Ultralife Q1 Revenue Falls 6.5%, Records Backlog of $115.1M
ULBI•Ultralife posted a 6.5% drop in Q1 revenue to $47.4 million and swung to a $0.2 million operating loss after $1.7 million in one-time costs, with GAAP EPS at a $0.03 loss versus a $0.11 gain a year earlier. Backlog climbed 4.4% sequentially to a record $115.1 million.
1. First Quarter Financial Results
Ultralife reported revenue of $47.4 million for Q1 2026, down 6.5% from $50.7 million year-over-year, with gross profit falling to 21.3% of sales. Operating loss was $0.2 million, GAAP EPS was a loss of $0.03, and adjusted EBITDA declined to $3.2 million, or 6.8% of sales.
2. Operational Disruptions Impact Production
A power outage at Newark, NY, inventory integration delays and inclement weather at the Raynham, MA facility cost multiple production days, contributing $1.7 million in one-time charges and pressuring margins across Battery & Energy Products. Communications Systems sales dropped 25.7% to $3.3 million due to order timing delays.
3. Backlog Growth and Strategic Focus
Backlog reached a record $115.1 million, up from $110.2 million at 2025 year-end, driven by long-cycle orders for new products. Management plans to enhance manufacturing efficiency, ramp up new product output, reduce debt via cash flow improvements, and invest in capital expenditures to boost future profitability.
