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Dec 31, 2024

Ultralife Q4 2024 Earnings Report

Ultralife reported a slight revenue decline and reduced profitability in Q4 2024, impacted by acquisition costs and a significant drop in Communications Systems sales.

Key Takeaways

Ultralife Corporation posted Q4 2024 revenue of $43.9 million, down slightly year-over-year. Profitability metrics, including net income and operating income, decreased, largely due to one-time costs related to the Electrochem acquisition and a sharp decline in Communications Systems revenue. Adjusted EBITDA and gross margin also declined compared to the prior year.

Revenue was $43.9 million, including $6.1 million from Electrochem.

Net income dropped to $194,000, with diluted EPS at $0.01.

Adjusted EBITDA declined to $3.9 million from $4.8 million last year.

Communications Systems revenue fell 55.1% to $4.0 million.

Total Revenue
$43.9M
Previous year: $44.5M
-1.6%
EPS
$0.01
Previous year: $0.18
-94.4%
Gross Margin
24.2%
Previous year: 25.6%
-5.5%
Operating Margin
3.4%
Previous year: 8.2%
-58.5%
Adjusted EBITDA
$3.9M
Previous year: $4.77M
-18.2%
Gross Profit
$10.6M
Previous year: $11.4M
-7.0%
Cash and Equivalents
$6.85M
Previous year: $10.3M
-33.3%
Total Assets
$220M
Previous year: $178M
+23.7%

Ultralife

Ultralife

Ultralife Revenue by Segment

Forward Guidance

Ultralife expects profitable growth in 2025 driven by backlog strength, product launches, and integration synergies from Electrochem.

Positive Outlook

  • Entered 2025 with a $102.2 million backlog and high-confidence orders.
  • New products scheduled to launch in high-growth markets.
  • Integration of Electrochem expected to deliver cost efficiencies.
  • Strengthened sales and marketing team to drive organic growth.
  • Vertical integration to yield U.S.-based savings.

Challenges Ahead

  • Fulfillment delays pushed orders into 2025, impacting Q4 revenue.
  • Short-term financial fluctuations due to order timing.
  • One-time acquisition costs pressured operating income.
  • Lower medical battery and industrial sales dragged segment performance.
  • Decline in Communications Systems revenue due to lack of large defense orders.

Revenue & Expenses

Visualization of income flow from segment revenue to net income