Exhibit 99.1


Press Release
 
Eltek Ltd. Reports Strong Second-Quarter 2025 Results

20% Quarter-over-quarter revenue growth; gross margin expands to 24%
 
Petach Tikva, Israel (August 14, 2025) Eltek Ltd. (NASDAQ: ELTK), a global manufacturer and supplier of technologically advanced solutions in the field of printed circuit boards (PCBs), today announced its financial results for the quarter ended June 30, 2025.
 
Second Quarter 2025 Highlights
 
 
Q2 2025
Q2 2024
%
Revenues (*)
$12.5 million
$10.5 million
+20%
Gross margin
24.1%
15.6%
+8.5%
Operating income
$1.5 million
$0.4 million
+259%
Financial income (expense)
$(1.0) million
$0.5 million
n/m

(*) Revenues for the six months ended June 30, 2025 totaled $25.3 million, up 14% from $22.2 million in the 2024 period.
 
Eli Yaffe, Chief Executive Officer, stated:
 
“Strong momentum across our defense and medical segments drove significant year-over-year growth, highlighted by double-digit revenue increases. Continued operational improvements and a favorable product mix (compared to Q2 2024) contributed to a substantial increase in gross margin and operating profit, which reached $1.5 million - more than triple the amount recorded in the same period last year.
 
We remain committed to expanding our production capacity. All the equipment that was delivered to date has been successfully installed and is performing in accordance with specifications. Construction to accommodate the core of our investment plan - the new 60-meter coating lines is progressing smoothly, on schedule, and without any material impact on ongoing production operations. Following a recent scheduling update from our coating lines supplier, we have been informed of an additional delay in the delivery of the first line. We now expect the first line to arrive at our facility toward the end of 2025.
 
With staffing up approximately 10% since January, we continue our efforts to meet growing demand while maintaining best-in-class lead times.
 
The sharp appreciation of the Israeli shekel during the quarter resulted in a non-cash financial expense of $1.0 million. Given that the majority of our revenues are denominated in U.S. dollars, we have proactively updated our pricing model to better align with our NIS-based expenses. The impact of the currency fluctuation will be reflected in future customer orders, helping to protect our margins moving forward."
 

Second Quarter 2025 GAAP Financial Results
 
Revenues for the second quarter of 2025 were $12.5 million compared to $10.5 million in the second quarter of 2024.
 
Gross profit for the second quarter of 2025 was $3.0 million (24% of revenues) compared to $1.6 million (16% of revenues) in the second quarter of 2024.
 
Operating profit for the second quarter of 2025 was $1.5 million compared to operating profit of $0.4 million in the second quarter of 2024.
 
Financial expenses for the second quarter of 2025 were $1.0 million compared to financial income of $0.5 million in the second quarter of 2024. Financial expenses primarily resulted from the 9% erosion of the U.S. dollar against the NIS.
 
Net income for the second quarter of 2025 was $0.4 million or $0.05 per fully diluted share compared to net income of $0.8 million or $0.11 per fully diluted share in the second quarter of 2024.
 
Second Quarter 2025 Non-GAAP Financial Results
 
EBITDA for the second quarter of 2025 was $2.0 million (15.6% of revenues) compared to EBITDA of $0.8 million (7.6% of revenues) in the second quarter of 2024.
 
Six Months Ended June 30, 2025 GAAP Financial Results
 
Revenues for the first six months of 2025 were $25.3 million compared to $22.2 million in the first six months of 2024.
 
Gross profit for the first six months of 2025 was $5.2 million (21% of revenues) compared to $4.9 million (22% of revenues) in the first six months of 2024.
 
Operating profit for the first six months of 2025 was $2.2 million compared to operating profit of $2.1 million in the first six months of 2024.
 
Financial expenses for the first six months of 2025 were $0.5 million compared to financial income of $0.8 million in the first six months of 2024. Financial expenses primarily resulted from the erosion of the U.S. dollar against the NIS.
 
Net profit for the first six months of 2025 was $1.4 million or $0.20 per fully diluted share compared to net profit of $2.5 million or $0.38 per fully diluted share in the first six months of 2024.
 
Six Months Ended June 30, 2025 Non-GAAP Financial Results
 
EBITDA for the first six months of 2025 was a $3.1 million (12% of revenues) compared to EBITDA of $2.9 million (13% of revenues) in the first six months of 2024.
 

About our Non-GAAP Financial Information
 
The Company reports financial results in accordance with U.S. GAAP and herein provides EBITDA, a non-GAAP measure. This non-GAAP measure is not in accordance with, nor is it a substitute for, GAAP measures. This non-GAAP measure is intended to supplement the Company’s presentation of its financial results that are prepared in accordance with GAAP. The Company uses the non-GAAP measure presented to evaluate and manage the Company’s operations internally. The Company is also providing this information to assist investors in performing additional financial analysis. Reconciliation between the Company's results on a GAAP and non-GAAP basis is provided in a table below.
 
Conference Call
 
Today, Thursday, August 14, 2024, at 9:00am Eastern Time (16:00pm Israel Time, 6:00am Pacific Time), Eltek will conduct a conference call to discuss the results. The call will feature remarks by Eli Yaffe, Chief Executive Officer and Ron Freund, Chief Financial Officer.
 
To participate, please call the following teleconference numbers. Please allow for additional time to connect prior to the call:
 
United States:
1-866-860-9642
Israel: 
03-918-0691
International:
+972-3-918-0691
  
To Access a Replay of the Call
 
A replay of the call will be available for 30 days on the Investor Info section on Eltek’s corporate website at http://www.nisteceltek.com approximately 24 hours after the conference call is completed.


About Eltek
 
Eltek – ”Innovation Across the Board”, is a global manufacturer and supplier of technologically advanced solutions in the field of printed circuit boards (PCBs) and is an Israeli leading company in this industry. PCBs are the core circuitry of most electronic devices. Eltek specializes in the manufacture and supply of complex and high-quality PCBs, HDI, multilayered and flex-rigid boards for the high-end market. Eltek is ITAR compliant and has AS-9100 and NADCAP Electronics certifications. Its customers include leading companies in the defense, aerospace and medical industries in Israel, the United States, Europe and Asia.
 
Eltek was founded in 1970. The Company’s headquarters, R&D, production and marketing center are located in Israel. Eltek also operates through its subsidiary in North America and by agents and distributors in Europe, India, South Africa and South America.
 
For more information, visit Eltek's web site at www.nisteceltek.com

Forward Looking Statement
 
Some of the statements included in this press release may be forward-looking statements that involve a number of risks and uncertainties including, but not limited to expected results in future quarters, the impact of the Coronavirus on the economy and our operations, risks in product and technology development and rapid technological change, product demand, the impact of competitive products and pricing, market acceptance, the sales cycle, changing economic conditions and other risk factors detailed in the Company’s Annual Report on Form 20-F and other filings with the United States Securities and Exchange Commission. Any forward-looking statements set forth in this press release speak only as of the date of this press release. The information found on our website is not incorporated by reference into this press release and is included for reference purposes only.
 
Investor Contact
 
Ron Freund
Chief Financial Officer
Investor-Contact@nisteceltek.com
+972-3-939-5023

(Tables follow)


Eltek Ltd.
Consolidated Statements of Income
U.S dollars in thousands (except per share data)

   
Three months ended
    
Six months ended
  
   
June 30,
    
June 30,
  
   
2025
    
2024
    
2025
    
2024
  
                         
Revenues
    
12,529
      
10,466
      
25,285
      
22,249
  
Costs of revenues
    
(9,510
)
    
(8,830
)
    
(20,054
)
    
(17,361
)
                                 
Gross profit
    
3,019
      
1,636
      
5,231
      
4,888
  
                                 
Research and development expenses, net
    
-
      
(47
)
    
(50
)
    
(62
)
Selling, general and administrative expenses
    
(1,563
)
    
(1,184
)
    
(3,000
)
    
(2,700
)
                                 
Operating profit
    
1,456
      
405
      
2,181
      
2,126
  
                                 
Financial income (expense), net
    
(1,012
)
    
489
      
(508
)
    
839
  
                                 
Income before income tax
   
444
      
894
      
1,673
      
2,965
  
                                 
Income tax expenses
    
79
      
143
      
306
      
475
  
                                 
Net income
   
365
      
751
      
1,367
      
2,490
  
                                 
Earnings per share:
                                
Basic net income per ordinary share
    
0.05
      
0.11
      
0.20
      
0.38
  
                                 
Diluted net income per ordinary share
    
0.05
      
0.11
      
0.20
      
0.38
  
                                 
Weighted average number of ordinary shares used to compute
                          
basic net income per ordinary share (in thousands)
    
6,715
      
6,706
      
6,715
      
6,541
  
                                 
Weighted average number of ordinary shares used to compute
                          
diluted net income per ordinary share (in thousands)
    
6,784
      
6,764
      
6,785
      
6,628
  


Eltek Ltd.
Consolidated Balance Sheets
U.S dollars in thousands

   
June 30,
    
December 31,
  
   
2025
    
2024
  
             
Assets
            
             
Current assets:
            
Cash and cash equivalents
    
1,770
      
7,575
  
Short-term bank deposits
    
9,385
      
9,663
  
Trade receivables (net of allowance for credit losses)
    
14,480
      
11,786
  
Inventories
   
12,874
      
9,488
  
Other accounts receivable and prepaid expenses
    
404
      
602
  
                 
Total current assets
    
38,913
      
39,114
  
                 
Long term assets:
                
Severance pay fund
    
61
      
56
  
Deferred tax assets, net
    
334
      
496
  
Operating lease right of use assets
    
6,409
      
5,911
  
Total long term assets
    
6,804
      
6,463
  
                 
Property and equipment, net
    
18,703
      
14,578
  
                 
Total Assets
    
64,420
      
60,155
  
                 
Liabilities and Shareholder's equity
                
                 
Current liabilities:
                
Trade payables
    
7,197
      
7,367
  
Other accounts payable and accrued expenses
    
5,527
      
5,136
  
Short-term operating lease liabilities
    
1,047
      
827
  
                 
Total current liabilities
    
13,771
      
13,330
  
                 
Long-term liabilities:
                
Accrued severance pay
    
525
      
443
  
Long-term operating lease liabilities
    
5,477
      
5,190
  
                 
Total long-term liabilities
    
6,002
      
5,633
  
                 
Shareholders' equity:
                
Ordinary shares of NIS 3.0 par value – Authorized: 10,000,000 shares at June 30, 2025 and December 31, 2024;
Issued and outstanding: 6,715,624 shares at June 30, 2025 and 6,714,040 shares at December 31, 2024
    
6,012
      
6,011
  
Additional paid-in capital
    
32,634
      
32,627
  
Foreign currency translation adjustments
    
3,750
      
664
  
Capital reserve
    
2,777
      
2,507
  
Accumulated deficit
    
(526
)
    
(617
)
Total shareholders' equity
    
44,647
      
41,192
  
Total liabilities and shareholders' equity
    
64,420
      
60,155
  


 
Eltek Ltd.
Unaudited Non-GAAP EBITDA Reconciliations
U.S dollars in thousands

   
Three months ended
    
Six months ended
  
   
June 30,
    
June 30,
  
   
2025
    
2024
    
2025
    
2024
  
                         
                         
GAAP net income
   
365
      
751
      
1,367
      
2,490
  
Add back items:
                                
                                 
Financial income, net
   
1,012
      
(489
)
    
508
      
(839
)
Income tax expenses
   
79
      
143
      
306
      
475
  
Depreciation and amortization
    
500
      
388
      
966
      
753
  
Non-GAAP EBITDA
    
1,956
      
793
      
3,147
      
2,879
  


 
Eltek Ltd.
Consolidated Statement of  Cash flow
U.S dollars in thousands

   
Three months ended
    
Six months ended
  
   
June 30,
    
June 30,
  
   
2025
    
2024
    
2025
    
2024
  
                         
Cash flows from operating activities:
                        
                         
Net Income
    
365
      
751
      
1,367
      
2,490
  
Adjustments to reconcile net income to net cash flows
                          
provided by operating activities:
                                
Depreciation
    
500
      
388
      
967
      
753
  
Unrealized financing expenses (income), net
    
595
      
(98
)
    
466
      
(186
)
Share-based compensation
    
132
      
154
      
270
      
286
  
Decrease in deferred tax assets
   
120
      
(100
)
    
202
      
91
  
     
1,347
      
344
      
1,905
      
944
  
                                 
Decrease (increase) in operating lease right-of-use assets
    
(1
)
    
2
      
-
      
3
  
Decrease (increase) in trade receivables
    
(1,378
)
    
(219
)
    
(1,733
)
    
517
  
Decrease (increase) in other receivables and prepaid expenses
    
314
      
234
      
247
      
309
  
Decrease (increase) in inventories
    
(2,282
)
    
(169
)
    
(2,612
)
    
(565
)
Increase (decrease) in trade payables
    
(1,138
)
    
955
      
(2,000
)
    
(536
)
Increase (decrease) in other liabilities and accrued expenses
    
(201
)
    
(48
)
    
(28
)
    
(249
)
Increase (decrease)  in employee severance benefits, net
    
39
      
(48
)
    
46
      
(30
)
     
(4,647
)
    
707
      
(6,080
)
    
(551
)
                                 
Net cash provided by (used in) operating activities
    
(2,935
)
    
1,802
      
(2,808
)
    
2,883
  
                                 
Cash flows from investing activities:
                                
Purchase of fixed assets
    
(1,743
)
    
(3,215
)
    
(2,880
)
    
(5,947
)
Withdrawal of (investment in) short-term bank deposits, net
    
-
      
(132
)
    
534
      
(6,534
)
Net cash used in investing activities
    
(1,743
)
    
(3,347
)
    
(2,346
)
    
(12,481
)
                                 
Cash flows from financing activities:
                                
Exercise of options
    
8
      
16
      
8
      
261
  
Dividend distribution
    
(1,276
)
    
-
      
(1,276
)
    
-
  
Issuance of shares, net
    
-
      
-
      
-
      
9,312
  
Net cash provided by (used in) financing activities
    
(1,268
)
    
16
      
(1,268
)
    
9,573
  
                                 
Effect of translation adjustments
    
1,250
      
(204
)
    
617
      
(376
)
                                 
Net increase (decrease) in cash and cash equivalents
    
(4,696
)
    
(1,733
)
    
(5,805
)
    
(401
)
                                 
Cash and cash equivalents at the beginning of the period
    
6,466
      
10,610
      
7,575
      
9,278
  
                                 
Cash and cash equivalents at the end of the period
    
1,770
      
8,877
      
1,770
      
8,877