Eltek Q2 Revenue Jumps 20 Percent
(NASDAQ:ELTK) reported second quarter 2025 results on August 14, 2025, with revenue rising 20% year over year to $12.5 million and gross margin expanding to 24.1%. The company completed key equipment installations for its accelerated capacity build-out, absorbed a one-time $1 million foreign exchange expense, and saw strong defense-sector order momentum. The following analysis highlights strategic drivers, operational risks, and future growth implications based on management commentary.
Gross margin improved to 24.1% in the second quarter, up from 15.6% in the prior year period, as operational efficiency and a higher-value product mix drove profitability. Incremental revenue now delivers greater margin benefit, with management indicating that each additional dollar of revenue contributes approximately $0.50 to gross profit.
This operational leverage positions the company to benefit disproportionately from revenue growth above current levels, enhancing near-term earnings power as capacity unlocks.
Source Fool.com
