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Jun 30, 2025
Eltek Q2 2025 Earnings Report
Eltek reported strong Q2 2025 results with 20% YoY revenue growth and improved margins across the board.
Key Takeaways
Eltek delivered a solid quarter with $12.5 million in revenue, supported by strong momentum in the defense and medical sectors. Gross margin expanded to 24%, operating income tripled to $1.5 million, and EBITDA rose to $2 million. Net income was $0.4 million despite adverse FX movements.
Revenue reached $12.5 million, up 20% YoY.
Gross margin expanded to 24.1%, up from 15.6% last year.
EBITDA doubled to $2.0 million, representing 15.6% of revenue.
Net income was $0.4 million despite a $1.0 million FX-related expense.
Forward Guidance
Eltek expects to continue benefiting from strong demand in defense and medical markets and plans to expand production capacity with coating line installations scheduled toward the end of 2025.
Positive Outlook
- Strong demand from defense and medical customers.
- Operational improvements support higher profitability.
- Successful installation of new production equipment.
- 10% workforce increase to meet growing demand.
- Updated pricing model to mitigate FX headwinds going forward.
Challenges Ahead
- $1.0 million non-cash financial expense due to currency fluctuation.
- Delay in coating line delivery to late 2025.
- Net income declined YoY despite higher revenue.
- Cash and cash equivalents declined to $1.8 million.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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