#Israel #financial results #Petach Tikva #Printed Circuit Boards #Eltek Ltd

Eltek Ltd. Announces First Quarter Financial Results for 2026

Eltek Ltd. has released its financial results for the first quarter of 2026, reflecting a challenging start to the year. The company, renowned for its production of high-quality printed circuit boards, reported revenues of $10.4 million, down from $12.8 million in the same period last year. This shift underscores various external pressures impacting the business.

Key Financial Highlights

The financial breakdown reveals a profound impact due to the depreciation of the U.S. dollar against the Israeli shekel. This currency fluctuation led to increased expenses in shekel terms, contributing an additional $1.3 million to operating costs when converted to U.S. dollars. As a result, Eltek faced an operating loss of $1.9 million and a net loss of $2.9 million, equating to a $0.42 loss per fully diluted share.

CEO Eli Yaffe addressed these setbacks, attributing them to the late phasing of the company’s order backlog and temporary logistical constraints. He expressed confidence in Eltek's ability to bounce back, emphasizing the substantial growth in order backlog which signals robust demand for their products. Despite the challenges, the company is optimistic about converting this backlog into revenue as operational issues are anticipated to ease over time.

Detailed Financial Performance

In comparing year-over-year performance, the numbers paint a stark contrast:

• - Revenues: $10.4 million in Q1 2026 vs. $12.8 million in Q1 2025.
• - Gross loss: $1.9 million compared to a gross profit of $2.2 million in the previous year.
• - Operating loss: $3.3 million, a significant decline from the operating profit of $0.7 million seen in Q1 2025.
• - Net income/loss: A steep drop from a net income of $1 million or $0.15 per share in the prior year to the current net loss.

By March 31, 2026, Eltek held $11.1 million in cash and short-term bank deposits, emphasizing a solid liquidity position despite operational challenges. The company reported no outstanding debt, indicating a level of financial stability.

Challenges and Strategic Outlook

Amidst ongoing geopolitical tensions and a challenging security environment in the region, Eltek's operations have been affected. Temporary disruptions to workforce availability have further compounded issues. However, Yaffe reassured stakeholders, stating, "The growth in our order backlog reflects strong underlying demand for our products. We remain committed to addressing logistical hurdles and enhancing operational efficiency."

An upcoming conference call scheduled for May 19, 2026, will further detail the company's strategy moving forward, as well as provide insights from the management team on navigating these challenges. Interested parties can participate by calling designated numbers provided in the preliminary release.

About Eltek Ltd.

Founded in 1970, Eltek Ltd. specializes in innovative solutions within the printed circuit board industry. It serves clients across various high-stakes sectors including defense, aerospace, and medical technology. The company prides itself on delivering technologically advanced PCBs and has built a reputation for quality and reliability in this demanding field.

With operations centered in Israel and expansion efforts in North America and beyond, Eltek is well-positioned to pursue new opportunities and address the evolving market demands that lie ahead. For more information, visit their corporate website at www.nisteceltek.com.