Azz Analyst Day Presentation: Revenue Growth, FY22 Results

• Azz analysts discuss forward-looking statements and potential future events. • Focus on digital data and its impact on the company. • No specific details on digital data provided in the summary.

Ultralife Corporation (ULBI) reported its Q2 2025 earnings, with CEO Mike Manna and CFO Phil Fain participating in a conference call to discuss the company's performance. Key highlights from the earnings call include:

- Revenue Growth: Consolidated revenue for Q2 2025 was $48.6 million, an increase of 15.5% compared to the same period last year. This growth was driven by the inclusion of Electrochem and higher government defense sales within the battery business [1].

- Profitability Decline: Despite the revenue growth, profitability declined. Net income was $900,000, down from $2.7 million in Q2 2024. This was attributed to a sharp drop in Communication Systems sales, unfavorable product mix, and significant tariff-related costs [1].

- Segment Performance:
- Communication Systems Segment: Revenue declined 57.2% to $2.7 million, mainly due to delayed purchase orders and the absence of prior year's large shipments [1].
- Battery and Energy Products Segment: Revenue was $45.9 million, with commercial sales down 20.4% and government defense sales up 61.1%. The commercial vs. government defense sales split shifted to 68/32 from 75/25 last year [1].

- Tariff Impact: Tariffs had a significant impact on the company's bottom line, with a hit of $400,000 in Q2 2025. CFO Fain stated that the company is passing a tariff surcharge onto its customers [1].

- Debt Reduction: Ultralife repaid $2.7 million of acquisition debt in Q2 2025, exceeding the full-year required amortization [1].

- Litigation: The company initiated litigation expected to run into 2026, targeting recovery in the millions of dollars for cyberattack-related insurance claims [1].

- Product Development: Multiple new products are in the pipeline, with several Communication Systems offerings in customer testing and new medical/thin cell battery applications in qualification [1].

- Vertical Integration: The back-office transition of Electrochem was completed, with final manufacturing system integration expected in the next quarter to unlock further operational gains [1].

The company cautioned investors about potential risks and uncertainties, including uncertain global economic conditions, reductions in revenues from key customers, and disruptions in the supply of raw materials and components [1].

Forward-Looking Statements: Ultralife Corporation's earnings call emphasized the importance of forward-looking statements, which are subject to risks and uncertainties. The company noted that future results could be affected by various factors, including economic conditions, regulatory changes, and market fluctuations. CEO Mike Manna and CFO Phil Fain highlighted the company's efforts to mitigate these risks through strategic initiatives and operational improvements.

Impact of Digital Data: While the earnings call did not provide specific details on digital data, it is clear that Ultralife is leveraging digital technologies to drive growth and improve operational efficiency. The company's focus on product development and vertical integration suggests a commitment to leveraging data and technology to enhance its offerings and stay competitive in the market.

Conclusion: Ultralife Corporation's Q2 2025 earnings report highlights the company's resilience in the face of challenges, including tariffs and declining profitability in certain segments. The company's forward-looking statements and strategic initiatives suggest a commitment to long-term growth and innovation. Investors should closely monitor the company's progress and remain aware of potential risks and uncertainties.

References:
[1] https://www.fool.com/earnings/call-transcripts/2025/08/07/ultralife-ulbi-q2-2025-earnings-call-transcript/