Eltek LtdELTK
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Information Technology
Eltek LtdEltek Q2 2026 Earnings Call: Transitional Loss, Supply Chain Pressures
Earnings
Eltek Ltd. reported a net loss for the second quarter of 2026, which management attributed to a transitional period focused on stabilizing manufacturing operations and building human infrastructure rather than weak market demand. Revenue in the first half of 2026 remained below the threshold needed to fully leverage fixed operational expenses, though gross margin improved sequentially on higher volume and gradual average selling price adjustments. The company faces significant supply chain headwinds, particularly for fiberglass-based materials, due to intense competition from the AI infrastructure industry, and is integrating 15 foreign employees with plans to add about 15 more. Official qualification for the first new PCB plating line is expected to begin in Q3 2026, with full commercial production several months later, while a second line is scheduled for delivery and installation by the end of 2026. Approximately one-third of the current backlog consists of long-term purchase orders fixed at historical exchange rates, and the appreciation of the Israeli shekel against the U.S. dollar significantly impacted gross profitability.
Eltek Ltd