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They're like a B2B Duracell, specializing in high-performance batteries and power solutions for critical applications in defense, medical, and industrial sectors.

Think of them as a niche VARTA, focused on specialized lithium batteries and power systems for industrial, military, and medical equipment.

They're similar to an industrial battery manufacturer like Saft, but often with a focus on smaller, high-performance lithium solutions for demanding applications.

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• Primary Lithium Batteries: High-performance, non-rechargeable lithium batteries designed for demanding applications where long life and reliability are crucial.
• Rechargeable Lithium Batteries: Advanced rechargeable lithium-ion and lithium polymer batteries, often incorporating smart battery technology for various portable and mission-critical devices.
• Battery Chargers & Power Supplies: A range of chargers, power supplies, and power conditioning equipment to support their battery solutions and other electronic devices.
• Custom Integrated Power Systems: Engineered power solutions tailored for specific defense, medical, and industrial applications, often combining batteries, chargers, and power management electronics.

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Major Customers of Ultralife (ULBI)

Ultralife Corporation (ULBI) primarily sells to other companies (B2B).

Major Customer Entities and Sectors:

• U.S. Government: An agency of the U.S. government is Ultralife's largest single customer, accounting for approximately 18-19% of consolidated revenues in recent years. These sales are predominantly for defense applications. The U.S. Government does not have a public stock symbol.
• Prime Defense Contractors: Ultralife also serves various prime defense contractors for military applications, providing specialized batteries and power systems for military equipment. While Ultralife's public filings do not name specific individual prime contractors as "major customers" with disclosed revenue percentages (beyond the direct U.S. Government sales), this customer group includes large publicly traded defense companies.
• Companies in the Medical Sector: Ultralife provides advanced battery and power solutions for various medical devices, serving manufacturers in this industry.
• Companies in the Industrial Sector: The company supplies power solutions for a range of industrial applications, including remote sensors, utility meters, and tracking devices.
• Companies in the Commercial Sector: Ultralife also serves commercial customers with specialized power and battery needs across diverse applications.

It is important to note that Ultralife's public filings, beyond the U.S. Government, do not disclose the names of specific individual companies within the prime defense contractor, medical, industrial, or commercial sectors that individually constitute major customers with significant revenue percentages.

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Michael E. Manna President & Chief Executive Officer

Mr. Manna was appointed President & Chief Executive Officer and a Director of Ultralife Corporation on November 22, 2022. He has been with Ultralife for almost thirty years, holding various leadership roles of increasing responsibility in engineering, operations, product management, research & development, and sales. Most recently, he served as President of the company's Battery & Energy Products segment, a role he continues to lead. Mr. Manna is a recognized expert in rechargeable and primary battery cell design across multiple chemistries in both government/defense and commercial markets. He has been awarded several patents for Ultralife and was a key member of the team that delivered the first Lithium-Ion Polymer Cell to the market. He holds a Bachelor's Degree in Computer Science from Rochester Institute of Technology.

Philip A. Fain Chief Financial Officer, Treasurer & Corporate Secretary

Mr. Fain was named Chief Financial Officer in November 2009, Treasurer in December 2009, and Corporate Secretary in April 2013. He joined Ultralife in February 2008 as Vice President of Business Development. Prior to joining Ultralife, he co-founded and served as Managing Partner of CXO on the GO, LLC, a management-consulting firm, from November 2003. Before that, he was Vice President of Finance – RayBan Sunoptics for Luxottica S.p.A. From 1997 to 1999, he served as Senior Vice President of Finance – Global Eyewear for Bausch & Lomb, and from 1993 to 1996, as Vice President and Controller for their US Sunglass business. In these roles, he led the process to acquire several well-known sunglass companies and brands for Bausch & Lomb. Mr. Fain began his career as a CPA and consultant with Arthur Andersen & Co. in 1977. He holds a B.A. in Economics from the University of Rochester and an MBA from the William E. Simon Graduate School of Business Administration of the University of Rochester.

Bradford T. Whitmore Chairman of the Board

Mr. Whitmore has served as Board Chair since 2010 and as a Director of Ultralife Corporation since 2007. He is the Founder and Managing Partner of Grace Brothers, Ltd., an investment management firm. He also serves as a Director for several privately held companies where Grace Brothers and its affiliates hold significant investment interests. Mr. Whitmore has served on multiple public company boards, and collectively with Grace Brothers, holds over 34% of Ultralife's common stock.

James J. Rasmussen Jr. President – Communications Systems

Mr. Rasmussen was appointed President – Communications Systems in 2013, following the consolidation of the business in Virginia Beach, VA. He previously served as General Manager of the business, having joined the company in 2009 with the acquisition of AMTI from SAIC. Prior to the acquisition, he was Vice President and Division Manager with SAIC. Mr. Rasmussen served for twenty-seven years in the U.S. Navy, including assignments to Naval Special Warfare Development Group.

Jeffrey Luke Chief Marketing Officer

Mr. Luke was appointed Chief Marketing Officer for Ultralife Corporation, effective January 6, 2025. In this role, he will be responsible for reframing corporate and brand strategies, coordinating worldwide operations, and collaborating with technical and sales teams to implement go-to-market plans. He brings over two decades of B2B marketing expertise from various fields, including industrial computing, heavy machinery, energy, genomics, and agriculture.

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The key risks to Ultralife (ULBI) business operations include a significant reliance on government and defense contracts, volatility in raw material costs and supply chain disruptions, and intense competition leading to potential product obsolescence or declining demand.

1. Reliance on Government and Defense Contracts: A substantial portion of Ultralife's business is dependent on government and defense contracts, particularly for its specialized battery and communication systems. This dependence exposes the company to risks associated with fluctuations and delays in U.S. and foreign military spending, as well as the inherent "lumpiness" of government procurement, which can lead to revenue volatility. The company must also comply with complex U.S. and foreign procurement laws, and any failure to do so could result in legal proceedings or debarment from future contracts.
2. Volatility in Raw Material Costs and Supply Chain Disruptions: Ultralife's profitability is sensitive to the volatile costs of raw materials, such as lithium and cobalt, which are critical for its Battery & Energy Products segment. While lithium carbonate prices have cooled from their peak, the market remains unpredictable, making long-term contracting challenging and potentially impacting gross margins. Additionally, the company faces risks from supply chain disruptions and geopolitical trade policies, such as tariffs, which can further erode margins if costs cannot be fully passed on to customers.
3. Competition and Product Obsolescence/Decline in Demand: Ultralife operates in a fragmented yet high-barrier industry, competing against larger, better-capitalized rivals and niche specialists. There is an ongoing risk of a decline in demand for products that utilize Ultralife's batteries or communication systems, or that its products could become obsolete due to the introduction of competitive technologies. The company's success is significantly tied to its customers' success in the marketplace and its ability to continually innovate and gain customer acceptance for its products.

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Here are 3-5 expected drivers of future revenue growth for Ultralife (ULBI) over the next 2-3 years:

1. Strong Government/Defense Sales: Ultralife anticipates continued robust demand from government and defense customers within its Battery & Energy Products segment. For instance, the company reported a 53.6% increase in government/defense sales in Q1 2025 and a 61.1% increase in Q2 2025, driven by strong demand from a U.S.-based global prime. Recent awards for military batteries further underpin this growth driver.
2. Impact of Acquisitions: The acquisition of Electrochem Solutions, Inc. in late 2024 is expected to continue boosting revenue. In Q1 2025, the Battery & Energy Products segment saw a 32.4% sales increase, which included the contribution from Electrochem. Q2 2025 also reflected increased sales in this segment due to Electrochem. The full integration of Electrochem's manufacturing systems is projected to be completed in Q3 2025, further supporting this growth.
3. New Product Development and Market Diversification: Ultralife is actively investing in new product development to drive organic growth and diversify its market reach. This strategy includes advancing multiple new products to validation and qualifying new medical and thin-cell battery applications. The company aims to expand its geographic and market presence, including increased commercial and international sales.
4. Rebound in Communications Systems Segment: Despite recent declines in the Communications Systems segment due to delayed orders, Ultralife's CEO expressed optimism for a rebound in the second half of 2025 and into 2026. A recovery in this segment would contribute positively to overall revenue growth.
5. Solid Order Backlog: The company maintains a healthy backlog of orders, which provides a foundation for future revenue. As of the end of Q2 2025, Ultralife reported a total backlog of $89 million in high-confidence orders. This consistent replenishment rate indicates ongoing demand for Ultralife's products.

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Capital Allocation Decisions for Ultralife (ULBI) (Last 3-5 Years)

4. Outbound Investments

• Ultralife acquired Electrochem Solutions, Inc. for $50.0 million in cash in November 2024. Electrochem specializes in lithium metal, ultracapacitor cells, and battery packs, and the acquisition aims to provide technological support and market access with cross-selling opportunities.
• In December 2021, Ultralife acquired Excell Battery Group for $23.5 million in cash. Excell designs and manufactures high-performance smart battery systems, battery packs, and monitoring systems for industrial, medical, and downhole drilling markets.

5. Capital Expenditures

• Cash used in investing activities for capital expenditures was $2.552 million for the year ended December 31, 2023, reflecting investments in equipment for new products transitioning to high-volume manufacturing.
• Capital expenditures totaled $1.679 million for the year ended December 31, 2022.
• Capital expenditures for the three months ended March 31, 2020, were $565,000, primarily for investment in automation equipment for the Battery & Energy Products business, including 3-Volt cell and thionyl chloride cell production.

2. Share Issuance

• As of March 18, 2024, Ultralife had 16,446,832 shares of common stock outstanding.
• As of March 7, 2022, Ultralife had 16,127,082 shares of common stock outstanding.
• The President & CEO, Michael Edward Manna, acquired 3,000 shares of Ultralife stock valued at $15,870 on May 14, 2025. Other directors also made purchases in May 2025.