UFP Technologies Announces Record Q1 Results

Core Insights - UFP Technologies, Inc. reported a strong financial performance for Q1 2025, with net income of $17.2 million, or $2.21 per diluted share, compared to $12.7 million, or $1.64 per diluted share in Q1 2024, reflecting a 35.4% increase in net income [1][3][8] - Net sales for the first quarter reached $148.1 million, a 41.1% increase from $105.0 million in the same period last year, driven primarily by a 50.4% growth in sales to the medical market [1][3][5] Financial Performance - The company's operating income increased by 45.2% to $23.1 million in Q1 2025, up from $15.9 million in Q1 2024 [3][5] - Adjusted net income rose by 40.1% to $19.2 million in Q1 2025, compared to $13.7 million in Q1 2024 [3][21] - Gross profit margin slightly decreased to 28.5% in Q1 2025 from 28.6% in Q1 2024 [3] Market Segments - The MedTech business segment experienced a significant growth of 50%, with strong demand in the Safe Patient Handling area [2][3] - Other market segments, including Interventional and Surgical, Infection Prevention, Orthopedics, and Advanced Wound Care, also reported growth exceeding 25% [2] - Organic sales growth for the overall company was 2.3%, with a specific organic growth of 5.4% in the MedTech segment despite a 6% decline in Robotic Surgery sales [2][3] Strategic Developments - The company secured an exclusive manufacturing agreement with its second-largest customer for a significant portion of its Safe Patient Handling business through June 2030 [2] - UFP Technologies has expanded its manufacturing operations in the Dominican Republic to meet growing demand, including plans for a fifth building at its La Romana Robotic Surgery campus [2] - The company is actively pursuing acquisition opportunities, having recently completed a small acquisition that complements its previous purchase of AJR Enterprises [2][3] Non-GAAP Financial Measures - Adjusted EBITDA for Q1 2025 increased by 45.9% to $30.2 million from $20.7 million in Q1 2024 [8][22] - Adjusted SG&A expenses rose by 27.5% to $16.3 million, but as a percentage of sales, it decreased to 11.0% from 12.2% in the same period last year [3][19]