Loading...
•
Jun 30
Ultralife Q2 2025 Earnings Report
Ultralife's Q2 2025 earnings were impacted by a decline in Communications Systems sales and headwinds from tariffs and product mix shifts, despite revenue growth driven by the Electrochem acquisition.
Key Takeaways
Ultralife Corporation reported a challenging second quarter in 2025, with total revenue increasing by 13.0% to $48.6 million due to the Electrochem acquisition. However, GAAP EPS decreased significantly to $0.05 from $0.18 in the prior year, and operating income fell to $2.3 million from $3.9 million, primarily due to a 57.2% decline in Communications Systems sales and pressures on gross profit from product mix, tariffs, and freight costs.
Total revenue increased by 13.0% to $48.6 million, primarily driven by the inclusion of Electrochem Solutions, Inc.
GAAP EPS decreased to $0.05, down from $0.18 in the second quarter of 2024, reflecting a challenging period.
Communications Systems sales significantly declined by 57.2% to $2.7 million due to delayed purchase orders.
Gross profit remained flat at $11.6 million, but gross margin decreased to 23.9% from 26.9% due to product mix, higher tariffs, and freight costs.
Ultralife
Ultralife
Ultralife Revenue by Segment
Revenue by Segment
Battery & Energy Products Revenue
CapyFin.comCommunications Systems Revenue
CapyFin.com Forward Guidance
Ultralife expects improved results in the second half of 2025 and into 2026, driven by a rebound in the Communications Systems business, new product programs for batteries, and sustained growth in global defense spending.
Positive Outlook
- Communications Systems business is expected to rebound from a tough first half.
- Early purchase orders are being observed from long-term new product programs for the battery business.
- Anticipated rebound in demand from medical and oil & gas customers.
- Sustained growth in global defense spending is expected to continue.
- Expanding opportunity pipeline across both Battery & Energy Products and Communications Systems businesses.
Challenges Ahead
- The report does not explicitly state negative forward guidance points, but challenges from Q2 such as tariffs, unfavorable product mix shifts, and order timing could persist.
- Delayed purchase orders in Communications Systems impacted Q2 and could potentially affect future periods if not resolved promptly.
- Higher tariff and freight costs continue to be a headwind for gross margin.
- Lower factory throughput at some locations impacted Q2 and could continue to affect production efficiency.
- The company's ability to convert long-term new product development efforts into revenue remains a priority, implying it's an ongoing challenge.
Revenue & Expenses
Visualization of income flow from segment revenue to net income