Eltek Announces Filing of 2025 Annual Report Accessibility StatementSkip Navigation PETACH-TIKVA, Israel, March 26, 2026 /PRNewswire/ -- Eltek Ltd. (NASDAQ: ELTK), a global manufacturer and supplier of technologically advanced solutions in the field of printed circuit boards, announced today that it filed its annual report, containing audited consolidated financial statements for the year ended December 31, 2025, with the U.S. Securities and Exchange Commission. The annual report is available on the Com ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington D.C. 20549 FORM 20-F For the fiscal year ended December 31, 2025 ☐ REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934 OR ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to __________ OR ☐ S ...

Financial Data and Key Metrics Changes - Revenue for 2025 totaled $51.8 million, representing an 11% increase compared to $46.6 million in 2024 [3][10] - Gross profit decreased to $8 million from $10.3 million in 2024, with gross margin dropping to 15% from 22% [10][11] - Operating profit fell to $2.3 million in 2025 from $4.4 million in 2024 [11] - Net profit was $0.8 million or $0.12 per share in 2025, down from $4.2 million or $0.63 per share in 2024 [11] - EBITDA decreased to $4.5 million in 2025 from $5.9 million in 2024 [11][12] - Positive cash flow from operating activities was $0.6 million compared to $4.5 million in 2024 [12] Business Line Data and Key Metrics Changes - The company faced operational challenges, including machinery reallocation and employee recruitment difficulties, impacting production efficiency [4][8] - The demand for products remained strong, particularly from international customers, despite domestic production capacity constraints [5] Market Data and Key Metrics Changes - The depreciation of the US dollar adversely affected profitability by approximately $2.2 million compared to 2024 [4][8] - Increased competition from overseas players was noted due to domestic production capacity limitations [5] Company Strategy and Development Direction - The company is targeting an annual revenue capacity of $60 million to $65 million at current market prices [5] - An accelerated investment plan is in place, with significant investments in machinery and equipment expected to drive future growth [3][6] - The company is expanding its presence in overseas markets, particularly in the United States, to increase order volume [5] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in returning to healthy profitability levels upon completion of the investment program and stabilization of production [9] - The ongoing conflict in Israel was acknowledged as a potential risk for installation delays of new equipment [7] Other Important Information - The lease agreement for the manufacturing facility was extended through the end of 2039, with a payment received to partially offset investments in the facility [9] Q&A Session Summary Question: When do you expect to see improvements in gross margin? - Management expects improvements following the installation of the new plating line by mid-2026, which will streamline manufacturing processes and expand production capacity [16] Question: Why was there a sharp drop in gross margins? - The decline was attributed to the depreciation of the US dollar and ongoing production efficiency issues, with expectations for recovery as sales volume increases [18] Question: What is the pricing dynamic going forward? - The company has updated its pricing system to reflect the new exchange rates, with expectations for improved margins in the next four to five months [22]

Financial Data and Key Metrics Changes - Revenue for 2025 totaled $51.8 million, an 11% increase compared to $46.6 million in 2024 [3][10] - Gross profit decreased to $8 million from $10.3 million in 2024, with gross margin dropping to 15% from 22% [10][11] - Operating profit fell to $2.3 million in 2025 from $4.4 million in 2024 [11] - Net profit was $0.8 million or $0.12 per share in 2025, down from $4.2 million or $0.63 per share in 2024 [11] - EBITDA decreased to $4.5 million in 2025 from $5.9 million in 2024 [11][12] - Positive cash flow from operating activities was $0.6 million in 2025, compared to $4.5 million in 2024 [12] Business Line Data and Key Metrics Changes - The company faced operational challenges, including machinery reallocation and employee recruitment difficulties, impacting production efficiency [4][8] - The demand for products remained strong, particularly from international customers, despite domestic production capacity constraints [5] Market Data and Key Metrics Changes - Increased competition from overseas players was noted due to domestic production capacity being exceeded [5] - The depreciation of the US dollar adversely affected dollar-denominated profitability by approximately $2.2 million compared to 2024 [4][8] Company Strategy and Development Direction - The company is targeting an annual revenue capacity of $60 million to $65 million at current market prices [5] - An accelerated investment plan is in place, with significant investments in machinery and equipment expected to drive future growth [3][6] - The company is expanding its presence in overseas markets, particularly in the United States, to increase order volume [5] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in returning to healthy profitability levels upon completion of the investment program and stabilization of production [9] - The ongoing conflict in Israel was acknowledged as a potential risk for delays in the installation of new plating lines [7] Other Important Information - The lease agreement for the manufacturing facility was extended through the end of 2039, with a payment received to partially offset investments in the facility [9] Q&A Session Summary Question: When do you expect to see improvements in gross margin? - Management expects improvements following the installation of the new plating line by mid-2026, which will streamline manufacturing processes and expand production capacity [16] Question: Why was there a sharp drop in gross margins? - The decline was attributed to the depreciation of the US dollar and ongoing production efficiency issues, with expectations for recovery as sales volume increases [18] Question: What is the pricing dynamic going forward? - The company has updated its pricing system to reflect the new exchange rates, with expectations for improved margins in the next four to five months [22]

Financial Data and Key Metrics Changes - Revenue for 2025 totaled $51.8 million, representing an 11% increase compared to $46.6 million in 2024 [3][9] - Gross profit decreased to $8 million from $10.3 million in 2024, with gross margin dropping to 15% from 22% [9][10] - Operating profit fell to $2.3 million in 2025 from $4.4 million in 2024 [10] - Net profit was $0.8 million or $0.12 per share in 2025, down from $4.2 million or $0.63 per share in 2024 [10] - EBITDA decreased to $4.5 million in 2025 from $5.9 million in 2024 [10] - Positive cash flow from operating activities was $0.6 million in 2025, compared to $4.5 million in 2024 [11] Business Line Data and Key Metrics Changes - The company faced operational challenges, including machinery reallocation and employee recruitment difficulties, impacting production efficiency [4][7] - The demand for products remained strong, particularly from international customers, despite domestic production capacity constraints [5] Market Data and Key Metrics Changes - The depreciation of the US dollar adversely affected profitability by approximately $2.2 million compared to 2024 [4][7] - Increased competition from overseas players was noted due to domestic production capacity limitations [5] Company Strategy and Development Direction - The company is targeting an annual revenue installed capacity of $60 million-$65 million at current market prices [5] - An accelerated investment plan is in place, with significant investments in machinery and equipment expected to drive future growth [3][6] - The company is expanding its presence in overseas markets, particularly in the United States, to increase order volume [5] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in returning to healthy profitability levels upon completion of the investment program and stabilization of production [8] - The ongoing conflict in Israel was acknowledged as a potential risk for installation delays of new equipment [6] Other Important Information - The lease agreement for the manufacturing facility was extended through the end of 2039, with a payment received to partially offset investments [8] Q&A Session Summary Question: When do you expect to see improvements in gross margin? - Management expects improvements following the installation of the new plating line by mid-2026, which will streamline manufacturing processes and expand production capacity [15] Question: Why was there a sharp drop in margins? - The decline was attributed to the depreciation of the US dollar and ongoing production efficiency issues, with expectations for recovery as sales volume increases [17] Question: How is the pricing dynamic being adjusted? - The company has updated its pricing system to reflect the new exchange rates and expects to see improvements in margins within four to five months [20]

Core Viewpoint - Eltek Ltd is set to release its financial results for the fourth quarter and annual results for the year ended December 31, 2025, on March 9, 2026, before market opening [1] Financial Results Announcement - The financial results will be disseminated via news wires and will also be available on Eltek's corporate website [1] - A conference call to discuss the results will take place on March 9, 2026, at 9:30 a.m. Eastern Time, featuring remarks from the CEO Eli Yaffe and CFO Ron Freund [1] Company Overview - Eltek is a global manufacturer and supplier of advanced solutions in printed circuit boards (PCBs), specializing in complex, high-quality PCBs, HDI, multilayered, and flex-rigid boards for high-end markets [1] - The company is ITAR compliant and holds AS-9100 and NADCAP Electronics certifications, serving customers in defense, aerospace, and medical industries across Israel, the United States, Europe, and Asia [1] - Founded in 1970, Eltek's headquarters, R&D, production, and marketing center are located in Israel, with operations in North America and through agents and distributors in Europe, India, South Africa, and South America [1]

Company Overview - Eltek Ltd. is a global manufacturer and supplier of technologically advanced solutions in the field of printed circuit boards (PCBs) [3] - The company specializes in complex and high-quality PCBs, including HDI, multilayered, and flex-rigid boards for the high-end market [3] - Eltek is ITAR compliant and holds AS-9100 and NADCAP Electronics certifications, serving customers in defense, aerospace, and medical industries across various regions [3] Recent Developments - Eltek announced it received orders totaling $12.2 million from a U.S.-based defense customer, with deliveries scheduled throughout 2026 and 2027 [1] - The CEO of Eltek, Eli Yaffe, expressed satisfaction with this order as it aligns with the company's strategic objective to expand its presence in the U.S. market with high value-added products [2] Historical Context - Eltek was founded in 1970 and has its headquarters, R&D, production, and marketing center located in Israel [4] - The company operates through a subsidiary in North America and utilizes agents and distributors in Europe, India, South Africa, and South America [4]

Financial Data and Key Metrics Changes - Sales for Q3 2025 were $13.3 million, a slight decrease from $13.5 million in Q3 2024. Gross profit for the quarter was $1.6 million, down from $3.5 million in the previous year. Operating profit was $50,000 compared to $1.9 million in Q3 2024. Net loss for Q3 2025 was $0.2 million, or $0.03 per share, compared to net income of $1.7 million, or $0.25 per share in Q3 2024 [9][10]. - EBITDA for Q3 2025 amounted to $0.6 million, down from $2.3 million in the prior year period. Positive cash flow from operating activities was $2 million, compared to $1.6 million in Q3 2024 [10]. Business Line Data and Key Metrics Changes - The defense sector accounted for 63% of quarterly sales, while industrial and medical customers represented 9% and 6%, respectively. RigidFlex products made up 66% of quarterly sales and 65% of sales for the first nine months of the year [6]. Market Data and Key Metrics Changes - Demand for products remains strong, particularly in the defense sector. However, the entry of new foreign competitors is noted, which may limit price increases in certain segments. Delivery times across the industry remain extended due to strong global demand and constrained manufacturing capacity [6][7]. Company Strategy and Development Direction - The company is in a transition period, absorbing significant additional capacity and technology upgrades. A production capacity expansion program is progressing well, with the construction of a new production hall nearing completion. The RP project is also on track to go live in 2026, aiming to integrate all company platforms for improved operational efficiency [7][8]. Management's Comments on Operating Environment and Future Outlook - Management acknowledged ongoing operational instability due to the ramp-up of new equipment and the integration of new staff. They expect improvements in production processes and financial performance as employees gain experience and new pricing models take effect [5][6][12]. The company anticipates that gross margins will improve by mid-2026 as production processes stabilize [15]. Other Important Information - The sharp depreciation of the US dollar against the Israeli shekel has negatively impacted reported expenses and gross profits, with an estimated operational profit impact of approximately $800,000 compared to Q3 2024 [4]. Q&A Session Summary Question: Clarification on operational issues and pricing impact due to USD depreciation - Management explained that current operational issues stem from engineering and manpower challenges rather than construction-related problems. They expect to see the effects of price increases from USD depreciation in six to nine months [12][13]. Question: Timeline for resolving operational difficulties - Management indicated that the timeline for resolving operational difficulties is uncertain and depends on the absorption rate of employees and engineering staff [14]. Question: Impact of new competition and price pressure - Management noted that new foreign competitors are entering the defense sector, which is limiting pricing flexibility, particularly in high-volume production. However, competition in low-volume production remains limited, allowing for greater pricing flexibility [23][24]. Question: Continued impact of currency and foreign exchange - Management confirmed that the erosion of the US dollar will continue to affect financial expenses and operating income, particularly if the exchange rate remains lower than at the end of Q3 [26][27].

Financial Data and Key Metrics Changes - Company reported sales of $13.3 million for Q3 2025, a slight decrease from $13.5 million in Q3 2024 [9] - Gross profit for Q3 2025 was $1.6 million, down from $3.5 million in the same quarter last year [9] - Operating profit for Q3 2025 was $50,000 compared to $1.9 million in Q3 2024 [9] - Net loss for Q3 2025 was $0.2 million, or $0.03 per share, compared to net income of $1.7 million, or $0.25 per share in Q3 2024 [10] - EBITDA for Q3 2025 amounted to $0.6 million, down from $2.3 million in the prior year [10] - Positive cash flow from operating activities was $2 million in Q3 2025, compared to $1.6 million in Q3 2024 [10] Business Line Data and Key Metrics Changes - Demand for products remains strong, particularly in the defense sector, which accounted for 63% of quarterly sales [6] - RigidFlex products represented 66% of quarterly sales and 65% of sales for the first nine months of the year [6] Market Data and Key Metrics Changes - Company is experiencing increased competition from new foreign entrants, particularly in the defense sector [6][23] - Delivery times across the industry remain extended due to strong global demand and constrained manufacturing capacity [6] - In low-volume, high-complexity production, competition remains limited, allowing for greater pricing flexibility [6] Company Strategy and Development Direction - Company is in a transition period, absorbing significant additional capacity and technology upgrades [5] - Production capacity expansion program is progressing well, with the new production hall nearing completion [7] - The RP project is on track to go live in 2026, aiming to integrate all company platforms for improved operational efficiency [8] Management's Comments on Operating Environment and Future Outlook - Management noted that operational instability is primarily due to the ramp-up of new equipment and the integration of new staff [5] - The impact of currency depreciation on operational profit was approximately $800,000 compared to Q3 2024 [4] - Management expects the revised pricing model to positively impact results in the coming quarters [4] Other Important Information - Company is facing pressure from large Israeli customers to extend credit terms, increasing working capital requirements [6] - Recent improvements in regional security have positively affected logistics, allowing for reduced inventory levels [6] Q&A Session Summary Question: What is the status of operational issues? - Management clarified that previous operational issues were related to construction and are now due to engineering and manpower challenges [12] Question: When will the pricing lift due to USD depreciation be realized? - Management indicated it typically takes six to nine months for pricing adjustments to translate into profits [13] Question: When will operational difficulties be resolved? - Management stated it is difficult to predict, as it depends on employee absorption rates and engineering proficiency [14] Question: When can gross margins of 26-27% be expected? - Management expects to stabilize production processes and improve gross margins by mid-2026 with the integration of new equipment [15] Question: What is the impact of new competition? - Management noted that competition is increasing from foreign entrants, particularly in the defense sector, affecting pricing flexibility [23] Question: Will currency and foreign exchange impacts continue? - Management confirmed that as long as the dollar remains weak, financial expenses and operating income will be negatively affected [27]

Core Insights - Eltek Ltd. reported its financial results for the quarter ending September 30, 2025, highlighting its position as a global manufacturer and supplier in the printed circuit boards (PCBs) industry [1] Financial Performance - The company announced its financial results, indicating a focus on technological advancements in PCBs [1]