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

Eltek Ltd. Reports Second-Quarter 2026 Results

Eltek Ltd. (NASDAQ: ELTK), a prominent global manufacturer of high-quality printed circuit boards, has announced its financial results for the quarter ending June 30, 2026.

In a challenging quarter, Eltek reported revenues of $11.5 million, a decrease from $12.5 million recorded in the same period last year. The leading PCB maker is currently navigating through a significant transition phase aimed at stabilizing operations while equipping itself for future growth. The company reported an operating loss of $2.5 million, reflecting the difficulties faced during this crucial period, compared to a profit of $1.5 million in Q2 2025.

Chief Executive Officer Eli Yaffe addressed the situation, stating, "Our second-quarter results illustrate the impact of our ongoing transition. We are dedicated to enhancing our manufacturing capabilities and developing the necessary infrastructure to support our anticipated growth trajectory. While the stabilization of our production system is in progress, we acknowledge that we still have hurdles to overcome."

In addition to the drop in revenue and operational losses, Eltek’s net loss for the second quarter stood at $2.7 million, translating to $0.41 per fully diluted share. This significant downturn marks a contrast to last year’s net income of $0.4 million or $0.05 per share, raising concerns among investors about the company’s ability to manage its finances effectively amidst these changes.

Yaffe mentioned that the new ERP system under implementation will provide a more robust foundation for managing operations efficiently. He added, "The integration of our latest PCB plating line is ongoing. We're conducting acceptance testing and anticipate starting the qualification process in the upcoming third quarter. This is all part of our strategy to improve performance going forward."

Turning to key financial metrics, Eltek experienced a gross loss of $1.0 million in Q2, compared to a gross profit of $3.0 million from the second quarter of the previous year. For the year-to-date, revenues totaled $22.0 million, down from $25.3 million last year, signifying a consistent revenue decline.

The financial expenses reflected in the results were $0.7 million, slightly lower than the $1.0 million in Q2 2025. These expenses were primarily attributed to the depreciation of the U.S. dollar against the New Israeli Shekel (NIS), emphasizing the external economic factors influencing Eltek's financial landscape.

Despite the setbacks, the company reports positive cash flow from operating activities amounting to $0.7 million for the quarter, which offers a glimpse of potential resilience.

As for the non-GAAP financial overview, Eltek recorded an EBITDA loss of $1.9 million compared to $2.0 million earnings during the same period in 2025, further illustrating the financial difficulties being tackled.

Eltek's commitment to progress is evident as the company pushes forward with plans to enhance operational efficiency and overall performance. Future calls and investor engagements will likely focus on updates regarding the stabilization process of their manufacturing operations and the effects of their new production lines.

Active engagement with investors will continue, with a conference call scheduled for today, August 18, at 8:30 AM Eastern Time, allowing stakeholders to gain further insights into the company's strategies and future outlook.

Conclusion

As Eltek Ltd. maneuvers through this transitional phase, the markets will be keenly observing how well these strategies stabilize its operations and restore profitability. The coming months are critical as the company implements its planned enhancements and strives for recovery in a volatile market. Investors and industry watchers alike await what Q3 will reveal as Eltek continues to adapt and innovate in the competitive PCB landscape.