What is Eltek's latest dividend and current dividend yield?

Did Eltek beat or miss consensus estimates last quarter?

What factors drove the changes in Eltek's revenue and profit?

What were the key takeaways from Eltek’s earnings call?

What guidance did Eltek's management provide for the next earnings period?

What is the revenue and EPS growth rate for Eltek year over year?

What is Eltek's gross profit margin?

What does Eltek do and what are its main business segments?

- **Q3 Results**: $13.3M revenue, breakeven operating income, $0.2M net loss. Gross profit halved to $1.6M vs prior year.
- **Challenges**: USD depreciation (+$800K expenses), new equipment/operator instability, foreign competition in defense sector.
- **Recovery Plan**: New coating line (mid-2026) expected to stabilize production and improve margins. Pricing adjustments to take effect in coming quarters.
- **Market Dynamics**: Defense demand strong (63%), but high-volume production faces price pressure from new entrants.

**【CEO Summary Section】**
- Q3 2025 revenue: $13.3 million (down from $13.5M in Q3 2024), breakeven operating income, net loss of $0.2 million.
- Key challenges: 1) USD depreciation vs ILS increased expenses by $800K, 2) operational instability from new equipment and staff ramp-up, 3) new foreign competitors entering defense sector.
- Pricing adjustments made in Q2 2025 expected to positively impact profits in coming quarters.
- Market demand strong: defense (63%), rigid flex PCBs (66% of Q3 sales).
- Capacity expansion: new production hall and coating line under construction, RRP project to go live in 2026.

**【CFO Financial Commentary】**
- Gross profit: $1.6 million (vs $3.5M in Q3 2024), EBITDA: $0.6 million (vs $2.3M prior year).
- Financial expenses: $0.3 million (vs $0.3M financial income in 2024), driven by currency fluctuations.
- Cash flow: $2 million from operations (vs $1.6M prior year), ending with $11.6 million cash.

**【Q&A Key Highlights】**
- **Operational recovery timeline**: Eli Yaffe states it's hard to predict, but hopes to stabilize by mid-2026 with new coating line.
- **Pricing impact**: Ron Freund expects new coating line to improve margins by mid-2026.
- **Competition**: Eli Yaffe notes new entrants in high-volume production limiting price flexibility, but low-volume/high-complexity segments remain profitable.
- **Currency risk**: Ron Freund warns ongoing USD depreciation will continue affecting financial and operational expenses.

Eltek Ltd.(ELTK)-20251118-2025 Q3 Earnings call transcript

- **Revenue Growth**: 20% YoY to $12.5M, driven by defense sector (65% of revenue)
- **Margin Expansion**: Gross margin 24.1% (vs. 15.6% YoY), incremental revenue to add $0.50 to gross profit
- **Key Investment**: 40m coating line expected Q4 2025, targeting $55-65M annual capacity
- **Challenges**: 9% USD devaluation caused $1M one-time expense; recruiting foreign workers pending approval
- **Defense Outlook**: Global military spending growth to sustain demand; U.S., Europe, and Israel orders increasing

**【CEO Opening Remarks】**
- Q2 2025 revenue: $12.5M (20% YoY growth), H1 2025 revenue: $25.3M (14% YoY growth)
- Gross profit: $3M (double Q2 2024), gross margin: 24.1% (up from 15.6%)
- Fixed costs fully absorbed; incremental revenue to contribute ~$0.50 to gross profit
- One-time $1M financial expense due to 9% USD devaluation vs. NIS
- Defense sector revenue: ~65% of total
- New 40m coating line expected Q4 2025, targeting $55-65M annual revenue capacity
- Cooling system upgrade (+20% capacity), electrical capacity expansion (+40%)
- Seeking government approval to hire foreign workers for 7-day production

**【CFO Financial Commentary】**
- Q2 2025 financials:
  - Revenue: $12.5M (vs. $10.5M YoY)
  - Gross profit: $3M (vs. $1.6M YoY)
  - Operating profit: $1.5M (vs. $0.4M YoY)
  - Net income: $0.4M ($0.05/share vs. $1.4M/$0.11/share YoY)
  - EBITDA: $2M (15.6% of revenue vs. $0.8M YoY)
- Cash flow: -$2.9M (due to receivables and inventory buildup)
- Cash balance: $11.2M (no debt)

**【Q&A Highlights】**
- **Capital Investment**: ~$6M remaining in accelerated plan; coating line installation Q4 2025
- **Revenue Mix**: 65-70% rigid-flex PCBs; 65% defense sector
- **Defense Demand**: Strong global demand; U.S., Europe, and Israel military budgets increasing
- **Profitability**: Gross margin expansion to continue with fixed costs absorbed
- **Cash Flow**: Inventory buildup due to war-related risks; collections normalized in July
- **Backlog**: ~10% YoY increase, but not disclosed publicly

Eltek Ltd. (ELTK) Q2 2025 Earnings Call Transcript

- **Revenue growth constrained by operational challenges**: +8.5% YoY to $12.8M despite 33% gross margin decline
- **Production recovery underway**: Efficiency restored post-May calibration, new plating lines on track for Q4 2025 installation
- **Long-term capacity expansion**: 30%+ potential increase with 2026 plating line completion
- **Liquidity remains strong**: $15.7M cash with no debt despite 41% net income decline
- **Strategic initiatives advancing**: Offshore production pilot, IT modernization, supply chain diversification

**【CEO Opening Remarks】**
- Q1 2025 revenue reached $12.8M, up 8.5% YoY, driven by strong demand across all product segments.
- Challenges included: 
  - Equipment calibration delays due to international technical staff reluctance to travel to Israel
  - Production yield reductions (10-15% below pre-transition levels)
  - Labor cost increases from 2024 wage adjustments
- Key updates: 
  - Solder Mask Application lines now fully stabilized post-May 1st optimizations
  - New plating lines expected Q4 2025 delivery (Czech Republic supplier)
  - Basement expansion on track for mid-2026 completion
  - US tariff policy uncertainty but potential competitive advantage vs Canadian suppliers

**【CFO Financial Highlights】**
- Gross profit declined 33% YoY to $2.2M due to:
  - $0.6M higher labor costs
  - $0.5M yield-related production inefficiencies
- Operating expenses rose 12% YoY to $2.1M
- Net income fell 41% to $1M ($0.15 EPS) vs $1.7M ($0.27 EPS) prior year
- EBITDA dropped 43% to $1.2M
- Cash position remains strong at $15.7M with no debt

**【Q&A Key Takeaways】**
1. New plating line impact:
 - First line expected Q4 2025 installation
 - Second line Q2 2026
 - Will replace 20+ year-old legacy equipment
 - 30%+ capacity increase potential
 - Full production ramp by mid-2026
2. Operational recovery:
 - May 2025 production efficiency back to pre-transition levels
 - 2023 profitability unlikely to be matched in 2025 due to ongoing investments
3. Supply chain strategy:
 - Exploring partial offshore production with final assembly in Israel
 - Diversifying Far East supply base
 - No material near-term US tariff impact on demand
4. IT transformation:
 - 18-month core system replacement project
 - Industry-standard workflows implementation
 - Knowledge management digitization
 - Expected operational efficiency gains by Q2 2026

Eltek Ltd. (ELTK) Q1 2025 Earnings Call Transcript

- **Revenue Stability Amid Challenges**: 2024 revenue held steady at $46.5 million despite operational disruptions, but net profit fell 34% to $4.2 million.
- **Gross Margin Squeeze**: 22% gross margin (vs. 28% prior year) due to rising labor costs and unfavorable product mix.
- **Operational Turnaround Focus**: New plating lines expected online by early 2026; 2025 investment phase to address capacity constraints.
- **Competitive Dynamics**: European firms entering Israeli market with unsustainable low prices; expect strategic shifts in 2025.
- **Long-Term Margin Recovery**: Target 26-29% gross margin in 2-3 years, contingent on operational efficiency gains.

**【CEO Opening Remarks】**
- **Revenue Performance**: 2024 revenue of $46.5 million matched 2023 levels but fell short of expectations, driven by operational challenges in installing new equipment and delays caused by regional conflicts.
- **Profit and Liquidity**: Achieved net profit of $4.2 million (63 cents per share) with a strong cash position of $17 million despite $10 million in capital expenditures.
- **Market Trends**: Sustained demand across defense, medical, and industrial sectors, with European defense budget increases creating growth opportunities. However, competition from European firms with aggressive pricing poses challenges.
- **Operational Challenges**: Production disruptions due to delayed equipment installations and labor shortages. New plating lines expected to be fully operational by early 2026.

**【CFO Financial Highlights】**
- **Topline**: Q4 2024 revenue of $10.8 million vs. $12.3 million in Q4 2023; full-year gross margin dropped to 22% (from 28%) due to higher labor costs and product mix shifts.
- **Profitability**: Full-year net profit down 34% to $4.2 million; Q4 net profit zero vs. $1.3 million in prior year. EBITDA fell 31% to $5.9 million.
- **Cash Flow**: Positive operating cash flow of $4.5 million, supporting ongoing capital investments.

**【Q&A Key Takeaways】**
- **Technical Support Status**: Most European technicians now able to visit Israel; remote support resolved remaining issues with two machines.
- **Competitive Landscape**: European firms entering Israeli market with unsustainable low prices; expect them to pivot back to higher-margin European markets.
- **Capacity Expansion**: No new facility in Galilee; next investment phase will follow completion of current $10M+ equipment rollout by end-2025.
- **Labor Market**: Hiring challenges persist, but wage increases helped stabilize workforce. Ongoing recruitment efforts for engineers and production staff.
- **Gross Margin Outlook**: Target 26-29% gross margin in mid-term (2-3 years), with 2025 outlook pending further operational improvements.

ELTK

ELTK fundamentals

Earnings Call

You can ask Aime