Question · Q3 2025
Mark Sergustanski of Kappler inquired about the persistence of operational issues, given previous statements, and sought clarification on the timeline for realizing the positive impact of revised pricing due to US dollar depreciation. He also asked when Eltek expects to overcome these operational difficulties and achieve its mid-term gross margin target of 26-27%.
Answer
CEO Eli Yaffe clarified that current operational instability stems from integrating new equipment and staff, distinct from prior construction issues, and stated that the positive impact of revised pricing typically takes six to nine months to materialize. CFO Ron Freund added that achieving the 26-27% gross margin is anticipated by mid-2026, coinciding with the integration of a new coating line and stabilization of production processes, which are expected to improve efficiency and reduce raw material consumption. Both executives acknowledged the ongoing challenges from currency erosion and operational inefficiencies.
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