Ultralife shares fall 5% as Q3 results fall short of expectations
NEWARK, N.Y. - On Tuesday, Ultralife Corporation (NASDAQ:ULBI) reported third-quarter results that missed analyst expectations, with both earnings and revenue coming in below forecasts despite year-over-year growth.
The power solutions provider’s shares fell 5.05% in pre-market trading after the results.
The company posted an adjusted loss of $0.07 per share for the quarter ended September 30, 2025, falling significantly short of the $0.21 earnings per share analysts had expected. Revenue reached $43.4 million, up 21.5% YoY but well below the consensus estimate of $53 million. Excluding the contribution from its Electrochem acquisition, organic sales growth was just 2.5% compared to the same period last year.
Gross profit margin contracted to 22.2% from 24.3% in the year-ago quarter, primarily due to manufacturing inefficiencies in the Battery & Energy Products segment resulting from quality issues with incoming raw materials.
"Although revenue grew 2.5% organically and 21.5% including the Electrochem acquisition for the third quarter, supply chain issues caused manufacturing inefficiencies in our Battery & Energy Products business and orders continued to be delayed in our Communications Systems business, both of which impacted overall profitability," said Mike Manna, President and Chief Executive Officer.
The company reported an operating loss of $1 million, which included $1.1 million in one-time costs, including a $0.5 million provision to close its Calgary facility. Ultralife expects to complete the closure in the first quarter of 2026 and anticipates annual savings of approximately $0.8 million thereafter.
Despite the disappointing quarterly performance, the company’s backlog increased to $90.1 million at the end of the third quarter, up from $84.5 million at the end of the second quarter, suggesting potential improvement in future periods.
Battery & Energy Products sales increased 22.8% to $39.9 million, while Communications Systems sales rose 8.2% to $3.4 million compared to the same period last year.
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