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Ultralife Corp. (ULBI)
NASDAQ:ULBI
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Ultralife (ULBI) AI Stock Analysis

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ULBI

Ultralife

(NASDAQ:ULBI)

Rating:59Neutral
Price Target:
$7.00
▼(-2.91% Downside)
Ultralife's overall stock score reflects a stable financial position with strong balance sheet metrics but challenges in profitability and cash flow. Technical analysis indicates bearish momentum, while valuation metrics suggest the stock is relatively expensive. The earnings call highlighted both growth opportunities and significant challenges, balancing the overall outlook.
Positive Factors
Financial Performance
ULBI reported sales were $50.7M, up 32% year-over-year, exceeding the estimate of $48.0M.
Market Expansion
The Electrochem integration is nearly complete, expanding ULBI into new markets such as pipeline inspection, seismic telemetry, and sonobuoys.
Regulatory Approval
ULBI's partner on the medical wearable opportunity received FDA approval, which should translate to material orders.
Negative Factors
Medical Battery Sales
Organic growth was partially offset by a 12.3% decrease in medical battery sales.

Ultralife (ULBI) vs. SPDR S&P 500 ETF (SPY)

Ultralife Business Overview & Revenue Model

Company DescriptionUltralife Corporation (ULBI) is a global leader in the design and manufacture of advanced battery and energy solutions. The company operates primarily in two segments: the Battery and Energy Products segment, which focuses on lithium batteries for various applications, including medical devices, military, and consumer electronics; and the Communications segment, which provides critical communication systems and solutions for the defense and commercial sectors. Ultralife's core products include rechargeable batteries, power systems, and specialty communications equipment, making it a key player in the energy and power solutions market.
How the Company Makes MoneyUltralife generates revenue through the sale of its battery and energy products, which constitute the majority of its earnings. The company has established key revenue streams through long-term contracts with government and military clients, providing specialized batteries and communication solutions. Additionally, Ultralife benefits from partnerships with various manufacturers and suppliers to enhance its product offerings and expand its market reach. Significant sales are also derived from the commercial sector, including medical and industrial applications, where reliable power solutions are essential. The company's focus on innovation and quality has positioned it favorably in a competitive market, allowing it to capitalize on emerging trends in energy storage and management.

Ultralife Earnings Call Summary

Earnings Call Date:Aug 07, 2025
(Q2-2025)
|
% Change Since: -11.64%|
Next Earnings Date:Oct 23, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture with significant revenue growth driven by government defense sales and successful integration of Electrochem, while challenges included a decline in operating income, gross margins, and sales in key segments. The company showed progress in new product development and debt reduction, but faced headwinds from tariffs and increased operating expenses.
Q2-2025 Updates
Positive Updates
Revenue Growth
Q2 2025 sales increased to $48.6 million from $43 million in Q2 2024, mainly driven by the Battery & Energy Products segment.
Government Defense Sales Increase
Government defense sales grew by 61.1%, reflecting strong demand from U.S.-based global prime.
Debt Reduction
Over $0.7 million of acquisition debt was repaid in Q2 2025, with total debt reduction of $3.4 million in the first half of 2025.
Electrochem Integration Progress
Successful transition of Electrochem's ERP and office systems to Ultralife systems, with further integration planned for Q3 2025.
New Product Development
Positive momentum in new product development, including the ruggedizer server case portfolio and a new 20-Watt amplifier.
Employee Retention Credit
Received $1.8 million from the employee retention credit, which was used to reduce acquisition debt.
Negative Updates
Decline in Operating Income
Operating income decreased to $2.3 million from $3.9 million in Q2 2024, primarily due to a 57.2% decline in Communication Systems sales.
Gross Margin Decline
Consolidated gross margin fell to 23.9% from 26.9% in Q2 2024, affected by product mix, tariffs, and lower factory throughput.
Commercial Sales Decline
Commercial sales decreased by 20.4%, with medical battery sales dropping 39% and oil and gas sales falling 23.1%.
Tariff Impact
Tariffs negatively impacted margins by $400,000, causing a reduction in gross margin by 100 basis points.
Communication Systems Sales Decline
Revenues from the Communication Systems segment declined 57.2% from last year, mainly due to delays in purchase orders.
Increased Operating Expenses
Operating expenses rose by 22.2% to $9.3 million, influenced by Electrochem integration costs and new product development expenses.
Net Income Decrease
Net income decreased to $0.9 million or $0.05 per share from $2.7 million or $0.18 per share in Q2 2024.
Company Guidance
During the Ultralife Corporation's Second Quarter 2025 earnings call, management provided guidance that included several key financial metrics. The company reported Q2 sales of $48.6 million, with an operating income of $2.3 million, which included a onetime adjustment of $0.3 million. The net profit for the quarter was $0.9 million, resulting in $0.05 EPS on a GAAP basis and $0.07 on an adjusted basis. Gross profit was $11.6 million, representing a gross margin of 23.9%, a decline of 300 basis points from the previous year due to unfavorable product mix and tariffs. The company successfully reduced its acquisition debt by $0.7 million in Q2 and received $1.8 million from an employee retention credit. Operating expenses were $9.3 million, an increase of 22.2% from the prior year, attributed to new product development and acquisition-related costs. The total backlog with high-confidence orders was $89 million, with a solid replenishment rate. Management expressed optimism for the second half of the year, citing expected improvements in the Communications Systems segment and a rebound in medical and oil and gas markets.

Ultralife Financial Statement Overview

Summary
Ultralife shows strong financial performance with significant revenue growth and robust cash flow generation. The company maintains a conservative balance sheet with low leverage and a high equity ratio, providing financial stability. However, there is room for improvement in profitability metrics to align with industry leaders.
Income Statement
85
Very Positive
Ultralife demonstrates strong revenue growth, with a notable increase from $131.8 million in 2022 to $173.3 million in the TTM period. Gross profit margin is healthy at 25.2%, and the net profit margin improved to 3.1%. EBIT and EBITDA margins are stable at 5.4% and 7.1%, respectively, indicating efficient operations. However, profitability has room for improvement relative to industry leaders.
Balance Sheet
78
Positive
The company maintains a solid balance sheet with an equity ratio of 61% and a low debt-to-equity ratio of 0.02, reflecting strong financial stability. Return on equity (ROE) is modest at 3.9%, suggesting potential for higher returns on equity investments. Overall, the balance sheet indicates a conservative capital structure with ample equity buffer.
Cash Flow
82
Very Positive
Operating cash flow is strong at $20.1 million, with a robust free cash flow of $17.6 million, reflecting effective cash management. The operating cash flow to net income ratio is 3.8, highlighting efficient cash generation relative to net income. The free cash flow to net income ratio is favorable at 3.3, indicating a strong cash position.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue178.85M164.46M158.64M131.84M98.27M107.71M
Gross Profit43.63M42.31M39.20M29.40M24.64M29.16M
EBITDA12.38M14.40M15.04M4.59M4.05M8.64M
Net Income3.20M6.31M7.20M-119.00K-234.00K5.23M
Balance Sheet
Total Assets220.96M220.45M178.28M168.43M159.05M137.70M
Cash, Cash Equivalents and Short-Term Investments10.94M6.85M10.28M5.71M8.41M10.65M
Total Debt3.44M54.25M29.16M23.51M23.47M1.36M
Total Liabilities82.32M86.26M52.85M52.03M41.31M20.78M
Stockholders Equity138.45M134.00M125.33M116.28M117.62M116.80M
Cash Flow
Free Cash Flow13.90M14.70M-623.00K-2.94M1.51M18.62M
Operating Cash Flow17.09M16.64M1.93M-1.26M4.33M21.72M
Investing Cash Flow-51.22M-49.95M-2.55M-1.68M-26.33M-2.98M
Financing Cash Flow38.27M29.86M5.49M518.00K19.64M-15.69M

Ultralife Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price7.21
Price Trends
50DMA
8.06
Negative
100DMA
6.73
Positive
200DMA
6.95
Positive
Market Momentum
MACD
-0.41
Positive
RSI
46.50
Neutral
STOCH
53.83
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ULBI, the sentiment is Neutral. The current price of 7.21 is below the 20-day moving average (MA) of 7.32, below the 50-day MA of 8.06, and above the 200-day MA of 6.95, indicating a neutral trend. The MACD of -0.41 indicates Positive momentum. The RSI at 46.50 is Neutral, neither overbought nor oversold. The STOCH value of 53.83 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for ULBI.

Ultralife Risk Analysis

Ultralife disclosed 29 risk factors in its most recent earnings report. Ultralife reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Ultralife Peers Comparison

Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
82
Outperform
$133.08M17.5316.59%2.13%29.60%42.80%
59
Neutral
$120.00M37.672.35%5.86%-68.66%
58
Neutral
HK$14.10B4.52-3.70%5.61%2.27%-65.55%
48
Neutral
$87.76M247.00-7.47%-35.70%-151.26%
43
Neutral
$95.72M-20.52%48.62%0.23%
26
Underperform
$33.84M-860.70%25.87%
$131.04M-91.79%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
ULBI
Ultralife
7.21
-3.67
-33.73%
CBAT
CBAK Energy Technology
0.99
-0.03
-2.94%
ESP
Espey Mfg & Electronics
47.00
24.90
112.67%
FCEL
Fuelcell Energy
4.20
-8.97
-68.11%
SDST
Stardust Power
0.40
-7.61
-95.01%
NEOV
NeoVolta
3.84
1.17
43.82%

Ultralife Corporate Events

Executive/Board ChangesShareholder Meetings
Ultralife Holds Annual Stockholders Meeting, Elects Directors
Neutral
Jul 17, 2025

On July 16, 2025, Ultralife Corporation held its Annual Meeting of Stockholders, where stockholders elected five directors to serve for a one-year term. Additionally, the stockholders ratified Freed Maxick P.C. as the independent registered public accounting firm for 2025. The meeting saw a significant quorum with 85.35% of shares represented, indicating strong shareholder engagement.

The most recent analyst rating on (ULBI) stock is a Buy with a $14.00 price target. To see the full list of analyst forecasts on Ultralife stock, see the ULBI Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 14, 2025