Eltek Earnings Call Transcripts
Fiscal Year 2025
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Revenue grew 11% to $51.8M in 2025, but net profit fell sharply due to operational challenges and US dollar depreciation. Gross margin dropped to 15%, with improvement expected after new plating lines are qualified in 2026.
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Q3 2025 saw revenue of $13.3M and a net loss of $0.2M, with profits pressured by US dollar depreciation and operational instability. Defense sector demand remained strong, but increased foreign competition and currency volatility are expected to continue impacting results.
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Q2 2025 revenue grew 20% year-over-year to $12.5M, with gross margin rising to 24.1%. Defense and flex-rigid PCB segments drove results, while a one-time currency loss reduced net profit. Capacity expansion and strong defense demand are expected to support future growth.
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Q1 2025 saw revenue growth but lower profitability due to operational challenges from new equipment installation. Production efficiency has since recovered, and new plating lines arriving in late 2025 and 2026 are expected to boost capacity and margins.
Fiscal Year 2024
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Revenue for 2024 was flat at $46.5 million, with net profit down to $4.2 million due to operational challenges and higher costs. Demand remains strong, especially in defense, but gross margin fell to 22%. Operational improvements and investments are expected to restore margins over the next 2-3 years.
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Q3 2024 revenue reached a record $13.5M, driven by strong defense sector demand, though net profit and margins declined year-over-year due to higher labor costs and a less favorable product mix. Ongoing investments aim to boost capacity and efficiency, with a new dividend policy adopted.
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Q2 2024 saw lower revenue and profit due to a shift toward lower-margin PCBs and manpower shortages, but a 30% backlog increase and capacity investments position the company for improved margins and growth in the second half of 2024.