Eltek Reports 2025 Financial Results: Challenges and Opportunities

Written by Emily J. Thompson, Senior Investment Analyst

Source: PRnewswire

Updated: Mar 09 2026

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Should l Buy ELTK?

Source: PRnewswire

Revenue Growth Stagnation: Eltek's revenue for 2025 reached $51.8 million, a 13% increase from $46.5 million in 2024; however, operational challenges during the transformation and equipment upgrades led to a decline in gross margin from 22% to 15%, indicating significant profitability issues.
Net Profit Decline: The company reported a net profit of only $0.8 million or $0.12 per diluted share in 2025, a sharp drop from $4.2 million and $0.63 per share in 2024, reflecting cost pressures and market challenges during the transition period.
Significant Currency Impact: The depreciation of the U.S. dollar against the Israeli shekel by approximately 13% resulted in an increase of about $2.2 million in shekel-denominated operating expenses, further compressing profit margins and affecting overall financial performance.
Sustained Market Demand: Despite challenges, global demand for high-performance printed circuit boards continues to rise, particularly in defense and medical technology sectors, and Eltek's strategic investments are expected to enhance its competitiveness in these high-growth markets.

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About ELTK

Eltek Ltd. manufactures, markets and sells custom made printed circuit boards (PCBs), including high density interconnect (HDI), flex-rigid and rigid, with high layer count boards. The Company manufactures and supplies custom made circuitry solutions for use in compact electronic products. The Company's principal customers include manufacturers of defense and aerospace, medical, industrial, telecom and networking equipment, as well as contract electronic manufacturers. The Company designs and develops manufacturing solutions pursuant to interconnect requirements of original equipment manufacturers, and provides its customers with a range of custom designed PCBs, including rigid, double-sided and multi-layer PCBs, as well as flexible circuitry (flex and flex-rigid boards) made of various types of base material. The Company also acts as an agent for the importation of PCBs from South East Asia. The Company provides fabrication of dense multi-layer PCBs.

About the author

Emily J. Thompson

Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.

Eltek Reports Q4 Financial Results

Mar 09 2026seekingalpha

Financial Overview: Eltek's Q4 report shows a GAAP EPS of -$0.05, indicating challenges in profitability, despite a 23% year-over-year revenue increase to $13.24 million, suggesting potential for sales growth.
Revenue Growth: The company's revenue rose by 23% year-over-year to $13.24 million, reflecting its competitive position and increased product demand, although overall profitability remains a concern.
Investor Attention: Eltek's financial performance has drawn investor scrutiny, particularly with a negative EPS, which may impact market expectations for future growth.
Future Outlook: While the current report highlights profitability pressures, Eltek must implement effective strategies to enhance profitability and sustain revenue growth to bolster investor confidence and drive stock price recovery.