Ultralife Corporation has reported strong financial results for its third quarter ended September 30, 2026, showcasing significant growth in both sales and profitability. This announcement comes amid the company's pending acquisition by EnerSys, which is expected to close in early 2027. The results highlight Ultralife's resilience and strategic positioning within the miscellaneous electrical machinery industry.

For the third quarter, Ultralife recorded sales of $48.3 million, an increase of 11.3% compared to $43.4 million in the same quarter last year. The company also reported a gross profit of $13.3 million, representing a gross margin of 27.5%, up from 22.2% in the prior year. Operating income improved significantly to $3.2 million, compared to an operating loss of $1.0 million in the third quarter of 2025.

Ultralife's GAAP earnings per share (EPS) reached $0.14, reversing a loss of $0.07 from the previous year. Adjusted EBITDA also saw a substantial rise to $5.6 million, up from $2.0 million in the same quarter last year. The company's backlog increased to $136.0 million, the highest in its history, compared to $117.5 million at the end of the second quarter 2026.

Ultralife Corporation, which trades under the ticker ULBI on the Nasdaq, is classified under the SIC code 3690, which pertains to miscellaneous electrical machinery, equipment, and supplies. The company has been a key player in this sector, focusing on battery and energy products, as well as communication systems.

In the recent filing, Ultralife attributed its revenue growth to a 12.9% increase in battery and energy product sales, which rose to $45.1 million. Government and defense sales surged by 56.7% due to a significant order for conformal wearable batteries. However, commercial sales experienced a 5.8% decline, primarily due to softness in the global oil and gas market. Communications systems sales decreased by 7.1% to $3.2 million.

Ultralife's gross profit margin improvement was driven by enhanced manufacturing efficiencies and a favorable product mix. The battery and energy products segment's gross margin increased to 26.7%, while the communications systems segment saw a gross margin of 40.1%, up from 23.3% last year.

The company has also been strategically managing its operating expenses, which decreased to $10.1 million from $10.6 million in the third quarter of 2025. This reduction reflects an increase in new product development costs but a decrease in one-time costs associated with previous operational changes.

In light of the pending acquisition by EnerSys, Ultralife will not hold a conference call to discuss these results. The acquisition, valued at approximately $320 million, including the assumption of net debt, is expected to close in the first quarter of 2027. This move is anticipated to enhance Ultralife's market position and operational capabilities.

Looking ahead, the company’s strong financial performance and substantial backlog position it well for future growth, even as it navigates the transition into new ownership. The filing does not specify what happens next regarding the acquisition process or any further financial disclosures.