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Mar 31
Eltek Q1 2025 Earnings Report
Eltek reported modest revenue growth and positive net income in Q1 2025 despite margin pressures.
Key Takeaways
Eltek Ltd. posted $12.8M in revenue and $1.0M in net income for Q1 2025, with EPS at $0.15. Despite increased labor costs and lower yields from new equipment ramp-up, the company experienced strong demand and continued investment in production capacity.
Revenue increased to $12.8M in Q1 2025 from $11.8M in Q1 2024.
Net income reached $1.0M, down from $1.7M the previous year.
Operating income declined to $0.7M due to lower gross margins.
Company progressing with its accelerated investment plan set for completion by mid-2026.
Eltek
Eltek
Forward Guidance
Eltek plans to continue executing its investment program and anticipates further revenue growth driven by strong demand.
Positive Outlook
- Strong demand across all market sectors.
- Lead times increasing, indicating robust order flow.
- Company on track with its accelerated investment program.
- Ongoing preparations for integration of new production lines.
- Commercial sales expansion expected to yield results in 2025 and beyond.
Challenges Ahead
- Gross margin negatively affected by increased labor costs.
- New equipment ramp-up resulted in temporary yield reductions.
- Operating income significantly lower compared to Q1 2024.
- Net income declined from previous year.
- No additional EPS guidance or forward-looking financials disclosed.