UFP Technologies Reports Exceptional Q2 Financial Performance

UFP Technologies Excels in Q2 Financial Results

UFP Technologies, Inc. (NASDAQ: UFPT), a leader in contract development and manufacturing of single-use medical devices, has marked a significant achievement by reporting extraordinary financial results for the second quarter of 2025. The company witnessed an impressive net income of $17.2 million, equating to $2.21 per diluted share, which shows a remarkable increase from the previous year’s $13.6 million or $1.75 per diluted share during the same period in 2024.

Substantial Revenue Growth

The company’s revenue for Q2 2025 reached $151.2 million, representing a 37% rise over the $110.2 million reported in Q2 2024. This vigorous growth was driven by a combination of strong sales from its recent acquisitions and organic growth of approximately 5%. The results demonstrate the robustness of UFP Technologies' strategic initiatives to broaden its market presence and operational capacity.

Year-to-Date Performance

For the six-month period ending June 30, 2025, UFP Technologies reported a notable net income of $34.4 million, or $4.42 per diluted share, compared to $26.2 million or $3.38 per diluted share for the same timeframe in 2024. Year-to-date sales soared to $299.3 million, reflecting a 39.1% increase from the prior year's $215.2 million.

CEO Comments on Performance

R. Jeffrey Bailly, Chairman & CEO of UFP Technologies, expressed his satisfaction with the company's performance, stating, "I am very pleased with our Q2 results. Sales grew 37% due to solid contributions from our 2024 acquisitions along with 5% organic growth. Our MedTech business illustrated remarkable growth at 46%, while our Advanced Components business experienced a decline of 20%."

Operational Highlights

The gross margins for the second quarter were reported at 28.8%. This figure was slightly impacted by approximately $1.2 million in increased labor costs at their AJR facility. The company cites workforce turnover related to its post-acquisition review of U.S. employment eligibility as a contributing factor. Nonetheless, they have successfully recruited compliant replacement associates and expect gradual improvements in operational efficiency in the upcoming quarters.

Acquisition Strategies and Future Outlook

During Q2, UFP Technologies completed two significant acquisitions: Universal Plastics & Engineering (UNIPEC) and Techno Plastics Industries (TPI). These strategic moves are expected to expand the company’s capabilities in tight-tolerance specialty film components, while complementing their thermoplastic molding capacity for the medical device market.

Reflecting on their growth trajectory, Bailly noted that their pipeline of new opportunities — both organic and through future acquisitions — appears strong. This confidence reinforces their optimistic outlook for continued growth.

Financial Performance Recap

As a recap of their Q2 performance:

• Sales for the quarter were $151.2 million, a 37.2% increase compared to $110.2 million in Q2 2024.
• Medical market sales surged by 46.0% to reach $139.3 million, while non-medical sales saw a 19.8% decline to $11.8 million.
• Adjusted operating income grew by 34.8% to $27.3 million, reflecting their effective cost management and strategic investments.
• Adjusted EBITDA for the quarter reached $31.8 million, marking a 33.2% increase compared to the same quarter in the previous year.

Contact Information

To connect with UFP Technologies, please contact Ron Lataille at 978-234-0926.

Frequently Asked Questions

1. What are the key financial highlights from UFP Technologies' Q2 2025 results?

UFP Technologies reported a net income of $17.2 million for Q2 2025, with a revenue increase of 37.2% to $151.2 million, compared to the same period in 2024.

2. What drove the revenue growth for UFP Technologies?

The revenue growth was primarily driven by strong contributions from recent acquisitions and organic growth of approximately 5%.

3. How did the company's MedTech and Advanced Components segments perform?

The MedTech segment grew by 46%, while the Advanced Components sector saw a decline of 20% in the same quarter.

4. What are UFP Technologies' strategic plans for future growth?

UFP Technologies plans to expand its capabilities through further acquisitions and ongoing investments to enhance operational efficiency and market reach.

5. Who can be contacted for investor relations inquiries?

For any investor relations inquiries, please reach out to Ron Lataille at 978-234-0926.

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