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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 positively driven by its strong Q4 2025 earnings report, which was released on March 10, 2026. The company's operating results for the fourth quarter and full year ended December 31, 2025, were highlighted in its earnings call transcript. Additionally, the company's announcement on March 5, 2026, that it would report its fourth-quarter results on March 10, 2026, likely generated investor interest. Analyst recommendations and comparisons with other companies, such as AUO and TT Electronics, also contributed to the stock's momentum.

1.c. Company Highlights

2. Ultralife Corporation Q4 2025 Earnings Update

Ultralife reported Q4 revenue of $48.5 million, up 10.6% YoY, while operating losses widened to $10.6 million, or $0.45 EPS, after a one‑time non‑cash impairment. Full‑year 2025 revenue hit $191.2 million, a 16.2% rise driven by new products launched within the last five years, yet the company posted a $5.9 million operating loss, translating to $0.35 EPS. The actual EPS of $0.12 fell short of analyst expectations of $0.24, underscoring margin pressure amid growth initiatives. Net debt/EBITDA stands at 3.42, and the EV/EBITDA of 14.36 reflects a moderate valuation relative to peers. <cite>John Doe, Senior Analyst</cite>

Publication Date: Apr -20

📋 Highlights
  • Q4 Revenue Growth: Revenue rose 10.6% YoY to $48.5M, with a $10.6M operating loss ($0.45 EPS) after impairment charges.
  • 2025 Full-Year Revenue: Total revenue hit $191.2M (+16.2% YoY), driven by new products (<5 years old), but full-year operating loss was $5.9M ($0.35 EPS).
  • Communications Segment Decline: Revenue dropped 35.2% to $2.6M due to U.S. government shutdown delays, contrasting with 39.6% medical growth in Battery & Energy segment.
  • Gross Margin Improvement: Gross profit climbed 13.7% to $12.1M, with consolidated margin at 24.9% (+70 bps YoY).
  • 2026 Priorities & Opportunities: Focus on Communications Systems growth targeting $25M baseline, $6M+ backlog from new 2025 products, and $6-figure+ annual medical order from existing OEM.

Revenue Growth & Backlog Expansion

Backlog climbed to $110 million, diversifying across markets and applications. More than $6 million of this was generated by 2025 product releases, signaling robust pipeline conversion. The company’s 2026 target of 2x GDP‑level organic growth is bolstered by this backlog expansion, which provides a cushion against order volatility, especially in the Communications segment.

Segment Performance

The Battery & Energy Products segment led the charge with $45.9 million in revenue, a 15.1% YoY increase. Growth was concentrated in medical (+39.6%) and industrial/commercial (+20.4%) subsectors, while government defense grew modestly (+1.2%). In contrast, Communications Systems revenue fell 35.2% to $2.6 million, largely due to the U.S. government shutdown delaying orders. Despite this, gross profit rose 13.7% to $12.1 million, with a consolidated gross margin of 24.9%, up 70 basis points.

Gross Margin & Profitability

Operating losses persist, but the company’s focus on margin improvement is evident. A 70‑basis‑point margin lift in Q4 and the aim for a 10%+ EBITDA margin in the short term reflect disciplined cost management. The EV/EBITDA of 14.36 suggests investors are pricing in this margin trajectory, while the negative P/E of –21.84 indicates earnings volatility remains a concern.

Strategic Outlook & Priorities

Ultralife’s 2026 roadmap centers on turning the Communications Systems business into a profitable, high‑growth engine, targeting $25 million baseline revenue with potential for large breakaway orders. The company also prioritizes gross margin enhancement, unified branding, and monetizing long‑term R&D. Key opportunities include Joint Fires, moving from R&D to solicitation, and a new medical order projected to generate a six‑figure annual opportunity from an existing OEM partner. Delays in thin‑film medical projects remain, but the pipeline remains promising.

Valuation Snapshot

With a price‑to‑sales ratio of 0.67 and a price‑to‑book of 0.99, Ultralife trades near its intrinsic value. The free‑cash‑flow yield of 5.51% and ROIC of 2.42% highlight modest efficiency, while the negative ROE of –4.35% underscores current profitability challenges. Analysts project a 6.2% revenue growth next year, positioning the stock for potential upside if margin targets are met.

3. NewsRoom

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Ultralife Corporation (ULBI) Q4 2025 Earnings Call Transcript

Mar -10

Source: seekingalpha.com

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Ultralife Corporation Reports Fourth Quarter Results

Mar -10

Source: globenewswire.com

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AUO (OTCMKTS:AUOTY) & Ultralife (NASDAQ:ULBI) Head to Head Analysis

Mar -08

Source: defenseworld.net

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Ultralife Corporation to Report Fourth Quarter Results on March 10, 2026

Mar -05

Source: globenewswire.com

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TT Electronics (OTCMKTS:TTGPF) versus Ultralife (NASDAQ:ULBI) Head to Head Comparison

Feb -18

Source: defenseworld.net

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Comparing Ultralife (NASDAQ:ULBI) & LightPath Technologies (NASDAQ:LPTH)

Dec -25

Source: defenseworld.net

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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

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

Stock-Card
Powell Industries

A-Score: 5.0/10

Value: 2.2

Growth: 8.9

Quality: 7.8

Yield: 2.0

Momentum: 7.0

Volatility: 2.3

1-Year Total Return ->

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Energizer

A-Score: 5.0/10

Value: 5.8

Growth: 5.7

Quality: 5.0

Yield: 9.0

Momentum: 0.0

Volatility: 4.3

1-Year Total Return ->

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Stock-Card
Preformed Line Products

A-Score: 4.9/10

Value: 3.7

Growth: 6.3

Quality: 6.0

Yield: 0.0

Momentum: 9.0

Volatility: 4.3

1-Year Total Return ->

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Stock-Card
Servotronics

A-Score: 4.1/10

Value: 6.2

Growth: 3.0

Quality: 5.1

Yield: 0.0

Momentum: 10.0

Volatility: 0.0

1-Year Total Return ->

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Stock-Card
Ultralife

A-Score: 4.0/10

Value: 6.5

Growth: 7.9

Quality: 5.2

Yield: 0.0

Momentum: 1.5

Volatility: 3.0

1-Year Total Return ->

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Stock-Card
RF Industries

A-Score: 3.9/10

Value: 5.2

Growth: 3.7

Quality: 3.2

Yield: 0.0

Momentum: 9.0

Volatility: 2.3

1-Year Total Return ->

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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

6.88$

Current Price

6.88$

Potential

-0.00%

Expected Cash-Flows