Ultralife (ULBI) investor relations material

Executive summary

• Q4 2025 revenue reached $48.5 million, up 10.6% year-over-year, with a full-year total of $191.2 million, a 16.2% increase year-over-year.

• Backlog grew to $110.2 million, up 22% sequentially, diversified across markets, with over $6 million from new 2025 product launches.

• Operating loss for Q4 was $10.6 million, driven by a $12.2 million non-cash intangible asset impairment and $1.2 million in one-time costs; full-year operating loss was $5.9 million.

• Adjusted EBITDA for Q4 was $5.7 million (11.7% of sales), up from $3.9 million (8.9%) last year.

• Completed ERP transition, closed two North American facilities, and unified back-office systems.

Financial highlights

• Battery and energy product segment Q4 revenue was $45.9 million, up 15.1% year-over-year; organic growth was 9.5%.

• Communications Systems segment revenue declined 35.2% to $2.6 million due to delayed government orders.

• Consolidated gross profit was $12.1 million, up 13.7% year-over-year; gross margin improved to 24.9%.

• Net loss for Q4 was $7.4 million or $0.45 per share, including $0.57 per share for the impairment charge.

• Cash balance at year-end was $9.3 million, up from $6.9 million a year earlier.

Outlook and guidance

• Entering 2026 with a strong backlog and improved operational efficiency, positioning for profitable growth and incremental cash flow.

• Communications Systems expected to rebound in 2026 as new products launch and delayed programs resume.

• Targeting organic growth at least 2x GDP and short-term EBITDA margin above 10%.

• Baseline revenue goal for Communications Systems is $25 million, with potential for large orders.

• Plans to reduce debt, support strategic capital expenditures, and invest in new product development.