Eltek (ELTK) Q4 2025 earnings summary

Executive summary

• Revenue for 2025 reached $51.8 million, up 11% year-over-year, driven by strong demand in defense and medical sectors and an accelerated investment plan, though not yet at full potential.

• Net profit for 2025 was $0.8 million ($0.12 per share), down from $4.2 million ($0.63 per share) in 2024, reflecting operational challenges and US dollar depreciation.

• Q4 2025 revenue was $13.2 million (vs. $10.8 million in Q4 2024); Q4 net loss was $0.3 million, compared to a net profit of $23,000 in Q4 2024.

• Major operational transformation included facility relocation, machinery upgrades, and workforce adjustments.

• The company extended its manufacturing facility lease through 2039, receiving a payment to partially offset facility investments, which will reduce annual rental expenses.

Financial highlights

• Gross profit for 2025 was $8 million (15% margin), down from $10.3 million (22% margin) in 2024.

• Operating profit was $2.3 million, compared to $4.4 million in 2024.

• EBITDA for 2025 was $4.5 million (8.7–9% margin), compared to $5.9 million (13% margin) in 2024.

• Cash flow from operating activities was $0.6 million, down from $4.5 million in 2024; cash and equivalents at year-end were $2.5 million, down from $7.6 million in 2024.

• Inventories increased to $11.2 million from $9.5 million year-over-year.

Outlook and guidance

• Targeting annual revenue installed capacity of $60–$65 million at current market prices.

• Gross margin improvement expected after completion and qualification of new plating lines, anticipated by mid-to-late 2026.

• Pricing system updated to reflect US dollar depreciation; margin improvement expected within 4–5 months as new orders reflect updated rates.

• Strategic investments in new plating lines and upgraded infrastructure are expected to expand capacity and support complex product families.

• Management remains confident in long-term growth, particularly in defense, medical, and high-end industrial markets.