Eltek slides into loss as currency pressures and regional conflict disrupted shipments

Eltek (NASDAQ:ELTK) reported a first-quarter net loss and lower revenue, as a combination of foreign currency headwinds, local security challenges, and logistical bottlenecks delayed the execution of its primary manufacturing backlog.

The Petach-Tikva, Israel-based manufacturer of advanced printed circuit boards generated revenue of $10.4 million for the three months ended March 31, 2026, marking an 18.8% decline from the $12.8 million recorded during the same period last year.

Eltek posted a gross loss of $1.9 million, a reversal from its historically positive gross profit margin profile.

The company's net loss for the period arrived at $2.9 million, or $0.42 per diluted share, while its earnings before interest, taxes, depreciation, and amortization (EBITDA) reflected a loss of $2.7 million.

Operations during the quarter faced a series of overlapping macroeconomic and geopolitical obstacles.

Fluctuations in the foreign exchange market led to approximately $1.3 million in higher shekel-based operating expenses.

Simultaneously, ongoing regional security disruptions and tightened logistical constraints across international shipping lines hampered the company's ability to maintain regular delivery schedules.

Despite the operational slowdown, the contraction appears to stem from timing and shipping constraints rather than a decline in underlying customer demand.

Management stated that Eltek holds a significantly larger commercial order backlog, which it expects to clear and fully convert into top-line revenue as shipping conditions stabilize over the coming quarters.

Eltek closed the first quarter with cash, cash equivalents, and short-term bank deposits totaling $11.1 million, while maintaining zero long-term corporate debt on its balance sheet.