Ultralife Corporation (NASDAQ: ULBI) reported a 13.0% increase in sales to $48.6 million for the second quarter of 2025. However, excluding Electrochem, sales declined by 8.7%. Gross profit was $11.6 million, operating income was $2.3 million, and GAAP EPS was $0.05.

The company faced challenges in the second quarter, with Communication Systems sales declining due to delayed purchase orders. Despite headwinds from tariffs and unfavorable product mix shifts, Ultralife continued investing in new product development. It prepaid $2.7 million of acquisition debt using Employee Retention Credit proceeds.

Revenue for Battery & Energy Products increased by 25.0% to $45.9 million, including Electrochem sales. Communications Systems sales decreased by 57.2% to $2.7 million, impacted by delayed purchase orders. Gross profit was $11.6 million, with Battery & Energy Products gross margin at 23.6% and Communications Systems gross margin at 28.4%.

Operating expenses for Ultralife were $9.3 million, reflecting increased new product development costs and one-time expenses. Operating income was $2.3 million, down from $3.9 million in the same quarter last year. Adjusted EBITDA was $4.1 million, representing 8.5% of sales.

Adjusted EPS was $0.07 for the second quarter of 2025, down from $0.22 in 2024. Adjusted EBITDA for the trailing twelve months was $15.4 million. Ultralife Corporation serves markets with power solutions, communications, and electronics systems, with operations in North America, Europe, and Asia.

Read more at GlobeNewswire: Ultralife Corporation Reports Second Quarter Results