GET DAILY SIGNALSUltralife (ULBI) Q2 2026: Profit Triples as Margins Expand and Backlog Hits Record
Key Takeaways
- Ultralife reported second-quarter 2026 revenue of $47.9 million, down 1.3% from $48.6 million a year earlier.
- GAAP earnings per share (EPS, or profit allocated to each outstanding share) tripled to $0.15, up from $0.05 in the prior-year quarter.
- Gross margin expanded 500 basis points to 28.9%, helped by favorable product mix and a one-time tariff refund.
- Backlog reached a company record of $117.5 million, up 39% year over year, and grew further to nearly $130 million by July.
- Communications Systems revenue surged 39.3%, while the larger Battery & Energy segment slipped 3.7%.
- Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization, adjusted for one-time items) rose 49.5% to $6.1 million.
Why These Results Stand Out
Ultralife Corporation supplies power solutions and communication systems to government, defense, and commercial clients worldwide. Its second-quarter 2026 report stood out because the company moved back into solid profitability after a modest net loss in the first quarter. That earlier shortfall stemmed from production issues and one-time costs, so the rebound in earnings and margins offered a clear signal that operational fixes are starting to work. With defense spending on the rise and broader interest in advanced batteries, these numbers provide a useful snapshot of both company execution and sector trends. I also checked this using Tickeron’s AI Screener to compare ULBI against industry peers.
Breaking Down the Reported Numbers
ULBI posted second-quarter 2026 revenue of $47.9 million, a 1.3% decline from $48.6 million in the year-ago period. Net income attributable to the company climbed to $2.5 million, or $0.15 per diluted share on a GAAP basis, versus $0.9 million, or $0.05 per share, a year earlier.
Gross profit rose 19.5% to $13.9 million, and gross margin widened 500 basis points to 28.9% from 23.9%. The gain came from a better product mix in both segments plus a $1.1 million net refund of IEEPA tariffs that added 230 basis points to the margin. Without the refund, the consolidated gross margin would have been 26.6%. Operating income increased 52.3% to $3.4 million, lifting the operating margin to 7.2% from 4.6%.
Adjusted EBITDA grew 49.5% to $6.1 million, or 12.8% of sales, compared with $4.1 million, or 8.5% of sales, last year. Management offered no specific revenue or EPS guidance but kept its view that 2026 should bring profitable growth overall.
Market Reaction and Sentiment
Investors reacted positively, sending ULBI shares up roughly 19% on the day of the release. Since then the stock has advanced about 34.6%, outpacing the S&P 500 over the same stretch, as the market focused on the profit rebound, margin improvement, and record backlog. Some caution remains because part of the margin lift came from the one-time tariff refund rather than ongoing operations. Even so, progress on scrap reduction, supply-chain improvements, and new-product launches appears to be supporting the view that the turnaround is gaining ground, even with softer commercial demand in oil and gas.
Forward Outlook and Items to Watch
Looking ahead, the key question is whether ULBI can turn its record backlog into steady revenue growth. July order activity lifted the backlog to nearly $130 million, pointing to continued momentum into the second half of 2026. Margin sustainability will also matter. Two supply-chain and scrap-reduction projects are expected to deliver roughly $600,000 to $800,000 in annual gross-margin savings, and lean manufacturing work continues at the Raynham facility. Investors will want to see these benefits show up without relying on one-time refunds. New products in communications, including ruggedized computing and amplifier items, plus conformal wearable batteries and drone applications, are slated to reach production from late 2026 into 2027. Continued strength in Communications Systems and stabilization in Battery & Energy will help show whether profitable growth can be sustained.
Using AI Tools to Track ULBI and Peers
In my own research I regularly rely on Tickeron’s AI-powered tools to scan for patterns and compare companies like ULBI against their sector. The AI Screener helps surface relevant ideas quickly by combining technical signals, fundamentals, and industry filters, which keeps the workflow efficient when following names in defense and energy storage. It has become a practical part of staying on top of shifting conditions without manual screening.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.
Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
ULBI sees its Stochastic Oscillator climbs out of oversold territory
On October 20, 2026, the Stochastic Oscillator for ULBI moved out of oversold territory and this could be a bullish sign for the stock. Traders may want to buy the stock or buy call options. Tickeron's A.I.dvisor looked at 68 instances where the indicator left the oversold zone. In 55 of the 68 cases the stock moved higher in the following days. This puts the odds of a move higher at over 81%.
Technical Analysis (Indicators)
Bullish Trend Analysis
Following a +4.49% 3-day Advance, the price is estimated to grow further. Considering data from situations where ULBI advanced for three days, in 169 of 224 cases, the price rose further within the following month. The odds of a continued upward trend are 75%.
Bearish Trend Analysis
The 10-day RSI Indicator for ULBI moved out of overbought territory on October 02, 2026. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 33 similar instances where the indicator moved out of overbought territory. In 28 of the 33 cases, the stock moved lower in the following days. This puts the odds of a move lower at 85%.
The Momentum Indicator moved below the 0 level on October 13, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on ULBI as a result. In 84 of 104 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 81%.
The Moving Average Convergence Divergence Histogram (MACD) for ULBI turned negative on October 14, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 56 similar instances when the indicator turned negative. In 46 of the 56 cases the stock turned lower in the days that followed. This puts the odds of success at 82%.
ULBI moved below its 50-day moving average on October 12, 2026 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for ULBI crossed bearishly below the 50-day moving average on October 15, 2026. This indicates that the trend has shifted lower and could be considered a sell signal. In 15 of 18 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are 83%.
The 50-day moving average for ULBI moved below the 200-day moving average on October 19, 2026. This could be a long-term bearish signal for the stock as the stock shifts to an downward trend.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where ULBI declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 77%.
ULBI broke above its upper Bollinger Band on October 01, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Aroon Indicator for ULBI entered a downward trend on September 25, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Fundamental Analysis (Ratings)
The Tickeron Valuation Rating of 8 (best 1 - 100 worst) indicates that the company is seriously undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (0.781) is normal, around the industry mean (-0.099). P/E Ratio (-15.923) is within average values for comparable stocks, (11.242). Projected Growth (PEG Ratio) (0.040) is also within normal values, averaging (2.900). Dividend Yield (0.000) settles around the average of (0.083) among similar stocks. P/S Ratio (0.487) is also within normal values, averaging (8.019).
The Tickeron Price Growth Rating for this company is 46 (best 1 - 100 worst), indicating steady price growth. ULBI’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is 92 (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron PE Growth Rating for this company is 98 (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is 100 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. ULBI’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 87, placing this stock worse than average.
Notable companies
Industry description
Market Cap
High and low price notable news
Volume
Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
Advertisement
General Information
a producer of dry cell batteries
Industry ElectricalProducts
Advertisement