Eltek Reports Q2 2026 Earnings with Revenue Decline and Continued Operational Challenges
Eltek (ELTK) reported second-quarter revenue of $11.5 million for the quarter ended June 30, 2026, representing an 8% decline from $12.5 million in Q2 2025. The company posted a net loss of $2.7 million or $0.41 per diluted share and recorded a gross loss of $1 million compared to a prior-year profit of $3 million. Operational challenges included production inefficiencies, currency fluctuations (U.S. dollar appreciation against the Israeli shekel), and raw material shortages—particularly for fiberglass-based materials used in circuit boards. Management noted that one-third of its backlog is tied to historical exchange rates, which negatively impacts profitability. Despite these issues, gross loss narrowed sequentially from $1.8 million in Q1 2026. The company remains focused on stabilizing manufacturing operations and expanding production capacity through new plating lines and workforce additions. Eltek ended the quarter with cash and deposits of $11.5 million and reported operating cash flow of $700,000.
Topics: currency_impact financial_performance losses revenue