Eltek Ltd. (NASDAQ: ELTK) reported its 2025 annual and fourth‑quarter financial results, posting revenue of $51.8 million for the year and $13.2 million for the quarter. Net profit for the full year was $0.8 million, or $0.12 per diluted share, while the fourth quarter saw a net loss of $0.3 million, or $0.05 per diluted share. Gross profit for 2025 was $8.0 million, giving a 15 % gross‑margin, down from 22 % in 2024. Operating profit fell to $2.3 million from $4.4 million in 2024, and EBITDA was $4.5 million, or 9 % of revenue, versus $5.9 million, or 13 % of revenue, in 2024.
Revenue growth was driven by strong demand in Eltek’s defense, medical and high‑end industrial segments, which offset headwinds in legacy product lines. Fourth‑quarter revenue rose 22 % to $13.2 million from $10.8 million in Q4 2024, reflecting continued expansion in the high‑performance printed circuit board market.
Margins contracted sharply. The 15 % gross‑margin reflected higher cost of goods sold driven by the U.S. dollar’s 13 % depreciation against the Israeli shekel, which increased shekel‑based operating expenses by roughly $2.2 million. EBITDA margin fell to 9 % from 13 % in 2024, largely because the company invested heavily in new plating lines and facility upgrades that raised operating costs during the transition period.
Cash flow from operations was $2.0 million in 2025, down from $11.6 million in 2024, while the cash balance at year‑end was $11.6 million versus $15.7 million in 2024. The company reported no debt, and equity stood at $46.7 million, giving a net‑debt‑to‑EBITDA ratio of zero.
CEO Eli Yaffe said the investment program over the past year reflects the company’s strong conviction in the long‑term growth of the high‑performance PCB market, particularly in the defense, medical and high‑end industrial sectors. “While the transition period presents ongoing operational challenges, we view these investments as foundational to our next phase of growth,” Yaffe said.
Investors responded positively to the revenue beat, noting that the company’s continued demand in core sectors and its strategic investment in new manufacturing capabilities position it for future growth, even as short‑term profitability remains pressured by currency headwinds and capital spending.
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