Ultralife Corporation: Strong Q4 Results and Acquisition Opportunities Ahead

Ultralife Corporation (ULBI) is set to report its fourth quarter results on March 11, 2025, following a strong fiscal year 2023 marked by significant growth and expansion. The company's strategic focus on gross margin expansion and operational efficiency has contributed to its robust financial performance, with sales reaching $44.5 million in Q4, a 23.4% YoY increase, and $158.6 million for the fiscal year, a 20.3% YoY increase. Adjusted EBITDA doubled in Q4, reaching $4.8 million, and increased to $15.7 million for the year. The company's gross margin expanded to 24.7% for the year, resulting in adjusted EPS of $0.52.

Ultralife Corporation's strong fourth quarter performance was driven by higher Communications Systems revenue, a 360-basis point expansion of Battery & Energy Products' gross margin, and operating expense leverage. Medical sales reached the highest quarterly level since the company entered the market in 2012, contributing to the company's overall growth. With adjusted EBITDA more than doubling and inventory levels lower, Ultralife is well-positioned to commence paying down its acquisition debt.

Looking ahead to 2024, Ultralife Corporation aims to build upon its 2023 momentum, sustain profitable growth, and generate incremental cash flow to reduce debt, support strategic capital expenditures, and pursue accretive acquisitions. The company is focused on driving additional gross margin expansion, organic growth in its end markets, and operating leverage. By continuing to invest in new product development for commercial expansion, Ultralife Corporation is poised for continued success in the coming year.



Ultralife Corporation's recent acquisition of Electrochem Solutions, Inc. presents opportunities for revenue growth and cost synergies. The integration of Electrochem Solutions into Ultralife's operations will involve implementing an integration playbook to advance the company's strategy of realizing operating leverage through scale and manufacturing cost efficiencies. This acquisition also presents opportunities to drive revenue growth through heightened cross-selling and extending Ultralife's reach into underserved adjacent markets.

Mike Manna, President and Chief Executive Officer of Ultralife Corporation, stated that the acquisition of Electrochem Solutions will allow the company to more fully realize the operating leverage of its business model through scale and manufacturing cost efficiencies. This integration playbook is expected to create highly attractive opportunities to further drive revenue growth through heightened cross-selling and extending Ultralife's reach into underserved adjacent markets.

In summary, Ultralife Corporation's strong fourth quarter results and strategic focus on gross margin expansion and operational efficiency have positioned the company for continued growth in 2024. The acquisition of Electrochem Solutions, Inc. presents additional opportunities for revenue growth and cost synergies, further enhancing Ultralife's competitive position in the market. As the company continues to invest in new product development and pursue strategic acquisitions, Ultralife Corporation is well-positioned to capitalize on growth opportunities and maintain its competitive edge in the long term.