Eltek Reports Q3 2025 Results as Defense Demand Drives Sequential Growth

Eltek Ltd. (NASDAQ: ELTK), a global manufacturer and supplier of technologically advanced solutions in the field of printed circuit boards (PCBs), today announced its financial results for the quarter ended September 30, 2025.

Third Quarter 2025 Highlights

• Revenues were $13.3 million compared to $13.5 million in Q3 2024
• Operating income was $0.05 million compared to $1.9 million in Q3 2024
• Net loss was $0.2 million, or $0.03 per fully diluted share
• As of September 30, 2025, cash, cash equivalents and short-term deposits amounted $11.6 million

"The Company reported third-quarter sales of $13.3 million and nine-month sales of $38.6 million for the period ended September 30, 2025," said Eli Yaffe, Chief Executive Officer of Eltek. "Revenues for the third quarter increased by 6% compared to the second quarter of this year reflecting the Company's ongoing organic growth, driven by strong demand from defense customers and a gradual recovery in the high-end industrial sector. Sales to the defense market represented approximately 63% of total quarterly revenues."

Mr. Yaffe continued: "Gross profit for the quarter was $1.6 million. Our profitability was significantly impacted by the sharp depreciation of the U.S. dollar against the NIS that occurred toward the end of the second quarter of 2025, which increased the reported dollar value of our NIS-denominated expenses. The Company continues to invest significant effort in improving manufacturing efficiency and achieving its targeted gross margin."

Mr. Yaffe concluded: "We are in the final stages of preparing the new production hall for the installation and commissioning of the coating lines—an important milestone in expanding our manufacturing infrastructure and supporting Eltek's long-term growth objectives."

Third Quarter 2025 GAAP Financial Results

Revenues for the third quarter of 2025 were $13.3 million, compared to $13.5 million in the third quarter of 2024;

Gross profit for the third quarter of 2025 was $1.6 million (12% of revenues) compared to $3.5 million (26% of revenues) in the third quarter of 2024.

Operating income for the third quarter of 2025 was $0.05 million compared to operating income of $1.9 million in the third quarter of 2024;

Financial expenses for the third quarter of 2025 were $0.3 million compared to financial income of $0.1 million in the third quarter of 2024. Financial expenses primarily resulted from the erosion of the U.S. dollar against the Israeli Shekel during the quarter.

Net loss for the third quarter of 2025 was $0.2 million, or $0.03 per fully diluted share, compared to net income of $1.7 million, or $0.25 per fully diluted share, in the third quarter of 2024.

Third Quarter 2025 Non-GAAP Financial Results

EBITDA for the third quarter of 2025 was $0.6 million (5% of revenues) compared to EBITDA of $2.3 million (17% of revenues) in the third quarter of 2024.

First Nine Months 2025 GAAP Financial Results

Revenues for the first nine months of 2025 were $38.6 million compared to $35.8 million in the first nine months of 2024;

Gross profit for the first nine months of 2025 was $6.8 million (18% of revenues) compared to $8.4 million (23% of revenues) in the first nine months of 2024;

Operating profit for the first nine months of 2025 was $2.2 million compared to operating profit of $4.0 million in the first nine months of 2024;

Financial expenses for the first nine months of 2025 were $0.8 million compared to financial income of $1.0 million in the first nine months of 2024. The difference is mainly due to the erosion of the US Dollar exchange rate against the Israeli Shekel.

Net profit for the first nine months of 2025 was $1.1 million, or $0.17 per fully diluted share, compared to net profit of $4.2 million, or $0.63 per fully diluted share, in the first nine months of 2024.

First Nine Months 2025 Non-GAAP Financial Results

EBITDA for the first nine months of 2025 was a $3.8 million (10% of revenues) compared to EBITDA of $5.2 million (14% of revenues) in the first nine months of 2024.