Eltek (ELTK) Q3 2025 earnings summary

Executive summary

• Q3 2025 sales reached $13.3 million, up 6% sequentially but down from $13.5 million in Q3 2024, with nine-month sales totaling $38.6 million, driven by strong defense sector demand and a recovering high-end industrial market.

• Gross profit for Q3 2025 was $1.6 million (12% margin), down from $3.5 million (26% margin) in Q3 2024, with break-even operating income and a net loss of $0.2 million ($0.03 per share).

• Results were significantly impacted by US dollar depreciation against the Israeli shekel, affecting expenses and profits.

• Operational instability persisted due to ramp-up of new equipment and integration of new staff.

• The company is finalizing a new production hall to expand manufacturing infrastructure.

Financial highlights

• Q3 2025 operating income was $0.05 million, down from $1.9 million in Q3 2024.

• Q3 2025 EBITDA was $0.6 million (5% of revenues), compared to $2.3 million (17% of revenues) in Q3 2024.

• For the first nine months of 2025, revenues were $38.6 million, up from $35.8 million in the same period of 2024.

• Nine-month net profit was $1.1 million ($0.17 per diluted share), down from $4.2 million ($0.63 per diluted share) in 2024.

• Cash, cash equivalents, and short-term deposits totaled $11.6 million as of September 30, 2025.

Outlook and guidance

• Positive impact from revised pricing model expected in coming quarters as new quotations take effect.

• Full stabilization of production and achievement of targeted 26%-27% gross margin anticipated by mid-2026, following integration of new coating line.

• Management highlights ongoing investments in manufacturing efficiency and infrastructure to support long-term growth.