Eltek (ELTK) investor relations material

Executive summary

• Q2 2026 results reflect a net loss and revenue decline as the company remains in a transition period focused on stabilizing manufacturing operations and investing in infrastructure for future growth.

• Strong demand and backlog persist, but operational challenges and supply constraints limit the ability to convert demand into production and shipments.

• Strategic initiatives include ERP implementation, new PCB plating lines, and workforce expansion to improve capacity and efficiency.

Financial highlights

• Q2 2026 revenue was $11.5 million, down from $12.5 million in Q2 2025; first half 2026 revenue totaled $22.0 million.

• Gross loss for Q2 was $1.0 million, compared to a gross profit of $3.0 million in Q2 2025.

• Operating loss was $2.5 million, versus operating profit of $1.5 million in Q2 2025.

• Net loss was $2.7 million ($0.41 per share), compared to net income of $0.4 million ($0.05 per share) in Q2 2025.

• EBITDA loss was $1.9 million, compared to EBITDA of $1.9 million in the prior year period.

• Operating activities generated $0.7 million in cash during the quarter; cash and cash equivalents stood at $11.5 million or $9.4 million as of June 30, 2026, with no outstanding debt.

Outlook and guidance

• Improvement in gross margin is expected to be gradual, driven by increased production volume, efficiency, and ramp-up of new production lines.

• Pricing adjustments to reflect higher costs are expected to improve profitability as newer orders move through production.

• No formal forecast provided, but management is confident in returning to historical profitability as operational stability increases.

• Qualification of new production lines is anticipated in Q3 2026.