Aug 7, 2026, 4:01 PM ETIndustrials

Ultralife Corporation — Second Quarter 2026 Earnings Summary

ULBIULTRALIFE CORP

Financial Performance

Revenue was $47.9 million, a 1.3% decrease compared to $48.6 million in the second quarter of 2025.
Gross profit was $13.9 million (28.9% of revenue), up from $11.6 million (23.9% of revenue) in the prior year period; excluding a $1.1 million net IEEPA refund, gross margin was 26.6%.
Operating income was $3.4 million, compared to $2.3 million in the second quarter of 2025, including one-time costs of $0.9 million versus $0.3 million in the prior year.
GAAP net income attributable to Ultralife Corporation was $2.5 million ($0.15 per share), compared to $0.9 million ($0.05 per share) in the second quarter of 2025.
Adjusted EBITDA was $6.1 million (12.8% of sales), compared to $4.1 million (8.5% of sales) in the prior year period.
Operating expenses were $10.4 million (21.8% of revenue), up from $9.3 million (19.2% of revenue) in the prior year.
Other expense was $0.5 million, compared to $1.1 million in the prior year.
Total assets were $216.2 million as of June 30, 2026, compared to $216.9 million as of December 31, 2025.
Total liabilities were $83.6 million as of June 30, 2026, compared to $86.8 million as of December 31, 2025.
Cash and cash equivalents were $6.7 million as of June 30, 2026, compared to $9.3 million as of December 31, 2025.
Total debt (current and long-term) was $44.6 million as of June 30, 2026, compared to $49.7 million as of December 31, 2025.

Management expects profitable growth in 2026 driven by multi-year revenue opportunities and ongoing gross margin improvement initiatives.
Communications Systems business is preparing to launch multiple new products later in 2026 to support government/defense programs.
Battery & Energy Products business has several programs expected to transition into production later in 2026, including those supporting water-based defense drone applications.
The backlog of $117.5 million exiting the second quarter is the highest level in the Company's history.

Battery & Energy Products sales decreased 3.7% to $44.2 million, driven by a 4.7% decline in commercial sales (offset by a 7.2% increase in medical battery sales) and a 1.4% decline in government/defense sales.
Communications Systems sales increased 39.3% to $3.8 million.
Battery & Energy Products gross margin was 28.3%, compared to 23.6% in the prior year, primarily due to favorable product mix and the IEEPA tariff refund.
Communications Systems gross margin was 36.3%, compared to 28.4% in the prior year, primarily due to sales mix.
Commercial sales in the Battery & Energy segment saw an 8.7% decline in oil & gas and industrial sales.

The Communications Systems business is expanding its opportunity funnel while new products move through the capture phase.
The Company serves government/defense and commercial customers globally across North America, Europe, and Asia.

Risks include uncertain global economic conditions, tariffs, inflation, and potential reductions in revenues from key customers.
Potential delays or reductions in U.S. and foreign military spending could impact results.
Risks include delays in acceptance of new products globally and disruptions or price increases in the supply of raw materials and components due to business conditions, new tariffs, global conflicts, or weather.

CEO Mike Manna stated the quarter delivered a 760-basis point improvement in gross profit margin compared to the first quarter, reflecting benefits from manufacturing efficiency initiatives and favorable sales mix.
Management highlighted the contribution of the net IEEPA refund to the gross margin improvement.
The tone regarding future growth is positive, citing the record backlog and expected production transitions later in the year.

The backlog increased to $117.5 million at the end of the second quarter, up from $115.1 million at the end of the first quarter and $84.5 million at the end of the second quarter of 2025.
Operating expenses included one-time, non-recurring costs of $0.9 million, primarily related to litigation expenses for a cyber-insurance claim and consulting costs to expedite gross margin improvements.
Other expense included interest expense from the financing of the Electrochem acquisition, partially offset by a refundable tax credit for qualifying battery cells and packs under the 45X Advanced Manufacturing Production Tax Credit.
The Company held a conference call on August 7, 2026, at 8:00 AM ET.
Ultralife Corporation operates with business segments in Battery & Energy Products and Communications Systems.