Eltek Ltd. Reports Total Revenue of $12.8 Million and an 8% Revenue Growth in First Quarter 2025

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Eltek Ltd. (ELTK), a global player in the PCB manufacturing arena, has released its financial results for the first quarter of 2025. Demonstrating robust revenue momentum, the company reported a total revenue of $12.8 million, marking an 8% increase from the first quarter of the previous year and a significant 18.5% rise from the fourth quarter of 2024. This growth reflects a strengthening demand for Eltek's technologically advanced printed circuit board solutions.

However, profitability indicators were less upbeat. The company's gross margin for the quarter shrank to 17%, a substantial drop from 28% in the same period last year. This decline was attributed to increased labor costs and temporary efficiency losses during the ramp-up phase of new production equipment. Correspondingly, operating profit plummeted to $0.7 million, down from $1.7 million, while net income fell to $1.0 million, equating to $0.15 per diluted share, compared to $1.7 million, or $0.27 per diluted share, in Q1 2024.

In terms of EBITDA, Eltek reported $1.2 million, or 9% of revenues, which is a decline from $2.1 million, or 18% of revenues, a year earlier. Despite these challenges, Eltek's financial foundation remains solid, buoyed by $15.7 million in cash and short-term deposits with no debt obligations.

Looking forward, Eltek continues to witness strong product demand and is working toward completing its accelerated investment program by mid-2026. The management has noted extended lead times across its market sectors, indicating a demand that surpasses current production capabilities. This strategic investment is seen as a critical step toward future expansion and revenue enhancement in commercial sales.

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