Ultralife Reports 21% Q1 Revenue Growth Amid Profit Miss

Ultralife Corporation reported a 21% increase in first-quarter 2025 revenue to $50.7 million, driven primarily by a 53.6% surge in government-defense sales and growth from the recent Electrochem acquisition. Despite this revenue growth, the company’s earnings per share fell to $0.11, missing analyst expectations and down from $0.18 the previous year, reflecting pressure on profitability due to declines in Communications Systems and medical battery sales. Ultralife’s gross profit margin was 25.1%, and operating income decreased, prompting management to focus on supply chain optimization and lean productivity initiatives to improve margins. The acquisition integration is on track for completion in Q2 and is expected to enhance future performance, supported by a strong backlog of $95 million, representing 55% of trailing 12-month sales. While the stock has faced significant declines over the past year, Ultralife maintains a positive outlook on sustaining growth and generating cash flow to reduce acquisition-related debt. Overall, the company balances growth opportunities with challenges in certain segments as it executes strategic initiatives to drive profitability.