Company cites supply chain pressures and fixed cost leverage as revenue remains below profitability thresholds in first half 2026.
Eltek Ltd. reported a net loss for Q2 2026 as management prioritized stabilizing manufacturing operations and expanding workforce infrastructure. The company attributed the loss to a transitional phase rather than weak demand, though revenue levels failed to cover fixed operational expenses.
Gross margins improved sequentially from Q1 to Q2, driven by higher sales volumes and adjusted selling prices. However, supply chain constraints, particularly for fiberglass materials, persist due to competition from AI infrastructure growth. Eltek plans to add 30 foreign employees to boost production efficiency.
Qualification for a new PCB plating line is set to begin in Q3 2026, with full production expected months later. The company continues diversifying into medical and industrial markets to reduce reliance on defense contracts.