Ultralife lifts third-quarter revenue 11.3% to $48.3 million, returns to operating profit
Key Facts
Ultralife reported third-quarter 2026 results on November 5, posting revenue of $48.3 million, up $4.9 million, or 11.3%, from the same period in 2025. Operating income swung to a profit of $3.2 million, compared with an operating loss of $1.0 million a year earlier. Revenue growth was driven mainly by higher sales in the battery and energy segment, with strong growth in government and defense demand. Commercial and communications systems sales declined, however, highlighting uneven performance across the company’s businesses. Ultralife said backlog at the end of the quarter reached its highest level in company history.
Gross profit rose to $13.3 million in the third quarter, from $9.6 million in the third quarter of 2025. Gross margin increased to 27.5% of revenue, compared with 22.2% in the year-earlier period. Adjusted EBITDA rose to $5.6 million, or 11.7% of sales, from $2.0 million and 4.7% a year earlier. For the 12 months ended at the close of the quarter, adjusted EBITDA was $20.7 million, a margin of 10.8% of sales. The figures reflect improving operating profitability and margins alongside revenue growth.
The battery and energy segment recorded sales of $45.1 million, up 12.9% year over year, compared with $39.9 million a year earlier. The company attributed the increase to 56.7% growth in government and defense sales, driven mainly by strong demand for wearable and surface-compatible batteries. A 5.8% decline in commercial sales partly offset that growth. Ultralife said the weaker commercial activity was linked to a soft global oil and gas market. Government and defense demand was therefore the segment’s main growth driver, while weakness in the oil and gas market continued to weigh on commercial sales.
Communications systems sales, by contrast, fell 7.1% to $3.2 million in the third quarter, from $3.4 million in the same period of 2025. The decline, alongside growth in the battery and energy segment, underscores the differing performance of the company’s two businesses during the period. At quarter-end, backlog stood at $136.0 million, a record for Ultralife, compared with $117.5 million at the end of the second quarter of 2026 and $90.3 million at the end of the third quarter of 2025. Backlog increased between the ends of the second and third quarters and was also above its level a year earlier. The record backlog was among the most prominent indicators in the quarterly results announced by the company.
The results follow Ultralife’s October 27 announcement of an agreement to be acquired by EnerSys in an all-cash deal valued at about $320 million, including the assumption of net debt. Under the agreement, shareholders will receive $16.00 in cash for each share upon completion of the deal. The company said closing is expected in the first quarter of 2027, subject to the satisfaction of conditions and approvals. In light of the pending deal, Ultralife said it would not hold a conference call to discuss its third-quarter results. The company’s shares, listed under the ticker ULBI, closed at $15.63 on November 5.