Eltek Q2 Revenue Hits $11.5M Amid Manufacturing Transition
Eltek posted $11.5M in Q2 revenue but remains unprofitable with a $2.7M net loss as it stabilizes PCB production lines.
Key points
- Eltek generated $11.5M in Q2 2026 revenue, totaling approximately $22M for the first half of the year.
- The company recorded a net loss of $2.7M, with gross loss narrowing to $1M from $1.8M in Q1.
- Management attributes the loss to manufacturing transition costs, including new ERP and PCB plating line implementations.
Eltek (NASDAQ: ELTK) reported second-quarter 2026 revenue of $11.5 million, bringing first-half sales to approximately $22 million. Despite strong market demand and a robust backlog, the company posted a net loss of $2.7 million, reflecting its ongoing operational transition phase.
Management emphasized that the primary challenge is not demand but the company's ability to consistently convert backlog into production. The firm is currently focused on stabilizing manufacturing operations and enhancing infrastructure, including the implementation of a new ERP system and the installation of new PCB plating lines to support future growth.
Gross Loss Narrows With Higher PCB Prices
Eltek’s gross loss improved from $1.8 million in the first quarter to $1.0 million in the second quarter. This improvement was driven by higher revenue volumes and increased average selling prices for printed circuit boards (PCBs), although the company noted that raw material supply challenges persist.
According to Benzinga’s coverage of the earnings call, the strategic focus remains on expanding in medical and high-end industrial markets. These segments are supported by key certifications and sustained strong demand, which management believes will help drive profitability through operational enhancements and pricing adjustments.
Operational Infrastructure Supports Growth Phase
CEO Eli Yaffe stated that the company is in an important transition period aimed at building the human and operational infrastructure required for the next phase of growth. The current revenue level is below the potential capacity of the business, indicating that production constraints are the limiting factor rather than market interest.
The implementation of a new ERP system is central to this stabilization effort, aiming to streamline processes and improve efficiency. By addressing these internal bottlenecks, Eltek intends to better align its production capacity with the strong backlog it has accumulated in recent quarters.
