Eltek Stock Earnings Reports

Eltek reported Q1 2026 revenue of $10.4M (down from $12.8M YoY) and a net loss of $2.9M ($0.42 per share) driven by adverse product mix, logistics/supply-chain constraints, and foreign-exchange (weak USD vs. ILS). Gross loss was $1.9M and EBITDA loss was $2.7M. Management says the quarter’s weaker results were timing- and mix-related (shipments skewed toward lower-priced backlog booked earlier) rather than weaker end-market demand; backlog more than doubled since the start of the year and includes two large orders with deliveries through 2026–2027, improving revenue visibility. Key operational headwinds: constrained air freight capacity, longer sea transit times, limited availability/allocation of fiberglass (partly due to AI-driven demand), and delays installing a new production line (installation resumed after temporary suspension). Management is adjusting pricing and allocation quotas to secure supply and protect efficiency, progressing with capacity investments (first new line partially installed; supplier team returned and resumed work), and pursuing price increases where possible. Cash was $11.1M at quarter-end with no debt. Management reiterates medium-term targets: when investments are complete (and assuming no further adverse currency moves), revenue could reach ~$60–65M with gross margins around 26–28%.