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) |
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| (Unaudited) | |||||||||||||
| ASSETS | |||||||||||||
| September 30, 2026 |
December 31, 2025 |
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| 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 |
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| CALCULATION OF ADJUSTED EBITDA |
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| (Dollars in Thousands) |
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| (Unaudited) |
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| Three-Month Period Ended | Nine-Month Period Ended | |||||||
| September 30, 2026 |
September 30, 2025 |
September 30, 2026 |
September 30, 2025 |
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| 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 |
