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1. Company Snapshot

1.a. Company Description

Ultralife Corporation, together with its subsidiaries, designs, manufactures, installs, and maintains power, and communication and electronics systems worldwide.The company operates in two segments, Battery & Energy Products and Communications Systems.The Battery & Energy Products segment offers lithium 9-volt, cylindrical, thin lithium manganese dioxide, rechargeable, and other non-rechargeable batteries; lithium-ion cells, multi-kilowatt module lithium ion battery systems, and uninterruptable power supplies; and rugged military and commercial battery charging systems and accessories, including smart chargers, multi-bay charging systems, and various cables.


The Communications Systems segment provides communications systems and accessories to support military communications systems, such as radio frequency amplifiers, power supplies and cables, connector assemblies, amplified speakers, equipment mounts, case equipment, man-portable systems, and integrated communication systems for fixed or vehicle applications comprising vehicle adapters, vehicle installed power enhanced rifleman appliqué systems, and SATCOM systems.This segment's military communications systems and accessories are designed to enhance and extend the operation of communications equipment, such as vehicle-mounted, manpack, and handheld transceivers.It sells its products under the Ultralife, Ultralife Thin Cell, Utralife HiRate, Ultralife and design, Ultra, Lithium Power, LithiumPower and Design, McDowell Research, AMTI, ABLE, ACCUTRONICS, ACCUPRO, ENTELLION, SWE Southwest Electronic Energy Group, SWE DRILL-DATA, and SWE SEASAFE brands through original equipment manufacturers, and industrial and defense supply distributors, as well as directly to the United States and international defense departments.


In addition, the company sells its 9-volt battery to the broader consumer market through national and regional retail chains and online retailers.Ultralife Corporation serves government, defense, and commercial sectors.The company was incorporated in 1990 and is headquartered in Newark, New York.

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1.b. Last Insights on ULBI

Ultralife Corporation's recent performance was negatively impacted by a delayed filing of its quarterly report, as indicated by the Form 12b-25 Notification of Late Filing submitted to the SEC. The company's third-quarter results, reported on November 18, 2025, may have been overshadowed by this development. Additionally, comparisons with peers such as CTS and Ostin Technology Group may have led to investor scrutiny. A $5.2 million award from the US Defense Logistics Agency for military batteries, announced in September, was a positive development, but may not have been enough to offset concerns.

1.c. Company Highlights

2. Ultralife's Q3 Earnings: A Mixed Bag

Ultralife Corporation reported Q3 sales of $43.4 million, with an operating loss of $1 million, including a one-time adjustment of $1.1 million. The company's EPS came out at -$0.07, missing estimates of $0.21. Revenues from the Battery & Energy Products segment were $39.9 million, up from $32.5 million last year, driven by a 19% increase in Government Defense sales. Operating expenses rose 29.4% year-over-year to $10.6 million, due in part to the inclusion of Electrochem and non-recurring costs. Adjusted EBITDA was $2.0 million or 4.7% of sales, down from 5.4% in the prior year quarter.

Publication Date: Nov -30

📋 Highlights
  • Q3 Sales Growth:: Consolidated revenues rose to $43.4M (Q3 2025) from $35.7M (Q3 2024), driven by a +19% increase in Government Defense sales.
  • Battery & Energy Segment Performance:: Revenue hit $39.9M (up from $32.5M YoY), with a 1.9% organic growth when excluding Electrochem third-party sales.
  • Operating Loss and Adjustments:: Q3 operating loss was $1M, including a $1.1M one-time charge for Electrochem transition and Calgary facility closure costs.
  • Adjusted EBITDA Decline:: Fell to $2.0M (4.7% of sales) from $1.9M (5.4% of sales) YoY due to higher operating expenses ($10.6M, +29.4%).
  • Strategic Priorities:: Focused on vertical integration via Electrochem acquisition, gross margin improvement, and closing Calgary to consolidate operations.

Segment Performance

The Communications business continues to weigh on earnings as new products are launched and sell-through gains momentum. However, the Battery & Energy Products segment is showing strength, with revenues increasing 1.9% year-over-year, excluding third-party sales for Electrochem. The company's efforts to expand vertical integration opportunities enabled by the acquisition of Electrochem are also showing promise.

Operational Initiatives

Ultralife is taking steps to improve gross margins, reduce redundant facilities, and consolidate operations. The company is also investing in products on both sides of the business to drive revenue and opportunities for organic growth. As Mike Manna noted, "We continue to invest in products on both sides of the business to drive revenue and opportunities for organic growth." The company has received an initial PO from an international customer for prototype electronic warfare amplifiers, indicating potential for future growth.

Valuation and Outlook

With a P/S Ratio of 0.51 and an EV/EBITDA of 8.83, Ultralife's valuation appears reasonable. Analysts estimate revenue growth of 6.2% next year, which could provide a positive catalyst for the stock. However, the company's ROE of 1.26% and ROIC of 2.42% indicate that there is still work to be done to improve profitability. As Ultralife continues to execute on its operational initiatives, investors will be watching to see if the company can deliver on its growth promises.

3. NewsRoom

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Ultralife Corporation (ULBI) Q3 2025 Earnings Call Transcript

Nov -18

Source: seekingalpha.com

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Ultralife Corporation Reports Third Quarter Results

Nov -18

Source: globenewswire.com

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Comparing Ultralife (NASDAQ:ULBI) & CTS (NYSE:CTS)

Nov -17

Source: defenseworld.net

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Comparing Ostin Technology Group (NASDAQ:OST) and Ultralife (NASDAQ:ULBI)

Nov -14

Source: defenseworld.net

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Ultralife Corporation to Report Third Quarter Results on November 18, 2025

Nov -13

Source: globenewswire.com

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Ultralife Corporation Files Form 12b-25 Notification of Late Filing

Nov -07

Source: globenewswire.com

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Ultralife Corporation Receives Award for Its BA-5390 Military Batteries from U.S. Defense Logistics Agency

Sep -04

Source: globenewswire.com

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Ultralife Corporation (ULBI) Q2 2025 Earnings Call Transcript

Aug -09

Source: seekingalpha.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (10.36%)

6. Segments

Battery & Energy

Expected Growth: 10%

Ultralife Corporation's 10% growth in Battery & Energy is driven by increasing demand for lithium 9-volt batteries in medical devices, growing adoption of renewable energy systems, and rising need for reliable backup power solutions. Additionally, the company's strategic partnerships and investments in research and development are enhancing its product offerings and driving innovation.

Communications Systems

Expected Growth: 12%

Ultralife Corporation's Communications Systems segment growth is driven by increasing demand for reliable power solutions in mission-critical communication networks, expansion into 5G infrastructure, and growing adoption of IoT devices. Additionally, the company's strategic partnerships and investments in research and development are expected to fuel innovation and drive revenue growth.

7. Detailed Products

Battery Products

Ultralife Corporation designs and manufactures a wide range of battery products, including lithium 9-volt, lithium manganese dioxide, and lithium thionyl chloride batteries.

Energy Storage Systems

Ultralife's energy storage systems provide reliable and efficient power solutions for renewable energy systems, backup power systems, and other applications.

Communication Systems

Ultralife's communication systems provide secure and reliable communication solutions for military, government, and commercial customers.

Electronics

Ultralife's electronics products include power supplies, battery chargers, and other electronic components.

Services

Ultralife offers a range of services, including engineering and design, testing and validation, and manufacturing and logistics.

8. Ultralife Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Ultralife Corporation is moderate due to the availability of alternative energy storage solutions.

Bargaining Power Of Customers

The bargaining power of customers is low due to the specialized nature of Ultralife's products and the lack of alternative suppliers.

Bargaining Power Of Suppliers

The bargaining power of suppliers is moderate due to the presence of multiple suppliers for raw materials, but the high demand for these materials.

Threat Of New Entrants

The threat of new entrants is high due to the growing demand for energy storage solutions and the relatively low barriers to entry in the industry.

Intensity Of Rivalry

The intensity of rivalry is high due to the presence of established competitors and the high stakes in the energy storage market.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 17.46%
Debt Cost 8.80%
Equity Weight 82.54%
Equity Cost 9.55%
WACC 9.42%
Leverage 21.16%

11. Quality Control: Ultralife Corporation passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Energizer

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Value: 6.6

Growth: 4.1

Quality: 5.1

Yield: 8.0

Momentum: 1.5

Volatility: 5.0

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Preformed Line Products

A-Score: 5.0/10

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Growth: 6.3

Quality: 6.0

Yield: 0.0

Momentum: 9.5

Volatility: 4.3

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Value: 1.7

Growth: 8.4

Quality: 7.6

Yield: 2.0

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Ultralife

A-Score: 4.1/10

Value: 6.5

Growth: 8.0

Quality: 5.4

Yield: 0.0

Momentum: 2.0

Volatility: 2.7

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A-Score: 4.1/10

Value: 6.2

Growth: 3.0

Quality: 5.2

Yield: 0.0

Momentum: 10.0

Volatility: 0.0

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RF Industries

A-Score: 3.9/10

Value: 4.7

Growth: 3.7

Quality: 3.1

Yield: 0.0

Momentum: 10.0

Volatility: 2.0

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

5.65$

Current Price

5.65$

Potential

-0.00%

Expected Cash-Flows