Q1 2026 Eltek Ltd Earnings Call Transcript
Key Points
- Eltek Ltd (ELTK) reported a significant increase in backlog, more than doubling compared to the beginning of the year, providing strong revenue visibility for future growth.
- The company is actively managing supply chain challenges by updating pricing structures and securing supply continuity through allocation quotas.
- Eltek Ltd (ELTK) has made progress in its investment plan, with the first new production line delivered and partially installed, aiming to expand production capacity.
- The company is focusing on securing new orders at pricing levels that reflect increased raw material costs and currency fluctuations, aiming for long-term profitable growth.
- Eltek Ltd (ELTK) is strategically investing in operational improvements and supply chain stability to support future growth and strengthen its competitive position in the market.
- Revenues for the first quarter of 2026 were $10.4 million, down from $12.8 million in the first quarter of 2025, reflecting a decline in sales.
- The company reported a gross loss of $1.9 million, compared to a gross profit of $2.2 million in the same period last year, due to backlog conversion timing and logistic constraints.
- Eltek Ltd (ELTK) faced an operating loss of $3.3 million, a significant decline from an operating profit of $0.7 million in the first quarter of 2025.
- The devaluation of the US dollar against the Israeli shekel had a significant negative impact, increasing operational loss by approximately $1.3 million.
- Logistical challenges, including air freight capacity constraints and extended sea freight transit times, affected production efficiency and limited output levels.
Ladies and gentlemen, thank you for standing by. Welcome to the Eltek Ltd 2026 first quarter financial results conference call. (Operator Instructions) As a reminder, this conference is being recorded.
Before I turn the call over to Mr. Eli Yaffe, Chief Executive Officer; and Ron Freund, Chief Financial Officer, I'd like to remind you that they will be referring to forward-looking information in today's presentation and in the Q&A. By its nature, this information contains forecasts, assumptions and expectations about future outcomes, which are subject to the risks and uncertainties outlined here and discussed more fully in Eltek's public disclosure filings.
These forward-looking statements are projections and reflect the current beliefs and expectations of the company. Actual events or results may differ materially. We'll also be referring to non-GAAP measures. Eltek undertakes no obligation to publicly release revisions to such forward-looking statements to reflect events or circumstances occurring subsequent to this date.
I will now turn the call over to Mr. Eli Yaffe. Mr
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