Ultralife (ULBI) investor relations material

Executive summary

• Q2 2026 revenue was $47.9 million, down 1.3% year-over-year, with commercial sales declining 4.7% and government/defense sales rising 5%.

• Net income attributable to shareholders was $2.54 million ($0.15 per share), up from $0.88 million ($0.05 per share) in Q2 2025.

• Adjusted EBITDA rose to $6.1 million (12.8% of sales), up from $4.1 million (8.5%) last year.

• Record backlog of $117.5 million at quarter-end, rising to nearly $130 million in July.

• Growth driven by new product commercialization, operational improvements, and strong demand in both commercial and defense markets.

Financial highlights

• Gross profit rose to $13.9 million (28.9% margin), up from $11.6 million (23.9% margin) last year, aided by favorable mix and a $1.1 million IEEPA tariff refund.

• Operating expenses increased to $10.4 million (21.8% of revenue), driven by higher R&D and $0.9 million in one-time costs.

• Operating income was $3.4 million (7.2% margin), up from $2.3 million (4.6%) last year.

• Cash at quarter-end was $6.66 million, down from $9.35 million at year-end, mainly due to $5.13 million in debt repayments.

• Backlog at quarter-end was $117.5 million, the highest in company history, up from $115.1 million in Q1 2026 and $84.5 million in Q2 2025.

Outlook and guidance

• Multiple new product launches planned in Communications Systems and Battery & Energy Products for 2026.

• Anticipates over 30% growth in customer demand and cell consumption in the coming year.

• Several custom battery and communications programs expected to transition to production in late 2026 and 2027.

• Management expects continued profitable growth, supported by a strong backlog, operational efficiency initiatives, and ongoing investment in new product development.

• Positive operating cash flow and available credit are expected to meet funding needs for the foreseeable future.