Ultralife Corporation Reports 13% Revenue Growth to $48.6 Million in Q2 2025

Ultralife Corporation reported a consolidated revenue of $48.6 million for the three-month period ending June 30, 2025, marking a 13% increase from $43.0 million in the same period last year. The growth was primarily driven by the inclusion of Electrochem Solutions, Inc., which the company acquired in October 2024, and a 12.5% rise in government and defense sales. However, commercial sales saw a significant decline of 20.4%, attributed to reduced demand in the medical and oil and gas sectors. For the six-month period, total revenues reached $99.3 million, up 17% from $84.9 million in the prior year.

Despite the revenue increase, Ultralife's gross profit for the second quarter was $11.6 million, slightly up from $11.6 million a year earlier, but the gross margin decreased from 26.9% to 23.9%. This decline was attributed to a less favorable sales product mix, increased tariff and freight costs, and lower factory throughput. Operating expenses rose to $9.3 million from $7.6 million, reflecting the costs associated with the Electrochem acquisition and increased investment in new product development. Consequently, operating income fell to $2.3 million, down from $3.9 million in the previous year.

The company reported a net income of $879,000, or $0.05 per share, for the second quarter, a decrease from $2.97 million, or $0.18 per share, in the same quarter of 2024. The increase in other expenses, particularly interest and financing costs related to the Electrochem acquisition, contributed to this decline. For the six-month period, net income was $2.74 million, down from $5.86 million in the prior year, with adjusted earnings per share also reflecting a decrease.

Operationally, Ultralife's acquisition of Electrochem has begun to show positive contributions, with Electrochem generating $9.3 million in revenue and $1.6 million in net income before taxes for the second quarter. The company is focusing on leveraging this acquisition to enhance its product offerings and expand into adjacent markets. As of June 30, 2025, Ultralife had 16.6 million shares of common stock outstanding and reported cash reserves of $10.9 million, an increase from $6.9 million at the end of 2024.

Looking ahead, Ultralife anticipates improved performance in the latter half of 2025, driven by a rebound in its Communications Systems business and increased demand from its battery segment. The company aims to convert long-term product development efforts into revenue and maintain operational efficiency to support sustainable growth.