Ultralife Corporation reported third‑quarter 2025 results that showed a headline revenue increase of 21.5 % to $43.4 million, largely driven by the October 31 acquisition of Electrochem Solutions. Excluding the acquisition, organic revenue rose only 2.5 % to $36.6 million, indicating modest underlying demand growth.
The company’s gross margin contracted to 22.2 % from 24.3 % in the same quarter last year. Management attributed the compression to manufacturing inefficiencies and quality issues with incoming raw materials in the Battery & Energy Products segment, as well as a less favorable sales mix. Operating income turned negative, with a $1.0 million loss that included $1.1 million of one‑time costs.
CEO Michael Manna explained that supply‑chain disruptions and delayed orders in the Communications Systems business weighed on profitability, even as the Electrochem acquisition added significant top‑line volume. The CFO, Philip Fain, presented the financials and signed the SEC filings, underscoring the company’s commitment to transparency.
Earnings per share fell to a GAAP loss of $0.07, missing analyst consensus of $0.21–$0.22 per share by $0.28. Revenue also missed expectations, coming in $9–10 million below the $53–54 million consensus. The market reacted negatively, with investors citing the earnings miss as the primary driver of the downturn.
Backlog at the end of the quarter stood at $90.1 million, up from $84.5 million in Q2 2025, suggesting a pipeline of future revenue. No forward guidance was provided, leaving investors to assess the company’s trajectory based on the current results and the ongoing closure of the Calgary facility, which is expected to generate annual savings of roughly $0.8 million by Q1 2026.
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