Eltek Ltd. announced a new $12.2 million contract with a U.S. defense customer, with deliveries scheduled through 2026 and 2027. The order adds a multi‑year revenue stream that represents roughly 25 % of the company’s annual revenue of $49.31 million for the last twelve months, underscoring the strategic importance of the defense sector to Eltek’s business mix.
The contract comes on the heels of a $2.4 million defense order announced in August 2025, and follows a period of financial headwinds. In the third quarter of 2025, Eltek reported a net loss and revenue of $13.3 million, slightly down from $13.5 million the prior year, largely due to operational challenges and currency impacts highlighted in the earnings call. The new order therefore provides a significant boost to the company’s top‑line outlook and helps offset recent profitability pressures.
Eltek’s CEO, Eli Yaffe, said the win is “particularly pleased” because the customer is U.S.-based and aligns with the company’s objective of expanding its presence in the U.S. market with high‑value‑added products. The order also leverages Eltek’s ITAR compliance, AS‑9100, and NADCAP Electronics certifications, which are essential for serving defense contractors and reinforce the company’s competitive advantage in the high‑end PCB market.
From a market perspective, the announcement was well received by investors, reflecting confidence in Eltek’s defense strategy and the multi‑year revenue visibility the contract provides. The deal signals that Eltek is successfully translating its strategic focus into tangible contracts, which may improve investor sentiment toward the company’s growth trajectory.
The order’s impact extends beyond revenue. By securing a long‑term contract, Eltek gains greater predictability in cash flow and can better plan for capacity and supply‑chain investments. The multi‑year nature of the deliveries also allows the company to spread engineering and production costs over a longer period, potentially improving margin stability in the face of rising material costs and supply‑chain uncertainties.
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