDAQ: ELTK) 2025 revenue grows while margins and profit fall
Filing Impact
Filing Sentiment
Form Type
6-K
Rhea-AI Filing Summary
Eltek Ltd. reported higher 2025 revenue but sharply lower profit as it upgraded and relocated manufacturing to support new plating lines. Full-year revenue rose to $51.8M from $46.5M, yet gross margin fell to 15% and operating income dropped to $2.3M from $4.4M.
Net income declined to $0.8M or $0.12 per diluted share, compared with $4.2M or $0.63 in 2024, hurt by operational disruption, workforce challenges and a weaker U.S. dollar versus the Israeli shekel that added about $2.2M to shekel-based expenses.
In the fourth quarter, revenue increased to $13.2M, but Eltek posted a net loss of $0.3M as gross margin compressed. EBITDA for 2025 was $4.5M (9% of revenue) versus $5.9M (13%) a year earlier. Management frames the heavy capital spending and modernization as positioning the company for long-term growth in defense and medical PCB markets.
Positive
- Revenue growth despite transition year: 2025 revenue increased to $51.8M from $46.5M, and fourth-quarter revenue rose to $13.2M from $10.8M, indicating strong demand in key defense and medical PCB markets even during major operational changes.
Negative
- Sharp profit and margin deterioration: Net income fell to $0.8M from $4.2M, gross margin dropped from 22% to 15%, and 2025 EBITDA margin declined from 13% to 9%, reflecting cost pressure and transition-related inefficiencies.
- Currency and financial impact: A roughly 13% depreciation of the U.S. dollar versus the shekel increased reported shekel-based operating expenses by about $2.2M and contributed to a swing from $0.7M financial income to $1.3M financial expenses in 2025.
Insights
Revenue grew strongly in 2025, but margins and earnings weakened during a heavy investment and FX headwind year.
Eltek increased 2025 revenue to $51.8M from $46.5M, reflecting solid demand for high-performance PCBs, especially in defense and medical segments. However, gross profit fell to $8.0M, and operating income roughly halved to $2.3M, showing that growth came with significantly higher costs.
Management attributes the margin pressure to relocating production, upgrading equipment, training staff and retaining skilled workers, all tied to new plating lines. Currency also weighed heavily, as the U.S. dollar’s decline versus the shekel turned prior financial income into $1.3M of financial expenses.
Fourth-quarter results highlight the pressure: revenue of $13.2M came with only $1.2M gross profit and a $0.3M net loss. EBITDA margin slipped to 9% for the year from 13%. Future filings may clarify whether the expanded capacity and upgraded technology begin to restore profitability as transition impacts ease.
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
F O R M 6-K
REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
For the month of March 2026
Commission file number 000-28884
Eltek Ltd.
(Name of Registrant)
Sgoola Industrial Zone, Petach Tikva, Israel
(Address of Principal Executive Office)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form
20-F or Form 40-F.
Form 20-F ☒ Form 40-F ☐
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by
Regulation S-T Rule 101(b)(1): ☐
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by
Regulation S-T Rule 101(b)(7): ☐
Eltek Ltd.
EXPLANATORY NOTE
On March 9, 2026 Eltek issued a press release
reporting full year and fourth quarter 2025 financial results. A copy of this press release is furnished herewith as Exhibit 99.1.
EXHIBIT INDEX
|
Exhibit
|
|
Description
|
| 99.1 |
Press Release: Eltek Reports Full Year and Fourth Quarter
2025 Financial Results
|
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
| ELTEK LTD. | |||
| (Registrant) | |||
|
By:
|
/s/Ron Freund | ||
| Ron Freund | |||
| Chief Financial Officer | |||
Date: March 9, 2026
Exhibit 99.1
Press Release
Eltek Ltd. Reports Full Year and Fourth Quarter 2026 Financial Results
Petach Tikva, Israel (March 9, 2026) 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
Investor-Contact@nisteceltek.com
Chief Financial Officer
Investor-Contact@nisteceltek.com
+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
|
||||||||||||
FAQ
How did Eltek Ltd. (ELTK) perform financially in 2025?
Eltek grew 2025 revenue to $51.8 million from $46.5 million, but profitability declined. Gross profit fell to $8.0 million, operating income to $2.3 million, and net income dropped to $0.8 million from $4.2 million in 2024.
What were Eltek Ltd. (ELTK) fourth quarter 2025 results?
In Q4 2025, Eltek generated $13.2 million in revenue, up from $10.8 million a year earlier. Despite this growth, gross profit was only $1.2 million, and the company reported a $0.3 million net loss versus a small profit in Q4 2024.
How did currency movements affect Eltek Ltd. (ELTK) in 2025?
A sharp depreciation of the U.S. dollar against the Israeli shekel materially hurt results. Management estimates this movement increased shekel-based operating expenses by about $2.2 million and contributed to $1.3 million in 2025 financial expenses, versus financial income in 2024.
What happened to Eltek Ltd. (ELTK) profit margins in 2025?
Eltek’s margins compressed significantly. Gross margin declined to about 15% from 22%, and EBITDA margin fell to 9% from 13%. These declines reflect production relocation, equipment upgrades, workforce challenges and unfavorable currency impacts during the transition year.
What is Eltek Ltd. (ELTK) investing in for future growth?
Eltek is investing in new plating lines, upgraded production infrastructure and expanded manufacturing space. Management says these projects aim to increase capacity and support more complex, higher-value PCB products for defense, medical and high-end industrial customers, positioning the company for long-term growth.
How did Eltek Ltd. (ELTK) cash flow and balance sheet change in 2025?
Net cash from operations was $0.6 million in 2025, down from $4.5 million. The company spent $5.4 million on fixed assets and ended the year with $2.5 million in cash, total assets of $66.3 million, and shareholders’ equity of $46.7 million.