Ultralife Corporation Reports Third Quarter Results

Government/defense battery sales grew 56.7%, while commercial battery sales declined 5.8% amid softness in the global oil and gas market.

Rhea-AI Summary

Ultralife (NASDAQ: ULBI) reported third-quarter 2026 revenue of $48.3 million, returning to an operating profit for the period ended September 30. Revenue rose 11.3% year over year. Gross profit reached $13.3 million, with margin rising to 27.5% from 22.2%. Operating income was $3.2 million versus a $1.0 million loss, while GAAP earnings per share were $0.14 versus a $0.07 loss.

Battery & Energy Products sales rose 12.9%, supported by government/defense demand, while commercial sales fell 5.8% and Communications Systems sales declined 7.1%. Backlog reached $136.0 million, versus $117.5 million exiting the second quarter. Ultralife agreed to an all-cash acquisition by EnerSys valued at approximately $320 million, including assumed net debt; closing is expected in the first quarter of 2027. Cash fell to $8.628 million from $9.345 million at year-end 2025.

21 points · 1 major

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0 major · 9 points

Hollow bars mark forward-looking points. How the balance works

Positive

• Major pointEnerSys acquisition agreement values Ultralife at approximately $320 million in cash, including assumed net debt. 1.2× market cap
• Moderate pointThird-quarter revenue increased 11.3% to $48.3 million from $43.4 million a year earlier.
• Moderate pointThird-quarter GAAP net income reached $2.4 million, or $0.14 per share, versus a $1.2 million loss, or $0.07.
• Moderate pointThird-quarter operating income reached $3.2 million, versus a $1.0 million operating loss a year earlier.
• Moderate pointThird-quarter gross profit rose to $13.3 million; margin increased to 27.5% from 22.2% a year earlier.
• Moderate pointBacklog reached $136.0 million, versus $117.5 million exiting Q2 2026 and $90.3 million exiting Q3 2025.
• Moderate pointBattery & Energy Products quarterly gross margin improved to 26.7% from 22.1% a year earlier.
• Moderate pointThird-quarter adjusted EBITDA, an adjusted earnings measure, rose to $5.6 million from $2.0 million a year earlier.
• Moderate pointNine-month gross profit increased to $37.269 million from $33.965 million in 2025.
• Moderate pointNine-month operating income increased to $6.408 million from $4.704 million in 2025.
• Moderate pointNine-month attributable net income rose to $4.460 million from $1.524 million; EPS increased to $0.27 from $0.09.
• Moderate pointNine-month adjusted EBITDA increased to $14.993 million from $11.609 million in 2025.

9 minor points

• Minor pointBattery & Energy Products quarterly sales increased 12.9% to $45.1 million from $39.9 million.
• Minor pointGovernment/defense battery sales grew 56.7% year over year, primarily reflecting a large conformal wearable battery order.
• Minor pointCommunications Systems quarterly gross margin increased to 40.1% from 23.3%, reflecting lower warranty costs and sales mix.
• Minor pointThird-quarter operating expenses decreased to $10.1 million from $10.6 million a year earlier.
• Minor pointThird-quarter other expense declined to $441,000 from $800,000 a year earlier.
• Minor pointNine-month revenue increased to $143.659 million from $142.678 million in 2025.
• Minor pointNine-month Battery & Energy Products revenue increased to $133.433 million from $132.134 million in 2025.
• Minor pointNine-month other expense declined to $1.340 million from $2.896 million in 2025.
• Minor pointCurrent portion of long-term debt declined to $3.125 million from $4.125 million at December 31, 2025.

Negative

• Moderate pointNine-month operating expenses increased to $30.861 million from $29.261 million in 2025.
• Minor point. Forward-looking: it has not happened yet and may not happen.EnerSys acquisition remains pending, with closing expected in the first quarter of 2027.
• Minor pointCommercial battery sales declined 5.8% year over year, primarily reflecting softness in the global oil and gas market.
• Minor pointCommunications Systems quarterly sales declined 7.1% to $3.2 million from $3.4 million a year earlier.
• Minor pointCash declined to $8.628 million at September 30, 2026, from $9.345 million at December 31, 2025.

4 minor points

• Minor pointLong-term debt, net, increased to $47.393 million from $45.526 million at December 31, 2025.
• Minor pointNine-month Communications Systems revenue declined to $10.226 million from $10.544 million in 2025.
• Minor pointOne-time events impacting production incurred $250,000 in quarterly costs and $1.067 million over nine months, versus none in 2025.
• Minor pointOther non-recurring costs totaled $278,000 for the quarter and $2.009 million over nine months.

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NEWARK, N.Y., Nov. 05, 2026 (GLOBE NEWSWIRE) -- Ultralife Corporation (NASDAQ: ULBI) reported operating results for the third quarter ended September 30, 2026 with the following results:

• Sales of $48.3 million compared to $43.4 million for the 2025 third quarter
• Gross profit of $13.3 million, or 27.5% of revenue, compared to $9.6 million, or 22.2% of revenue, for the 2025 third quarter
• Operating income of $3.2 million compared to an operating loss of $1.0 million for the 2025 third quarter
• GAAP EPS of $0.14 compared to ($0.07) for the 2025 third quarter
• Adjusted EBITDA of $5.6 million compared to $2.0 million for the 2025 third quarter
• Backlog of $136.0 million compared to $117.5 million exiting the second quarter of 2026
  
  

On October 27, 2026, Ultralife announced that it has agreed to be acquired by EnerSys (NYSE: ENS) in an all-cash transaction valued at approximately $320 million, including the assumption of net debt. The transaction is expected to close in the first quarter of 2027. In light of this pending transaction, Ultralife will not hold a conference call to discuss third quarter results. 

Third Quarter 2026 Financial Results

Revenue was $48.3 million, an increase of $4.9 million, or 11.3%, as compared to revenue of $43.4 million for the third quarter of 2025. Battery & Energy Products sales increased 12.9% to $45.1 million compared to $39.9 million last year. The year-over-year increase reflects 56.7% growth in government/defense sales due primarily to a large order for conformal wearable batteries, partially offset by 5.8% decrease in commercial sales primarily due to softness in the global oil & gas market. Communications Systems sales decreased by 7.1% to $3.2 million compared to $3.4 million for the same period last year. Our total backlog exiting the third quarter was $136.0 million, the highest level in the Company’s history, compared to $117.5 million exiting the second quarter of 2026 and $90.3 million exiting the third quarter of 2025.

Gross profit was $13.3 million, or 27.5% of revenue, compared to $9.6 million, or 22.2% of revenue, for the same quarter a year ago. Battery & Energy Products gross margin was 26.7%, compared to 22.1% last year, primarily due to progress in improving manufacturing efficiencies and vertical integration of our thionyl-chloride cells as well as favorable product mix. Communications Systems gross margin was 40.1% compared to 23.3% last year, primarily due to lower warranty costs and sales mix.

Operating expenses were $10.1 million, compared to $10.6 million for the third quarter of 2025, reflecting an increase in new product development costs related to continued investment in our product offering, and a decrease in one-time, non-recurring costs of $0.6 million primarily related to the closing of our Calgary facility and certain consulting costs to help expedite our gross margin improvement in the year-earlier period. Operating expenses were 20.9% of revenue compared to 24.4% of revenue for the year-earlier period.

Operating income was $3.2 million compared to an operating loss of $1.0 million last year.  

Other expense was $0.4 million primarily comprised of interest expense from the financing of our Electrochem acquisition partially offset by the third 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 $0.8 million for the year-earlier period primarily reflecting the Electrochem acquisition financing and net foreign currency gains.

Net income attributable to Ultralife Corporation was $2.4 million or $0.14 per basic and diluted share on a GAAP basis, compared to a net loss of ($1.2) million or ($0.07) per basic and diluted share for the third 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 $5.6 million for the third quarter of 2026, or 11.7% of sales, compared to $2.0 million, or 4.7% of sales, for the year-earlier period. On a trailing twelve-month basis, adjusted EBITDA was $20.7 million or 10.8% of sales.

See the “Non-GAAP Financial Measures” section of this release below for a reconciliation of adjusted EBITDA to net income attributable to Ultralife Corporation.

About Ultralife Corporation

Ultralife Corporation is a global leader in mission-critical battery, power, communications and compute solutions for the most demanding applications in government/defense, medical, oil & gas and industrial markets 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.

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.

ULTRALIFE CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS (Dollars in Thousands)
(Unaudited)
ASSETS
		September 30, 2026							December 31, 2025
Current Assets:
Cash			$8,628							$9,345
Trade Accounts Receivable, Net			35,790							33,948
Inventories, Net			62,314							54,008
Prepaid Expenses and Other Current Assets			9,914							8,500
Total Current Assets			116,646							105,801
Property, Plant and Equipment, Net			39,011							40,397
Goodwill			45,403							45,376
Other Intangible Assets, Net			10,121							10,933
Deferred Income Taxes, Net			10,029							10,494
Other Non-Current Assets			3,193							3,911
Total Assets			$224,403							$216,912
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Accounts Payable			$19,581							$17,423
Current Portion of Long-Term Debt			3,125							4,125
Accrued Compensation and Related Benefits			2,941							2,754
Accrued Expenses and Other Current Liabilities			13,673							13,031
Total Current Liabilities			39,320							37,333
Long-Term Debt, Net			47,393							45,526
Deferred Income Taxes, Net			897							1,000
Other Non-Current Liabilities			2,156							2,919
Total Liabilities			89,766							86,778
Shareholders' Equity:
Common Stock			2,110							2,109
Capital in Excess of Par Value			193,081							192,859
Accumulated Deficit			(35,880)							(40,340)
Accumulated Other Comprehensive Loss			(3,291)							(3,141)
Treasury Stock			(21,492)							(21,492)
Total Ultralife Equity			134,528							129,995
Non-Controlling Interest			109							139
Total Shareholders’ Equity			134,637							130,134
Total Liabilities and Shareholders' Equity			$224,403							$216,912

         

ULTRALIFE CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(In Thousands Except Per Share Amounts)
(Unaudited)
	Three-Month Period Ended				Nine-Month Period Ended
	September 30,		September 30,		September 30,		September 30,
	2026		2025		2026		2025
Revenues:
Battery & Energy Products	$45,089		$39,946		$133,433		$132,134
Communications Systems	3,182		3,425		10,226		10,544
Total Revenues	48,271		43,371		143,659		142,678
Cost of Products Sold:
Battery & Energy Products	33,071		31,126		99,554		101,039
Communications Systems	1,907		2,626		6,836		7,674
Total Cost of Products Sold	34,978		33,752		106,390		108,713
Gross Profit	13,293		9,619		37,269		33,965
Operating Expenses:
Research and Development	3,189		2,855		9,375		7,577
Selling, General and Administrative	6,918		7,715		21,486		21,684
Total Operating Expenses	10,107		10,570		30,861		29,261
Operating Income (Loss)	3,186		(951)		6,408		4,704
Other Expense	441		800		1,340		2,896
Income (Loss) Before Income Taxes	2,745		(1,751)		5,068		1,808
Income Tax Provision (Benefit)	362		(504)		638		306
Net Income (Loss)	2,383		(1,247)		4,430		1,502
Net Income (Loss) Attributable to Non-Controlling Interest	15		(27)		(30)		(22)
Net Income (Loss) Attributable to Ultralife Corporation	$2,368		($1,220)		$4,460		$1,524
Net Income (Loss) Per Share Attributable to Ultralife Common Shareholders – Basic	$.14		($.07)		$.27		$.09
Net Income (Loss) Per Share Attributable to Ultralife Common Shareholders – Diluted	$.14		($.07)		$.27		$.09
Weighted Average Shares Outstanding – Basic	16,664		16,646		16,660		16,638
Weighted Average Shares Outstanding – Diluted	16,697		16,646		16,703		16,699

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.

ULTRALIFE CORPORATION AND SUBSIDIARIES
CALCULATION OF ADJUSTED EBITDA
(Dollars in Thousands)
(Unaudited)
	Three-Month Period Ended				Nine-Month Period Ended
	September 30,  2026		September 30,  2025		September 30, 2026		September 30, 2025
Net Income (Loss) Attributable to Ultralife Corporation	$2,368		(1,220)		$4,460		$1,524
Adjustments:
Interest Expense, Net	921		992		2,628		3,016
Income Tax Provision (Benefit)	362		(504)		638		306
Depreciation Expense	1,098		1,008		3,208		2,966
Amortization Expense	267		411		802		1,226
Stock-Based Compensation Expense	92		236		181		698
Other Non-Recurring Costs	278		594		2,009		1,112
One-Time Events Impacting Production	250		-		1,067		-
Severance and Other Costs for Plant Closure	-		491		-		641
Non-Cash Purchase Accounting Adjustment	-		40		-		120
Adjusted EBITDA	$5,636		$2,048		$14,993		$11,609

Company Contact:	Investor Relations Contact:
Ultralife Corporation	Alliance Advisors IR
Philip A. Fain	Jody Burfening
(315) 210-6110	(212) 838-3777
pfain@ulbi.com	jburfening@allianceadvisors.com

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were Ultralife's third-quarter 2026 earnings results?

Ultralife reported $48.3 million in revenue and GAAP earnings of $0.14 per basic and diluted share for the quarter ended September 30, 2026. Revenue increased 11.3% year over year, while earnings reversed a loss of $0.07 per share in the third quarter of 2025.

How much is EnerSys paying to acquire Ultralife, and when is closing expected?

The agreed all-cash transaction values Ultralife at approximately $320 million, including the assumption of net debt. Closing is expected in the first quarter of 2027; the transaction has not yet closed.

What drove Ultralife's third-quarter 2026 battery margin improvement?

Battery & Energy Products gross margin increased primarily because of manufacturing efficiency improvements, vertical integration of thionyl-chloride cells and favorable product mix. The segment's gross margin reached 26.7%, compared with 22.1% a year earlier.

How does Ultralife define adjusted EBITDA?

Ultralife defines adjusted EBITDA as attributable net income before net interest expense, income taxes, depreciation, amortization and stock-based compensation, adjusted for items it considers outside ongoing operations. It is a non-GAAP measure, not a substitute for GAAP results. Trailing twelve-month adjusted EBITDA was $20.7 million, or 10.8% of sales.