ULBI

Shares of Ultralife Corporation ULBI have gained 34.6% since the company reported its earnings for the quarter ended June 30, 2026, outperforming the S&P 500 Index’s 0.04% loss over the same period. Over the past month, ULBI shares have gained 26.5% compared with the S&P 500’s 2.3% rise. Ultralife reported second-quarter 2026 revenues of $47.9 million, down 1.3% from $48.6 million a year earlier, while GAAP earnings per share (EPS) increased to $0.15 from $0.05. Net income attributable to ULBI rose to $2.5 million from $0.9 million. Battery & Energy Products revenues decreased 3.7% to $44.2 million from $45.9 million. This reflected a 4.7% decline in commercial sales, including an 8.7% decrease in oil & gas and industrial sales, partly offset by 7.2% growth in medical battery sales. Government/defense sales in the segment declined 1.4%. Communications Systems revenues climbed 39.3% to $3.8 million from $2.7 million, primarily due to order timing. Gross profit increased 19.5% year over year to $13.9 million, while gross margin expanded 500 basis points to 28.9% from 23.9%. The improvement reflected favorable product mix across both segments and a $1.1 million net refund of previously paid IEEPA tariffs, which contributed 230 basis points to gross margin. Battery & Energy Products gross margin rose to 28.3% from 23.6%, while Communications Systems margin increased to 36.3% from 28.4%. Backlog reached a company record of $117.5 million from $84.5 million a year earlier and $115.1 million at the end of the first quarter. More than $14 million of backlog came from products released within the past year. Adjusted EBITDA increased 49.5% to $6.1 million, or 12.8% of sales, from $4.1 million, or 8.5%, a year ago. Working capital stood at $69.8 million, with a current ratio of 2.9 compared with $68.5 million and 2.8 for 2025-end, respectively. Ultralife Corporation price-consensus-eps-surprise-chart | Ultralife Corporation Quote CEO Mike Manna said that Ultralife is making progress on operational improvements and product commercialization. Management highlighted Communications Systems’ growing opportunity funnel and new-product releases, while defense spending on force modernization and advanced network capabilities was viewed as supportive of future program opportunities. ULBI has addressed a significant scrap issue affecting its largest margin-impacting product line and corrected another major source of margin inefficiency. Management expects these initiatives to generate approximately $600,000-$800,000 in annual Battery & Energy gross-margin savings. Ultralife is also undertaking lean manufacturing and automation projects at its Raynham facility as it anticipates more than 30% growth in customer demand and cell consumption over the next year. Profitability benefited materially from product mix and the tariff refund. Excluding the $1.1 million refund, consolidated gross margin was 26.6%. Meanwhile, operating expenses increased 11.6% to $10.4 million as new-product development costs rose 39.1%. Ultralife also incurred $0.9 million of one-time costs related to litigation expenses for a cyber-insurance claim and consulting work tied to manufacturing margin improvements. Operating income nevertheless rose 52.3% to $3.4 million from $2.3 million, with operating margin expanding to 7.2% from 4.6%. Management did not provide specific revenue or EPS guidance. However, it maintained an outlook for profitable growth in 2026, supported by backlog execution, margin initiatives and multi-year development opportunities. Several battery programs serving medical, safety and drone markets are expected to move into production later in 2026 and into 2027. Management also expects water-based drone opportunities using Electrochem cells to begin contributing meaningful incremental revenues in the fourth quarter. Ultralife continued expanding vertical-integration opportunities stemming from its 2024 Electrochem acquisition by incorporating Electrochem cells into existing battery-pack assemblies. ULBI is also realigning its various businesses under the Ultralife Master brand, with completion expected by year-end. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Ultralife Corporation (ULBI) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Image source: The Motley Fool. Friday, Aug. 7, 2026, at 8 a.m. ET President and Chief Executive Officer - Michael Manna Chief Financial Officer - Philip A. Fain Investor Relations - Jody Burfening Need a quote from a Motley Fool analyst? Email [email protected] Operator: Thank you for standing by and welcome to Ultralife Corporation's Second Quarter 2026 Earnings Conference Call. [Operator Instructions] I would now like to hand the call over to Jody Burfening. Please go ahead. Jody Burfening: Thank you, Lateef, and good morning, everyone. Thank you for joining us for Ultralife Corporation's Earnings Conference Call for the second quarter of fiscal 2026. With us on today's call are Mike Manna, Ultralife's President and CEO, and Phil Fain, Ultralife's Chief Financial Officer. The earnings press release was issued earlier this morning, and if anyone has not yet received a copy, I invite you to visit the company's website, www.ultralifecorp.com, where you'll find the release under Investor News in the Investor Relations section. Before turning the call over to management, I would like to remind everyone that some statements made during this conference call contain forward-looking statements based on current expectations. Actual results could differ materially from those projected as a result of various risks and uncertainties. The potential risks and uncertainties that could cause actual results to differ materially include uncertain global economic conditions, reductions in revenues from key customers, delays or reductions in U.S. and foreign military spending, acceptance of new products on a global basis, and disruptions or delays in supply of raw materials and components due to business conditions, global conflicts, weather, or other factors not under the company's control. The company cautions investors not to place undue reliance on forward-looking statements which reflect the company's analysis only as of today's date. The company undertakes no obligation to publicly update forward-looking statements to reflect subsequent events or circumstances. Further information on these factors and other factors that could affect Ultralife's financial results is included in the company's filings with the Securities and Exchange Commission, including the latest quarterly report on Form 10-Q. In addition, on today's call, management will refer to certain non-GAAP financial measures that management considers to be useful and differ from GAAP. These non-GAAP measures should be considered supplemental to corresponding GAAP figures. With that, I would now like to turn the call over to Mike. Good morning, Mike. Michael Manna: Good morning. Welcome to Ultralife's Q2 2026 Earnings Call. Earlier today, we announced Q2 revenue of $47.9 million with operating profit of $3.4 million, which resulted in an EPS of $0.15 per share. We made positive progress on several fronts during the second quarter. We continue to build a strong and growing backlog, supported by an expanding product portfolio as recent product developments transition from development into commercialization. In addition, our new plant leaders in Newark and Raynham are continuing to gain experience and drive operational improvements. Their teams are executing key gross margin initiatives, which have begun to deliver measurable benefits and are expected to contribute further improvements as these efforts gain traction. Our Communications Systems business is gaining momentum, supported by multiple new product releases, a growing opportunity funnel, and active development programs focused on expanding revenue and improving business stability. We remain confident in the long-term upside of this business and are continuing to invest in product development, customer engagement, and projects that position us to pursue large sustained revenue opportunities. With defense spending continuing to emphasize force modernization and advanced network capabilities, our product portfolio remains closely aligned with emerging program requirements. We believe this favorable spending environment will support incremental program awards and long-term growth opportunities. We exited the quarter with a record backlog of $117.5 million, with over $14 million of the backlog from products released within the last year, including the Conformal Wearable Battery, an updated Manpack radio battery for a NATO partner, new amplifiers, new speakers, and new battery packs for medical and safety customers. We expect our brand realignment to complete over the back half of the year, consolidating under the Ultralife Master brand, which will bring clear, concise messaging to our customers that we design and deliver critical RF and portable power products. I will now turn it over to Phil to talk through the detailed numbers. Philip A. Fain: Thank you, Mike, and good morning, everyone. Earlier this morning, we released our second quarter results for the quarter ended June 30th, 2026. We have also updated our investor presentation in the Investor Relations section of our website, and our Form 10-Q was filed with the SEC earlier this morning. Consolidated revenues totaled $47.9 million compared to $48.6 million for the second quarter of 2025. Overall, government defense sales increased 5% while commercial sales decreased 4.7%. Revenues from our Battery & Energy Products segment were $44.2 million compared to $45.9 million last year, a 3.7% decrease. The year-over-year decrease reflects a 4.7% decline in commercial sales, primarily attributable to lower oil and gas sales reflecting geopolitical factors, offsetting a 7.2% increase in medical battery sales. Government defense sales declined 1.4% due to the shipment of a very large order for an allied country last year. The sales split between commercial and government defense for our battery business was 68-32, identical to that reported for the 2025 quarter, and the domestic to international split was 59-41 compared to 73-27 for the 2025 period, reflecting the heightened global demand for our products. Revenues from our Communications Systems segment of $3.8 million increased 39.3% from the $2.7 million we reported last year, due primarily to the timing of orders. On a consolidated basis, the commercial to government defense sales split was 62-38 compared to 65-35 for the 2025 second quarter. Our total backlog exiting the second quarter was $117.5 million, the highest level in the company's history, representing a $33 million or 39% increase over the comparable 2025 period. The backlog remains diverse in nature across our commercial and government defense customer base, and the replenishment rate remains high, representing 63% of trailing 12-month sales. Our consolidated gross profit was $13.9 million, an increase of 19.5% over the 2025 period. As a percentage of total revenues, consolidated gross margin was 28.9%, a 500 basis point increase from the 23.9% reported for last year's second quarter. The increase resulted from favorable sales product mix for both business segments and the net refund of IEEPA tariffs, which had been recognized as costs in previous periods. The net tariff refund in the second quarter of 2026 was $1.1 million and accounted for 230 basis points of the year-over-year increase in gross margin. Gross profit for our Battery & Energy Products business was $12.5 million compared to $10.8 million last year, an increase of 15.4%. Gross margin was 28.3%, a 470 basis point increase over 23.6% last year due to sales mix and the tariff net refund, with this refund accounting for 250 basis points of the year-over-year increase. Accordingly, gross margin excluding the net tariff refund was 25.8%. For our Communications Systems segment, gross profit was $1.4 million compared to $0.8 million for the year-earlier period. Gross margin was 36.3% compared to 28.4% last year, primarily due to favorable sales mix. Operating expenses were $10.4 million, an increase of $1.1 million, or 10.6% from the year-earlier quarter. New product development costs increased 39.1% related to the continued investment in our product offering and vertical integration opportunities within our portfolio. In addition, we incurred one-time costs of $0.9 million relating to litigation expenses for our cyber insurance claim and the completion of certain consulting fees to help expedite gross margin improvement at our two largest manufacturing facilities. As a percentage of revenues, operating expenses were 21.8% compared to 19.8% for last year's second quarter. Operating income was $3.4 million compared to $2.3 million last year, reflecting the overall increase in gross margin to 26.6%, when excluding the tariff refund. Operating margin increased to 7.2% compared to 4.7% for the 2025 second quarter. Other expense reported below operating income was $0.5 million for the quarter primarily comprised of interest expense from the financing of our Electrochem acquisition, partially offset by the second quarter estimated portion of a refundable tax credit for certain qualifying battery cells and packs we manufacture under the 45X Advanced Manufacturing Production Tax Credit. This tax credit, established by the Inflation Reduction Act, runs through 2032. Other expense for the year-earlier period was $1.1 million, reflecting the acquisition financing. Our tax provision for the second quarter was $0.5 million compared to $0.2 million for the 2025 quarter, computed on a GAAP basis at statutory rates. Net income was $2.5 million or $0.15 per share on a GAAP fully diluted basis. This compares to net income of $0.9 million or $0.05 per share for the 2025 quarter. Adjusted EBITDA, defined as EBITDA including non-cash stock-based compensation expense and one-time costs not reflective of our ongoing operations, was $6.1 million or 12.8% of sales compared to $4.1 million or 8.5% for the prior year quarter. Adjusted EBITDA on a TTM basis is $17.1 million or 9.1% of sales. Turning to our balance sheet, we ended the second quarter with working capital of $69.8 million and a current ratio of 2.9 compared to $68.5 million and 2.8 for 2025 year-end. Looking beyond our second quarter results, our backlog, the sheer number of our growth initiatives, our continued focus on gross margin improvement, progress with our vertical integration opportunities, and the transition of our various sub-brands to the Ultralife Master brand keep us positioned to realize the leverage of our business model. I will now turn it back to Mike. Michael Manna: Thank you, Phil, for the detailed review of the Q2 2026 results. For 2026, we have four distinct priorities well underway. Our first priority was to accelerate the revenue capture in the Communications Systems business. We have several new products now moving through commercial capture phase, including products that already received initial orders, with additional product releases planned later this year. During Q2, we showcased our new StrikeHub product line at Special Operations Week and HPE Discover. StrikeHub provides vehicle mounting, network switching, power, and UPS to support edge compute solutions targeting Special Operations Forces, U.S. Air Force Joint Fires Network, and U.S. Army Next-Gen Command and Control applications. We're actively working with multiple partners on longer-term opportunities that we believe can attain profitable baseline revenue in the business over the next year. The second priority is improving gross margin within our Battery & Energy business, with our Newark operations serving as the initial focus. As discussed on the last earnings call, we successfully addressed the significant scrap issue associated with our largest margin-impacting product line and began realizing positive P&L benefits as we ended the second quarter. We've also corrected the second largest contributor to margin inefficiencies, and updates are currently being implemented through the supply chain, with benefits expected to begin materializing mid-Q3. These two initiatives alone are expected to generate annual savings of approximately $600,000 to $800,000 to the Battery & Energy gross margin. We have several lean manufacturing and automation projects underway at our Raynham facility, aimed at increasing throughput, improving quality, and enhancing operational efficiency. These investments are particularly important as we anticipate more than 30% growth in customer demand and cell consumption over the next year. Third, we continue to expand the vertical integration opportunities resulting from the Electrochem acquisition, enabling us to incorporate Electrochem cells into our existing battery pack assemblies and increase the amount of content we provide to customers. This strategy not only enhances our competitive position, but also broadens our addressable market for battery pack solutions. In addition, through our enhanced marketing efforts, we are experiencing growing demand in support of both large and small water-based drone platforms utilizing Electrochem cells. These opportunities are progressing well, and we expect them to contribute meaningful incremental revenue beginning in the fourth quarter and continuing over the next several years. Lastly, on priority 4, we are well underway in our company branding realignment under the Ultralife Master brand, which will be completed this year, clarifying our customer messaging and market positioning as a market leader in battery and RF Products. Switching to development projects, we continue to invest in products on both sides of the business to drive revenue and opportunities for organic growth. Within communication systems, continued focus remains on multiple new product development projects with 2026 launch dates. We're expanding our ruggedized computing portfolio by integrating new HPE server products and configurations tailored for tactical and mission-critical environments. We have already received several initial orders and continue to pursue additional program awards with expected 2026 deliveries. Our new 21 amplifier is under evaluation with multiple global customers for potential adoption in key modernization programs, while we continue to receive orders from international partners with deliveries expected this year. We remain engaged with radio manufacturers to pair amplifiers with OEM platforms and drive pull-through sales opportunities. We will introduce the advanced variant of the 21 amplifier in 2026, supporting the newest high-speed single-channel and frequency-hopping MANET waveforms in a compact, body-worn form factor. We're also releasing new vehicle radio mounts in 2026 that integrate our entire amplifier portfolio with multiple handheld radio platforms, providing customers with a cost-effective universal mounting solution for both legacy vehicle fleets and new vehicle programs. Our Crescent small form factor wearable edge compute solution, which provides portable high-end compute capability in manned vehicle and drone applications, is in the final design stages. We have an established strong partner ecosystem to support hardware development, system integration, and software tool development while incorporating voice of customer feedback to refine requirements, with the first prototypes available later this year. On the Battery & Energy side of the business, our primary focus remains driving new business growth through transformational programs and strategic OEM partnerships. We currently have multiple OEM development programs underway aimed at bringing new customer-specific products to market over the next several years. In addition, we are collaborating with existing customers on several initiatives to enhance the performance of current products and refresh product designs to meet evolving market requirements. With respect to our conformal battery, which powers dismounted soldier systems, I'm pleased to say we have shipped more than $2 million in orders during 2026. Current backlog exceeds $7 million and is expected to fully ship before year-end. We have secured several cell and battery pack development programs supporting water-based defense drone applications. Design and prototype funding is in place for 2026, with production expected to begin in early 2027. This represents an exciting and expanding segment of our business where we have an established leadership position as a supplier of advanced underwater battery solutions in both rechargeable and non-rechargeable configurations. We are nearing completion of product development activities with an OEM partner for a rechargeable power pack powering a remote surveillance system. This development and product certifications are scheduled to be completed in Q4, with product deliveries beginning in early 2027. We've established initial production capabilities for our thin cell technology platform to support customers in the medical wearables and asset tracking markets. Our sales pipeline continues to gain momentum with several opportunities advancing through qualification processes. These ultra-thin battery designs enable smaller, more discreet wearable sensors than those typically available today, improving user comfort while delivering longer device operating life. Continued investment in new product development remains a key component of our long-term growth strategy. Expanding and diversifying our product portfolio not only creates new revenue opportunities, but also reinforces our legacy of delivering mission-critical power solutions. Our strategic priorities remain unchanged: converting long-term development programs into recurring revenue, advancing vertical integration where it creates value, and maintaining a disciplined focus on operational excellence and efficiency improvements. During 2026, we've made meaningful progress on gross margin improvement initiatives within the battery business. Looking ahead, we have multiple new communication system products scheduled for launch this year in support of next-gen command and control programs. At the same time, we continue to streamline our operations and strengthen our market recognition through our consolidation of our business under the Ultralife Master brand. With a healthy backlog exceeding $117 million as we enter the second quarter and a robust development pipeline across both business segments, we are well positioned for revenue growth. Several custom battery programs serving medical, safety, and drone markets are expected to transition to new production later this year and into 2027. In addition new amplification and man-wearable computing products are slated for release in our Communications Systems business, further supporting our growth outlook and expanding our market opportunities. I will now pass it back to the operator for questions. Operator: [Operator Instructions] Our first question comes from the line of Will Lauber of Visionary Wealth Advisors. Your line is open, Will. William Lauber: I guess my question was, I saw last month that L3Harris had won the NGC2 award for their Falcon Manpack. I'm assuming that you guys will get some or most of that business. So I guess my question is, what has happened to the backlog since the end of the quarter, or how much has been added in July? Michael Manna: Well, in July, we've had a lot of order pull-through to our backlog. I mean, we're almost at $130 million as we sit today. William Lauber: Okay. And with the Falcon Manpack order, would it be safe to assume that, that was just like one division and it will roll out to all the divisions? Or do you have any insight into that? Michael Manna: We do not directly have the insight as to which divisions it's going to at this point. We may in the future, but right now we don't. William Lauber: Okay. And then with the Hewlett Packard Enterprise servers for the NGC2, I noticed that the Army had conducted some tests in some pretty extreme conditions last month. Is there any kind of report as to how the Hewlett Packard servers held up in that heat? Michael Manna: Well, from what we hear, everything made it through the testing. We don't really get a lot of detail other than that at this point. Philip A. Fain: But accompanying the Hewlett Packard Enterprise servers is our state-of-the-art cooling system. So when you're dealing with some extreme heat, let's say in California -- Fort Irwin in California, they're designed to withstand that heat. William Lauber: Okay. That's good, because I saw in some of the press mentions that there was some of the equipment that didn't handle the heat as well. Operator: [Operator Instructions] I would now like to turn the conference back to Mike Manna for closing remarks. Sir? Michael Manna: All right. Thanks, everyone, for listening to today's call. We look forward to talking to you next time during the Q3 2026 earnings call. Bye now. Operator: This concludes today's conference call. Thank you for participating. You may now disconnect. Before you buy stock in Ultralife, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Ultralife wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $397,405!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,344,091!* That performance is why people listen. With a track record of beating the S&P 500 by 4x, Stock Advisor offers a distinct advantage. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built for the long haul. See the 10 stocks » *Stock Advisor returns as of August 7, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Ultralife (ULBI) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

NEWARK, N.Y., Aug. 07, 2026 (GLOBE NEWSWIRE) -- Ultralife Corporation (NASDAQ: ULBI) reported operating results for the second quarter ended June 30, 2026 with the following results: Sales of $47.9 million compared to $48.6 million for the 2025 second quarter Gross profit of $13.9 million, or 28.9% of revenue, compared to $11.6 million, or 23.9% of revenue, for the 2025 second quarter; excluding a $1.1 million net IEEPA refund received in the 2026 second quarter, gross margin was 26.6% Operating income of $3.4 million, including one-time costs of $0.9 million, compared to $2.3 million including one-time costs of $0.3 million for the 2025 second quarter GAAP EPS of $0.15 compared to $0.05 for the 2025 second quarter Adjusted EBITDA of $6.1 million compared to $4.1 million for the 2025 second quarter Backlog of $117.5 million compared to $115.1 million exiting the first quarter of 2026 “For the second quarter we delivered a 760-basis point improvement in gross profit margin compared to the first quarter, including the contribution of the net IEEPA refund. This improvement reflects measurable benefits realized to date from our initiatives to address manufacturing inefficiencies along with favorable sales mix. Our Communications Systems business is poised to produce revenue gains as new products move through the capture phase, and continues to expand its opportunity funnel while preparing to launch multiple new products later this year in support of government/defense programs. At the same time, we are advancing a diverse set of product development programs in our Battery & Energy Products business including programs to support water-based defense drone applications. Several of these programs are expected to transition into production later this year while we continue to execute our backlog. These multi-year revenue opportunities combined with our ongoing gross margin improvement initiatives, reinforce our outlook for profitable growth in 2026,” said Mike Manna, President and Chief Executive Officer. Second Quarter 2026 Financial Results Revenue was $47.9 million, a decrease of $0.6 million, or 1.3%, as compared to revenue of $48.6 million for the second quarter of 2025. Battery & Energy Products sales decreased 3.7% to $44.2 million compared to $45.9 million last year. The year-over-year decrease reflects a 4.7% decline in commercial sales due to an 8.7% decline in oil & gas and industrial sales offsetting a 7.2% increase in medical battery sales, and a 1.4% decline in government/defense sales due to the shipment of a very large order for an allied country last year. Communications Systems sales increased by 39.3% to $3.8 million compared to $2.7 million for the same period last year. Our total backlog exiting the second quarter was $117.5 million, the highest level in the Company’s history, compared to $115.1 million exiting the first quarter of 2026 and $84.5 million exiting the second quarter of 2025. Gross profit was $13.9 million, or 28.9% of revenue, compared to $11.6 million, or 23.9% of revenue, for the same quarter a year ago. Battery & Energy Products gross margin was 28.3%, compared to 23.6% last year, primarily due to favorable product mix and the refund of the IEEPA tariffs in the current period. Communications Systems gross margin was 36.3% compared to 28.4% last year, primarily due to sales mix. Operating expenses were $10.4 million, compared to $9.3 million for the second quarter of 2025, reflecting an increase in new product development costs related to continued investment in our product offering, and one-time, non-recurring costs of $0.9 million primarily related to litigation expenses incurred for our cyber-insurance claim and the completion of certain consulting costs to help expedite our gross margin improvement. Operating expenses were 21.8% of revenue compared to 19.2% of revenue for the year-earlier period. Operating income was $3.4 million compared to $2.3 million last year. Other expense was $0.5 million primarily comprised of interest expense from the financing of our Electrochem acquisition partially offset by the second quarter estimated portion of a refundable tax credit for certain qualifying battery cells and packs we manufacture under the 45X Advanced Manufacturing Production Tax Credit. This compares to $1.1 million for the year-earlier period primarily reflecting the Electrochem acquisition financing and net foreign currency losses. Net income attributable to Ultralife Corporation was $2.5 million or $0.15 per basic and diluted share on a GAAP basis, compared to $0.9 million or $0.05 per basic and diluted share for the second quarter of 2025. Adjusted EBITDA, defined as EBITDA including non-cash, stock-based compensation expense and one-time costs not reflective of our ongoing operations, was $6.1 million for the second quarter of 2026, or 12.8% of sales, compared to $4.1 million, or 8.5% of sales, for the year-earlier period. On a trailing twelve-month basis, adjusted EBITDA was $17.1 million or 9.1% of sales. See the “Non-GAAP Financial Measures” section of this release for a reconciliation of adjusted EBITDA to net income attributable to Ultralife Corporation. About Ultralife Corporation Ultralife Corporation serves its markets with products and services ranging from power solutions to communications and electronics systems. Through its engineering and collaborative approach to problem solving, Ultralife serves government/defense and commercial customers across the globe. Headquartered in Newark, New York, the Company's business segments include Battery & Energy Products and Communications Systems. Ultralife has operations in North America, Europe and Asia. For more information, visit www.ultralifecorporation.com. Conference Call Information Ultralife will hold its second quarter earnings conference call today at 8:00 AM ET. To ensure a fast and reliable connection to our investor conference call, we now require participants dialing in by phone to register using the following link prior to the call: https://register-conf.media-server.com/register/BI4beea58f157a441ba44284b283b1001f. This will eliminate the need to speak with an operator. Once registered, dial-in information will be provided along with a personal identification number. Should you register early and misplace your details, you can simply click back on this same link at any time to register and view this information again. A live webcast of the conference call will be available to investors in the Events & Presentations section of the Company's website at http://investor.ultralifecorporation.com. For those who cannot listen to the live broadcast, a replay of the webcast will be available shortly after the call at the same location. This press release may contain forward-looking statements based on current expectations that involve a number of risks and uncertainties. The potential risks and uncertainties that could cause actual results to differ materially include uncertain global economic conditions including the impact of tariffs and inflation, reductions in revenues from key customers, delays or reductions in U.S. and foreign military spending, acceptance of our new products on a global basis, and disruptions, delays or material price increases in our supply of raw materials and components due to business conditions, new or additional tariffs, global conflicts, weather or other factors not under our control. The Company cautions investors not to place undue reliance on forward-looking statements, which reflect the Company's analysis only as of today's date. The Company undertakes no obligation to publicly update forward-looking statements to reflect subsequent events or circumstances. Further information on these factors and other factors that could affect Ultralife’s financial results is included in Ultralife’s Securities and Exchange Commission (SEC) filings, including the latest Annual Report on Form 10-K. Non-GAAP Financial Measures Adjusted EBITDA In evaluating our business, we consider and use adjusted EBITDA, a non-GAAP financial measure, as a supplemental measure of our operating performance in addition to GAAP financial measures. We define adjusted EBITDA as net income attributable to Ultralife Corporation before net interest expense, provision for income taxes, depreciation and amortization, and stock-based compensation expense, plus/minus expense/income that we do not consider reflective of our ongoing continuing operations. We reconcile adjusted EBITDA to net income attributable to Ultralife Corporation, the most comparable financial measure under GAAP. Neither current nor potential investors in our securities should rely on adjusted EBITDA as a substitute for any GAAP measures and we encourage investors to review the following reconciliation of adjusted EBITDA to net income attributable to Ultralife Corporation.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Achieved a record backlog of $117.5 million, a 39% year-over-year increase, driven by high replenishment rates and the transition of new products from development to commercialization. Attributed gross margin expansion to a favorable product mix and the resolution of manufacturing inefficiencies, specifically addressing scrap issues in the Newark facility. Capitalized on defense spending trends favoring force modernization and advanced network capabilities, aligning the product portfolio with emerging military program requirements. Advanced vertical integration by incorporating Electrochem cells into existing battery pack assemblies, increasing internal content and enhancing competitive positioning in the battery market. Initiated a brand realignment to consolidate sub-brands under the Ultralife Master brand to clarify market positioning in RF and portable power products. Managed a shift in commercial revenue dynamics, where a 7.2% increase in medical battery sales helped offset declines in oil and gas sales caused by geopolitical factors. Anticipates more than 30% growth in customer demand and cell consumption at the Raynham facility over the next year, supported by lean manufacturing and automation projects. Expects gross margin improvement initiatives in the Battery & Energy segment to generate annual savings between $600,000 and $800,000 as supply chain updates materialize in mid-Q3. Projects meaningful incremental revenue from water-based drone platforms starting in the fourth quarter of 2026 and continuing over several years. Plans the 2026 launch of an advanced variant of the 21 amplifier and new universal vehicle radio mounts to support high-speed MANET waveforms and legacy fleet upgrades. Targets early 2027 for the start of production on several custom battery programs for medical, safety, and remote surveillance applications. Recognized a $1.1 million net refund of IEEPA tariffs previously recorded as costs, which contributed 230 basis points to the consolidated gross margin. Incurred $0.9 million in one-time costs related to litigation for a cyber insurance claim and consulting fees aimed at expediting manufacturing improvements. Benefited from the 45X Advanced Manufacturing Production Tax Credit under the Inflation Reduction Act, which partially offset interest expenses from acquisition financing. Noted a decline in government defense sales within the battery segment due to a difficult year-over-year comparison against a very large allied country order in 2025. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management confirmed the backlog has continued to grow since the quarter ended, reaching approximately $130 million as of the call date. While acknowledging the L3Harris Falcon Manpack award, management stated they do not yet have direct insight into which specific divisions the business will flow through. Management reported that equipment successfully passed recent Army testing in extreme conditions, though specific details remain limited. Highlighted that the servers are paired with a proprietary state-of-the-art cooling system specifically designed to withstand high-heat environments like Fort Irwin.

Interested in Ultralife Corporation? Here are five stocks we like better. Ultralife’s Q2 performance improved despite slightly lower revenue: Revenue was $47.9 million, down modestly year over year, while net income rose to $2.5 million and adjusted EBITDA increased to $6.1 million. Gross margin expanded to 28.9%, partly due to a $1.1 million tariff refund. Backlog reached record levels and continued rising: Quarterly backlog totaled $117.5 million, up 39% year over year, and management said July orders lifted it to nearly $130 million. The backlog remains diversified, with replenishment orders representing 63% of trailing-12-month sales. Ultralife is investing for future growth and margin gains: The company is targeting communications growth, battery-business efficiency, greater vertical integration and manufacturing improvements expected to generate $600,000–$800,000 in annual gross-margin savings. Several battery, drone, surveillance and communications programs are progressing toward production in 2027. Ultralife (NASDAQ:ULBI) reported second-quarter 2026 revenue of $47.9 million, operating income of $3.4 million and diluted earnings per share of $0.15, as the company cited stronger gross margins, a record backlog and continued investment in product development across its battery and communications businesses. Revenue was modestly below the $48.6 million reported in the second quarter of 2025. Government defense sales increased 5% on a consolidated basis, while commercial sales declined 4.7%. Net income rose to $2.5 million, or $0.15 per diluted share, from $0.9 million, or $0.05 per diluted share, a year earlier. → Meta’s Earnings Drop Shows Wall Street Wants More Than Ad Growth Ultralife ended the quarter with backlog of $117.5 million, the highest level in its history and a 39% increase from the comparable 2025 period. The backlog included more than $14 million from products released during the prior year, including conformal wearable batteries, updated manpack radio batteries for a NATO partner, amplifiers, speakers and battery packs for medical and safety customers. President and CEO Mike Manna said the company’s expanding product portfolio is moving from development toward commercialization. During the question-and-answer session, Manna said order activity during July had lifted backlog to “almost at $130 million as we sit today.” → 4 Oil and Gas ETF Plays as Prices Stay Sky-High Management said backlog remained diversified between commercial and government defense customers, with replenishment representing 63% of trailing-12-month sales. Consolidated gross profit increased 19.5% year over year to $13.9 million, and gross margin expanded 500 basis points to 28.9%. Chief Financial Officer Phil Fain said the improvement reflected favorable product mix in both segments as well as a $1.1 million net refund of IEEPA tariffs that had been recognized as costs in earlier periods. → Sandisk Just Delivered a Blowout Quarter—Here's Why the Stock Is Falling The tariff refund accounted for 230 basis points of the year-over-year gross-margin expansion. Excluding the refund, Fain said consolidated gross margin was 26.6%. Operating expenses increased 10.6% to $10.4 million. New-product development costs rose 39.1% as Ultralife continued investing in its portfolio and vertical-integration opportunities. Expenses also included $0.9 million of one-time costs related to litigation for a cyber-insurance claim and consulting fees intended to accelerate gross-margin improvements at its two largest manufacturing facilities. Adjusted EBITDA totaled $6.1 million, or 12.8% of sales, compared with $4.1 million, or 8.5% of sales, in the prior-year period. Battery & Energy Products revenue declined 3.7% to $44.2 million. Commercial sales were affected by lower oil-and-gas sales tied to geopolitical factors, partly offset by a 7.2% increase in medical battery sales. Government defense revenue in the segment fell 1.4%, which Fain attributed to shipments of a large allied-country order in the prior-year quarter. Battery & Energy Products gross profit rose 15.4% to $12.5 million, while gross margin improved to 28.3% from 23.6%. Excluding the tariff refund, segment gross margin was 25.8%. Communications Systems revenue increased 39.3% to $3.8 million, primarily due to the timing of orders. The segment’s gross profit rose to $1.4 million from $0.8 million, with gross margin increasing to 36.3% from 28.4%, driven mainly by favorable sales mix. Manna outlined four priorities for 2026: accelerating revenue capture in Communications Systems, improving margins in Battery & Energy Products, expanding vertical integration following the Electrochem acquisition, and completing a corporate branding realignment under the Ultralife master brand. At its Raynham operation, Ultralife said it addressed a major scrap issue affecting its largest margin-impacting product line and began seeing profit-and-loss benefits near the end of the second quarter. The company also corrected the second-largest source of margin inefficiency, with supply-chain updates expected to begin producing benefits in mid-third quarter. Management expects the two initiatives to generate approximately $600,000 to $800,000 in annual gross-margin savings. The company is also pursuing lean manufacturing and automation projects at Raynham as it anticipates more than 30% growth in customer demand and cell consumption over the next year. Ultralife shipped more than $2 million of conformal battery orders during 2026 and held more than $7 million of related backlog expected to ship before year-end. The company said water-based defense drone programs have design and prototype funding in place for 2026, with production expected to begin in early 2027. A rechargeable power-pack program for a remote surveillance system is expected to complete development and certifications in the fourth quarter, with deliveries beginning in early 2027. Thin-cell technology production capabilities have been established for medical wearable and asset-tracking customers, with opportunities progressing through qualification. Within Communications Systems, Ultralife showcased its StrikeHub product line during the quarter, targeting special operations, U.S. Air Force Joint Fires Network and U.S. Army Next Generation Command and Control applications. The company also discussed new ruggedized computing configurations incorporating HPE server products, a 20-watt amplifier under evaluation by global customers, vehicle radio mounts and its Crescent wearable edge-computing system, for which first prototypes are expected later this year. During the call, Manna said Ultralife had heard that equipment made it through recent testing involving HPE servers, though he said the company did not receive significant additional detail. Fain added that Ultralife’s cooling system accompanying the servers is designed to withstand extreme heat conditions. Ultralife ended the quarter with working capital of $69.8 million and a current ratio of 2.9, compared with $68.5 million and 2.8, respectively, at the end of 2025. Ultralife Corporation (NASDAQ: ULBI) develops, manufactures and sells a broad range of energy and communications products for defense, medical, automotive and consumer electronics markets. The company operates through two primary segments: Power Systems and Communications Systems. In its Power Systems segment, Ultralife produces lithium-ion rechargeable cells and battery packs, primary lithium batteries, alkaline and rechargeable battery packs, chargers and battery accessories designed to meet demanding performance and safety requirements. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Ultralife Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

This article first appeared on GuruFocus. Revenue: $47.9 million, compared to $48.6 million in Q2 2025. EPS: $0.15 per share on a GAAP fully diluted basis, up from $0.05 per share in the year-ago quarter. Net Income: $2.5 million, compared to $0.9 million in Q2 2025. Gross Profit: $13.9 million, up 19.5% year-over-year. Gross Margin: 28.9%, a 500 basis point increase from 23.9% in Q2 2025. Operating Income: $3.4 million, compared to $2.3 million last year. Operating Margin: 7.2%, compared to 4.7% in Q2 2025. Adjusted EBITDA: $6.1 million, or 12.8% of sales, compared to $4.1 million or 8.5% in the prior year quarter. Backlog: Record $117.5 million, up 39% year-over-year. Battery and Energy Products Revenue: $44.2 million, a 3.7% decrease from $45.9 million last year. Communication Systems Revenue: $3.8 million, up 39.3% from $2.7 million in Q2 2025. Government Defense Sales: Increased 5% on a consolidated basis. Commercial Sales: Decreased 4.7% on a consolidated basis. Medical Battery Sales: Increased 7.2% year-over-year. Operating Expenses: $10.4 million, up 10.6% from the year-earlier quarter. Warning! GuruFocus has detected 3 Warning Signs with ULBI. Is ULBI fairly valued? Test your thesis with our free DCF calculator. Release Date: August 07, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Record backlog of $117.5 million, up 39% year-over-year, with further growth to nearly $130 million in July. Gross margin improved significantly to 28.9%, a 500 basis point increase year-over-year, driven by favorable product mix and a net tariff refund. Communication Systems segment revenue surged 39.3% year-over-year, supported by new product launches and a growing opportunity funnel. Operational improvements at Newark and Raynam facilities are yielding measurable benefits, with initiatives expected to generate $600,000 to $800,000 in annual gross margin savings. Strong growth in defense-related demand, including conformal wearable battery orders exceeding $2 million in 2026 and a backlog of over $7 million, plus expanding opportunities in underwater drone applications. Consolidated revenue declined 1.4% year-over-year to $47.9 million, impacted by lower commercial sales, particularly in oil and gas due to geopolitical factors. Battery and Energy Products segment revenue decreased 3.7% year-over-year, with a 4.7% drop in commercial sales and a 1.4% decline in government defense sales due to a large prior-year order. Operating expenses increased 10.6% year-over-year, driven by higher new product development costs and one-time expenses for litigation and consulting fees. Gross margin improvement was partly due to a one-time net tariff refund of $1.1 million, which accounted for 230 basis points of the increase, indicating underlying margin expansion is less robust. The company faces ongoing challenges in the Communication Systems business, which remains volatile with revenue dependent on order timing, and new product launches are still in early commercialization stages. Q: What has happened to the backlog since the end of the quarter, and how much has been added in July, especially in light of the L3Harris NGC2 award? A: Mike Manna (President and CEO) stated that July saw significant order pull-through, with the backlog now standing at almost $130 million, up from the record $117.5 million reported at the end of Q2. Q: With the Falcon Manpack order from L3Harris, do you have insight into which divisions it will roll out to? A: Mike Manna (President and CEO) noted that the company does not currently have direct insight into which divisions the order will be allocated to, though they may gain that visibility in the future. Q: Regarding the Hewlett Packard Enterprise servers for NGC2, did they perform well in the Army's extreme heat testing last month? A: Mike Manna (President and CEO) confirmed that, based on available information, all equipment made it through the testing. Phil Fain (CFO) added that the servers are accompanied by state-of-the-art cooling systems designed to withstand extreme heat conditions, such as those at Fort Irwin, California. Q: Can you provide more detail on the record backlog and the contribution from new products? A: Mike Manna (President and CEO) highlighted that the company exited Q2 with a record backlog of $117.5 million, a 39% increase year-over-year. Over $14 million of this backlog is for products released within the last year, including the conformal wearable battery, an updated man-packed radio battery for a NATO partner, and new amplifiers, speakers, and battery packs for medical and safety customers. Q: What were the key drivers behind the significant gross margin improvement in the second quarter? A: Phil Fain (CFO) explained that consolidated gross margin increased 500 basis points to 28.9%, driven by favorable sales product mix in both segments and a net refund of IEEPA tariffs. The tariff refund of $1.1 million accounted for 230 basis points of the improvement. Excluding this refund, the underlying gross margin was 26.6%, reflecting operational improvements. Q: What are the specific initiatives to improve gross margin in the Battery and Energy Products segment, and what savings are expected? A: Mike Manna (President and CEO) detailed that the company has addressed the significant scrap issue on its largest margin-impacting product line and corrected the second-largest contributor to margin inefficiencies. These two initiatives alone are expected to generate annual savings of approximately $600,000 to $800,000 to the battery and energy gross margin, with benefits from the second initiative expected to begin in mid-Q3. Q: Can you elaborate on the vertical integration opportunities from the Electrochem acquisition and the demand for underwater drone platforms? A: Mike Manna (President and CEO) stated that the company is incorporating Electrochem cells into existing battery pack assemblies to increase content provided to customers. They are experiencing growing demand for both large and small water-based drone platforms, with these opportunities expected to contribute meaningful incremental revenue beginning in Q4 and continuing over the next several years. Q: What is the status of the conformal wearable battery program and its expected shipments? A: Mike Manna (President and CEO) reported that the company has shipped more than $2 million in orders for the conformal battery during 2026. The current backlog exceeds $7 million and is expected to fully ship before year-end. Q: What are the key new product launches planned for the Communication Systems segment in 2026? A: Mike Manna (President and CEO) outlined several launches, including the advanced variant of the 21 amplifier supporting new high-speed waveforms, new vehicle radio mounts integrating the amplifier portfolio, and the Crescent small form factor wearable edge compute solution. The company also showcased its new StrikeHub product line at Special Operations Week and HPE Discover, targeting Special Operations Forces and NextGen Command and Control applications. Q: Can you provide an update on the development of the rechargeable power pack for the remote surveillance system and the ThinCell technology platform? A: Mike Manna (President and CEO) noted that product development and certifications for the rechargeable power pack with an OEM partner are scheduled to be completed in Q4, with deliveries beginning in early 2027. For the ThinCell platform, initial production capabilities have been established to support customers in medical wearables and asset tracking, with the sales pipeline gaining momentum as several opportunities advance through qualification. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Image source: The Motley Fool. Friday, May 8, 2026 at 8:30 a.m. ET President and Chief Executive Officer — Michael Manna Chief Financial Officer — Philip A. Fain Mike Manna, Ultralife's President and CEO; and Phil Fain, Ultralife's Chief Financial Officer. The earnings press release was issued earlier this morning. And if anyone has not yet received a copy, I invite you to visit the company's website, ultralifecorp.com, where you'll find the release under Investor News in the Investor Relations section. Before turning the call over to management, I would like to remind everyone that some statements made during this conference call contain forward-looking statements based on current expectations. Actual results could differ materially from those projected as a result of various risks and uncertainties. The potential risks and uncertainties that could cause actual results to differ materially include uncertain global economic conditions, reductions in revenues from key customers, delays or reductions in U.S. and foreign military spending, acceptance of our new products on a global basis and disruptions or delays in our supply of raw materials and components due to business conditions, global conflicts, weather or other factors not under our control. The company cautions investors not to place undue reliance on forward-looking statements, which reflect the company's analysis only as of today's date. The company undertakes no obligation to publicly update forward-looking statements to reflect subsequent events or circumstances. Further information on these factors and other factors that could cause or affect Ultralife's financial results is included in the company's filings with the Securities and Exchange Commission, including the latest annual report on Form 10-K. In addition, on today's call, management will refer to certain non-GAAP financial measures that management considers to be useful and differ from GAAP. These non-GAAP measures should be considered supplemental to corresponding GAAP figures. With that, I would now like to turn the call over to Mike. Good morning, Mike. Michael Manna: Good morning. Welcome to Ultralife's Q1 2026 Earnings Call. Earlier today, we announced Q1 revenue of $47.4 million with an operating profit loss of $0.2 million, which resulted in a loss of $0.03 per share. We had a challenging start to the year on both sides of the business due to several factors, including order shipment timing, shipment delays to our Middle East customers, plant shutdowns for reorganization and weather events and consultation fees. We have a growing backlog and product portfolio due to new product releases that we need to support this year. So we have added and trained direct labor resources in our Random and Newark facilities to staff lines for the increased demand expected in 2026. This expense comes free revenue is critical given the nature of our products to ensure product quality. We now have new experienced plant leadership in both of those locations to drive manufacturing efficiencies and gross margin initiatives. Our Communication Systems business, which I acknowledge had another underwhelming quarter, has multiple new products and projects underway to grow the baseline revenue and stabilize the business. We believe in the upside of this business and continue to invest in product development to capture large, sustained revenue opportunities. A large part of the communications business continues to be government-related with long development and procurement cycles for the products we sell. We exited the quarter with a record backlog of $115.1 million with over $12 million of backlog from products released within the last year. These new product launches are dependent on the launch schedules of our customers' product and often we incur training and ramp costs prior to revenue capture. We continue our brand realignment under the Ultralife brand, which will bring clear concise messaging to our customers that we design and deliver critical RF and portable power products. I will turn it over to Phil to talk through the detailed numbers. Philip A. Fain: Thank you, Mike, and good morning, everyone. Earlier this morning, we released our first quarter results for the quarter ended March 31, 2026. We have also filed our Form 10-Q with the SEC. Consolidated revenues totaled $47.4 million compared to $50.7 million for the first quarter of 2025. Revenues from our Battery & Energy Products segment were $44.2 million compared to $46.3 million last year, a 4.7% decrease. The year-over-year decrease reflects a 5.5% decline in commercial sales attributable to oil and gas customers and a 2.7% decline in government defense sales relative to the shipment of a very large order for an allied country last year. Medical sales increased 5.9% for the 2026 quarter. The sales split between commercial and government defense for our battery business was 69-31 compared to 64-36 reported for the 2025 quarter, and the domestic to international split was 66-34 compared to 78-22 for the 2025 period, reflecting the global demand for our products. Revenues from our Communications Systems segment of $3.3 million declined 25.7% from the $4.4 million we reported last year, resulting from the timing of expected orders. On a consolidated basis, the commercial to government defense sales split was 64-36 compared to 58-42 for the 2026 and 2025 quarters, respectively. Our total backlog exiting the first quarter was $115.1 million, the highest level in the company's history and representing a $20.1 million or a 21.1% increase over the comparable 2025 period. The backlog remains diverse in nature across our commercial and government defense customer base and the replenishment rate remains high, representing 61% of trailing 12-month sales. Our consolidated gross profit was $10.1 million, down 20.7% from the 2025 period. As a percentage of total revenues, consolidated gross margin was 21.3%, a 380 basis point decline from the 25.1% reported for last year's first quarter. Gross profit for our Battery & Energy Products business was $9.4 million compared to $11.4 million last year, a decrease of 18.2%. Gross margin was 21.2% compared to 24.7% last year. The year-over-year reduction primarily resulted from nonrecurring events resulting in lost production days in the 2026 period, negatively impacting gross margin by approximately $0.8 million. This included 3-plus days due to the failure of the substation that provides power to our Newark facility and 16 days equivalent to over 25% of the total Q1 production days for our Ranum facility for multiple reasons. including the preparation, execution and reconciliation of our initial wall-to-wall physical inventory with full integration into the new ERP system, the disposal of fully reserved obsolete inventory and overall realignment to minimize our use of costly outside warehousing, all of which was further compounded by severe weather. In addition to the aforementioned, also impacting gross margin were higher energy costs experienced in our Northeast facility and our sales mix, which resulted in higher net tariff costs. For our Communications Systems segment, gross profit was $0.8 million compared to $1.3 million for the year earlier period. Gross margin was 21.2% compared to 29.5% last year, primarily due to lower factory volume and product mix. Operating expenses were $10.3 million, an increase of $1 million or 10.5% from the year earlier quarter. The majority of the year-over-year increase is comprised of onetime costs exceeding $0.8 million related to certain consulting fees to help expedite our gross margin improvement in our 2 largest manufacturing facilities, litigation expenses incurred for our cybersecurity claim and the final costs for our Random systems transition. In addition, new product development costs increased 23.3% related to the continued investment in our product offering and vertical integration opportunities within our portfolio. As a percentage of revenues, operating expenses were 21.8% compared to 18.4% for last year's first quarter. We incurred an operating loss of $0.2 million compared to income of $3.4 million last year, primarily reflecting the lost production days and onetime costs in our Battery & Energy Products segment and the 25.7% decline in Communication Systems sales. Other expense reported below operating income was $0.4 million for the quarter, primarily comprised of interest expense from the financing of our Electrochem acquisition, partially offset by the first quarter estimated portion of a refundable tax credit for certain qualifying battery cells and packs we manufacture under the 45x advanced manufacturing production tax credit. This tax credit was established by the Inflation Reduction Act and runs through 2032. This compares to expense of $1 million for the year earlier period, reflecting the acquisition financing. Our resulting tax benefit for the first quarter was $0.2 million compared to a provision of $0.6 million computed on a GAAP basis at statutory rates. Net loss was $0.5 million or $0.03 per share compared to income of $1.9 million or $0.11 per share on a GAAP basis. Adjusted EBITDA, defined as EBITDA, including noncash stock-based compensation expense and onetime acquisition and other nonrecurring costs, not reflective of our ongoing operations was $3.2 million or 6.8% of sales compared to $5.4 million or 10.7% for the prior year quarter. Adjusted EBITDA on a TTM basis is $15 million or 8% of sales. Turning to our balance sheet. We ended the first quarter with working capital of $67.1 million and a current ratio of 2.6 compared to $68.5 million and 2.8 for 2025 year-end. Looking beyond our first quarter results, our backlog, the sheer number of our growth initiatives, including our conformal wearable battery order now in hand, upgraded leadership in our 2 largest manufacturing facilities focused on gross margin improvement, progress with our vertical integration opportunities and the transition of our various sub-brands to the Ultralife master brand keep us positioned to realize the leverage of our business model. I will now turn it back to Mike. Michael Manna: Thank you, Phil, for the detailed review of the Q1 2026 results. For 2026, we have 4 distinct priorities underway. Our first priority is to improve the revenue capture of the Communication Systems business. We have several new products in the commercial capture phase with initial orders received and multiple new products slated for release this year. We're actively working with multiple partners on long-term programs of record and long-term projects that we believe will bring recurring baseline revenue back into the business over the next year. The second priority, which is in our Battery and Energy business is improved gross margin with the initial target being our Newark operation. We have identified a corrective action for the largest contributor of scrap, which has been implemented and will start eliminating the issue midyear as we work through existing parts supply with ongoing efforts to identify root cause and corrective actions and other major scrap contributors. We continue to work lean and process improvements at all facilities to existing lines and on new product lines is added in the facilities. We continue to add -- expand vertical integration opportunities enabled by the acquisition of Electrochem, allowing us to incorporate Electrochem cells into existing pack assemblies and broaden our addressable pack assembly market. We have combined the like entities into a single subdivision within the Battery & Energy Products business, now internally known as the Telemetry Power Systems business. We expect to more than double the use of our own cells internal packs this year as customer qualifications are completed. Lastly, we are focused on the company-wide branding alignment, which is well underway and will be completed this year, clarifying our customer messaging and market positioning. Switching to development projects. We continue to invest in products on both sides of the business to drive revenue and opportunities for organic growth. Our Communication Systems business continues to expand our global military vehicle business, highlighted by a recent $4 million multiyear award from an international partner for our universal vehicle adapter, a handheld radio charger supporting legacy and current radios. We're integrating multiple HPE server products and configurations to expand opportunity in the ruggedized computing market. We received several smaller orders and are pursuing additional program awards with expected Q2 deliveries while continuing customer engagements to capture voice of customer feedback and improve the performance and adaptation of these kits. We received funding from a special operations organization to develop and field initial prototypes of a vehicle-based tactical network hub, Strike Hub, integrating HPE servers, switches and power management. Strike Hub is a potential solution for the emerging next-gen command and control NGC2 tactical network requirements initiative. Our new 20-watt amplifier has received multiple orders with deliveries expected in Q2 and Q3 2026. We are engaging radio manufacturers to pair the amplifier with OEM radios to drive pull-through sales. Later this year, we plan to introduce an advanced variant, a 20-watt amplifier that supports the newest high-speed single-channel and frequency hoppening mini waveforms in a compact body warm form factor. We are developing new radio mounts that integrate our amplifiers with various handheld radios, providing a cost-effective adaptical vehicle mounting solution, which is planned for availability later in 2026. Our crushing small form factor wearable AI compute solution continues to advance. We have assembled a strong partner team supporting hardware development, integration and software tools to capture voice of customer requirements and accelerate the progress toward initial prototypes expected in 2026. On the Battery and Energy side of the business, we are focused on new business growth through our transformational projects and OEM partnerships. We have multiple OEM projects ongoing to bring new customer bespoke products to market over the coming years and with existing customers to revise existing products to increase performance and/or refresh designs. On the conformal wearable battery used to power dismounted soldier systems, I am pleased to say we shipped our first order in full and have current backlog in excess of $8 million. This backlog is expected to ship in 2026, and we have quoted multiple large volume opportunities mainly for international customers. This is the first larger transformational project revenue stream and shows the potential that all of our development projects have. Our 19 amp power, final cell has passed all performance validation testing requirements, and we're now waiting on our customers' device certification and initial production planning to complete. We've begun new product development activities with an OEM powering a remote surveillance system with a rechargeable power pack. This development is anticipated to complete in Q3 with anticipated production deliveries beginning late year. As mentioned in the last call, we received production orders for a battery pack to provide power backup for a new pump application for a major medical OEM. This project started with them over 7 years ago, and their product is now finally launching. These orders are scheduled to start shipping in mid-2026 concurrently as our customer ramps their device manufacturing. We have established initial production capabilities for our thin cell technology to support customers in the medical wearable sector in various item tracking applications. The sales pipeline continues to strengthen with several projects now in the qualification phase. These smaller thinner designs will enable a more discrete wearable sensor than typically available in today's marketplace, allowing better patient experience and longer device life. Investing in new product development is essential to continuing to diversify and strengthen our product portfolio, driving future growth and building on our legacy of delivering critical power products. Our priorities remain converting long-term development efforts into revenue, advancing vertical integration where possible and maintaining a strong focus on operational efficiency initiatives. With a hefty backlog, including over $12 million of new products as we exit Q1, I believe we are well positioned for future revenue growth. Our focus remains on increasing product offering and sales engagement for our Communication Systems business increased gross margin and revenue in our Battery Energy business, along with vertical integration opportunities in our Telemetry Power Systems business. I will now pass it back to the operator for questions. Operator: [Operator Instructions] And I'm showing no questions at this time. I'll now turn it back to Mike Manna for closing remarks. Michael Manna: All right. Thanks for listening today's call, everyone. We look forward to talking to you next time during the Q2 2026 earnings call. Bye now. Operator: Thank you for your participation in today's conference. This concludes the program. You may now disconnect. Before you buy stock in Ultralife, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Ultralife wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $463,900!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,294,401!* Now, it’s worth noting Stock Advisor’s total average return is 978% — a market-crushing outperformance compared to 211% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of June 1, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. 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Interested in Ultralife Corporation? Here are five stocks we like better. Ultralife posted a Q1 fiscal 2026 loss of $0.03 per share on revenue of $47.4 million, down from $50.7 million a year earlier, as lower sales, plant disruptions and one-time costs hurt results. The company’s record backlog of $115.1 million was a major bright spot, up 21.1% year over year and supported by more than $12 million in products launched within the past year. Management said it is focused on improving gross margins and revenue growth through new product rollouts, better performance in Battery & Energy Products, and expansion in Communications Systems and vertical integration opportunities. Ultralife (NASDAQ:ULBI) reported a first-quarter loss for fiscal 2026 as lower sales, production disruptions and higher one-time costs weighed on results, even as management pointed to a record backlog and new product activity as signs of future growth. President and CEO Mike Manna said the company posted first-quarter revenue of $47.4 million and an operating loss of $0.2 million, resulting in a loss of $0.03 per share. He described the quarter as “a challenging start to the year on both sides of the business,” citing order shipment timing, delays to Middle East customers, plant shutdowns tied to reorganization and weather events, and consulting fees. → Insider Sales: Top AST SpaceMobile Insider Cuts Postion Over 30% Chief Financial Officer Phil Fain said consolidated revenue declined from $50.7 million in the first quarter of 2025. Net loss was $0.5 million, or $0.03 per share, compared with net income of $1.9 million, or $0.11 per share, a year earlier. Ultralife’s Battery & Energy Products segment generated revenue of $44.2 million, down 4.7% from $46.3 million in the prior-year quarter. Fain said the decrease reflected a 5.5% decline in commercial sales tied to oil and gas customers and a 2.7% decline in government and defense sales compared with the shipment of a large order for an allied country in the 2025 quarter. Medical sales increased 5.9%. → Light Speed Returns: Corning Cashes In on NVIDIA Growth Within the battery business, the sales split between commercial and government defense customers was 69% to 31%, compared with 64% to 36% a year earlier. The domestic-to-international split was 66% to 34%, compared with 78% to 22% in the first quarter of 2025, which Fain said reflected global demand for the company’s products. The Communications Systems segment posted revenue of $3.3 million, down 25.7% from $4.4 million a year earlier. Fain attributed the decline to the timing of expected orders. Manna acknowledged that the segment had “another underwhelming quarter,” but said the business has multiple new products and projects underway to grow baseline revenue and stabilize results. → Years in the Making, AMD’s Upside Movement Has Just Begun Consolidated gross profit fell 20.7% to $10.1 million. Gross margin declined to 21.3% from 25.1% in the prior-year quarter. In Battery & Energy Products, gross profit was $9.4 million, down from $11.4 million. Gross margin declined to 21.2% from 24.7%. Fain said the year-over-year reduction primarily reflected non-recurring events that caused lost production days and reduced gross margin by about $0.8 million. Those events included more than three days lost because of the failure of the substation providing power to the company’s Newark facility, as well as the equivalent of 16 days at the Raynham facility. Fain said the Raynham shutdown time reflected several factors, including the preparation, execution and reconciliation of an initial wall-to-wall physical inventory fully integrated into a new ERP system, disposal of fully reserved obsolete inventory, realignment to reduce outside warehousing and severe weather. Fain also cited higher energy costs at Northeast facilities and sales mix, which resulted in higher net tariff costs. Communications Systems gross profit declined to $0.8 million from $1.3 million, with gross margin falling to 21.2% from 29.5%, primarily because of lower factory volume and product mix. Operating expenses increased $1 million, or 10.5%, to $10.3 million. Fain said most of the increase came from more than $0.8 million in one-time costs, including consulting fees intended to expedite gross margin improvement in the company’s two largest manufacturing facilities, litigation expenses related to a cybersecurity claim and final costs for the Raynham systems transition. New product development costs increased 23.3%. Ultralife ended the first quarter with a record backlog of $115.1 million, up $20.1 million, or 21.1%, from the comparable 2025 period. Fain said the backlog was the highest in the company’s history and remained diverse across commercial and government defense customers. He said the replenishment rate represented 61% of trailing 12-month sales. Manna said more than $12 million of the backlog came from products released within the past year. He said Ultralife added and trained direct labor resources at its Raynham and Newark facilities to support demand expected in 2026, noting that the costs are incurred before associated revenue but are necessary to ensure product quality. Adjusted EBITDA, which the company defines to include EBITDA plus non-cash stock-based compensation expense and certain one-time or non-recurring costs, was $3.2 million, or 6.8% of sales. That compared with $5.4 million, or 10.7% of sales, in the prior-year quarter. Adjusted EBITDA on a trailing 12-month basis was $15 million, or 8% of sales. Ultralife ended the quarter with working capital of $67.1 million and a current ratio of 2.6, compared with $68.5 million and 2.8 at the end of 2025. Manna said Ultralife is focused on four priorities for 2026: improving revenue capture in Communications Systems, improving gross margin in Battery & Energy Products, expanding vertical integration opportunities enabled by the Electrochem acquisition and completing the company-wide alignment of sub-brands under the Ultralife master brand. For Communications Systems, Manna said the company has new products in the commercial capture phase, initial orders received and additional product releases planned for 2026. He said Ultralife is working with multiple partners on long-term programs and projects that management believes could restore recurring baseline revenue over the next year. In Battery & Energy Products, Manna said the initial gross margin focus is the Newark operation. He said the company has implemented a corrective action for the largest contributor of scrap, with the impact expected to begin eliminating the issue mid-year as existing parts supply is worked through. Manna also said the company expects to more than double the use of its own cells in internal packs this year as customer qualifications are completed. Ultralife has combined certain related entities into a single subdivision within Battery & Energy Products that it now internally calls Telemetry Power Systems. Manna highlighted several development projects across Ultralife’s portfolio. In Communications Systems, he cited a recent $4 million multi-year award from an international partner for the company’s Universal Vehicle Adapter, a handheld radio charger supporting legacy and current radios. He also said Ultralife received funding from a special operations organization to develop and field initial prototypes of StrikeHub, a vehicle-based tactical network hub integrating HPE servers, switches and power management. The company’s new 20-watt amplifier has received multiple orders, with deliveries expected in the second and third quarters of 2026. Manna said Ultralife plans to introduce an advanced variant later this year that supports newer high-speed single-channel and frequency-hopping MANET waveforms in a compact body-worn form factor. On the battery side, Manna said Ultralife shipped its first order in full for its conformal wearable battery used to power dismounted soldier systems and has backlog exceeding $8 million for the product, expected to ship in 2026. He also said the company has quoted multiple large-volume opportunities, mainly for international customers. Manna said a 19 amp-hour thionyl cell has passed all performance validation requirements and is awaiting customer device certification and initial production planning. He also discussed development work with an OEM on a rechargeable power pack for remote surveillance systems, production orders for a battery pack supporting a new pump application for a major medical OEM, and initial production capabilities for Thin Cell technology aimed at medical wearables and item tracking applications. No analysts asked questions during the call. Manna closed by saying the company’s focus remains on expanding product offerings and sales engagement in Communications Systems, increasing gross margin and revenue in Battery & Energy Products, and pursuing vertical integration opportunities in Telemetry Power Systems. Ultralife Corporation (NASDAQ: ULBI) develops, manufactures and sells a broad range of energy and communications products for defense, medical, automotive and consumer electronics markets. The company operates through two primary segments: Power Systems and Communications Systems. In its Power Systems segment, Ultralife produces lithium-ion rechargeable cells and battery packs, primary lithium batteries, alkaline and rechargeable battery packs, chargers and battery accessories designed to meet demanding performance and safety requirements. The article "Ultralife Q1 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for May 2026.

This article first appeared on GuruFocus. Release Date: May 08, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Ultralife Corp (NASDAQ:ULBI) reported a record backlog of $115.1 million, indicating strong future demand. The company has introduced new experienced plant leadership to drive manufacturing efficiencies and improve gross margins. Medical sales increased by 5.9% for the quarter, showcasing growth in this segment. Ultralife Corp (NASDAQ:ULBI) is actively investing in new product development, which is expected to drive future revenue growth. The company is focusing on vertical integration opportunities, which could enhance operational efficiency and broaden market reach. Ultralife Corp (NASDAQ:ULBI) reported a revenue decline to $47.4 million from $50.7 million in the previous year, indicating a challenging start to the year. The company experienced an operating loss of $0.2 million, compared to an income of $3.4 million last year. Gross profit decreased by 20.7%, with a significant decline in gross margin from 25.1% to 21.3%. Revenues from the Communication Systems segment declined by 25.7%, reflecting challenges in this business area. The company faced several non-recurring events, including plant shutdowns and weather disruptions, negatively impacting production and financial performance. Warning! GuruFocus has detected 3 Warning Signs with ULBI. Is ULBI fairly valued? Test your thesis with our free DCF calculator. Q: Can you provide an overview of Ultralife's financial performance for Q1 2026? A: Mike Manna, President and CEO, reported Q1 revenue of $47.4 million with an operating profit loss of $0.2 million, resulting in a loss of $0.03 per share. The company faced challenges due to order shipment timing, shipment delays, plant shutdowns, and weather events. Despite these challenges, Ultralife exited the quarter with a record backlog of $115.1 million. Q: What were the main factors affecting the gross margin in Q1 2026? A: Phil Fain, CFO, explained that the consolidated gross margin was 21.3%, a decline from 25.1% in the previous year. This reduction was primarily due to non-recurring events, including lost production days caused by a substation failure and severe weather, as well as higher energy costs and sales mix changes. Q: What are Ultralife's strategic priorities for 2026? A: Mike Manna outlined four priorities: improving revenue capture in the communication systems business, enhancing gross margins in the battery and energy business, expanding vertical integration opportunities, and completing company-wide branding alignment. These initiatives aim to drive revenue growth and operational efficiency. Q: How is Ultralife addressing the challenges in its communication systems business? A: The company is investing in new product development and working with partners on long-term projects to stabilize and grow baseline revenue. They have several new products in the commercial capture phase and are actively pursuing long-term programs to bring recurring revenue back into the business. Q: What developments are underway in Ultralife's battery and energy segment? A: Ultralife is focused on new business growth through transformational projects and OEM partnerships. They have ongoing OEM projects to bring new products to market and are working on revising existing products to enhance performance. The company has also shipped its first order of conformal wearable batteries and has a backlog exceeding $8 million. For the complete transcript of the earnings call, please refer to the full earnings call transcript.