Eltek (NASDAQ:ELTK) Issues Earnings Results

Key Points

• Revenue rose 11% to $51.8 million, but profitability weakened — EPS was ($0.05), gross margin dropped to 15% (gross profit $8.0M), net profit was $0.8M and EBITDA fell to $4.5M, hurt by an estimated $2.2M adverse impact from USD depreciation and lower production efficiency.
• Two new plating lines arrived early 2026 and should boost output and quality, but they require assembly and extensive qualification through 2026 and may be delayed by regional tensions; ongoing operational and staffing issues have caused delivery delays and margin pressure from backlog priced at higher historic USD rates.
• Shares trade around $8.92$59.9M and a P/E of 52.47, and analysts maintain a consensus "Hold" rating (Weiss Ratings reiterated Hold).

Eltek (NASDAQ:ELTK - Get Free Report) posted its quarterly earnings data on Monday. The technology company reported ($0.05) EPS for the quarter, Zacks reports. Eltek had a return on equity of 2.68% and a net margin of 2.35%.

Here are the key takeaways from Eltek's conference call:

• Revenue rose 11% to $51.8 million in 2025 and management says the accelerated investment plan is beginning to show results, with a target installed capacity of $60–$65 million at current prices.
• Gross margin fell to 15% (gross profit $8.0M) and net profit declined to $0.8M, with EBITDA down to $4.5M, driven mainly by a roughly $2.2M adverse impact from USD depreciation and lower production efficiency.
• The two new plating lines—expected to be the main catalyst for higher output and quality—arrived in early 2026 but require assembly, extensive qualification through 2026, and may face further delay due to current tensions in Israel.
• Operational disruptions (production-line reallocation, difficulties recruiting/retaining experienced staff) caused delivery delays, encouraged overseas competition, and left part of the backlog priced at higher historic USD rates, which will depress margins on those orders.

Eltek Stock Performance

ELTK stock opened at $8.92 on Tuesday. The business has a 50-day simple moving average of $8.82 and a two-hundred day simple moving average of $9.70. The company has a market capitalization of $59.94 million, a P/E ratio of 52.47 and a beta of 0.65. Eltek has a 52-week low of $7.65 and a 52-week high of $12.19.

Analysts Set New Price Targets

Separately, Weiss Ratings reiterated a "hold (c)" rating on shares of Eltek in a research note on Monday, December 29th. One investment analyst has rated the stock with a Hold rating, According to data from MarketBeat.com, the company has a consensus rating of "Hold".

About Eltek

Eltek Ltd. manufactures, markets, and sells printed circuit boards (PCBs) in Israel, Europe, North America, India, the Netherlands, and internationally. It offers a range of custom designed PCBs, including rigid, double-sided and multi-layer PCBs, and flexible circuitry boards. The company also provides high density interconnect, flex-rigid, and multi-layered boards. It primarily serves medical technology, defense and aerospace, industrial, telecom, and networking equipment industries, as well as contract electronic manufacturers.

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