Eltek Ltd. (NASDAQ: ELTK) is a Petah Tikva, Israel based manufacturer of custom printed circuit boards serving defense, aerospace, medical, and industrial customers. The company is in the middle of an accelerated capital investment program that targets annual production capacity of $60 million to $65 million. That is up from roughly $40 million at the time the plan was launched. The program, centered on two new plating lines, has generated deeply negative operating results in the first half of 2026 even as demand and order backlog have reached their highest levels under current management.
The core tension for shareholders is whether the operational disruption, the depreciation of the United States dollar against the Israeli shekel, and the legacy pricing of existing backlog orders resolve quickly enough for the investment to begin paying back, or whether the margin reset proves more permanent. At the time of writing, the stock trades near $8.15, a market capitalization of approximately $55 million. The balance sheet remains debt free with roughly $11.5 million in cash and short term deposits. The company also holds an undrawn $2.7 million revolving credit facility, a financial position that provides a meaningful cushion during the current transition.