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Ultralife Q1 2025 Earnings Report
Ultralife Corporation reported its operating results for the first quarter ended March 31, 2025.
Key Takeaways
Ultralife Corporation delivered a strong first quarter with a 21% year-over-year revenue increase, driven by robust organic growth in Battery & Energy Products government/defense sales, which compensated for delays in Communications Systems orders. The company focused on improving gross margin and reducing inventory, while continuing strategic investments and integrating the Electrochem acquisition.
Revenue increased by 21.0% year-over-year to $50.7 million.
Gross profit was $12.7 million, representing 25.1% of revenue.
Operating income was $3.4 million, including one-time non-recurring costs and purchase accounting adjustments.
Adjusted EBITDA reached $5.4 million, compared to $5.2 million in the prior year.
Ultralife
Ultralife
Ultralife Revenue by Segment
Revenue by Segment
Battery & Energy Products Revenue
CapyFin.comCommunications Systems Revenue
CapyFin.com Forward Guidance
The company is confident in its ability to deliver and sustain profitable growth, generate incremental cash flow to reduce acquisition-related debt, and continue investing in strategic product development.
Positive Outlook
- Strong backlog replenishment positions the company to scale efficiently.
- Growing pipeline of innovative products targeting high-growth markets.
- Enhanced sales and marketing leadership accelerating organic growth.
- Maximizing the value of global brand and resources.
- Integration of Electrochem acquisition progressing well, positioning for manufacturing cost efficiencies and savings.
Challenges Ahead
- Continued delays in the timing of expected larger orders for Communications Systems segment.
- Potential risks from uncertain global economic conditions.
- Impact of tariffs and inflation on supply chains.
- Reductions in revenues from key customers.
- Disruptions, delays, or material price increases in raw materials and components.
Revenue & Expenses
Visualization of income flow from segment revenue to net income