Currency pressures and softer sales weigh on quarterly results
Eltek Ltd. (NASDAQ:ELTK) shares fell 6.8% in premarket trading Tuesday after the printed circuit board manufacturer reported a first-quarter loss alongside weaker revenue and unfavorable currency movements.
For the quarter ended March 31, 2026, the company posted a net loss of $2.9 million, or $0.42 per diluted share.
Revenue totaled $10.4 million, representing an 18% decline from $12.8 million recorded in the first quarter of 2025.
Eltek also reported an operating loss of $1.9 million, compared with operating profit of $0.7 million during the same period last year.
Dollar weakness and regional disruptions impact operations
The company said results were negatively affected by several factors, including the sharp decline of the U.S. dollar against the Israeli shekel, which increased shekel-based expenses by roughly $1.3 million compared with the prior-year quarter.
Eltek also pointed to difficult security conditions in the region, which disrupted normal work routines and reduced operational availability.
“Our operating results for the quarter were adversely affected by the late phasing of the Company’s order backlog during the quarter, although our backlog has grown significantly. In addition, we experienced certain temporary logistical constraints, which contributed to the results for the quarter,” said Eli Yaffe, CEO of Eltek.
Company maintains debt-free balance sheet
Adjusted EBITDA for the quarter showed a loss of $2.7 million, compared with positive EBITDA of $1.2 million in the first quarter of 2025.
Despite the weaker performance, Eltek ended the quarter with a debt-free balance sheet and reported cash and short-term bank deposits totaling $11.1 million as of March 31, 2026.