Eltek Ltd. Reports 2025 First Quarter Financial Results

Eltek Ltd. (NASDAQ: ELTK), a global manufacturer and supplier of technologically advanced solutions in the field of printed circuit boards (PCBs), today announced its financial results for the quarter ended March 31, 2025.

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First Quarter 2025 Highlights

— Revenues were $12.8 million

— Operating profit was $0.7 million

— Net income was $1.0 million or $0.15 per fully diluted share

— Net cash provided by operating activities amounted to $0.1 million.

“We ended the first quarter of 2025 with revenues of $12.8 million, an increase of approximately 8% compared to Q1 2024, and 18.5% higher than Q4 2024. Net income totalled $1.0 million. Our gross margin was impacted, compared to Q1 2024, due to increased labor costs and the ramp-up of new production equipment, which temporarily led to lower yields,” said Eli Yaffe, CEO of Eltek.

“Looking ahead to the remainder of the year, we continue to advance our investment program as planned. Our forecast that we will complete the accelerated investment plan by mid-2026 remains unchanged. We are undertaking all necessary preparations to ensure the swift and efficient integration of the new lines, with the goal of bringing them into full production,” continued Mr. Yaffe.

“On the revenue side, we continue to experience strong demand for the Company's products, and we are seeing lead times increase across all our relevant market sectors. As previously communicated, we are actively working to expand the scope of our commercial sales-an effort that we anticipate will bear fruit during the rest of 2025 and in the years to follow,” concluded Mr. Yaffe.

First Quarter 2025 GAAP Financial Results

Revenuesfor the first quarter of 2025 were $12.8 million, compared to $11.8 million in the first quarter of 2024.

Gross profitfor the first quarter of 2025 was $2.2 million (17% of revenues) compared to $3.3 (28% of revenues) in the first quarter of 2024.

Operating profitfor the first quarter of 2025 was $0.7 million compared to operating profit of $1.7 million in the first quarter of 2024.

Net incomefor the first quarter of 2025 was $1.0 million or $0.15 per fully diluted share compared to net income of $1.7 million or $0.27 per fully diluted share in the first quarter of 2024.

Cash and short-term bank deposits amounted to $15.7 million as of March 31, 2025, with no outstanding debt.

First Quarter 2025 Non-GAAP Financial Results

EBITDA for the first quarter of 2025 was $1.2 million (9% of revenues) compared to EBITDA of $2.1 million (18% of revenues) in the first quarter of 2024.

Conference Call

Today, Tuesday, May 20, 2025, 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: 1-866-860-9642 Israel: 03-918-0691 International: +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 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.

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.

Investor Contact

Ron Freund Chief Financial Officer Investor-Contact@nisteceltek.com +972-3-939-5023

Eltek Ltd.Consolidated Statements of IncomeU.S. dollars in thousands (except per share data) Three months ended March 31, 2025 2024Revenues 12,756 11,783Costs of revenues (10,544) (8,531)Gross profit 2,212 3,252Research and development, expenses, net (50) (15)Selling, general and administrative expenses (1,437) (1,516)Operating income 725 1,721Financial income, net 504 350Income before income taxes 1,229 2,071Income tax expenses 227 332Net Income 1,002 1,739Earnings per share:Basic net income per ordinary share 0.15 0.27Diluted net income per ordinary share 0.15 0.27Weighted average number of ordinary shares used to computebasic net income per ordinary share (in thousands) 6,714 6,376Weighted average number of ordinary shares used to computediluted net income per ordinary share (in thousands) 6,785 6,491Eltek Ltd.Consolidated Balance SheetsU.S. dollars in thousands March 31, December 31, 2025 2024AssetsCurrent assets:Cash and cash equivalents 6,466 7,575Short-term bank deposits 9,257 9,663Trade receivables (net of allowance for credit losses) 12,284 11,786Inventories 9,978 9,488Other accounts receivable and prepaid expenses 726 602Total current assets 38,711 39,114Long term assets:Severance pay fund 55 56Deferred tax assets, net 322 496Operating lease right of use assets 5,988 5,911Total long term assets 6,365 6,463Property and equipment, net 15,999 14,578Total Assets 61,075 60,155Liabilities and Shareholder's equityCurrent liabilities:Trade payables 7,615 7,367Other accounts payable and accrued expenses 5,389 5,136Short-term operating lease liabilities 936 827Total current liabilities 13,940 13,330Long-term liabilities:Accrued severance pay 450 443Long-term operating lease liabilities 5,157 5,190Total long-term liabilities 5,607 5,633Shareholders' equity:Ordinary shares, NIS 3.0 par value authorized 10,000,000 shares, issued 6,011 6,011and outstanding 6,714,040 at March 31, 2025 and 6,714,040 at December31, 2024Additional paid-in capital 32,627 32,627Foreign currency translation adjustments (140) 664Capital reserve 2,645 2,507Retained earnings (accumulated deficit) 385 (617)Total shareholders' equity 41,528 41,192Total liabilities and shareholders' equity 61,075 60,155Eltek Ltd.Unaudited Non-GAAP EBITDA ReconciliationsU.S. dollars in thousands Three months ended March 31, 2025 2024GAAP net Income 1,002 1,739Add back items:Financial income, net (504) (350)Income tax expenses 227 332Depreciation and amortization 465 365Non-GAAP EBITDA 1,190 2,086Eltek Ltd.Consolidated Statements of Cash FlowsU.S. dollars in thousands Three months ended March 31, 2025 2024Cash flows from operating activities:Net Income 1,002 1,739Adjustments to reconcile net income to net cash flowsprovided by operating activities:Depreciation 465 365Accrued interest, net (128) -Share-based compensation 138 132Decrease in deferred tax assets 82 322 557 819Decrease (increase) in operating lease right-of-use assets 1 1Decrease (increase) in trade receivables (355) 736Decrease (increase) in other receivables and prepaid expenses (67) 75Decrease (increase) in inventories (330) (396)Increase (decrease) in trade payables (862) (1,491)Increase (decrease) in other liabilities and accrued expenses 173 (201)Increase (decrease) in employee severance benefits, net 7 18 (1,433) (1,258)Net cash provided by operating activities 126 1,300Cash flows from investing activities:Purchase of fixed assets (1,137) (2,731)Withdrawal of (investment in) short-term bank deposits, net 534 (6,490)Net cash used in investing activities (603) (9,221)Cash flows from financing activities:Exercise of options – 246Repayment of long-term loans from bank – -Issuance of shares, net – 9,180Net cash provided by (used in) financing activities – 9,426Effect of translation adjustments (632) (173)Net increase (decrease) in cash and cash equivalents (1,109) 1,332Cash and cash equivalents at the beginning of the period 7,575 9,278Cash and cash equivalents at the end of the period 6,466 10,610

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SOURCE Eltek Ltd.

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