ELTK

Image source: The Motley Fool. Tuesday, Aug. 18, 2026 at 8:30 a.m. ET Chief Executive Officer - Eli Yaffe Financial Officer - Ron Freund Operator: Ladies and gentlemen, thank you for standing by. Welcome to the Eltek Ltd. 2026 Second Quarter Financial Results Conference Call. [Operator Instructions] As a reminder, this conference is being recorded. Before I turn the call over to Mr. Eli Yaffe, Chief Executive Officer; and Ron Freund, Financial Officer, I'd like to remind you that they will be referring to forward-looking information in today's presentation and in the Q&A. By its nature, this information contains forecasts, assumptions and expectations about future outcomes, which are subject to the risks and uncertainties outlined here and discussed more fully in Eltek's public disclosure filings. These forward-looking statements are projections and reflect the current beliefs and expectations of the company. Actual events or results may differ materially. We'll also be referring to non-GAAP measures. Eltek undertakes no obligation to publicly release revisions to such forward-looking statements to reflect events or circumstances occurring subsequent to this date. I will now turn the call over to Mr. Eli Yaffe. Mr. Yaffe, please go ahead. Eli Yaffe: Good morning, and thank you for joining us for our 2026 Second Quarter Earnings Call. With me is Ron Freund, our Chief Financial Officer. We will begin by providing you with an overview of our business and summary of the principal factors that affected our results during Q2 2026. After our prepared remarks, we will be happy to answer any of your questions. By now, everyone should have access to our press release, which was released earlier today. The release will be also available on our website. As we stated in our press release, our second quarter results continue to reflect a loss as we remain in an important transition period, focused on stabilization and manufacturing operation and building the human and the operational infrastructure required to support our next phase of growth. I would like to provide some additional context on this transition and the progress we are making. The market environment remains strong with continued demand for our products and strong backlog. The challenge we are facing is not demand, but our ability to continuously convert this demand and our backlog into production and shipments at the level we would like. Second quarter revenue were $11.5 million, growing revenue for the first half of 2026 to approximately $22 million. We recognize that this level of revenue is below the level that the current demand environment would support. Given our cost structure, the company required a significantly higher level of revenue than we achieved during the first half of the year and in order to fully leverage our fixed operation expenses and reach our full profitability potential. At the same time, we are beginning to see some kind of development in our gross margin performance. Gross loss in the second quarter was $1 million compared to $1.8 million loss in the first quarter. This improvement was driven by the higher level of revenue as well as improvement in the average selling price of the PCBs. The improvement in the average selling price reflects the gradual adjustment of our pricing to higher cost environment. This captured both the impact of the weaker U.S. dollar and the significant pressure we have seen across raw materials, production overhead and depreciation. As a newer order booked under our updated pricing structure moves through production and become a larger part of our sales mix, we expect this pricing adjustment to increase ability will reflect our results. At the same time, the supply environment remained challenging. We continue to experience limitation in our availability to certain raw materials, particularly fiberglass-based material which also in a strong demand from the rapidly growth AI infrastructure industry. In the same cases, we are facing significantly raw material price increase, while other cases, supply is subject to allocation quotas. We have been able to secure the material required to continue operation and serving our customers, but doing so has become significantly more difficult and has required much closer coordination with our suppliers. Beyond our defense portfolio, we remain firmly focused on driving growth in our medical and high-end industrial markets. In the medical sector, we have secured key certification that position us well to capture future demand. Meanwhile, our high-end industrial business continued to perform strongly, backed with a robust demand for our offering. Together, these strategic initiatives will help balance our market mix and diversify our revenue stream going forward. We are making steady progress in strengthening our operational infrastructure. We are well involved in the implementation of our new ERP system, which we believe will provide a stronger foundation for managing and scaling our operations. We have also completed the installation of our newly arrived PCB plating line and have started acceptance testing in parallel with initial trial production for customers' qualifications. We expect to kick off the official qualification process during the third quarter. As we have previously discussed, this process is expected to take several months before the line reaches full commercial production. Additionally, our second plating line is currently scheduled by our supplier to arrive to Israel by the end of this year, backed with contractual penalties for this delayed installation. We are also continuing to strengthen our workforce. During the quarter, we successfully integrated approximately 15 foreign employees into our operation, and we have continued the process of bringing in additional approximately 15 foreign employees. Strengthening workforce is an important component in our ability to improve production capacity and operational efficiency and support the growth of the business. Taken together, these initiatives are limited aims by strengthening the foundation of our manufacturing operation and providing us with the capacity, workforce and infrastructure required to support higher production level. We remain encouraged by the strong demand environment and the high level of our backlog. Our focus now is on completing the transition and improving our ability to convert that demand into higher level of production and revenue. As we achieve greater operational stability and higher revenue level, we believe we will be able to leverage our existing cost structure more efficiently. Together with the improvements we are seeing in the average selling price and the continued adjustment of our pricing to reflect the current cost environment, we believe this will provide us toward a return to profitability level the company achieved historically. We are making steady progress across these areas and remain confident that the steps we are taking are building a stronger foundation for improved operational and financial performance in the period ahead. I will now turn the call over to Ron Freund, our CFO, to discuss our financial results. Ron Freund: Thank you, Eli. I would now like to review the financial results for the second quarter of 2026. During this call, I will also refer to certain non-GAAP financial measures. Eltek's EBITDA as a non-GAAP measure of financial performance. Please refer to our earnings release for the definition of EBITDA and the reasons for its use. I will now review the key financial highlights for the second quarter. All figures are presented in U.S. dollars. Revenues for the second quarter of 2026 were $11.5 million compared to $12.5 million in the second quarter of 2025. Gross loss was $1 million compared to gross profit of $3 million in the prior year period. The year-over-year decline in gross profitability was driven by lower revenue volume, production inefficiencies and appreciation of the U.S. dollar against the Israeli shekel. Operating loss was $2.5 million compared to operating profit of $1.5 million in the second quarter of 2025. Financial expenses were $0.7 million compared to $1 million in the prior year period. The financial expense in the current quarter primarily reflected the depreciation of the U.S. dollar against the Israeli shekel, partly offset by interest income earned on our cash balances. Net loss for the quarter was $2.7 million or $0.41 per share compared to net income of $0.4 million or $0.05 per share in the second quarter of 2025. EBITDA loss was $1.9 million compared to EBITDA of $1.9 million in prior year period. Despite the net loss, operating activities generated $0.7 million of cash during the quarter. As of June 30, 2026, we had $11.5 million in cash and cash equivalents and no outstanding debt, providing us with strong and solid balance sheet. We are now ready to answer your questions. Operator: [Operator Instructions] The first question is from Mark Sharogradsky of Kepler Capital. Mark Sharogradsky: I have a few questions. The first one, when we begin to see any improvement, especially in the gross margin because we invested a lot of money in the production lines and now we are not seeing any improvement, even deterioration in the operating results. The next question, if you already finished to install all the plating lines. And can you give us some update on this? And then what do you see on the demand side? Eli Yaffe: Regarding your first question, we expect the improvement to be gradual as several key factors come together. This includes increased production volume, improved production efficiency, better utilization of our existing capacity, the ramp-up of our new production lines, as I will explain later in your second question and improved availability of critical raw materials. At the same time, we are working to secure new orders at the pricing level that better reflect the current cost environment and the value of our products. While the timing of the improvement may vary from quarter-to-quarter, we believe that these factors that stabilize our investment become fully operational, we will be in a stronger position to return to more normalized level of revenue and profitability. Regarding your question number two, as I mentioned in detail during the discussion, the first plating line is already fully installed. Acceptance test is already started. And by this coming Thursday, we are going to make the first plating just for demonstration. The second step is to call customers and certify the lines by customer by customer. The second line, the second plating line is right now built abroad in Europe, and it's going to be shipped to Israel and installed and finish the installation before the year-end. And then the process of the second line is going to continue as well. Question number two, you also talked about the demand. And as I mentioned before, the demand become and continue strong demand. Mark Sharogradsky: So I don't understand if the demand is so strong and we hear about the huge demand also in U.S.A. especially for data asset center and specialized for defense. Why the gross margin is still negative, why you're not ready to drive to increase normal growth drivers because I don't think the customer serves any alternatives. Eli Yaffe: I think that I answered it. The issue is the operational side, not the demand side. . Ron Freund: And Mark, you cannot increase prices. We are working in a competitive environment, even if the demand is so strong, there is still competition against local and foreign competitors. So you can't just double your price and remain at the position that you get purchase orders. So we are working in a competitive environment. And we need to deliver and to convert the current backlog that we have, which is, I think, the highest since I arrived to the company -- and our mission is to convert it to sales and to be in quarters with increased revenues and not at the level that we saw in the first half of 2026. Mark Sharogradsky: Okay. And Ron, can you speak a little bit about the backlog pricing because I assume that last 2 quarters, you work on backlog that you build in 2025 when the USD was much higher. So now when you go to Q3, you are beginning to work on orders you have got from Q1 and maybe end of Q1 when USD was much lower. So if you will see in the next quarter revenue and gross profit? Eli Yaffe: It's now Eli. I have to say that approximately 1/3 of our backlog is unrelated to the current exchange rates. It's historical exchange rates. And this is long-term POs that we got for something -- supply of 2 years, something like that. And until it's going to be ended, this 1/3 is going to be heavy weight on our profitability. The second 1/3 is in the range of exchange rates approximately 3.2. And the last 1/3 of our backlog is in the current exchange rate of today of around 3. So this is the most profitable backlog is the last 1/3 that I mentioned. Mark Sharogradsky: Okay. So we expect to see improvement in the current quarter. Ron Freund: We don't give any forecast, Mark. But as we said in the earlier this call, we saw improvement in our average selling price during the second quarter of 2026. And we hope note that we will see additional increase in the mix, average prices. Operator: [Operator Instructions] There are no further questions at this time. Before I ask Mr. Yaffe to go ahead with his closing statement, I would like to remind our participants that a replay of this call will be available tomorrow on our website. Eli Yaffe: In summary, we remain encouraged by the underlying strength of our business and the opportunities ahead. Our strong backlog continues to provide solid visibility, reflecting sustained demand for our products and solutions. At the same time, we are making meaningful progress in expanding our capacity and stringing the operational foundation needed to support the growth. I would like to thank our employees for their continued dedication, professionalability and reliance and our investors for their ongoing confidence and support. Thank you for joining us on today's call. Have a good day. . Operator: Thank you. This concludes the Eltek Ltd. 2026 Second Quarter Financial Results Conference Call. Thank you for your participation. You may go ahead and disconnect. Before you buy stock in Eltek, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Eltek wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $431,488!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,279,584!* That performance is why people listen. With a track record of beating the S&P 500 by nearly 5x, Stock Advisor offers a distinct advantage. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built for the long haul. See the 10 stocks » *Stock Advisor returns as of August 25, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Eltek (ELTK) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

This article first appeared on GuruFocus. Release Date: August 18, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Eltek Ltd (NASDAQ:ELTK) reported a strong demand environment with a high level of backlog, providing solid visibility for future revenue. Gross loss improved to $1 million in Q2 2026 from $1.8 million in Q1 2026, driven by higher revenue and improved average selling prices. The company completed installation of its new PCB plating line and has begun initial trial production, with official customer qualification expected in Q3 2026. Eltek Ltd (NASDAQ:ELTK) successfully integrated approximately 15 foreign employees into its operations and is adding another 15 to strengthen its workforce and production capacity. The company maintains a strong balance sheet with $11.5 million in cash and cash equivalents and no outstanding debt. Eltek Ltd (NASDAQ:ELTK) is making progress in adjusting pricing to reflect higher costs, with about one-third of its backlog now priced at current exchange rates, which should improve profitability. Eltek Ltd (NASDAQ:ELTK) reported a net loss of $2.7 million for Q2 2026, a significant decline from net income of $0.4 million in the same period last year. Revenue decreased to $11.5 million in Q2 2026 from $12.5 million in Q2 2025, reflecting production inefficiencies and lower volume. The company continues to face challenges in converting strong demand and backlog into production and shipments at desired levels. Supply chain issues persist, particularly for fiberglass-based materials, with significant raw material price increases and allocation quotas impacting operations. Approximately one-third of the company's backlog is priced at historical exchange rates, which will continue to weigh on profitability until those orders are fulfilled. The second plating line is delayed and is now scheduled to arrive by the end of 2026, with contractual penalties incurred for the delay. Warning! GuruFocus has detected 5 Warning Signs with ELTK. Is ELTK fairly valued? Test your thesis with our free DCF calculator. Q: When will we begin to see improvement in gross margin, especially given the significant investments in production lines? Also, are the plating lines fully installed, and what is the current demand outlook? A: Eli Yaffe (CEO) stated that improvement is expected to be gradual, driven by increased production volume, improved efficiency, better capacity utilization, the ramp-up of new production lines, and improved raw material availability. The first plating line is fully installed, with acceptance tests starting and the first demonstration plating scheduled for the coming Thursday. Customer qualification will follow, while the second plating line is being built in Europe and is expected to arrive in Israel by the end of the year. Demand remains strong, with the backlog at its highest level since he joined the company. Q: Given the strong demand and lack of alternatives for customers, why is gross margin still negative, and why aren't you raising prices to achieve normal gross margins? A: Eli Yaffe (CEO) clarified that the issue is operational, not demand-driven. The company operates in a competitive environment, so it cannot simply double prices. The focus is on converting the record backlog into sales and increasing revenues, which is expected to improve profitability. Q: Can you provide more detail on the backlog pricing, as it seems the current backlog was built when the exchange rate was much higher? Will we see the benefit in Q3 revenue and gross profit? A: Eli Yaffe (CEO) explained that approximately one-third of the backlog is tied to historical exchange rates and long-term purchase orders (up to two years), which will continue to weigh on profitability. Another third is at an exchange rate of around 3.2, and the final third is at the current rate of around 3.0, which is the most profitable. The company does not provide forecasts, but noted an improvement in average selling prices in Q2 2026 and hopes to see further increases in the mix. Q: What were the key financial results for the second quarter of 2026? A: Ron Freund (CFO) reported revenues of $11.5 million, down from $12.5 million in Q2 2025. Gross loss was $1.0 million, compared to a gross profit of $3.0 million in the prior year. Operating loss was $2.5 million, and net loss was $2.7 million, or $0.41 per share. EBITDA loss was $1.9 million. The company generated $0.7 million in cash from operations and ended the quarter with $11.5 million in cash and no debt. Q: What is driving the year-over-year decline in gross profitability? A: Ron Freund (CFO) attributed the decline to lower revenue volume, production inefficiencies, and the depreciation of the U.S. dollar against the Israeli shekel. Q: How is the company addressing the raw material supply challenges, particularly for fiberglass-based materials? A: Eli Yaffe (CEO) noted that the supply environment remains challenging, with limitations on certain raw materials like fiberglass, which is in high demand from the AI infrastructure industry. The company has faced significant price increases and allocation quotas but has managed to secure necessary materials through closer coordination with suppliers. Q: What progress is being made in the medical and high-end industrial markets? A: Eli Yaffe (CEO) stated that the company has secured key certifications in the medical sector, positioning it well for future demand. The high-end industrial business continues to perform strongly with robust demand, helping to balance the market mix and diversify the business. Q: How is the company strengthening its workforce to support growth? A: Eli Yaffe (CEO) mentioned that approximately 15 foreign employees were integrated into operations during the quarter, with an additional 15 being brought in. This is a key component of improving production capacity and operational efficiency. Q: What is the company's cash position and balance sheet strength? A: Ron Freund (CFO) confirmed that as of June 30, 2026, the company had $11.5 million in cash and cash equivalents with no outstanding debt, providing a solid balance sheet despite the net loss. Q: What is the company's outlook for returning to profitability? A: Eli Yaffe (CEO) expressed confidence that as the company achieves greater operational stability, higher revenue levels, and continued pricing adjustments to reflect the current cost environment, it will be able to leverage its cost structure more efficiently and return to historical profitability levels. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Interested in Eltek Ltd.? Here are five stocks we like better. Eltek’s second-quarter performance deteriorated year over year: Revenue fell to $11.5 million from $12.5 million, while the company posted a $2.7 million net loss versus $400,000 in net income a year earlier. Production inefficiencies, lower volume and unfavorable currency movements drove the decline. Demand and backlog remain strong, but execution is the key challenge. Management is focused on converting backlog into shipments, with pricing improvements expected as newer orders replace older contracts priced at less favorable exchange rates. Capacity expansion is underway amid supply constraints. Eltek is adding plating lines and employees, while managing shortages of fiberglass-based materials; the company ended the quarter with $11.5 million in cash, no debt and $700,000 in operating cash flow. Eltek (NASDAQ:ELTK) reported a wider loss for the second quarter of 2026 as production inefficiencies, lower revenue volume and currency pressures weighed on profitability, even as management said demand and backlog remained strong. Revenue totaled $11.5 million for the quarter, down from $12.5 million in the second quarter of 2025. First-half revenue was approximately $22 million. Chief Executive Officer Eli Yaffe said the company’s central challenge was not market demand, but its ability to convert backlog into production and shipments at targeted levels. → AMG’s Alternatives Boom Powers Record Growth “The market environment remains strong, with continued high demand for our products and strong backlog,” Yaffe said. “The challenge we are facing is not demand, but our ability to consistently convert this demand and our backlog into production and shipments at the level we would like.” Eltek posted a gross loss of $1 million in the second quarter, compared with gross profit of $3 million a year earlier. However, the gross loss improved from a $1.8 million loss in the first quarter of 2026, which management attributed to higher sequential revenue and an improvement in average selling prices for printed circuit boards. → Microsoft's Maia 300 Chip Targets NVIDIA's AI Dominance The company said its pricing adjustments are intended to address a higher-cost environment that includes a weaker U.S. dollar, raw-material costs, production overhead and depreciation. Yaffe said the impact of revised pricing should become more visible as newer orders booked under the updated structure account for a larger share of sales. Operating loss was $2.5 million, compared with operating income of $1.5 million in the prior-year quarter. Net loss was $2.7 million, or $0.41 per share, versus net income of $400,000, or $0.05 per share, in the second quarter of 2025. EBITDA loss was $1.9 million, compared with EBITDA of $1.9 million a year earlier. → The Metals Company’s Big Bet Now Comes Down to a License Chief Financial Officer Ron Freund said the year-over-year deterioration in gross profitability reflected “lower revenue volume, production inefficiencies, and depreciation of the U.S. dollar against the Israeli shekel.” Financial expenses totaled $700,000, down from $1 million in the prior-year period, primarily reflecting the dollar’s depreciation against the shekel, partly offset by interest income on cash balances. During the question-and-answer session, management emphasized that Eltek operates in a competitive market and cannot substantially raise prices without regard to competitors. Freund said the company’s near-term mission is to convert its backlog into sales and lift revenue above the levels recorded during the first half of the year. Yaffe said approximately one-third of the company’s backlog is tied to long-term purchase orders using historical exchange rates, and that this portion would remain a drag on profitability until completed. Another third of backlog is associated with exchange rates around 3.2, while the final third is priced closer to the current exchange rate of about 3.0. Yaffe characterized that final portion as the most profitable backlog. Management did not provide a financial forecast. Freund said the company had seen an increase in average selling prices during the second quarter and hoped to see additional improvement. Eltek is working to increase manufacturing capacity through new plating lines, workforce additions and the implementation of a new enterprise resource planning system. The first new PCB plating line has been installed and is undergoing acceptance testing and initial trial production for customer qualification. Management expects to begin the formal customer qualification process in the third quarter, with full commercial production expected to take several months. A second plating line is being built in Europe and is scheduled to arrive in Israel and complete installation by the end of 2026. Yaffe said the supplier is subject to contractual penalties related to the delayed installation. The company also integrated about 15 foreign employees during the quarter and is working to bring in approximately 15 additional employees. Yaffe said the additions are intended to improve production capacity and operating efficiency. Raw-material availability remains difficult, particularly for fiberglass-based materials that are also in demand from the artificial intelligence infrastructure industry. Eltek said it has secured enough materials to maintain operations and serve customers, but that doing so has required closer coordination with suppliers amid price increases and allocation quotas. Beyond defense-related business, Eltek said it is targeting growth in medical and high-end industrial markets. The company said it obtained certifications in the medical sector that could position it for future demand, while high-end industrial demand continues to be strong. Despite the quarterly net loss, Eltek generated $700,000 in cash from operating activities. As of June 30, the company had $11.5 million in cash and cash equivalents and no outstanding debt. Yaffe said management believes that higher production volumes, improved efficiency, better utilization of capacity, new production-line ramp-ups and stronger material availability can support a return toward historically achieved profitability levels over time. Eltek Ltd. manufactures, markets, and sells printed circuit boards (PCBs) in Israel, Europe, North America, India, the Netherlands, and internationally. It offers a range of custom designed PCBs, including rigid, double-sided and multi-layer PCBs, and flexible circuitry boards. The company also provides high density interconnect, flex-rigid, and multi-layered boards. It primarily serves medical technology, defense and aerospace, industrial, telecom, and networking equipment industries, as well as contract electronic manufacturers. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Eltek Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

PETACH TIKVA, Israel, Aug. 18, 2026 /PRNewswire/ -- Eltek Ltd. (NASDAQ: ELTK), a leading global manufacturer of high-quality printed circuit boards, today announced its financial results for the quarter ended June 30, 2026. Second Quarter 2026 Highlights Revenues were $11.5 million Operating loss was $2.5 million Net loss was $2.7 million or $0.41 per fully diluted share Net cash provided by operating activities amounted to $0.7 million. Eli Yaffe, Chief Executive Officer, stated: "Our second-quarter 2026 results reflected a loss as we remain in an important transition period focused on stabilizing our manufacturing operations and building the human and operational infrastructure required to support our next phase of growth. The stabilization of our production system and the integration of our new production lines are progressing, although the process is not yet complete. We are well advanced in the implementation of our new ERP system, which we believe will provide a stronger foundation for managing and scaling our operations. We are also completing the installation of our newly arrived PCB plating line, while conducting acceptance testing in parallel, and expect to begin the qualification process during the third quarter. Although the transition is not yet complete, we are making steady progress across the key areas of our business. We remain focused on completing the stabilization of our manufacturing operations, strengthening our organization and infrastructure and improving operational efficiency. We believe these steps are establishing a stronger foundation for improved operational and financial performance in the periods ahead." Second Quarter 2026 GAAP Financial ResultsRevenues for the second quarter of 2026 were $11.5 million compared to $12.5 million in the second quarter of 2025. Gross loss for the second quarter of 2026 was $1.0 million compared to gross profit of $3.0 million (24% of revenues) in the second quarter of 2025. Operating loss for the second quarter of 2026 was $2.5 million compared to operating profit of $1.5 million in the second quarter of 2025. Financial expenses for the second quarter of 2026 were $0.7 million compared to $1.0 million in the second quarter of 2025. Financial expenses primarily resulted from the erosion of the U.S. dollar against the NIS. Net loss for the second quarter of 2026 was $2.7 million or $0.41 per fully diluted share compared to net income of $0.4 million or $0.05 per fully diluted share in the second quarter of 2025. Second Quarter 2026 Non-GAAP Financial ResultsEBITDA loss for the second quarter of 2026 was $1.9 million compared to EBITDA of $2.0 million (15.6% of revenues) in the second quarter of 2025. Six Months Ended June 30, 2026 GAAP Financial ResultsRevenues for the first six months of 2026 were $22.0 million compared to $25.3 million in the first six months of 2025. Gross loss for the first six months of 2026 was $2.8 million compared to gross profit of $5.2 million (21% of revenues) in the first six months of 2025. Operating loss for the first six months of 2026 was $5.8 million compared to operating profit of $2.2 million in the first six months of 2025. Financial expenses for the first six months of 2026 were $0.8 million compared to $0.5 million in the first six months of 2025. Financial expenses primarily resulted from the erosion of the U.S. dollar against the NIS. Net loss for the first six months of 2026 was $5.6 million or $0.83 per fully diluted share compared to net profit of $1.4 million or $0.20 per fully diluted share in the first six months of 2025. Six Months Ended June 30, 2026 Non-GAAP Financial ResultsEBITDA loss for the first six months of 2026 was a $4.6 million compared to EBITDA of $3.1 million (12% of revenues) in the first six months of 2025. About our Non-GAAP Financial InformationThe Company reports financial results in accordance with U.S. GAAP and herein provides EBITDA, a non-GAAP measure. This non-GAAP measure is not in accordance with, nor is it a substitute for, GAAP measures. This non-GAAP measure is intended to supplement the Company's presentation of its financial results that are prepared in accordance with GAAP. The Company uses the non-GAAP measure presented to evaluate and manage the Company's operations internally. The Company is also providing this information to assist investors in performing additional financial analysis. Reconciliation between the Company's results on a GAAP and non-GAAP basis is provided in a table below. Conference CallToday, Tuesday, August 18, 2026, at 8:30am Eastern Time (15:30pm Israel Time, 5:30am Pacific Time), Eltek will conduct a conference call to discuss the results. The call will feature remarks by Eli Yaffe, Chief Executive Officer and Ron Freund, Chief Financial Officer. To participate, please call the following teleconference numbers. Please allow for additional time to connect prior to the call: United States: 1-866-860-9642Israel: 03-918-0691International: +972-3-918-0691 To Access a Replay of the CallA replay of the call will be available for 30 days on the Investor Info section on Eltek's corporate website at http://www.nisteceltek.com approximately 24 hours after the conference call is completed. About EltekEltek – "Innovation Across the Board", is a global manufacturer and supplier of technologically advanced solutions in the field of printed circuit boards (PCBs) and is an Israeli leading company in this industry. PCBs are the core circuitry of most electronic devices. Eltek specializes in the manufacture and supply of complex and high-quality PCBs, HDI, multilayered and flex-rigid boards for the high-end market. Eltek is ITAR compliant and has AS-9100 and NADCAP Electronics certifications. Its customers include leading companies in the defense, aerospace and medical industries in Israel, the United States, Europe and Asia. Eltek was founded in 1970. The Company's headquarters, R&D, production and marketing center are located in Israel. Eltek also operates through its subsidiary in North America and by agents and distributors in Europe, India, South Africa and South America. For more information, visit Eltek's web site at www.nisteceltek.com Forward Looking Statement Some of the statements included in this press release may be forward-looking statements that involve a number of risks and uncertainties including, but not limited to expected results in future quarters, the impact of currency movements between the US Dollar exchange rate against the Israeli Shekel, the impact of the Coronavirus on the economy and our operations, risks in product and technology development and rapid technological change, product demand, the impact of competitive products and pricing, market acceptance, the sales cycle, changing economic conditions and other risk factors detailed in the Company's Annual Report on Form 20-F and other filings with the United States Securities and Exchange Commission. Any forward-looking statements set forth in this press release speak only as of the date of this press release. The information found on our website is not incorporated by reference into this press release and is included for reference purposes only. Investor ContactRon FreundChief Financial [email protected]+972-3-939-5023 View original content to download multimedia:https://www.prnewswire.com/news-releases/eltek-ltd-reports-second-quarter-2026-results-302853951.html

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management attributes the current net loss to a transitional period focused on stabilizing manufacturing operations and building human infrastructure rather than a lack of market demand. Revenue levels in the first half of 2026 remained below the threshold required to fully leverage fixed operational expenses and reach historical profitability potential. Gross margin improvement from Q1 to Q2 was driven by higher revenue volume and a gradual adjustment of average selling prices to reflect a higher cost environment. The company is facing significant supply chain headwinds, particularly for fiberglass-based materials, due to intense competition for supply from the rapidly growing AI infrastructure industry. Operational capacity is being addressed through the integration of 15 foreign employees, with plans to add approximately 15 more to improve production efficiency. Strategic diversification efforts continue to focus on medical and high-end industrial markets to balance the existing defense-heavy portfolio. Official qualification for the first new PCB plating line is expected to begin in Q3 2026, with full commercial production anticipated several months later. A second plating line is scheduled for delivery and installation by the end of 2026, supported by contractual penalties for potential supplier delays. Profitability recovery is dependent on the gradual replacement of older backlog orders with new contracts priced at current, more favorable exchange rates. Management expects the implementation of a new ERP system to provide the necessary foundation for scaling operations and improving management oversight. Future financial performance relies on the successful conversion of a record-high backlog into shipments while navigating raw material allocation quotas. The appreciation of the Israeli shekel against the U.S. dollar significantly impacted gross profitability and contributed to financial expenses. Raw material costs are subject to extreme volatility, with some suppliers implementing allocation quotas that make securing necessary materials increasingly difficult. Approximately one-third of the current backlog consists of long-term purchase orders fixed at historical exchange rates, which continues to weigh on overall profitability. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management expects improvement to be gradual, contingent on increased production volume, better capacity utilization, and the ramp-up of new lines. Profitability is also tied to securing new orders at pricing that reflects current raw material and overhead costs. The first line is fully installed with acceptance testing underway; the second line is being built in Europe for year-end installation. Customer-by-customer certification is the next critical step before these lines contribute to commercial volume. The backlog is split into thirds: one-third at historical rates (least profitable), one-third at a 3.2 exchange rate, and one-third at the current rate of approximately 3.0 (most profitable). Management noted that they cannot simply double prices due to a competitive environment with both local and foreign rivals.

PETAH TIKVA, Israel, Aug. 11, 2026 /PRNewswire/ -- Eltek Ltd. (NASDAQ: ELTK), a leading global manufacturer of high-quality printed circuit boards, announced today that it will release its financial results for the second quarter of 2026 before the market opens on Tuesday, August 18, 2026. Eltek's financial results will be released over the news wires and will be posted on its corporate website at: http://www.nisteceltek.com. On Tuesday, August 18, 2026, at 8:30 a.m. Eastern Time, Eltek will conduct a conference call to discuss the results. The call will feature remarks by Eli Yaffe, Chief Executive Officer and Ron Freund, Chief Financial Officer. To participate, please call the following teleconference numbers. Please allow for additional time to connect prior to the call: United States: 1-866-860-9642Israel: 03- 9180691International: +972-3-9180691 At: 8:30 a.m. Eastern Time5:30 a.m. Pacific Time15:30 p.m. Israel Time A replay of the call will be available through the Investor Info section on Eltek's corporate website at http://www.nisteceltek.com approximately 24 hours after the conference call is completed and will be archived for 30 days. About Eltek Eltek – "Innovation Across the Board", is a global manufacturer and supplier of technologically advanced solutions in the field of printed circuit boards (PCBs) and is an Israeli leading company in this industry. PCBs are the core circuitry of most electronic devices. Eltek specializes in the manufacture and supply of complex and high-quality PCBs, HDI, multilayered and flex-rigid boards for the high-end market. Eltek is ITAR compliant and has AS-9100 and NADCAP Electronics certifications. Its customers include leading companies in the defense, aerospace and medical industries in Israel, the United States, Europe and Asia. Eltek was founded in 1970. The Company's headquarters, R&D, production and marketing center are located in Israel. Eltek also operates through its subsidiary in North America and by agents and distributors in Europe, India, South Africa and South America. For more information, visit Eltek's web site at www.nisteceltek.com Investor Contact :Ron FreundChief Financial [email protected]+972-3-939-5023 View original content to download multimedia:https://www.prnewswire.com/news-releases/eltek-sets-earnings-release-date-and-conference-call-to-report-second-quarter-2026-results-on-august-18-2026-302848243.html

This article first appeared on GuruFocus. Revenue: $10.4 million in Q1 2026, down from $12.8 million in Q1 2025. Gross Loss: $1.9 million, compared to a gross profit of $2.2 million in Q1 2025. Operating Loss: $3.3 million, compared to an operating profit of $0.7 million in Q1 2025. Net Loss: $2.9 million or $0.42 per share, compared to net income of $1.0 million or $0.15 per share in Q1 2025. EBITDA Loss: $2.7 million, compared to EBITDA of $1.2 million in Q1 2025. Cash Flow Used in Operating Activities: $0.4 million in Q1 2026. Cash and Cash Equivalents: $11.1 million as of March 31, 2026, with no outstanding debt. Warning! GuruFocus has detected 5 Warning Signs with ELTK. Is ELTK fairly valued? Test your thesis with our free DCF calculator. Release Date: May 19, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Eltek Ltd (NASDAQ:ELTK) reported a significant increase in backlog, more than doubling compared to the beginning of the year, providing strong revenue visibility for future growth. The company is actively managing supply chain challenges by updating pricing structures and securing supply continuity through allocation quotas. Eltek Ltd (NASDAQ:ELTK) has made progress in its investment plan, with the first new production line delivered and partially installed, aiming to expand production capacity. The company is focusing on securing new orders at pricing levels that reflect increased raw material costs and currency fluctuations, aiming for long-term profitable growth. Eltek Ltd (NASDAQ:ELTK) is strategically investing in operational improvements and supply chain stability to support future growth and strengthen its competitive position in the market. Revenues for the first quarter of 2026 were $10.4 million, down from $12.8 million in the first quarter of 2025, reflecting a decline in sales. The company reported a gross loss of $1.9 million, compared to a gross profit of $2.2 million in the same period last year, due to backlog conversion timing and logistic constraints. Eltek Ltd (NASDAQ:ELTK) faced an operating loss of $3.3 million, a significant decline from an operating profit of $0.7 million in the first quarter of 2025. The devaluation of the US dollar against the Israeli shekel had a significant negative impact, increasing operational loss by approximately $1.3 million. Logistical challenges, including air freight capacity constraints and extended sea freight transit times, affected production efficiency and limited output levels. Q: Hi, Eli. Hi, Ron. Really disastrous quarter, but I want to understand when we can expect margins normalization. Because as we see there is huge demand for PCBs now in Israel and also in the USA for AI hyperscalers, and so I'm really trying to understand why it's so difficult to raise prices in this environment. A: Hi Mark, yeah, it's really not good results. As you know, we don't give forecasts of looking forward statements. But as I discussed in my long conversation, I gave all the background for you to decide when we'll come to normal operation. It depends upon the length of the conflict with Iran, the labor market, the shekel against the Israeli dollar, and a lot of factors that are unknown to us. But we do everything to adjust to accommodate this risk and mitigate against it. For example, we adjusted all our prices to the devaluation of the shekel against the dollar. But if there will be more devaluation, we cannot expect it and we cannot forecast it. I never forecast that we'll be at ILS2.9 per dollar. I didn't forecast the shutdown and the hours that we lost during the first quarter because of the Cyren in Israel. We cannot do it. What we do is we can promise that for the long term, as I mentioned before, we continue with our strategic plan to continue to have the two lines operating by the end of this year and start to fly from this point to a more good future. - Eliezer Yaffe, Chief Executive Officer Q: Okay. So I want to understand, let's say the dollar will stop devaluating and everything will stabilize and you will finish your construction lines. So you still project that you will be able to achieve 27% to 28% gross margin if there are no other devaluation in the US dollar and you stop production of the old backlog? A: Yeah. As we said, Mark, this is Ronnie. As we said in the past, okay, when we will finish our investment plan and taking into account that the current circumstances stay the same, okay, no devaluation, no new bad news, we expect that our revenues will increase up to what we told before, up to around $60 million to $65 million. And at that volume, we estimate that the gross profit will be 26% to 28% as we previously said. - Ron Freund, Chief Financial Officer Q: Okay. Nice. And I see -- if I read recently the earnings call of TTMI, I see huge demand in the USA and they even need to cancel or to delay some projects. So do you think you will be able to secure some additional orders from the USA in the current environment? A: As we announced at the beginning of the year, we took a very nice chunk in the competition with TTM of a work, a defense contractor in the United States that we compete head-to-head with TTM. It's a good signal. - Eliezer Yaffe, Chief Executive Officer Q: First question is regarding the sourcing problem. Can you elaborate more on that, like until when you're going to face this problem? Second question is, now I hear for the first time that the integration of the new equipment and facility is going to happen until the end of this year. And last time you mentioned it will be due by the end of the first half of 2026? A: The sourcing problem and the logistic problem in the first quarter is divided into two. First of all, there is an international problem that there is a shortness of fiberglass all over the world because of the AI demand, as I mentioned before. And the suppliers allocate to quotas. If we are ready to pay the AI prices, we will be out of the quota, and we agreed to pay the high prices because we didn't want to stay in shortage. This was problem number one. Problem number two is how to bring this -- and this is only related to Israel -- how to bring this raw material, which has a limited life shelf to Israel under cooling conditions during the conflict time. And as I mentioned before, there was a shortage of supply, a shortage of flights between the Far East, United States, or Europe. This is the main three hubs that we bring fiberglass to Israel. And we suffer from a shortage of raw material, which is not the situation today because we agreed to pay the high prices and the bottleneck is open. If the conflict returns, the problem will return again. Regarding the second question, as I mentioned, the plan was originally and the installation started. And during the first two days of the conflict with Iran, the team, which was eight labor people and two engineers left Israel immediately and they returned only yesterday. It was almost six weeks or seven weeks that they were not here. And now -- so we suffer another delay now. Once they finish it, we have to qualify the line. So the update that I had before that by July 1, we'll have the line and running to be up right now. - Eliezer Yaffe, Chief Executive Officer Q: And if the USD dollar against shekel will rise in the near future, so you will benefit from the current orders that you received? A: Of course, like all exporters. - Ron Freund, Chief Financial Officer For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Image source: The Motley Fool. Tuesday, May 19, 2026 at 8:30 a.m. ET Chief Executive Officer — Eli Yaffe Chief Financial Officer — Ron Freund Eli Yaffe: Thank you. Good morning. Thank you for joining us for our 2026 first quarter earnings call. With me is Ron Freund, our Chief Financial Officer. We will begin by providing you with an overview of our business and a summary of the principal factors that affected our results during Q1 2026. After our prepared remarks, we will be happy to answer any of your questions. By now, everyone should have access to our press release, which was released earlier today. The release will be also available on our website. As we previously indicated, revenue in the quarter were below our expectations. This was primarily driven by the mix of timing of backlog conversion, ongoing logistic constraints and foreign exchange impact rather than any change in the underlying demand. The product mix in the quarter was primarily a function of a backlog release timing rather than any change in price discipline, customer quality or market positioning. During the quarter, a larger portion of our shipments originated from the orders received in the prior period at lower average pricing levels, while a significant portion of the higher-value programs and advanced products added more recently to the backlog are scheduled for the delivery later in the year and into the year 2027. In addition, due to the supply chain and material allocation constraints, we prioritized certain deliveries in order to maintain customers' commitments and production continuity, which also impacted our quarterly mix. As a result, the average selling price of products delivered during the quarter declined, negatively impact profitability. We believe that the current quarter does not reflect the normalized margin profile of the business going forward. Important underlying remain. During the quarter, our backlog more than doubled compared to the beginning of the year. This increase includes the 2 orders we publicly announced with deliveries expected across 2026 and 2027. We believe this substantial backlog growth our revenue visibility and provides a strong foundation for future growth so the timing of revenue recognition may continue to vary between quarters. [Technical Difficulty] Due to the ongoing complexity and global [Technical Difficulty] that affected our ability to manufacture sufficient volume to efficiently absorb fixed operation costs. Air freight capacity from the Far East, Europe and United States remain constrained and certain chemicals that were previously eligible for air transportation can no longer be shipped by air, reduced logistical flexibility. In addition, extended sea freight transit time and ongoing global shortage of prepaid materials are contributed to the longer supply cycle. The prepaid shortage is being driven in part by strong demand for the fiberglass materials from the rapidly expanding AI hardware infrastructure market. These operational and logistical challenges further impact production efficiency during the quarter and limited our ability to increase output level. In addition, the continued weakness of the U.S. dollar against the Israeli shekel and a significant negative impact on our operational results and increased operational loss by approximately $1.3 million compared to the corresponding quarter last year. We are actively managing these dynamics through close coordination with suppliers and customers. In response to the increased raw material constraint and costs, we have updated our pricing structure and are currently selling relevant fiberglass products at adjusting price level and under allocation quotas designed to secure supply continuity and protect operational efficiency. Turning to our investment plan. We continue to make progress. The first new production line was delivered and partially installed. As previously noted, due to the current situation in Israel and the war with Iran, the installation team from the supplier had temporarily left the country, which created a delay in the installation processes. We are pleased to report that the supplier installation team returned to Israel yesterday and install work is now resumed. We expect the installation process to be completed over the coming weeks which we plan to begin the [Technical Difficulty] for commercial production. While recent events have created some delays in the installation time line change our direction. As we have noted in [Technical Difficulty] the line into commercial product [Technical Difficulty] by timing and we are encouraged by the strength of the demand and the significant backlog and the progress we are [Technical Difficulty] parallel the process of bringing foreign workers in our operation continues to advance. We believe that [Technical Difficulty] will be stronger position to address the ongoing challenges in the local labor market and better support our planned production growth and operational efficiency. Looking ahead, our focus remains on gradually returning to business to normalized profitability levels. A key element in achieving this objective is our continuous effort to secure new orders at pricing levels that apparently reflect the increase of raw material, the impact of the weaker U.S. dollar environment and the value of the company execution capability, technological expertise and on-time delivery performance. At the same time, we continue to invest operational improvement, production capacity expansion and supply chain stability in order to better support long-term profitable growth and strengthening our competitive position into the market. I will now turn the call over to Ron Freund, our CFO, to discuss our financial results. Ron Freund: Thank you, Eli. I would like to draw your attention to the financial statements for the first quarter of 2026. During this call, I will also discuss certain non-GAAP financial measures. Eltek uses EBITDA as a non-GAAP financial performance measurement. Please see our earnings release for its definition and the reasons for its use. I will now go over the highlights of the first quarter of 2026. All numbers mentioned are in U.S. dollars. Revenues for the first quarter of 2026 totaled $10.4 million compared to $12.8 million in the first quarter of 2025. Gross loss was $1.9 million, down from $2.2 million gross profit in the first quarter of 2025. The decline was driven by the mix and timing of backlog conversion, ongoing logistic constraints and foreign exchange impact. Operating loss for the quarter was $3.3 million compared to operating profit of $0.7 million in the same period last year. We recorded financial expenses of $0.1 million in the first quarter of 2026 compared to financial income of $0.5 million in the first quarter of 2025. The expenses recorded in the current quarter are primarily due to the devaluation of the U.S. dollar against the Israeli shekel, net of interest earned on our interest-bearing accounts. Net loss for the quarter was $2.9 million or $0.42 per share compared to net income of $1.0 million or $0.15 per share in the first quarter of 2025. EBITDA loss for the quarter was $2.7 million compared to EBITDA of $1.2 million in the prior year period. Cash flow used in operating activities totaled $0.4 million during the first quarter of 2026. As of March 31, 2026, we had $11.1 million in cash and cash equivalents with no outstanding debt. We are now ready to answer your questions. Operator: [Operator Instructions] The first question is from Mark Sharogradsky from Kepler Capital. Mark Sharogradsky: Hi Eli, Hi all. [Technical Difficulty] When we can expect a [Technical Difficulty] Eli Yaffe: Hi Mark, yes, it's really not good results. As you know, we don't give forecast of looking forward statements. But as I discussed in my long conversation, I gave all the background for you to decide when we'll come to normal operation. It depends upon the length of the conflict with Iran. It depends upon the labor market, it depends upon the shekel against the Israeli and a lot of factors that is unknown to us. But we do everything to adjust to accommodate this risk and mitigate against it. For example, we adjusted all our prices to the devaluation of the shekel against the dollar. But if there will be more devaluation, we cannot expect it and we cannot forecast it. I never forecast that we'll be at ILS 2.9 per dollar. I didn't forecast the shutdown and the hours that we lost during the first quarter because of the Cyren in Israel. We cannot do it. What we do is we can promise that for long term, as I mentioned before, we continue with our strategic plan to continue to have the 2 lines operating by the end of this year and start to fly from this point to a more good future. Mark Sharogradsky: Okay. So I want to understand, let's say the dollar will stop to devaluate and everything will stabilize and you will finish your construction lines. So you still project that you will be able to achieve 27% to 28% gross margin if there are no other devaluation in the U.S. dollar and you stop production of the old backlog? Ron Freund: Yes. As we said, Mark, this is Ronnie. As we said in the past, okay, when we will finish our investment plan and taking into account that the current circumstances stay the same, okay, no devaluation, no new bad news. we expect that our revenues will increase up to what we told before, up to around $60 million to $65 million. And that volume, we estimate that the gross profit will be 26% to 28% as we previously said. Mark Sharogradsky: Okay. Nice. And I see -- if I read recently the earnings call of TTMI, I see huge demand in U.S.A. and they even need to cancel or to delay some projects. So do you think you will be able to secure some additional orders from U.S.A. at the current environment? Eli Yaffe: As we announced in the beginning of the year, we took a very nice chunk in the competition with TTM of a work, a defense contractor in the United States that we compete head-to-head with TTM. -- it's a good signal. Mark Sharogradsky: Yes. So now also the big orders for hyperscalers. Do you think you will maybe will be able to also secure some orders from those clients because they also need some specialized PCB to be manufactured. Ron Freund: Mark, we don't know exactly which segment will in the future will ask for bids from us. But what we can say is that our high technology and products can serve many high end segments. We hopefully wish that we will be managed to compete TTM in that market also. Currently, we are investing energies trying to get more orders from customers abroad. The U.S. is a very important market. We are also trying in Europe. And we hope to increase our backlog. As we said before, we more than doubled our backlog from the beginning of the year. Mark Sharogradsky: Okay. And it's also very important, the mix of the backlog. So do you see enough products in the -- not only on the rigid PCB, but also on the S Flex PCB... Eli Yaffe: Yes. The basket of the future -- I don't have it in front of me in parallel, but the basket is well organized. But some portion of the basket is based on dollar to shekel 3.3. And actually, right now, we are at 2.9. So there is weakness in this PO that we have to honor anyway. Mark Sharogradsky: Okay. And if you will -- and if the USD dollar against shekel will rise in the near future, so you will benefit from the current orders that you received... Ron Freund: Of course, like all exporters... Mark Sharogradsky: Okay. Eli Yaffe: Thank you Mark. Ron Freund: Thank you Mark. Operator: The next question is from [indiscernible] from Private Investor. Unknown Analyst: First question is regarding the sourcing problem. Can you elaborate more on that, like until when you're going to face this problem? Second question is, now I hear for the first time that the integration of the new equipment and facility is going to happen until the end of this year. And last time you mentioned it will due by the end of the first half of 2026 Eli Yaffe: Can you repeat the first question? I didn't hear your first question. Unknown Analyst: You mentioned that you -- in the first quarter, you had a problem with sourcing. Eli Yaffe: Yes. Unknown Analyst: Can you elaborate more on that because it's like an important issue. done? Is it over? Do you still face it in this quarter? When do you think it will be over? Eli Yaffe: The sourcing problem and the logistic problem in the first quarter is divided to 2. First of all, there is an international problem that there is a shortness of fiberglass all over the world because of the AI demand, as I mentioned before. And the suppliers allocate to quotas. If we are ready to pay the AI prices, will be out of the quota, and we agreed to pay the high prices because we didn't want to stay in shortage. This was problem number one. Problem number two is how to bring this -- and this is only related to Israeli how to bring this raw material, which has a limited life shelf to Israel under a cooling condition during the conflict time. And as I mentioned before, there was a short of supply, short of flight between the Far East, United States or Europe. This is the main 3 hubs that we bring fiberglass to Israel. And we suffer from shortness of raw material, which is not the situation today because we agreed to pay the high prices and the bottleneck is open. If the conflict will return, the problem will return again. This is regarding your first question. Regarding the second question that you asked. Unknown Analyst: Just a second -- for the first question, the AI problem, the AI constraint is going to continue. It's not done. We are... Eli Yaffe: It's only impacting -- if we pay the AI prices for fiberglass, we'll be out of the quotas. If we want to stay in the oil prices of the PCB only and not pay the premium that AI is willing to pay, we will be under quotas. Unknown Analyst: Yes. But the question is, does your business model, your pricing model take into consideration, you want to arrive a specific gross margin. Does the pricing model take into consideration the getting out of this quarter and paying a premium? Eli Yaffe: I don't have a choice because -- and I have to load it on the prices to our customers. Unknown Analyst: So can you increase the prices to the customers? Eli Yaffe: It's very tough. It's very tough. We start to do it, and we got objection from our customers. So it's a lot of explanation work, showing articles. There is a very famous Morgan Stanley article that helped us. And we explain -- we're going from customer to customer and explaining that it's not beyond our control. It's impacted. And I think that this is a common problem to all the PCB suppliers all over the world. It's not related only to Israel. Unknown Analyst: And it's something that's going to accompany to be with the company in the coming future also. Ron Freund: Yes. Unknown Analyst: Regarding the second question? Eli Yaffe: Regarding the second question, as I mentioned, we -- the plan was originally and the installation started. And during the first 2 days of the conflict with Iran, the team, which was 8 labor people and 2 engineers left Israel immediately and they returned only yesterday. It was almost 6 weeks or 7 weeks that they were not here. And now -- so we suffer another delay now. Once they will finish it, we have to qualify the line. So the update that I had before that by July 1, we'll have line and running to be up right now. Operator: [Operator Instructions] There are no further questions at this time. Before I ask Mr. Eli Yaffe to go ahead with his closing statement, I would like to remind the participants that a replay of this call will be available tomorrow on our website. Eli Yaffe: In summary, while we are negatively navigating near-term challenges related to the timing, logistics and foreign exchange, we remain very confident in the foundation of the business. Demand continues to be strong, as I reflected in the significant growth in our backlog and the long-term visibility is provided. At the same time, we continue to make strategic investment to expand our capacity and support future growth. As these initiatives progress and external constraints begin to ease, we believe we are well positioned to translate our strong demand environment into improved financial performance in the period ahead. I would like to take the opportunity to thank the employees for their decision and relicense, particularly in the current environment as well as our investors for their continued support and confidence in our strategy. Thank you all for joining us on today's call. Have a good day. Operator: This concludes the Eltek Ltd. 2026 First Quarter Financial Results Conference Call. Thank you for your participation. You may go ahead and disconnect. Before you buy stock in Eltek, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Eltek wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $483,476!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,362,941!* Now, it’s worth noting Stock Advisor’s total average return is 998% — a market-crushing outperformance compared to 207% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of May 19, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Eltek (ELTK) Q1 2026 Earnings Call Transcript was originally published by The Motley Fool

PETACH TIKVA, Israel, May 19, 2026 /PRNewswire/ -- Eltek Ltd. (NASDAQ: ELTK), a leading global manufacturer of high-quality printed circuit boards, today announced its financial results for the quarter ended March 31, 2026. First Quarter 2026 Highlights Revenues of $10.4 million Operating loss of $1.9 million Net loss of $2.9 million or $0.42 per fully diluted share Net cash used in operating activities amounted to $0.4 million. The continuous sharp depreciation of the U.S. dollar against the Israeli shekel had a material impact on the Company's operating results. This currency movement increased the Company's shekel-denominated expenses when translated into U.S. dollars, resulting in an increase of approximately $1.3 million in reported NIS-based operating expenses, compared to the first quarter of 2025. In addition, the Company's operations during the quarter were affected by the challenging security environment in the region, including temporary disruptions to regular work routines and reduced operational availability at certain times. "As we indicated in April 2026, our operating results for the quarter were adversely affected by the late phasing of the Company's order backlog during the quarter, although our backlog has grown significantly. In addition, we experienced certain temporary logistical constraints, which contributed to the results for the quarter," said Eli Yaffe, CEO of Eltek. "The continued growth in our order backlog reflects the underlying strength in demand for our products. While the timing of backlog execution impacted our results in the first quarter, we remain confident in our ability to convert this backlog into revenue over the coming periods. At the same time, we are actively addressing the logistical challenges and expect conditions to improve gradually," concluded Mr. Yaffe. First Quarter 2026 GAAP Financial Results Revenues for the first quarter of 2026 were $10.4 million, compared to $12.8 million in the first quarter of 2025. Gross loss for the first quarter of 2026 was $1.9 million compared to gross profit of $2.2 (17% of revenues) in the first quarter of 2025. Operating loss for the first quarter of 2026 was $3.3 million compared to operating profit of $0.7 million in the first quarter of 2025. Net loss for the first quarter of 2026 was $2.9 million or $0.42 per fully diluted share compared to net income of $1.0 million or $0.15 per fully diluted share in the first quarter of 2025. Cash and short-term bank deposits amounted to $11.1 million as of March 31, 2026, with no outstanding debt. First Quarter 2026 Non-GAAP Financial Results EBITDA loss for the first quarter of 2026 was $2.7 million compared to EBITDA of $1.2 million (9% of revenues) in the first quarter of 2025. About our Non-GAAP Financial Information The Company reports financial results in accordance with U.S. GAAP and herein provides EBITDA, a non-GAAP measure. This non-GAAP measure is not in accordance with, nor is it a substitute for, GAAP measures. This non-GAAP measure is intended to supplement the Company's presentation of its financial results that are prepared in accordance with GAAP. The Company uses the non-GAAP measure presented to evaluate and manage the Company's operations internally. The Company is also providing this information to assist investors in performing additional financial analysis. Reconciliation between the Company's results on a GAAP and non-GAAP basis is provided in a table below. Conference Call Today, Tuesday, May 19, 2026, at 8:30am Eastern Time (15:30pm Israel Time, 5:30am Pacific Time), Eltek will conduct a conference call to discuss the results. The call will feature remarks by Eli Yaffe, Chief Executive Officer and Ron Freund, Chief Financial Officer. To participate, please call the following teleconference numbers. Please allow for additional time to connect prior to the call: United States: 1-866-860-9642Israel: 03-918-0691International: +972-3-918-0691 To Access a Replay of the Call A replay of the call will be available for 30 days on the Investor Info section on Eltek's corporate website at http://www.nisteceltek.com approximately 24 hours after the conference call is completed. About Eltek Eltek – "Innovation Across the Board", is a global manufacturer and supplier of technologically advanced solutions in the field of printed circuit boards (PCBs) and is an Israeli leading company in this industry. PCBs are the core circuitry of most electronic devices. Eltek specializes in the manufacture and supply of complex and high-quality PCBs, HDI, multilayered and flex-rigid boards for the high-end market. Eltek is ITAR compliant and has AS-9100 and NADCAP Electronics certifications. Its customers include leading companies in the defense, aerospace and medical industries in Israel, the United States, Europe and Asia. Eltek was founded in 1970. The Company's headquarters, R&D, production and marketing center are located in Israel. Eltek also operates through its subsidiary in North America and by agents and distributors in Europe, India, South Africa and South America. For more information, visit Eltek's web site at www.nisteceltek.com Forward Looking Statements Some of the statements included in this press release may be forward-looking statements that involve a number of risks and uncertainties including, but not limited to expected results in future quarters, the impact of currency movements between the US Dollar exchange rate against the Israeli Shekel, the impact of the Coronavirus on the economy and our operations, risks in product and technology development and rapid technological change, product demand, the impact of competitive products and pricing, market acceptance, the sales cycle, changing economic conditions and other risk factors detailed in the Company's Annual Report on Form 20-F and other filings with the United States Securities and Exchange Commission. Any forward-looking statements set forth in this press release speak only as of the date of this press release. The information found on our website is not incorporated by reference into this press release and is included for reference purposes only. Investor Contact Ron FreundChief Financial [email protected] +972-3-939-5023 Logo: https://mma.prnewswire.com/media/881148/Eltek_Logo.jpg View original content:https://www.prnewswire.com/news-releases/eltek-ltd-reports-2026-first-quarter-financial-results-302776009.html

Interested in Eltek Ltd.? Here are five stocks we like better. Eltek’s first quarter 2026 results weakened sharply, with revenue falling to $10.4 million from $12.8 million a year earlier and the company swinging to a net loss of $2.9 million. Gross profit also turned into a $1.9 million gross loss, which management blamed on backlog timing, logistics issues, raw-material shortages and currency pressure. Backlog more than doubled from the start of the year, and management said underlying demand remains strong even though revenue recognition may be uneven quarter to quarter. Higher-value orders are expected to be delivered later in 2026 and into 2027, supporting future growth visibility. Supply-chain disruptions and a weak U.S. dollar continued to hurt operations, including constrained freight capacity, a global prepreg shortage and higher “AI prices” for fiberglass. Eltek also said the dollar’s decline versus the Israeli shekel hurt operating results by about $1.3 million, while installation of a new production line was delayed by conflict-related interruptions. Eltek (NASDAQ:ELTK) reported a sharp year-over-year decline in first-quarter 2026 results, with management attributing the weaker performance to backlog timing, logistics constraints, raw-material shortages and foreign exchange pressure rather than a change in underlying demand. Chief Executive Officer Eli Yaffe said revenue for the quarter came in below the company’s expectations, primarily because a larger share of shipments came from older orders booked at lower average pricing levels. He said higher-value programs and more advanced products added recently to the backlog are scheduled for delivery later in 2026 and into 2027. → Why Applied Optoelectronics Stock May Be Near a Turning Point “The product mix in the quarter was primarily a function of a backlog release timing, rather than any change in the price discipline, customer's quality, or market positioning,” Yaffe said. Chief Financial Officer Ron Freund said revenue for the first quarter totaled $10.4 million, down from $12.8 million in the first quarter of 2025. The company posted a gross loss of $1.9 million, compared with gross profit of $2.2 million in the prior-year period. → The Pentagon's AI Pivot Supercharges Defense Stocks Operating loss was $3.3 million, compared with operating profit of $0.7 million a year earlier. Eltek recorded financial expenses of $0.1 million, versus financial income of $0.5 million in the first quarter of 2025, which Freund said was primarily due to the devaluation of the U.S. dollar against the Israeli shekel, net of interest earned on interest-bearing accounts. Net loss for the quarter was $2.9 million, or $0.42 per share, compared with net income of $1 million, or $0.15 per share, in the year-ago quarter. EBITDA loss was $2.7 million, compared with EBITDA of $1.2 million in the first quarter of 2025. → Ackman and Berkshire Are Betting Against Each Other on AI Freund said cash used in operating activities totaled $0.4 million during the quarter. As of March 31, 2026, Eltek had $11.1 million in cash and cash equivalents and no outstanding debt. Despite the weak quarter, Yaffe said underlying demand remains strong. He said Eltek’s backlog more than doubled compared with the beginning of the year, including two orders the company had previously announced, with deliveries expected across 2026 and 2027. Yaffe said the backlog growth improves revenue visibility and provides a foundation for future growth, though he cautioned that revenue recognition may continue to fluctuate from quarter to quarter. During the question-and-answer portion of the call, an analyst asked about the outlook for margin normalization and the company’s ability to raise prices in a strong printed circuit board demand environment. Yaffe said Eltek does not provide forecasts and noted that the timing of a return to normal operations depends on several external factors, including the length of the conflict with Iran, labor market conditions and movements in the shekel against the dollar. Freund reiterated that, assuming completion of the company’s investment plan and no additional adverse changes in current conditions, Eltek continues to expect that revenue could rise to roughly $60 million to $65 million, with gross profit in the 26% to 28% range, consistent with prior comments. Yaffe said the company continued to operate in a difficult supply chain and logistics environment during the quarter. He cited constraints in sourcing, transportation and material flow, which affected Eltek’s ability to manufacture at sufficient volume to absorb fixed operating costs efficiently. He said air freight capacity from the Far East, Europe and the United States remained constrained, while some chemicals that previously could be transported by air can no longer be shipped that way. Extended sea freight transit times and a global shortage of prepreg material also lengthened supply cycles. Yaffe said the prepreg shortage is being driven in part by strong demand for fiberglass materials from the rapidly expanding artificial intelligence hardware infrastructure market. In response, Eltek has updated its pricing structure and is selling relevant fiberglass products at adjusted price levels and under allocation quotas, with the goal of securing supply continuity and protecting operational efficiency. In response to an investor question, Yaffe said the sourcing issue had two components: the global shortage of fiberglass and the challenge of bringing raw materials with limited shelf life to Israel under cooling conditions during the conflict. He said the company chose to pay higher “AI prices” for fiberglass to avoid remaining under supplier quotas, though passing those higher costs on to customers has been difficult. Yaffe also said the continued weakness of the U.S. dollar against the Israeli shekel had a significant negative impact on operating results, increasing operating loss by approximately $1.3 million compared with the corresponding quarter last year. Yaffe said Eltek continues to advance its investment plan. The first new production line has been delivered and partially installed, but the installation was delayed after the supplier’s installation team temporarily left Israel because of the war with Iran. He said the supplier’s team returned to Israel the day before the earnings call and installation work had resumed. Eltek expects the installation process to be completed over the coming weeks, followed by a qualification process for commercial production. Yaffe said the qualification process is expected to take several months, after which the line will be gradually ramped into commercial production. In the Q&A session, he said the prior expectation that the line would be standing and running by July 1 needs to be updated because the supplier team had been away for roughly six or seven weeks. The company is also continuing efforts to bring foreign workers into its operations, which Yaffe said should help address challenges in Israel’s local labor market and support planned production growth and operational efficiency. In closing remarks, Yaffe said Eltek remains confident in the business despite near-term challenges related to timing, logistics and foreign exchange. He said the company continues to invest in capacity expansion and supply chain stability, and believes it is positioned to translate demand into improved financial performance as external constraints ease. Eltek Ltd. manufactures, markets, and sells printed circuit boards (PCBs) in Israel, Europe, North America, India, the Netherlands, and internationally. It offers a range of custom designed PCBs, including rigid, double-sided and multi-layer PCBs, and flexible circuitry boards. The company also provides high density interconnect, flex-rigid, and multi-layered boards. It primarily serves medical technology, defense and aerospace, industrial, telecom, and networking equipment industries, as well as contract electronic manufacturers. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Eltek Q1 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for May 2026.