Financial Data and Key Metrics Changes - Revenue grew 41.1% to $148.1 million from $105 million year-over-year [17] - Operating income increased 45% [6] - EPS grew 35% to $2.21 [6] - Adjusted operating income rose 49.5% to $25.8 million [18] - Adjusted EBITDA increased 45.9% to $30.2 million [20] - Gross margin slightly decreased to 28.5% from 28.6% [17] Business Line Data and Key Metrics Changes - Medical business revenue increased 50.4% to $135.4 million [17] - Interventional and Surgical, Infection Prevention, Orthopedics, and Advanced Wound Care segments all grew by more than 25% [6] - Advanced Components saw a decline of 16.3% [8] - Robotic Surgery declined 6% in Q1, with modest growth anticipated for 2025 [8] Market Data and Key Metrics Changes - Sales to the medical market increased significantly while sales to all other markets decreased by 15% [17] - Organic growth was reported at 2.3% [7] Company Strategy and Development Direction - The company is focused on expanding in high-growth markets and pursuing strategic acquisitions [12] - New programs in robotic surgery are set to launch later this year, with expectations for meaningful revenue starting in 2026 [49] - Expansion plans in the Dominican Republic are underway, including a new facility to support growth in the safe patient handling business [10][11] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about future growth despite challenges in the robotic surgery segment [11] - The company does not anticipate a material impact from tariffs, with confidence in passing on most tariff costs [14][15] - Management is actively discussing multiple acquisition opportunities to enhance capabilities [12][58] Other Important Information - The company has made significant progress in integrating recent acquisitions, which have contributed positively to growth [7] - The effective tax rate for Q1 was 15.3%, with a normalized rate suggested at 21% to 23% for 2025 [19] Q&A Session Summary Question: Clarification on robotic surgery business growth - The modest growth forecast for 2025 applies to both the business as a whole and the largest customer, with expectations for low single-digit growth [22][23] Question: Commentary on market share with the largest customer - The company currently holds about two-thirds of the market share with the largest customer, which is beneficial for maintaining a strong supply chain [24][25][27] Question: Excess inventory at customers - There are no signs of excess inventory; destocking issues appear to be resolved, and demand is returning to normal [29] Question: Growth in segments outside robotics - Positive growth in segments like infection prevention and interventional surgical is attributed to new product development and overcoming previous destocking challenges [34][35] Question: Impact of price reductions on revenue growth - Price reductions during transfers are expected to be around 15% to 20%, but market growth may offset this impact [64][66] Question: Inefficiencies at AJR and their impact on P&L - Inefficiencies are expected to continue through Q2 as new staff are onboarded, affecting direct labor costs [69] Question: Long-term footprint and expansion plans - The company remains committed to expansion in the Dominican Republic and is considering opportunities in Asia Pacific to better serve customer needs [72][74]

Financial Data and Key Metrics Changes - Revenue grew 41.1% to $148.1 million from $105 million year-over-year [17] - Operating income increased 45% [5] - EPS grew 34.8% to $2.21 [18] - Adjusted EBITDA increased 45.9% to $30.2 million [19] - Gross margin slightly decreased to 28.5% from 28.6% [17] Business Line Data and Key Metrics Changes - Medical business revenue grew 50.4% to $135.4 million, becoming the second largest segment [17][5] - Interventional and Surgical, Infection Prevention, Orthopedics, and Advanced Wound Care segments all grew by more than 25% [6] - Advanced Components saw a decline of 16.3% as resources were focused on MedTech opportunities [7] - Robotic Surgery declined 6% in Q1, with modest growth anticipated for 2025 [7] Market Data and Key Metrics Changes - Sales to the medical market increased significantly while sales to all other markets decreased by 15% [17] - The SAFE patient handling business is strategically important, adding a high-growth market segment to the Medicare portfolio [6] Company Strategy and Development Direction - The company is executing a two-pronged growth strategy focused on expanding in high-growth markets and pursuing strategic acquisitions [12] - New programs in robotic surgery are set to launch later this year, with ongoing discussions with the largest robotic surgery partner [8] - Expansion plans in the Dominican Republic are underway, including a new facility to support growth in the SAFE patient handling business [9][11] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about future growth despite anticipated inefficiencies in newly acquired operations [11] - The company does not expect a material impact from tariffs, with confidence in passing on most tariff costs [14][15] - Management is focused on continuous improvement and efficiency across all business aspects [13] Other Important Information - The company has completed a small acquisition to enhance manufacturing capacity for the SAFE patient handling business [12] - The effective tax rate for Q1 was 15.3%, with a normalized rate suggested at 21% to 23% for 2025 [18] Q&A Session Summary Question: Clarification on robotic surgery business growth - Management indicated modest growth expectations for both the largest customer and the robotic surgery business as a whole, with a decline in Q1 attributed to large equipment sales in the previous year [22][23] Question: Commentary on market share with the largest customer - Current understanding is that the company holds about two-thirds of the market share with the largest customer, with a positive relationship and transparency in operations [24][26] Question: Excess inventory at customers - Management reported no significant excess inventory at customers, indicating a return to normal business operations [28] Question: Growth in segments outside robotics - Positive growth in infection prevention and interventional segments was noted, with destocking headwinds behind the company [34][36] Question: Impact of price reductions on revenue growth - Price reductions during transfers are expected to be around 15% to 20%, but market growth may offset revenue impacts over time [60][62] Question: Inefficiencies at AJR and their impact on P&L - Inefficiencies are expected to continue through Q2, affecting direct labor costs, but improvements are anticipated as staffing stabilizes [65] Question: Long-term footprint and expansion plans - The company remains committed to expansion in the Dominican Republic and is exploring opportunities in Asia Pacific to better serve customer needs [68][69]

NEWBURYPORT, Mass., May 06, 2025 (GLOBE NEWSWIRE) -- UFP Technologies, Inc. (Nasdaq: UFPT), a designer and custom manufacturer of comprehensive solutions primarily for the medical market, today reported net income of $17.2 million or $2.21 per diluted common share outstanding for its first quarter ended March 31, 2025, compared to net income of $12.7 million or $1.64 per diluted common share outstanding for the first quarter of 2024. Net Sales for the first quarter were $148.1 million compared to 2024 first ...

NEWBURYPORT, Mass., April 30, 2025 (GLOBE NEWSWIRE) -- UFP Technologies, Inc. (NASDAQ: UFPT), an innovative designer and custom manufacturer of components for medical devices, sterile packaging, and other highly engineered products, today announced the Company plans to report financial results for the first quarter ended March 31, 2025 on May 6, 2025 prior to market open. The Company will hold a conference call to discuss results the same day at 10:00 AM Eastern time. Conference Call Information:Date: Tuesd ...

Core Viewpoint - UFP Industries, Inc. reported disappointing first-quarter results for 2025, with both earnings and net sales falling short of expectations and declining year over year due to softer demand and pricing pressures [1][3]. Financial Performance - Earnings per share were $1.30, missing the Zacks Consensus Estimate of $1.59 by 18.2% and down 33.7% from the previous year [3]. - Net sales totaled $1.60 billion, below the consensus mark of $1.63 billion, representing a 2.7% year-over-year decline [3]. - The decline in sales was attributed to a 0.7% decrease in selling prices and a 2% drop in organic unit sales [3]. Segment Performance - **UFP Retail Solutions**: Reported net sales of $607 million, down 3% year over year, with organic unit sales decreasing by 4% [4]. Adjusted EBITDA margin contracted by 290 basis points to 5.9% [4]. - **UFP Packaging**: Net sales were $410 million, down 3% from the previous year, with a 1% decline in selling prices and a 3% drop in organic unit sales [5]. Adjusted EBITDA margin decreased by 190 basis points to 8.5% [5]. - **UFP Construction**: Net sales were $516 million, flat year over year, with organic unit sales growing by 3% but offset by a 3% decline in selling prices [6]. Adjusted EBITDA margin contracted by 320 basis points to 7.2% [7]. Operating Highlights - Selling, general and administrative expenses accounted for 11% of net sales, decreasing by 70 basis points year over year [8]. - Adjusted EBITDA was $142.2 million, down from $180.8 million year over year, with the adjusted EBITDA margin contracting by 210 basis points to 8.9% [8]. Balance Sheet & Cash Flow - As of March 29, 2025, the company had nearly $2.2 billion in liquidity, with cash and cash equivalents at $903.6 million, down from $1.17 billion at the end of 2024 [10]. - Long-term debt was $229.9 million, slightly up from $229.8 million at the end of 2024 [10]. - Net cash used in operating activities was $108.8 million, compared to $16.8 million in the same period last year [10]. Dividend and Share Repurchase - The board approved a quarterly dividend payment of 35 cents per share, a 6% increase from the previous dividend of 33 cents [11]. - The share repurchase program was amended to increase authorization from $200 million to $300 million, with $122 million remaining under the program as of April 28, 2025 [12]. Short-Term Outlook - The company anticipates subdued demand through the remainder of 2025, with a competitive pricing environment across all segments [14]. - UFPI is managing potential impacts from proposed tariffs on raw materials, believing it is well-positioned to adapt with minimal disruption [13]. Long-Term Outlook - Despite near-term challenges, UFPI aims for annual unit sales growth of 7-10% and targets EBITDA margins of 12.5% [15].

What Does UFPI's Deckorators Strategic Move Offer? With the acquisition of the new site, Deckorators aims to increase the production capacity for its industry- leading Surestone composite-decking product. The 30-acre site is expected to be transformed into a top-tier facility with approximately 240,000 square feet of manufacturing and warehousing space. UFP Industries, Inc.'s (UFPI) brand, Deckorators, has announced its market presence expansion in New York by acquiring a 30-acre site in Lackawanna, a subur ...

Company Overview - UFP Technologies, Inc. is a designer and custom manufacturer of components, subassemblies, products, and packaging primarily for the medical market [1][2] - The company plays a crucial role in the medical device supply chain and serves as a valued outsourcing partner to leading medical device manufacturers globally [2] Upcoming Event - UFP Technologies' Chairman and CEO R. Jeffrey Bailly, along with CFO Ron Lataille, will participate in the KeyBanc Capital Markets Healthcare Forum on March 18, 2025, with their presentation scheduled to start at 10:30 AM ET [1]

Core Insights - UFP Industries, Inc. (UFPI) has expanded its manufacturing capabilities by opening a new 165,000-square-foot corrugated facility in Jeffersonville, IN, aimed at enhancing its offerings for retail and e-commerce markets [1] - The company plans to continue advancements at the Jeffersonville facility through 2025, with new corrugated capabilities set to launch [2][3] - UFPI employs both organic and inorganic growth strategies, including acquisitions, to achieve its financial goals of 7-10% annual unit sales growth [4] Expansion and New Capabilities - The new facility features advanced graphics and production systems, positioning UFP Packaging to deliver high-quality corrugated solutions [1] - Upcoming capabilities in 2025 include dual-sided printing, high-speed machines, large-format box handling, and automated box separation [3] Acquisition Strategy - In January 2024, UFPI acquired C&L Wood Products for $29.8 million, enhancing its geographic footprint in the wood pallet market [5] - The company aims to introduce new products that can generate at least $1 million in annual sales within four years of launch [6] Market Performance - UFPI's shares have decreased by 21.9% over the past three months, compared to a 6.7% decline in the Zacks Building Products - Wood industry [7] - The company is focused on exploring intellectual property and technology acquisitions to accelerate product commercialization [7] Zacks Rank and Comparisons - UFPI currently holds a Zacks Rank of 3 (Hold), while other companies in the construction sector, such as Sterling Infrastructure, Inc. and EMCOR Group, Inc., have higher rankings [9]

Financial Performance - The Company achieved a net sales increase of 26.1% to $504.4 million for the year ended December 31, 2024, compared to $400.1 million in 2023, driven by $70.3 million from acquisitions and an 8.5% organic growth [112]. - Operating income rose by 40.3% to $81.1 million, while net income increased by 31.3% to $59.0 million for the year ended December 31, 2024 [109]. - Gross profit margin improved to 29.1% in 2024 from 28.1% in 2023, attributed to better margins from acquisitions and increased manufacturing efficiencies [113]. - Selling, General, and Administrative Expenses (SG&A) increased by 22.3% to $62.2 million, but as a percentage of net sales, SG&A decreased to 12.3% from 12.7% [114]. Cash Flow and Investments - Net cash provided by operations was approximately $66.6 million for the year ended December 31, 2024, primarily from net income of $59.0 million [125]. - Net cash used in investing activities was approximately $210.2 million, mainly for acquisitions and capital expenditures [127]. - The Company entered into a secured $275 million Amended and Restated Credit Agreement, with outstanding borrowings of approximately $189.4 million as of December 31, 2024 [129][132]. Future Plans and Capital Requirements - The Company plans to continue enhancing manufacturing capacity and may consider additional acquisitions to support growth [136]. - The Company anticipates future capital requirements for expansions, acquisitions, or investments, which could be substantial [137]. - The Board of Directors authorized a stock repurchase program of up to $10.0 million, with approximately $9.4 million available for future repurchases as of December 31, 2024 [138]. - There were no share repurchases during the years ended December 31, 2024, 2023, and 2022 [138]. Accounting and Valuation - The Company evaluates its accounting estimates based on historical experience and current economic conditions, which may affect reported amounts of assets and liabilities [139]. - Fair value of identifiable intangible assets is based on detailed valuations and management's estimates, with potential future contingent consideration liabilities remeasured each reporting period [141]. Market Risk - Market risk includes fluctuations in interest rates, foreign exchange rates, and equity prices, with a weighted average interest rate of approximately 5.9% as of December 31, 2024 [143]. - The Company's cash and cash equivalents primarily consist of U.S. dollar bank accounts, which are not affected by market risk [143]. - Interest on credit facilities ranges from SOFR plus a margin of 1.25% to 2.25% or the bank's prime rate plus a margin of 0.25% to 1.25% [143].

Financial Performance - UFP Technologies reported 2024 net income of $59.0 million, a 31.3% increase from $44.9 million in 2023, with adjusted net income growing 32.5% to $67.6 million[2]. - Net sales for 2024 reached $504.4 million, up 26.1% from $400.1 million in 2023, while fourth-quarter sales increased 41.9% to $144.1 million compared to $101.5 million in Q4 2023[3][5]. - The company's gross margin improved to 29.2% in Q4 2024 from 25.7% in Q4 2023, and for the full year, it increased to 29.1% from 28.1%[5]. - Adjusted operating income for Q4 2024 rose 84.0% to $26.0 million, while full-year adjusted operating income increased 40.4% to $92.3 million[9]. - UFP Technologies experienced organic growth of 6.7% in Q4 and 8.5% for the full year[4]. - MedTech sales surged 48.6% in Q4 to $132.7 million, with full-year MedTech sales up 30.2% to $450.8 million[5]. Cash Flow and Assets - Cash and cash equivalents increased to $13.45 million in 2024 from $5.26 million in 2023, while total assets rose to $628.99 million from $404.14 million[10]. - Total liabilities increased to $286.24 million in 2024 from $118.05 million in 2023, with long-term debt rising to $176.88 million from $28.00 million[10]. Operating Expenses - Adjusted SG&A (Non-GAAP) for Q4 2024 was $16,094, compared to $12,020 in Q4 2023, representing an increase of 33.3%[16]. - Total SG&A (GAAP) for the twelve months ended December 31, 2024, was $62,218, up from $50,889 in 2023, an increase of 22.3%[16]. Earnings and EBITDA - Adjusted net income (Non-GAAP) for Q4 2024 was $19,163, up from $12,640 in Q4 2023, reflecting a growth of 51.9%[19]. - Adjusted net income per diluted share (Non-GAAP) increased to $2.46 in Q4 2024 from $1.64 in Q4 2023, a rise of 50.0%[19]. - EBITDA (Non-GAAP) for Q4 2024 reached $27,133, compared to $15,607 in Q4 2023, marking a significant increase of 73.8%[21]. - Adjusted EBITDA (Non-GAAP) for the twelve months ended December 31, 2024, was $107,321, up from $77,167 in the previous year, an increase of 39.1%[21]. - Net income (GAAP) for Q4 2024 was $16,375, compared to $11,607 in Q4 2023, representing an increase of 41.0%[19]. Strategic Initiatives - The company is expanding operations in the Dominican Republic to support new business and increased demand, necessitating additional plant and equipment investments[4]. - UFP Technologies plans to launch two major programs in the second half of 2025 and is actively pursuing acquisitions to enhance its platform[4]. - Acquisition costs for the twelve months ended December 31, 2024, amounted to $2,520, compared to $0 in 2023[19]. - Amortization of intangible assets for the twelve months ended December 31, 2024, was $6,727, up from $4,403 in 2023, an increase of 52.8%[19]. Shareholder Information - The weighted average diluted common shares outstanding increased slightly to 7,794 in Q4 2024 from 7,712 in Q4 2023[19].