UFP Technologies reports Q2 adjusted EPS $2.50, consensus $2.25

Reports Q2 revenue $151.2M, consensus $151.55M. “I am very pleased with our Q2 results,” said R. Jeffrey Bailly, 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 $1.2M in incremental labor costs at our AJR facility. This was due to recent turnover in the workforce related to our post-acquisition review of U.S. 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.”