Ultralife Corporation (ULBI) Earnings
Ultralife Corporation is expected to report next earnings on November 9, 2026 (in NaN days), with a consensus EPS estimate of $0.23. ULBI has beaten EPS estimates in 3 of its last 12 reported quarters (average surprise -75.8% over the last four).
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Aug 7, 2026 | $0.19 | $0.19 | +0.0% | $48M | -12.6% |
| May 8, 2026 | $0.15 | $-0.03 | -120.0% | $47M | -10.0% |
| Mar 10, 2026 | $0.24 | $0.12 | -50.0% | $48M | -14.4% |
| Nov 18, 2025 | $0.21 | $-0.07 | -133.3% | $43M | -17.0% |
| Aug 7, 2025 | $0.22 | $0.07 | -68.0% | $49M | -7.6% |
| May 9, 2025 | $0.15 | $0.13 | -13.3% | $51M | -5.9% |
| Feb 26, 2025 | $0.23 | $0.18 | -21.7% | $44M | +8.4% |
| Nov 8, 2024 | $0.21 | $0.01 | -95.2% | $36M | -21.6% |
| Jul 25, 2024 | $0.14 | $0.22 | +57.1% | $43M | +0.9% |
| Apr 25, 2024 | $0.10 | $0.21 | +110.0% | $42M | -5.2% |
| Feb 15, 2024 | $0.07 | $0.18 | +157.1% | $45M | +13.3% |
| Oct 26, 2023 | $0.10 | $0.10 | +0.0% | $39M | +0.6% |
Source: company filings + earnings calendar. For informational purposes only — not investment advice.
Earnings call summary
Q2 FY2026 · August 7, 2026
AI summary of management’s prepared remarks and analyst Q&A. For informational purposes only — not investment advice.
Management highlights
- Overall Business and Backlog Performance * The company exited Q2 2026 with a record backlog of $117.5 million, a 39% ($33 million) increase over the 2025 comparable period, with 63% of trailing 12-month sales replenishing backlog consistently. Over $14 million of the backlog comes from products released in the last 12 months. * Consolidated Q2 2026 revenue was $47.9 million (down from $48.6 million in Q2 2025), with operating profit of $3.4 million, GAAP diluted EPS of 15 cents, and consolidated gross margin of 28.9% (a 500 basis point increase year-over-year, 230 basis points from a $1.1 million net IEPA tariff refund). * New plant leaders at Newark and Raynham facilities are driving operational improvement and gross margin initiatives that have already delivered measurable benefits. - 2026 Core Strategic Priorities * Accelerate revenue capture in the communication systems business: Multiple new products are in commercial capture phase with initial orders received, and additional launches are planned for late 2026. The new StrikeHub edge computing solution for U.S. military command and control programs was showcased at industry events, and management targets profitable baseline revenue for the segment within 12 months. * Improve gross margin in the battery and energy business: The major scrap issue for the highest margin-impacting product line has been resolved, with P&L benefits starting in Q2. The second largest margin inefficiency has been corrected, with supply chain updates underway and benefits expected in mid-Q3. These two initiatives are projected to deliver $600,000 to $800,000 in annual gross margin savings. Lean and automation projects are underway at Raynham to support 30% projected growth in customer demand and cell consumption next year. * Expand vertical integration from the Electric Chem acquisition: The company is integrating Electric Chem cells into existing battery pack assemblies to increase customer content, expand addressable market, and improve competitiveness. Growing demand is already seen for water-based drone platforms using Electric Chem cells, with meaningful incremental revenue expected starting Q4 2026. * Complete brand realignment: All sub-brands will be consolidated under the Ultralife master brand by the end of 2026 to clarify customer messaging and market positioning. - New Product Development Highlights * Communication Systems: Multiple 2026-launch projects are ongoing, including ruggedized HPE server configurations for tactical environments (initial orders received, 2026 deliveries planned), the 21 amplifier (under customer evaluation for modernization programs, international orders already received, with an advanced variant launching 2026), new universal vehicle radio mounts (launching 2026), and the Crescent wearable edge compute solution (prototypes coming late 2026 with a established partner ecosystem). * Battery and Energy Products: Over $2 million in conformal wearable soldier battery orders have shipped in 2026, with over $7 million remaining backlog to ship by year-end. Multiple cell and battery development programs for defense underwater drones are funded for 2026, with production starting early 2027. A rechargeable power pack for remote surveillance systems will complete development and certification in Q4 2026, with deliveries starting early 2027. Initial production capabilities for thin cell technology for medical wearables and asset tracking are complete, with multiple opportunities in qualification.
Guidance
Management did not issue explicit numerical full-year revenue or profit guidance, but reaffirmed its growth outlook and long-term strategic expectations: - Management expects continued gross margin improvement from ongoing operational initiatives, with additional benefits from current projects materializing through the second half of 2026. - Multiple new communication systems products are scheduled to launch in 2026, and custom battery programs are expected to transition to production in late 2026 and 2027, driving revenue growth. - Vertical integration initiatives from the Electric Chem acquisition are expected to deliver meaningful incremental revenue starting in Q4 2026, with contributions continuing over multiple years.
Segment performance
1. Battery and Energy Products Segment: Q2 2026 revenue was $44.2 million, a 3.7% decrease from $45.9 million in Q2 2025. This segment accounted for 92.3% of total consolidated revenue. Commercial sales declined 4.7% (driven by lower oil and gas sales from geopolitical factors) while medical battery sales increased 7.2%; the commercial to government defense sales split remained 68-32, matching the 2025 period. The domestic to international sales split shifted to 59-41 from 73-27 in 2025, reflecting higher global demand. Gross profit was $12.5 million, a 15.4% increase from $10.8 million in 2025, with gross margin rising to 28.3% from 23.6% (250 basis points of the increase came from a net IEPA tariff refund; gross margin excluding the refund was 25.8%). 2. Communication Systems Segment: Q2 2026 revenue was $3.8 million, a 39.3% increase from $2.7 million in Q2 2025. This segment accounted for 7.7% of total consolidated revenue. The increase was primarily driven by order timing. Gross profit was $1.4 million, up from $0.8 million in 2025, with gross margin increasing to 36.3% from 28.4%, primarily due to favorable sales mix.
Risks & headwinds
- Forward-looking results are subject to material uncertainty from risks including: weak global economic conditions, reduced revenue from key customers, delays or cuts to U.S. and foreign military spending, slow global market adoption of new products, and raw material/component supply disruptions from global conflicts, weather, or other external factors outside the company's control. * The company will not automatically update forward-looking statements to reflect new events or circumstances, so current projections may not account for emerging risks.
Analyst Q&A
Q: Analyst Will Lauber asked if Ultralife expects to capture business from L3 Harris's recent NGC2 Falcon ManPACS award, and how much backlog the company added after the end of Q2. /
A: Management confirmed backlog grew to almost $130 million by July after the end of the quarter, but stated the company does not currently have insight into how the award will be split across L3 Harris divisions, so cannot confirm the exact amount of business Ultralife will receive.
Q: Lauber followed up by asking for performance results of HPE servers (integrated with Ultralife solutions) that underwent extreme condition testing by the U.S. Army. /
A: Management confirmed all equipment passed testing, and noted that Ultralife's custom cooling system integrated with the HPE servers is designed specifically to withstand extreme high temperatures, addressing concerns raised in press reports about other equipment failing testing.