#Israel #financial results #Petach Tikva #Q1 2025 #Eltek Ltd.

Eltek Ltd.'s First Quarter Financial Results for 2025

On May 20, 2025, Eltek Ltd. (NASDAQ: ELTK), a prominent global manufacturer of printed circuit boards (PCBs), announced its financial results for the first quarter of 2025, revealing a revenue of $12.8 million. This figure represents an approximate 8% increase compared to the same period in the previous year and an 18.5% rise from the last quarter of 2024. The company also reported a net income of $1.0 million, equivalent to $0.15 per diluted share.

CEO Eli Yaffe stated, “We are pleased to report a solid start to the year, marked by our revenue growth and net income performance, despite facing challenges related to increased labor costs and the ramp-up of new production equipment.” The company’s gross profit stood at $2.2 million, translating to a gross margin of 17%, a decline from the 28% margin reported in Q1 2024 due to these rising costs.

Key Financial Highlights

• - Revenues: $12.8 million, compared to $11.8 million in Q1 2024
• - Gross Profit: $2.2 million (17% of revenue) down from $3.3 million (28% of revenue) in the previous year
• - Operating Profit: $0.7 million compared to $1.7 million in Q1 2024
• - Net Income: $1.0 million ($0.15 per diluted share) down from $1.7 million ($0.27 per diluted share) year-over-year
• - Cash Position: $15.7 million cash and short-term bank deposits with no outstanding debt

Future Outlook

Eltek is committed to advancing its investment program, expecting to complete an accelerated investment plan by mid-2026. Addressing the future, Yaffe commented, “We are taking all necessary steps to ensure the efficient integration of new production lines, with the goal of full production in the near future.” The company is experiencing a robust demand for its products, evidenced by increasing lead times across all relevant market sectors.

Eltek is actively working to expand its commercial sales portfolio, a move that they expect will yield dividends in both the remainder of 2025 and beyond.

Non-GAAP Financial Overview

For the non-GAAP financials, Eltek reported an EBITDA of $1.2 million for Q1 2025, representing 9% of revenues, a decrease from $2.1 million or 18% in the same quarter last year. This highlights the impact of the factors affecting gross margins as the company navigates through its growth path.

To further elaborate on the business metrics, Eltek will host a conference call at 8:30 AM ET on May 20, 2025, featuring insights from CEO Eli Yaffe and CFO Ron Freund. Interested parties are encouraged to join and get an in-depth analysis of the company’s financial performance and strategic initiatives.

With a strong foundation in innovation and a commitment to quality, Eltek Ltd. continues to solidify its position as a leader in the PCB sector, catering to advanced markets in defense, aerospace, and medical industries.

For further information, check Eltek's official website at www.nisteceltek.com.