PETACH TIKVA, ISRAEL -- Eltek announced financial fourth quarter revenue of $10.8 million, down from $12.3 million last year.

The maker of printed circuit boards said net income fell to zero from $1.3 million, while EBITDA totaled $0.7 million for the period ended December 31.

Gross profit for the quarter was $1.9 million (18% of revenues) versus $3.5 million (28% of revenues) in 2023. Operating profit fell to $400,000 from $2 million.

For 2024, revenues were $46.5 million, down $200,000 compared to 2023. Net income slipped to $4.2 million in 2024 from $6.4 million in 2023. EBITDA reached $5.9 million compared to $8.6 million in 2023.

Gross profit for 2024 was $10.3 million (22% of revenues) compared to $13.1 million (28% of revenues) in 2023. Operating profit was $4.4 million compared $7.3 million in 2023.

Eltek is currently undergoing a strategic transition, expected to continue through the mid 2026. This process was initiated with the launch of an accelerated $15 million investment plan, while the company's annual revenues ranged below $40 million.The primary objective of this initiative was to establish advanced manufacturing capabilities, enhance technological proficiency, and expand annual production capacity to a range of $55 million to $65 million, the company said in a press release.

The investment plan includes installation of equipment and production lines while maintaining ongoing production. Conducting these enhancements within the existing facility has introduced spatial constraints, and logistical complexities, leading to temporary disruptions and inefficiencies which impacted the fourth quarter of 2024. In addition to this plan Eltek is implementing infrastructure upgrades to support the forecasted capacity and beyond.

Eltek said the global PCB industry, particularly in high-end applications, continues to experience dynamic shifts driven by geopolitical and economic factors. Governments worldwide are increasing defense budgets, driving the need for high-reliability PCBs used in advanced military equipment, aerospace systems, and secure communication infrastructure.

The company said it is strategically positioned to leverage these industry trends by enhancing its manufacturing capabilities and strengthening its supply chain resilience.