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- **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

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

ELTK

ELTK fundamentals

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