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Eltek Ltd

Eltek Ltd. Reports 2025 First Quarter Financial Results

PETACH TIKVA, Israel, May 20, 2025 /PRNewswire/ -- 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 March 31, 2025.

Eltek Logo

First Quarter 202 5 Highlights

  • Revenues were $12.8 million
  • Operating profit was $0.7 million
  • Net income was $1.0 million or $0.15 per fully diluted share
  • Net cash provided by operating activities amounted to $0.1 million.

"We ended the first quarter of 2025 with revenues of $12.8 million, an increase of approximately 8% compared to Q1 2024, and 18.5% higher than Q4 2024. Net income totalled $1.0 million. Our gross margin was impacted, compared to Q1 2024, due to increased labor costs and the ramp-up of new production equipment, which temporarily led to lower yields," said Eli Yaffe, CEO of Eltek.

"Looking ahead to the remainder of the year, we continue to advance our investment program as planned. Our forecast that we will complete the accelerated investment plan by mid-2026 remains unchanged. We are undertaking all necessary preparations to ensure the swift and efficient integration of the new lines, with the goal of bringing them into full production," continued Mr. Yaffe.

"On the revenue side, we continue to experience strong demand for the Company's products, and we are seeing lead times increase across all our relevant market sectors. As previously communicated, we are actively working to expand the scope of our commercial sales—an effort that we anticipate will bear fruit during the rest of 2025 and in the years to follow," concluded Mr. Yaffe.

First Quarter 2025 GAAP Financial Results

Revenues for the first quarter of 2025 were $12.8 million, compared to $11.8 million in the first quarter of 2024.

Gross profit for the first quarter of 2025 was $2.2 million (17% of revenues) compared to $3.3 (28% of revenues) in the first quarter of 2024.

Operating profit for the first quarter of 2025 was $0.7 million compared to operating profit of $1.7 million in the first quarter of 2024.

Net income for the first quarter of 2025 was $1.0 million or $0.15 per fully diluted share compared to net income of $1.7 million or $0.27 per fully diluted share in the first quarter of 2024.

Cash and short-term bank deposits amounted to $15.7 million as of March 31, 2025, with no outstanding debt.

First Quarter 2025 Non-GAAP Financial Results

EBITDA for the first quarter of 2025 was $1.2 million (9% of revenues) compared to EBITDA of $2.1 million (18% of revenues) in the first quarter of 2024.

Conference Call

Today, Tuesday, May 20, 2025, at 8:30am Eastern Time (15:30pmIsrael Time, 5:30am Pacific Time), Eltek will conduct a conference call to discuss the results. The call will feature remarks by Eli Yaffe, Chief Executive Officer and Ron Freund, Chief Financial Officer.

To participate, please call the following teleconference numbers. Please allow for additional time to connect prior to the call:

United States: 1-866-860-9642
Israel: 03-918-0691
International: +972-3-918-0691

To Access a Replay of the Call

A replay of the call will be available for 30 days on the Investor Info section on Eltek's corporate website at http://www.nisteceltek.com approximately 24 hours after the conference call is completed.

About Eltek

Eltek – "Innovation Across the Board", is a global manufacturer and supplier of technologically advanced solutions in the field of printed circuit boards (PCBs) and is an Israeli leading company in this industry. PCBs are the core circuitry of most electronic devices. Eltek specializes in the manufacture and supply of complex and high-quality PCBs, HDI, multilayered and flex-rigid boards for the high-end market. Eltek is ITAR compliant and has AS-9100 and NADCAP Electronics certifications. Its customers include leading companies in the defense, aerospace and medical industries in Israel, the United States, Europe and Asia.

Eltek was founded in 1970. The Company's headquarters, R&D, production and marketing center are located in Israel. Eltek also operates through its subsidiary in North America and by agents and distributors in Europe, India, South Africa and South America.

For more information, visit Eltek's web site at www.nisteceltek.com

Forward Looking Statements

Some of the statements included in this press release may be forward-looking statements that involve a number of risks and uncertainties including, but not limited to expected results in future quarters, the impact of the Coronavirus on the economy and our operations, risks in product and technology development and rapid technological change, product demand, the impact of competitive products and pricing, market acceptance, the sales cycle, changing economic conditions and other risk factors detailed in the Company's Annual Report on Form 20-F and other filings with the United States Securities and Exchange Commission. Any forward-looking statements set forth in this press release speak only as of the date of this press release. The information found on our website is not incorporated by reference into this press release and is included for reference purposes only.

About our Non-GAAP Financial Information

The Company reports financial results in accordance with U.S. GAAP and herein provides EBITDA, a non-GAAP measure. This non-GAAP measure is not in accordance with, nor is it a substitute for, GAAP measures. This non-GAAP measure is intended to supplement the Company's presentation of its financial results that are prepared in accordance with GAAP. The Company uses the non-GAAP measure presented to evaluate and manage the Company's operations internally. The Company is also providing this information to assist investors in performing additional financial analysis. Reconciliation between the Company's results on a GAAP and non-GAAP basis is provided in a table below.

Investor Contact

Ron Freund
Chief Financial Officer
Investor-Contact@nisteceltek.com
+972-3-939-5023

 

Eltek Ltd.

Consolidated Statements of Income

U.S. dollars in thousands (except per share data)

































Three months ended 






March  31,






2025


2024
























Revenues


12,756


11,783






Costs of revenues


(10,544)


(8,531)
















Gross profit


2,212


3,252
















Research and development, expenses, net


(50)


(15)






Selling, general and administrative expenses


(1,437)


(1,516)
















Operating income


725


1,721
















Financial income, net


504


350
















Income before income taxes


1,229


2,071
















Income tax expenses


227


332
















Net Income 


1,002


1,739


























Earnings per share:










Basic net income per ordinary share


0.15


0.27
















Diluted net income per ordinary share


0.15


0.27
















Weighted average number of ordinary shares used to compute










basic net income per ordinary share (in thousands)


6,714


6,376
















Weighted average number of ordinary shares used to compute










diluted net income per ordinary share (in thousands)


6,785


6,491






 

 

Eltek Ltd.

Consolidated Balance Sheets

U.S. dollars in thousands























March  31,   


December  31,  








2025


2024














Assets




















Current assets:










Cash and cash equivalents


6,466


7,575






Short-term bank deposits


9,257


9,663






Trade receivables (net of allowance for credit losses)


12,284


11,786






Inventories 


9,978


9,488






Other accounts receivable and prepaid expenses


726


602
















Total current assets


38,711


39,114
















Long term assets:










Severance pay fund


55


56






Deferred tax assets, net


322


496






Operating lease right of use assets


5,988


5,911






Total long term assets


6,365


6,463
















Property and equipment, net


15,999


14,578
















Total Assets


61,075


60,155
















Liabilities and Shareholder's equity




















Current liabilities:










Trade payables


7,615


7,367






Other accounts payable and accrued expenses


5,389


5,136






Short-term operating lease liabilities


936


827
















Total current liabilities


13,940


13,330
















Long-term liabilities:










Accrued severance pay


450


443






Long-term operating lease liabilities


5,157


5,190
















Total long-term liabilities


5,607


5,633
















Shareholders' equity:










Ordinary shares, NIS 3.0 par value authorized 10,000,000 shares, issued

and outstanding 6,714,040 at March 31, 2025 and  6,714,040 at December

31, 2024


6,011


6,011






Additional paid-in capital


32,627


32,627






Foreign currency translation adjustments


(140)


664






Capital reserve


2,645


2,507






Retained earnings (accumulated deficit)


385


(617)






Total shareholders' equity


41,528


41,192






Total liabilities and shareholders' equity


61,075


60,155






 

 

Eltek Ltd.

Unaudited Non-GAAP EBITDA Reconciliations

U.S. dollars in thousands






















Three months ended   





March  31,





2025


2024





















GAAP net Income                                                                     


1,002


1,739





Add back items:


















Financial income, net 


(504)


(350)





Income tax expenses


227


332





Depreciation and amortization


465


365





Non-GAAP EBITDA


1,190


2,086





 

 

Eltek Ltd.

Consolidated Statements of  Cash Flows

U.S. dollars in thousands























Three months ended  






March  31,






2025


2024
















Cash flows from operating activities:




















Net Income


1,002


1,739






Adjustments to reconcile net income to net cash flows










provided by operating activities:










Depreciation


465


365






Accrued interest, net


(128)


-






Share-based compensation


138


132






Decrease in deferred tax assets 


82


322








557


819
















Decrease (increase) in operating lease right-of-use assets


1


1






Decrease (increase) in trade receivables


(355)


736






Decrease (increase) in other receivables and prepaid expenses


(67)


75






Decrease (increase) in inventories


(330)


(396)






Increase (decrease) in trade payables


(862)


(1,491)






Increase (decrease) in other liabilities and accrued expenses


173


(201)






Increase (decrease)  in employee severance benefits, net


7


18








(1,433)


(1,258)
















Net cash provided by operating activities


126


1,300


























Cash flows from investing activities:










Purchase of fixed assets


(1,137)


(2,731)






Withdrawal of (investment in) short-term bank deposits, net


534


(6,490)






Net cash used in investing activities


(603)


(9,221)


























Cash flows from financing activities:










Exercise of options


-


246






Repayment of long-term loans from bank


-


-






Issuance of shares, net


-


9,180






Net cash provided by (used in) financing activities


-


9,426
















Effect of translation adjustments


(632)


(173)
















Net increase (decrease) in cash and cash equivalents


(1,109)


1,332
















Cash and cash equivalents at the beginning of the period


7,575


9,278
















Cash and cash equivalents at the end of the period


6,466


10,610






 

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SOURCE Eltek Ltd.