Eltek Ltd. Reports Strong Second-Quarter 2025 Results
20% Quarter-over-quarter revenue growth; gross margin expands to 24%
PETACH TIKVA, Israel,

Second Quarter 2025 Highlights |
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Q2 2025 |
Q2 2024 |
% |
Revenues (*) |
|
|
+20 % |
Gross margin |
24.1 % |
15.6 % |
+8.5 % |
Operating income |
|
|
+259 % |
Financial income (expense) |
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|
n/m |
|
"Strong momentum across our defense and medical segments drove significant year-over-year growth, highlighted by double-digit revenue increases. Continued operational improvements and a favorable product mix (compared to Q2 2024) contributed to a substantial increase in gross margin and operating profit, which reached
We remain committed to expanding our production capacity. All the equipment that was delivered to date has been successfully installed and is performing in accordance with specifications. Construction to accommodate the core of our investment plan - the new 60-meter coating lines is progressing smoothly, on schedule, and without any material impact on ongoing production operations. Following a recent scheduling update from our coating lines supplier, we have been informed of an additional delay in the delivery of the first line. We now expect the first line to arrive at our facility toward the end of 2025.
With staffing up approximately 10% since January, we continue our efforts to meet growing demand while maintaining best-in-class lead times.
The sharp appreciation of the Israeli shekel during the quarter resulted in a non-cash financial expense of
Second Quarter 2025 GAAP Financial Results
Revenues for the second quarter of 2025 were
Gross profit for the second quarter of 2025 was
Operating profit for the second quarter of 2025 was
Financial expenses for the second quarter of 2025 were
Net income for the second quarter of 2025 was
Second Quarter 2025 Non-GAAP Financial Results
EBITDA for the second quarter of 2025 was
Six Months Ended
Revenues for the first six months of 2025 were
Gross profit for the first six months of 2025 was
Operating profit for the first six months of 2025 was
Financial expenses for the first six months of 2025 were
Net profit for the first six months of 2025 was
Six Months Ended
EBITDA for the first six months of 2025 was a
About our Non-GAAP Financial Information
The Company reports financial results in accordance with
Conference Call
Today,
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International: +972-3-918-0691
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Forward Looking Statement
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
Investor Contact
Chief Financial Officer
Investor-Contact@nisteceltek.com
+972-3-939-5023
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Consolidated Statements of Income |
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Three months ended |
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Six months ended |
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2025 |
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2024 |
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2025 |
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2024 |
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||
|
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|
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|
Revenues |
|
12,529 |
|
10,466 |
|
25,285 |
|
22,249 |
|
|
Costs of revenues |
|
(9,510) |
|
(8,830) |
|
(20,054) |
|
(17,361) |
|
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|
|
|
|
|
|
|
|
|
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|
Gross profit |
|
3,019 |
|
1,636 |
|
5,231 |
|
4,888 |
|
|
|
|
|
|
|
|
|
|
|
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Research and development expenses, net |
|
- |
|
(47) |
|
(50) |
|
(62) |
|
|
Selling, general and administrative expenses |
|
(1,563) |
|
(1,184) |
|
(3,000) |
|
(2,700) |
|
|
|
|
|
|
|
|
|
|
|
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Operating profit |
|
1,456 |
|
405 |
|
2,181 |
|
2,126 |
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|
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|
|
|
|
|
|
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Financial income (expense), net |
|
(1,012) |
|
489 |
|
(508) |
|
839 |
|
|
|
|
|
|
|
|
|
|
|
|
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Income before income tax |
|
444 |
|
894 |
|
1,673 |
|
2,965 |
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|
|
|
|
|
|
|
|
|
|
|
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Income tax expenses |
|
79 |
|
143 |
|
306 |
|
475 |
|
|
|
|
|
|
|
|
|
|
|
|
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Net income |
|
365 |
|
751 |
|
1,367 |
|
2,490 |
|
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|
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Earnings per share: |
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Basic net income per ordinary share |
|
0.05 |
|
0.11 |
|
0.20 |
|
0.38 |
|
|
|
|
|
|
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|
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Diluted net income per ordinary share |
|
0.05 |
|
0.11 |
|
0.20 |
|
0.38 |
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Weighted average number of ordinary shares used to compute |
|
|
|
|
|
|
|
|
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basic net income per ordinary share (in thousands) |
|
6,715 |
|
6,706 |
|
6,715 |
|
6,541 |
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|
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Weighted average number of ordinary shares used to compute |
|
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diluted net income per ordinary share (in thousands) |
|
6,784 |
|
6,764 |
|
6,785 |
|
6,628 |
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Consolidated Balance Sheets |
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2025 |
|
2024 |
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Assets |
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Current assets: |
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Cash and cash equivalents |
|
1,770 |
|
7,575 |
|
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Short-term bank deposits |
|
9,385 |
|
9,663 |
|
|
|
|
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Trade receivables (net of allowance for credit losses) |
|
14,480 |
|
11,786 |
|
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Inventories |
|
12,874 |
|
9,488 |
|
|
|
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Other accounts receivable and prepaid expenses |
|
404 |
|
602 |
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Total current assets |
|
38,913 |
|
39,114 |
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Long term assets: |
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Severance pay fund |
|
61 |
|
56 |
|
|
|
|
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Deferred tax assets, net |
|
334 |
|
496 |
|
|
|
|
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Operating lease right of use assets |
|
6,409 |
|
5,911 |
|
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|
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Total long term assets |
|
6,804 |
|
6,463 |
|
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|
|
|
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Property and equipment, net |
|
18,703 |
|
14,578 |
|
|
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Total Assets |
|
64,420 |
|
60,155 |
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Liabilities and Shareholder's equity |
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Current liabilities: |
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Trade payables |
|
7,197 |
|
7,367 |
|
|
|
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Other accounts payable and accrued expenses |
|
5,527 |
|
5,136 |
|
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Short-term operating lease liabilities |
|
1,047 |
|
827 |
|
|
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Total current liabilities |
|
13,771 |
|
13,330 |
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Long-term liabilities: |
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Accrued severance pay |
|
525 |
|
443 |
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Long-term operating lease liabilities |
|
5,477 |
|
5,190 |
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Total long-term liabilities |
|
6,002 |
|
5,633 |
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Shareholders' equity: |
|
|
|
|
|
|
|
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Ordinary shares of |
|
6,012 |
|
6,011 |
|
|
|
|
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Additional paid-in capital |
|
32,634 |
|
32,627 |
|
|
|
|
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Foreign currency translation adjustments |
|
3,750 |
|
664 |
|
|
|
|
|
|
Capital reserve |
|
2,777 |
|
2,507 |
|
|
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Accumulated deficit |
|
(526) |
|
(617) |
|
|
|
|
|
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Total shareholders' equity |
|
44,647 |
|
41,192 |
|
|
|
|
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Total liabilities and shareholders' equity |
|
64,420 |
|
60,155 |
|
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|
|
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|
|
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|
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|
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Unaudited Non-GAAP EBITDA Reconciliations |
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Three months ended |
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Six months ended |
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||||
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2025 |
|
2024 |
|
2025 |
|
2024 |
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GAAP net income |
|
365 |
|
751 |
|
1,367 |
|
2,490 |
|
Add back items: |
|
|
|
|
|
|
|
|
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|
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|
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|
|
|
|
|
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Financial income, net |
|
1,012 |
|
(489) |
|
508 |
|
(839) |
|
Income tax expenses |
|
79 |
|
143 |
|
306 |
|
475 |
|
Depreciation and amortization |
|
500 |
|
388 |
|
966 |
|
753 |
|
Non-GAAP EBITDA |
|
1,956 |
|
793 |
|
3,147 |
|
2,879 |
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Consolidated Statement of Cash flow |
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Three months ended |
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Six months ended |
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||||
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|
2025 |
|
2024 |
|
2025 |
|
2024 |
|
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Cash flows from operating activities: |
|
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|
|
|
|
|
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|
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|
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|
|
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Net Income |
|
365 |
|
751 |
|
1,367 |
|
2,490 |
|
|
Adjustments to reconcile net income to net cash flows |
|
|
|
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|
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provided by operating activities: |
|
|
|
|
|
|
|
|
|
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Depreciation |
|
500 |
|
388 |
|
967 |
|
753 |
|
|
Unrealized financing expenses (income), net |
|
595 |
|
(98) |
|
466 |
|
(186) |
|
|
Share-based compensation |
|
132 |
|
154 |
|
270 |
|
286 |
|
|
Decrease in deferred tax assets |
|
120 |
|
(100) |
|
202 |
|
91 |
|
|
|
|
1,347 |
|
344 |
|
1,905 |
|
944 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Decrease (increase) in operating lease right-of-use assets |
|
(1) |
|
2 |
|
- |
|
3 |
|
|
Decrease (increase) in trade receivables |
|
(1,378) |
|
(219) |
|
(1,733) |
|
517 |
|
|
Decrease (increase) in other receivables and prepaid expenses |
|
314 |
|
234 |
|
247 |
|
309 |
|
|
Decrease (increase) in inventories |
|
(2,282) |
|
(169) |
|
(2,612) |
|
(565) |
|
|
Increase (decrease) in trade payables |
|
(1,138) |
|
955 |
|
(2,000) |
|
(536) |
|
|
Increase (decrease) in other liabilities and accrued expenses |
|
(201) |
|
(48) |
|
(28) |
|
(249) |
|
|
Increase (decrease) in employee severance benefits, net |
|
39 |
|
(48) |
|
46 |
|
(30) |
|
|
|
|
(4,647) |
|
707 |
|
(6,080) |
|
(551) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by (used in) operating activities |
|
(2,935) |
|
1,802 |
|
(2,808) |
|
2,883 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from investing activities: |
|
|
|
|
|
|
|
|
|
|
Purchase of fixed assets |
|
(1,743) |
|
(3,215) |
|
(2,880) |
|
(5,947) |
|
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Withdrawal of (investment in) short-term bank deposits, net |
|
- |
|
(132) |
|
534 |
|
(6,534) |
|
|
Net cash used in investing activities |
|
(1,743) |
|
(3,347) |
|
(2,346) |
|
(12,481) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Cash flows from financing activities: |
|
|
|
|
|
|
|
|
|
|
Exercise of options |
|
8 |
|
16 |
|
8 |
|
261 |
|
|
Dividend distribution |
|
(1,276) |
|
- |
|
(1,276) |
|
- |
|
|
Issuance of shares, net |
|
- |
|
- |
|
- |
|
9,312 |
|
|
Net cash provided by (used in) financing activities |
|
(1,268) |
|
16 |
|
(1,268) |
|
9,573 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect of translation adjustments |
|
1,250 |
|
(204) |
|
617 |
|
(376) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net increase (decrease) in cash and cash equivalents |
|
(4,696) |
|
(1,733) |
|
(5,805) |
|
(401) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents at the beginning of the period |
|
6,466 |
|
10,610 |
|
7,575 |
|
9,278 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents at the end of the period |
|
1,770 |
|
8,877 |
|
1,770 |
|
8,877 |
|
|
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