Ultralife (ULBI) Q2 2026 Earnings Call Transcript
Ultralife (ULBI) reported Q2 FY2026 revenue of $47.9 million, down 1.3% year over year, with GAAP EPS of $0.15. Gross margin rose to 28.9% on a 500 bps increase, aided by a $1.1 million IEEPA tariff refund. Backlog hit a record $117.5 million, up 39% from a year earlier, and July backlog neared $130 million.
How this was made
The 30-second read
Why it matters
Traders can update expectations for near-term revenue capture (communications order pull-through), gross margin sustainability (tariff refund and mix), and shipment cadence for conformal wearable batteries and water-based drone platforms.
Market read
Record backlog and a large gross margin improvement are the headline fundamentals, with additional timing-based revenue and shipment expectations that can drive revisions to near-term estimates.
What to watch
Battery and Energy revenue declined due to oil and gas weakness; margin gains may depend on one-time tariff refund and favorable mix rather than fully recurring improvements.
Background
Ultralife’s Q2 2026 earnings call covers segment performance (Battery and Energy, Communications Systems), backlog trends, margin drivers, and updates on product and manufacturing initiatives.
Ticker impact
Ultralife reported Q2 2026 revenue of $47.9M, record $117.5M backlog, and gross margin expansion to 28.9% on the call.
Bias toward upside if investors focus on backlog growth and margin trajectory; downside risk if communications revenue timing or defense/drone demand assumptions disappoint.
The article provides multiple concrete operating metrics (revenue, EPS, backlog, gross margin, EBITDA) plus forward-looking shipment and demand expectations, which can re-rate near-term fundamentals.
Market effects
Signals improving profitability in battery and defense electronics supply chains, potentially supporting sentiment for niche defense battery suppliers.
Limited direct regional read-through; references to Raynham facility and domestic manufacturing tax credit are US-focused.
Geopolitical oil and gas sales headwind is noted, but the main incremental narrative is defense and medical wearables demand.
Counterpoint
Communications Systems growth is attributed to order timing, so near-term revenue may be volatile even with a record backlog.
Key entities
- companyUltralife Corporation
Reported Q2 2026 results and provided backlog, margin, and forward-looking shipment and demand commentary.
- executiveMichael Manna
CEO who discussed backlog pull-through and strategic execution priorities.
- executivePhilip A. Fain
CFO who addressed equipment reliability and margin drivers.
