UFP Technologies reports Q1 adjusted EPS $2.47 vs. $1.77 last year

Reports Q1 revenue $148.1M vs. $105M last year. “I am very pleased with our first quarter results and continued progress on a number of key strategic fronts,” said R. Jeffrey Bailly, Chairman & CEO. “In Q1, revenue grew 41%, operating income grew 45%, and net income grew 35%. Our MedTech business grew 50%, driven by strong demand in the Safe Patient Handling space. Our Interventional and Surgical, Infection Prevention, Orthopedics, and Advanced Wound Care market segments also recorded strong results, with each growing more than 25%. Our recent acquisitions were solid contributors to this growth. MedTech organic growth was 5.4%, despite a 6% decline in Robotic Surgery sales, which are expected to grow modestly this year following an inventory build by our largest customer in 2024. Overall, organic growth was 2.3%. Our Advanced Components business declined 15% as we continue to focus resources on our fastest-growing MedTech opportunities. During the quarter, we executed an agreement with our second-largest customer that provides exclusive manufacturing rights for a significant portion of our Safe Patient Handling business through June 2030. To accommodate growing demand in this space, we have roughly doubled the size of our Santiago, Dominican Republic manufacturing operation. We also made important progress in our other Dominican Republic expansion plans. We have committed to a fifth building at our La Romana Robotic Surgery campus and installed and qualified new equipment lines for two robotic surgery programs scheduled to launch in the second half of the year. These programs should generate significant revenue in 2026 and beyond as a result of our agreement. We are also continuing our efforts on the acquisition front, and currently evaluating multiple opportunities. We recently closed on a small fold-in acquisition that fits very nicely with our recent purchase of AJR Enterprises. It’s a former sister company of AJR, located in the same facility, that brings us much-needed manufacturing space, capacity, and direct labor talent to help us meet growing customer demand. In addition, our balance sheet has strengthened as we continue to pay down debt. And our pipeline of new opportunities, both internal and external growth, is substantial and growing. For these reasons and more, we remain excited about our future.”