NEWBURYPORT, Mass., Aug. 04, 2025 (GLOBE NEWSWIRE) — UFP Technologies, Inc. (NASDAQ:UFPT), a contract development and manufacturing organization that specializes in single-use and single-patient medical devices, today reported net income of $17.2 million or $2.21 per diluted common share outstanding for its second quarter ended June 30, 2025, compared to net income of $13.6 million or $1.75 per diluted common share outstanding for the same quarter in 2024. Adjusted earnings per diluted common share outstanding grew 27% to $2.50. Sales for the second quarter were $151.2 million compared to sales of $110.2 million in the second quarter of 2024. Net income for the six-month period ended June 30, 2025, was $34.4 million or $4.42 per diluted common share outstanding compared to net income of $26.2 million or $3.38 per diluted common share outstanding for the same period in 2024. Sales for the six-month period ended June 30, 2025, were $299.3 million compared to sales of $215.2 million for the same period in 2024. Throughout this news release, reference is made to non-GAAP measures including organic sales growth, adjusted operating income, adjusted SG&A, adjusted net income and EPS, and EBITDA and adjusted EBITDA. Please see “Non-GAAP Financial Information” at the end of this news release.
“I am very pleased with our Q2 results,” said R. Jeffrey Bailly, Chairman & CEO. “Sales grew 37%, driven by strong contributions from our 2024 acquisitions combined with 5% organic growth. Our MedTech business grew 46% while our Advanced Components business declined 20%. Adjusted operating income and adjusted net income grew 35% and 27%, respectively. Gross margins were 28.8% despite being impacted by approximately $1.2 million in incremental labor costs at our AJR facility. This was due to recent turnover in the workforce related to our post-acquisition review of US employment eligibility through E-Verify protocols. We have successfully recruited legally eligible replacement associates and anticipate that Q3 will be the low point of labor inefficiencies, with gradual improvement beginning in the fourth quarter.”
“We completed two acquisitions during our second quarter: Universal Plastics & Engineering (UNIPEC) and Techno Plastics Industries (TPI),” said Bailly. These will expand our capabilities in tight-tolerance specialty film components and in thermoplastic molding for the medical device market. In addition, we continued to make progress with our expansion plans in Santiago and La Romana, Dominican Republic, to accommodate further anticipated growth in the safe patient handling and robotic-assisted surgery markets.”
“Our pipeline of new growth opportunities—both internal and via acquisition—is strong and growing,” Bailly said. “For these reasons and more, we remain excited about our future.”
Financial Highlights for Q2 and YTD 2025
- Sales for the second quarter increased 37.2% to $151.2 million, from $110.2 million in the same period of 2024. Year-to-date sales through June increased 39.1% to $299.3 million, from $215.2 million in the same period of 2024. Organic sales growth for the three- and six-month periods ended June 30, 2025, was 4.9% and 3.6%, respectively.
- Second-quarter sales to the medical market increased 46.0% to $139.3 million. Non-medical sales decreased 19.8% to $11.8 million. For the six-month period ended June 30, 2025, sales to the medical market increased 48.2% to $274.7 million. Non-medical sales decreased 17.3% to $24.6 million.
- Gross profit as a percentage of sales (“gross margin”) decreased to 28.8% for the second quarter of 2025, from 30.0% in the same quarter of 2024. Gross margin for the six-month period ended June 30, 2024, decreased to 28.6% from 29.3% in the same period of 2024.
- Selling, general and administrative expenses (“SG&A”) for the second quarter increased 34.4% to $18.7 million in 2025 compared to $13.9 million in the same quarter of 2024. As a percentage of sales, SG&A decreased to 12.4% in the second quarter of 2025, from 12.6% in the same period of 2024. For the six-month period ended June 30, 2025, SG&A increased 34.5% to $37.4 million from $27.8 million in the same period of 2024. As a percentage of sales, SG&A in the six-month period ended June 30, 2025, decreased to 12.5% from 12.9% in the same period of 2024. As a percentage of sales, adjusted SG&A decreased to 10.8% and 10.9% for the three- and six-month periods ended June 30, 2025, respectively, from 11.6% and 11.9%, respectively in the same periods of 2024.
- For the second quarter, operating income increased to $24.3 million, from $18.0 million in the same quarter of 2024. Adjusted operating income for the second quarter increased 34.8% to $27.3 million from $20.2 million in the second quarter of 2024. For the six-month period ended June 30, 2025, operating income increased to $47.5 million from $33.9 million in the same period of 2024. Adjusted operating income for the six-month period ended June 30, 2025, increased 41.6% to $53.1 million from $37.5 million in the same period of 2024.
- Net income increased to $17.2 million in the second quarter of 2025, from $13.6 million in the same period of 2024. Adjusted net income increased to $19.4 million in the second quarter of 2025, from $15.3 million in the same period of 2024. For the six-month period ended June 30, 2025, net income increased to $34.4 million, from $26.2 million in the same period of 2024. Adjusted net income increased to $38.6 million for the six-month period ended June 30, 2025, from $29.0 in the same period of 2024.
- Adjusted EBITDA for the second quarter increased 33.2% to $31.8 million from $23.9 million in the second quarter of 2025. Adjusted EBITDA for the six-month period ended June 30, 2025, increased 39.1% to $62.1 million from $44.6 million in the same period of 2024.
About UFP Technologies, Inc.
UFP Technologies is a contract development and manufacturing organization that specializes in single-use and single-patient medical devices. UFP is a vital link in the medical device supply chain and a valued outsourcing partner to many of the world’s top medical device manufacturers. The Company’s single-use and single-patient devices and components are used in a wide range of medical devices and packaging for minimally invasive surgery, infection prevention, wound care, wearables, orthopedic soft goods, and orthopedic implants.
Contact:
Ron Lataille
978-234-0926
| Consolidated Condensed Statements of Income | |||||||||||
| (in thousands, except per share data) | |||||||||||
| (Unaudited) | |||||||||||
| Three Months Ended | Six Months Ended | ||||||||||
| June 30, | June 30, | ||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||
| Net sales | $ | 151,176 | $ | 110,177 | $ | 299,324 | $ | 215,186 | |||
| Cost of sales | 107,633 | 77,146 | 213,629 | 152,072 | |||||||
| Gross profit | 43,543 | 33,031 | 85,695 | 63,114 | |||||||
| SG&A | 18,679 | 13,900 | 37,405 | 27,812 | |||||||
| Acquisition costs | 283 | 943 | 320 | 943 | |||||||
| Change in fair value of contingent consideration | 263 | 238 | 526 | 476 | |||||||
| (Gain) loss on disposal of fixed assets | (11) | (1) | (11) | 7 | |||||||
| Operating income | 24,329 | 17,951 | 47,455 | 33,876 | |||||||
| Interest expense, net | 2,671 | 577 | 5,480 | 1,208 | |||||||
| Other expense (income) | 32 | 2 | 68 | (39) | |||||||
| Income before income taxes | 21,626 | 17,372 | 41,907 | 32,707 | |||||||
| Income taxes | 4,446 | 3,820 | 7,543 | 6,462 | |||||||
| Net income | $ | 17,180 | $ | 13,552 | $ | 34,364 | $ | 26,245 | |||
| Net income per share | $ | 2.23 | $ | 1.77 | $ | 4.46 | $ | 3.43 | |||
| Net income per diluted share | $ | 2.21 | $ | 1.75 | $ | 4.42 | $ | 3.38 | |||
| Weighted average common shares outstanding | 7,709 | 7,672 | 7,698 | 7,662 | |||||||
| Weighted average diluted common shares outstanding | |||||||||||