Eltek Reports 2025 Q1 Financial Results; Revenue Up 8%

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Eltek Ltd., a global manufacturer and supplier of technologically advanced solutions in the field of printed circuit boards (PCBs), announced its financial results for the quarter ended March 31, 2025.

First Quarter 2025 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.