This article first appeared on GuruFocus .
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Revenue:$10.4 million in Q1 2026, down from $12.8 million in Q1 2025.
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Gross Loss:$1.9 million, compared to a gross profit of $2.2 million in Q1 2025.
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Operating Loss:$3.3 million, compared to an operating profit of $0.7 million in Q1 2025.
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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.
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EBITDA Loss:$2.7 million, compared to EBITDA of $1.2 million in Q1 2025.
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Cash Flow Used in Operating Activities:$0.4 million in Q1 2026.
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Cash and Cash Equivalents:$11.1 million as of March 31, 2026, with no outstanding debt.
Release Date: May 19, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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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.
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The company is actively managing supply chain challenges by updating pricing structures and securing supply continuity through allocation quotas.
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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.
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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.
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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.
Negative Points
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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.
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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.
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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.
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The devaluation of the US dollar against the Israeli shekel had a significant negative impact, increasing operational loss by approximately $1.3 million.
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Logistical challenges, including air freight capacity constraints and extended sea freight transit times, affected production efficiency and limited output levels.
Q & A Highlights
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 .
