NEWARK, N.Y., May 08, 2026 (GLOBE NEWSWIRE) — Ultralife Corporation (NASDAQ: ULBI) reported operating results for the first quarter ended March 31, 2026 as follows:
- Sales of $47.4 million compared to $50.7 million for the 2025 first quarter
- Gross profit of $10.1 million, or 21.3% of revenue, compared to $12.7 million, or 25.1% of revenue, for the 2025 first quarter
- Operating (loss) of ($.2) million, including one-time costs of $1.7 million, compared to income of $3.4 million for the 2025 first quarter
- GAAP EPS of ($0.03) compared to $0.11 for the 2025 first quarter
- Adjusted EBITDA of $3.2 million compared to $5.4 million for the 2025 first quarter
- Backlog of $115.1 million compared to $110.2 million exiting the fourth quarter of 2025
“During the first quarter we experienced multiple challenges to our operations which negatively impacted our financial results. These included the loss of a few production days at our Newark, NY facility due to a power outage and a higher than planned number of production days lost at our Raynham, MA facility in connection with inventory-related confirmation and integration activities designed to increase overall efficiency and utilization at the facility and minimize outside warehousing costs, compounded by inclement weather. The lost production days flowed through to Battery & Energy income statement and contributed significantly to the consolidated EPS loss for the quarter. In addition, Communications Systems sales remained weak due to continued order delays. Nevertheless, our backlog at quarter end reached a record $115 million, reflecting long-sales cycle orders of new products,” said Mike Manna, President and Chief Executive Officer.
“We remain intently focused on improving manufacturing efficiencies at our Newark, NY facility, particularly as we ramp up production of new products, in order to increase the gross margin of Battery & Energy Products, and on driving Communications Systems orders. These improvements, along with execution and replenishment of our backlog, position Ultralife to restore profitability and generate incremental cash flow for 2026 to reduce debt, support strategic capital expenditures, continue our investment in new product development and maximize the value of our global brand,” concluded Mr. Manna.
First Quarter 2026 Financial Results
Revenue was $47.4 million, a decrease of $3.3 million, or 6.5%, as compared to revenue of $50.7 million for the first quarter of 2025. Battery & Energy Products sales decreased 4.7% to $44.2 million compared to $46.3 million last year. The year-over-year decrease reflects a 5.5% decline in commercial sales due to lower oil & gas and industrial sales offsetting an increase in medical battery sales, and a 2.7% decline in government/defense sales due to the shipment of a very large order for an allied country last year. Communications Systems sales decreased by 25.7% to $3.3 million compared to $4.4 million for the same period last year, primarily attributable to the timing of expected orders. Our total backlog exiting the first quarter was $115.1 million, the highest level in the Company’s history, compared to $110.2 million exiting the fourth quarter of 2025 and $95.0 million exiting the first quarter of 2025.
Gross profit was $10.1 million, or 21.3% of revenue, compared to $12.7 million, or 25.1% of revenue, for the same quarter a year ago. Battery & Energy Products gross margin was 21.2%, compared to 24.7% last year, primarily due to product mix impacting tariffs, significantly higher utility costs and some one-time events impacting production days and efficiency. Communications Systems gross margin was 22.8% compared to 29.5% last year, primarily due to lower factory volume and product mix.
Operating expenses were $10.3 million, compared to $9.3 million for the 2025 first quarter, reflecting a 23.3% increase in new product development costs related to continued investment in our product offering, and one-time, non-recurring costs of $.8 million primarily related to certain consulting costs to help expedite our gross margin improvement, and litigation expenses incurred for our cyber-insurance claim. Operating expenses were 21.8% of revenue compared to 18.4% of revenue for the year-earlier period.
Operating (loss) income was ($0.2) million compared to $3.4 million last year.
Other expense was $.4 million primarily comprised of interest expense from the financing of our Electrochem acquisition partially offset by the first quarter estimated portion of a refundable tax tax credit for certain qualifying battery cells and packs we manufacture under the 45X Advanced Manufacturing Production Tax Credit, established by the Inflation Reduction Act and running through 2032. This compares to $1.0 million for the year-earlier period primarily reflecting the acquisition financing.
Net (loss) income attributable to Ultralife Corporation was ($0.5) million or ($0.03) per basic and diluted share on a GAAP basis, compared to $1.9 million or $0.11 per basic and diluted share for the first quarter of 2025.
Adjusted EBITDA, defined as EBITDA including non-cash, stock-based compensation expense, was $3.2 million for the first quarter of 2026, or 6.8% of sales, compared to $5.4 million, or 10.7% of sales, for the year-earlier period. On a trailing twelve-month basis, adjusted EBITDA was $15.0 million or 8.0% of sales.
See the “Non-GAAP Financial Measures” section of this release for a reconciliation of adjusted EBITDA to net (loss) 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 first quarter earnings conference call today at 8:30 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/BIa05f373879a942b691466d052a5da3ae. 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.
| Company Contact: | Investor Relations Contact: |
| Ultralife Corporation | Alliance Advisors IR |
| Philip A. Fain | Jody Burfening |
| (315) 210-6110 | (212) 838-3777 |
| [email protected] | [email protected] |
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ULTRALIFE CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (Dollars in Thousands) (Unaudited) |
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ASSETS |
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March 31, 2026 |
December 31, 2025 |
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| Current Assets: | ||||||||||||||
| Cash | $ | 8,890 | $ | 9,345 | ||||||||||
| Trade Accounts Receivable, Net | 34,428 | 33,948 | ||||||||||||
| Inventories, Net | 57,286 | 54,008 | ||||||||||||
| Prepaid Expenses and Other Current Assets | 9,499 | 8,500 | ||||||||||||
| Total Current Assets | 110,103 | 105,801 | ||||||||||||
| Property, Plant and Equipment, Net | 40,117 | 40,397 | ||||||||||||
| Goodwill | 45,329 | 45,376 | ||||||||||||
| Other Intangible Assets, Net | 10,651 | 10,933 | ||||||||||||
| Deferred Income Taxes, Net | 10,765 | 10,494 | ||||||||||||
| Other Non-Current Assets | 3,667 | 3,911 | ||||||||||||
| Total Assets | $ | 220,632 | $ | 216,912 | ||||||||||
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LIABILITIES AND SHAREHOLDERS’ EQUITY |
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| Current Liabilities: | ||||||||||||||
| Accounts Payable | $ | 24,058 | $ | 17,423 | ||||||||||
| Current Portion of Long-Term Debt | 3,438 | 4,125 | ||||||||||||
| Accrued Compensation and Related Benefits | 2,854 | 2,754 | ||||||||||||
| Accrued Expenses and Other Current Liabilities | 12,703 | 13,031 | ||||||||||||
| Total Current Liabilities | 43,053 | 37,333 | ||||||||||||
| Long-Term Debt, Net | 44,190 | 45,526 | ||||||||||||
| Deferred Income Taxes, Net | 967 | 1,000 | ||||||||||||
| Other Non-Current Liabilities | 2,677 | 2,919 | ||||||||||||
| Total Liabilities | 90,887 | 86,778 | ||||||||||||
| Shareholders’ Equity: | ||||||||||||||
| Common Stock | 2,109 | 2,109 | ||||||||||||
| Capital in Excess of Par Value | 192,858 | 192,859 | ||||||||||||
| Accumulated Deficit | (40,791 | ) | (40,340 | ) | ||||||||||
| Accumulated Other Comprehensive Loss | (3,058 | ) | (3,141 | ) | ||||||||||
| Treasury Stock | (21,492 | ) | (21,492 | ) | ||||||||||
| Total Ultralife Equity | 129,626 | 129,995 | ||||||||||||
| Non-Controlling Interest | 119 | 139 | ||||||||||||
| Total Shareholders’ Equity | 129,745 | 130,134 | ||||||||||||
| Total Liabilities and Shareholders’ Equity | $ | 220,632 | $ | 216,912 | ||||||||||
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ULTRALIFE CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (In Thousands Except Per Share Amounts) (Unaudited) |
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| Three-Month Period Ended | ||||||
| March 31, | March 31, | |||||
| 2026 |
2025 |
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| Revenues: | ||||||
| Battery & Energy Products | $ | 44,155 | $ | 46,321 | ||
| Communications Systems | 3,290 | 4,425 | ||||
| Total Revenues | 47,445 | 50,746 | ||||
| Cost of Products Sold: | ||||||
| Battery & Energy Products | 34,797 | 34,881 | ||||
| Communications Systems | 2,538 | 3,120 | ||||
| Total Cost of Products Sold | 37,335 | 38,001 | ||||
| Gross Profit | 10,110 | 12,745 | ||||
| Operating Expenses: | ||||||
| Research and Development | 2,961 | 2,404 | ||||
| Selling, General and Administrative | 7,364 | 6,942 | ||||
| Total Operating Expenses | 10,325 | 9,346 | ||||
| Operating (Loss) Income | (215 | ) | 3,399 | |||
| Other Expense | 448 | 953 | ||||
| (Loss) Income Before Income Tax Provision | (663 | ) | 2,446 | |||
| Income Tax (Benefit) Provision | (192 | ) | 567 | |||
| Net (Loss) Income | (471 | ) | 1,879 | |||
| Net (Loss) Income Attributable to Non-Controlling Interest | (20 | ) | 14 | |||
| Net (Loss) Income Attributable to Ultralife Corporation | ($ | 451 | ) | $ | 1,865 | |
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Net (Loss) Income Per Share Attributable to Ultralife Common Shareholders – Basic |
($ | 0.03 | ) | $ | 0.11 | |
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Net (Loss) Income Per Share Attributable to Ultralife Common Shareholders – Diluted |
($ | 0.03 | ) | $ | 0.11 | |
| Weighted Average Shares Outstanding – Basic | 16,657 | 16,633 | ||||
| Weighted Average Shares Outstanding – Diluted | 16,657 | 16,680 | ||||
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 (loss) 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 (loss) 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 (loss) income attributable to Ultralife Corporation.
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ULTRALIFE CORPORATION AND SUBSIDIARIES CALCULATION OF ADJUSTED EBITDA (Dollars in Thousands) (Unaudited) |
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| Three-Month Period Ended | ||||||
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March 31, 2026 |
March 31, 2025 |
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| Net (Loss) Income Attributable to Ultralife Corporation | $ | (451 | ) | $ | 1,865 | |
| Adjustments: | ||||||
| Interest Expense, Net | 868 | 1,032 | ||||
| Income Tax (Benefit) Provision | (192 | ) | 567 | |||
| Depreciation Expense | 1,054 | 950 | ||||
| Amortization of Intangible Assets | 267 | 405 | ||||
| Stock-Based Compensation Expense | (1 | ) | 227 | |||
| Severance Costs for Plant Closure | – | 150 | ||||
| Non-Recurring Expenses | 847 | 192 | ||||
| One-Time Events Impacting Production | 817 | – | ||||
| Non-Cash Purchase Accounting Adjustment | – | 60 | ||||
| Adjusted EBITDA | $ | 3,209 | $ | 5,448 | ||
