Key Highlights

  • ULBI is trading up 2.54% at $6.45 on October 21, with a market capitalization of about $107.48 million.
  • The company has not yet dated its third-quarter report, which is expected in the coming weeks.
  • Second-quarter revenue was $47.9 million, down about 1.3% year over year.
  • Backlog was a record $117.5 million at the second-quarter report, up 39% year over year.
  • Second-quarter GAAP EPS was $0.15 against $0.05 a year earlier.

Can Ultralife Turn a Record Backlog Into Sales When It Next Reports Earnings?

Ultralife (NASDAQ:ULBI) is trading up 2.54% at $6.45 on October 21, and no company announcement was identified for the session. The prior close was $6.29, after a gain of about 3.8% on October 20, so the stock has risen over two sessions without a stated cause. No analyst rating is assigned.

The company has not yet announced the date of its third-quarter report. The second quarter was reported on August 7, and the release is expected in the coming weeks, outside the next five days. The question investors are weighing is whether a record backlog converts into revenue growth.

Ultralife makes batteries and communications systems for defense, government and commercial customers.

What Did the Latest Quarter and Call Set Up for the Next Report?

Second-quarter revenue was $47.9 million, down about 1.3%, as government defense sales rose 5% and commercial sales fell 4.7%. Gross profit rose 19.5% to $13.9 million, and gross margin was 28.9%, or 26.6% excluding a one-time $1.1 million tariff refund. Operating income was $3.4 million, and adjusted EBITDA was $6.1 million, or 12.8% of sales, against 8.5% a year earlier.

Backlog reached a record $117.5 million, and management said July orders lifted it to nearly $130 million. Management gave no numeric revenue or earnings guidance but expects customer demand and cell consumption to grow by more than 30% over the next year. A conformal battery backlog of more than $7 million is expected to ship before year-end, and two fixes at its Raynham plant should save $0.6 million to $0.8 million in annual gross margin.

Cash was $6.7 million and debt was $44.6 million, or about $37.9 million of net debt, calculated. Drone production and a remote surveillance power-pack program are expected to begin in early 2027.

What Would a Good or Bad Quarter Look Like for Ultralife?

An encouraging report would show a return to revenue growth after the second-quarter decline, shipments that draw down the $117.5 million backlog, and an underlying gross margin holding near the 26.6% level before one-time items. Further debt reduction would also be viewed favorably.

A concerning report would show continued commercial weakness, including lower oil and gas sales, a margin that slips as the tariff refund falls away, or rising product development costs. Operating expenses rose 10.6% to $10.4 million in the second quarter, and the quarter carried about $0.9 million of one-time litigation and consulting costs.

The shares rose 19.4% on the day of the second-quarter report, which shows how sensitive the stock has been to updates on shipments and order timing.

Why Are the Trailing Figures Not a Clean Guide?

Trailing EPS is negative $0.39 and trailing EPS growth is negative 305.80%. Both reflect an impairment charge in the fourth quarter of 2025 and are not a signal of current operating performance. The P/E is blank because trailing earnings are negative, and the company pays no dividend. Investors will look for revenue growth, backlog conversion and debt paydown when the date is announced and the report arrives.