Ultralife Corporation — Third Quarter 2026 Earnings Summary

Financial Performance:

• Revenue reached $48.3 million, an 11.3% increase compared to $43.4 million in the third quarter of 2025.
• Gross profit was $13.3 million (27.5% of revenue), up from $9.6 million (22.2% of revenue) in the prior year quarter.
• Operating income was $3.2 million, reversing an operating loss of $1.0 million recorded in the third quarter of 2025.
• GAAP net income attributable to Ultralife Corporation was $2.4 million ($0.14 per share), compared to a net loss of $1.2 million ($0.07 per share) in the prior year quarter.
• Adjusted EBITDA was $5.6 million (11.7% of sales), compared to $2.0 million (4.7% of sales) in the prior year quarter.
• Total backlog exited the third quarter at $136.0 million, the highest level in company history, up from $117.5 million at the end of Q2 2026 and $90.3 million in Q3 2025.
• Cash on hand was $8.6 million as of September 30, 2026, down from $9.3 million as of December 31, 2025.
• Total debt (current and long-term) was $50.5 million ($3.1 million current portion + $47.4 million long-term) as of September 30, 2026, compared to $49.7 million ($4.1 million current + $45.5 million long-term) as of December 31, 2025.
• Operating expenses decreased to $10.1 million from $10.6 million in the prior year quarter, representing 20.9% of revenue versus 24.4% previously.

Business Segments and Product Lines:

• Battery & Energy Products sales increased 12.9% to $45.1 million from $39.9 million in the prior year quarter.
• Government/defense sales within Battery & Energy Products grew 56.7% year-over-year, driven by a large order for conformal wearable batteries.
• Commercial sales within Battery & Energy Products decreased 5.8% year-over-year, attributed to softness in the global oil & gas market.
• Battery & Energy Products gross margin improved to 26.7% from 22.1% in the prior year quarter, driven by manufacturing efficiency improvements, vertical integration of thionyl-chloride cells, and favorable product mix.
• Communications Systems sales decreased 7.1% to $3.2 million from $3.4 million in the prior year quarter.
• Communications Systems gross margin expanded to 40.1% from 23.3% in the prior year quarter, primarily due to lower warranty costs and sales mix.

Other Key Points:

• On October 27, 2026, Ultralife announced an agreement to be acquired by EnerSys (NYSE: ENS) in an all-cash transaction valued at approximately $320 million, including the assumption of net debt.
• The EnerSys acquisition transaction is expected to close in the first quarter of 2027.
• Due to the pending acquisition, Ultralife will not hold a conference call to discuss third quarter results.
• The company recorded $0.6 million in one-time, non-recurring costs in the prior year quarter related to the closing of its Calgary facility and consulting costs to expedite gross margin improvement.
• The company recognized a refundable tax credit portion under the 45X Advanced Manufacturing Production Tax Credit in the current quarter, partially offsetting interest expense from the financing of the Electrochem acquisition.