Ultralife Corporation Reports Fourth Quarter Results (Form 8-K)

Ultralife Corporation Reports Fourth Quarter Results

NEWARK, N.Y. - March 10, 2026 -- Ultralife Corporation (NASDAQ: ULBI) reported operating results for the fourth quarter and full year ended December 31, 2025 as follows:

Fourth Quarter:

"During the fourth quarter we took a number of decisive actions to remove structural and manufacturing inefficiencies from our global operations. For example, we commenced the realignment of our four thionyl chloride/oil & gas operations into one business within our Battery & Energy Products segment focused on industrial, specialty and telemetry solutions in order to optimize synergies, deepen customer engagement and expand value propositions. We also designed a master brand strategy uniting all acquired sub-brands under the Ultralife brand and aligning sales of the total Ultralife portfolio, and we completed steps to strengthen the operational leadership at our two largest manufacturing facilities. While we were intensely focused on addressing operational improvements during the quarter, strong order flow increased backlog to $110 million at the end of 2025, representing a 22% increase over the third quarter," said Mike Manna, President and Chief Executive Officer.

"As a result, we have entered 2026 from a position of strength, better prepared to efficiently ramp new products into high volume production; execute and continue to replenish our strong backlog; and capitalize on increasing demand for our products and numerous opportunities for large, multi-year programs. In addition, we have greater confidence in our ability to deliver sustainable profitable growth and incremental cash flow in 2026 enabling us 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.

Asset Impairment Charge

In the fourth quarter of 2025 Ultralife decided to undergo a comprehensive rebranding initiative that consolidated all sub-brands under a singular, unified master brand - Ultralife. To this end, the Accutronics, Southwest Electronic Energy, Excell Battery, McDowell Research and AMTI brands will no longer be used. The Electrochem brand will remain in use, but as a product brand on select primary cells. As a result of the rebranding initiative, Ultralife recorded a $12.2 million non-cash charge to reduce the value of the Company's tradename and trademark intangible assets.

Fourth Quarter 2025 Financial Results

Revenue was $48.5 million compared to revenue of $43.9 million for the fourth quarter of 2024, an increase of 10.6%. Battery & Energy Products sales increased 15.1% to $45.9 million compared to $39.9 million last year. Organic sales for this segment, excluding the year-over-year timing impact of the Electrochem acquisition which occurred on October 31, 2024, increased 9.5%. The organic growth was primarily driven by a 39.6% increase in medical battery sales, a 20.4% increase in industrial and other commercial market sales and a 1.2% increase in government/defenses sales, partially offset by a 3.6% decrease in oil & gas market sales. Communications Systems sales decreased by 35.2% to $2.6 million compared to $4.0 million for the same period last year, primarily attributable to the timing of expected orders. Our total backlog exiting the fourth quarter was $110.2 million compared to $90.3 million reported for the third quarter.

Gross profit was $12.1 million, or 24.9% of revenue, compared to $10.6 million, or 24.2% of revenue, for the same quarter a year ago. Battery & Energy Products gross margin was 25.1%, compared to 23.4% last year, primarily due to product mix and higher factory cost absorption. Communications Systems gross margin was 19.9% compared to 31.9% last year, primarily due to lower factory volume and product mix.

Operating expenses were $22.7 million, compared to $9.1 million for the fourth quarter of 2024, reflecting the intangible asset impairment charge of $12.2 million, the inclusion of Electrochem for the full 2025 quarter and one-time non-recurring costs of $1.1 million primarily related to the transition of Electrochem to Ultralife systems and litigation expenses incurred for our cyber insurance claim. Excluding the impairment charge, operating expenses were 21.6% of revenue compared to 20.8% of revenue for the year-earlier period.

Operating (loss) income was ($10.6) million compared to $1.5 million last year, driven by the intangible asset impairment charge and the 35.2% decline in Communications Systems sales.

Other income (expense) was $0.4 million primarily comprised of interest expense from the financing of our Electrochem acquisition more than offset by our expected $1.4 million refundable 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 ($7.4) million or ($0.45) per basic and diluted share on a GAAP basis which includes ($9.4) million for the intangible asset impairment charge net of the related tax benefit or ($0.57) per share, compared to $0.2 million or $0.01 per basic and diluted share for the fourth quarter of 2024.

Adjusted EBITDA, defined as EBITDA including non-cash, stock-based compensation expense and one-time acquisition and other non-recurring costs and non-cash purchase accounting adjustments, was $5.7 million for the fourth quarter of 2025, or 11.7% of sales, compared to $3.9 million, or 8.9% of sales, for the year-earlier period. On a trailing twelve-month basis, adjusted EBITDA was $17.3 million or 9.0% 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 fourth quarter earnings conference call today at 8:30 AM ET.

To ensure a fast and reliable connection to our investor conference call, we require participants dialing in by phone to pre-register using this link prior to the call: https://register-conf.media-server.com/register/BIf9df949a927a4356820e8cfb1becccdc. 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.