Eltek Ltd. Reports Strong Q1 2025 Growth

Eltek ( (ELTK) ) has released its Q1 earnings. Here is a breakdown of the information Eltek presented to its investors.

Eltek Ltd., an Israeli company, is a global leader in the manufacture and supply of technologically advanced printed circuit boards (PCBs), serving high-end markets such as defense, aerospace, and medical industries. In its first quarter of 2025 financial results, Eltek reported revenues of $12.8 million, marking an 8% increase from the previous year. Despite facing challenges with increased labor costs and new equipment integration, the company achieved a net income of $1.0 million.

The financial highlights of the quarter include an operating profit of $0.7 million and a net cash flow from operating activities of $0.1 million. However, the gross profit margin saw a decline due to operational cost increases, with gross profit standing at $2.2 million compared to $3.3 million in the same quarter of the previous year. Eltek’s EBITDA was reported at $1.2 million, reflecting a decrease from the previous year’s $2.1 million.

Eltek continues to advance its investment program, aiming to complete its accelerated investment plan by mid-2026. The company is preparing for the integration of new production lines, which is expected to enhance production capacity. Strong demand for Eltek’s products persists, and the company is actively working to expand its commercial sales scope.

Looking forward, Eltek remains optimistic about its growth prospects, driven by ongoing investments and strategic initiatives aimed at expanding market reach and improving operational efficiencies.