UFP Technologies, Inc. (NASDAQ: UFPT) reported full‑year 2025 results that set new company records, with revenue reaching $602.8 million, a 19.5% year‑over‑year increase, and net income of $68.3 million, up 15.8% from the prior year. Adjusted net income rose 12.7% to $76.1 million, while GAAP earnings per diluted share were $8.75 and adjusted EPS were $9.76. The company’s medical segment grew 23.2% to $555.3 million, offset by an 11.5% decline in non‑medical sales to $47.5 million.
The record revenue was driven by robust demand in the company’s core medical offerings, particularly robotic surgery and safe patient handling, which together accounted for the majority of the 23.2% jump in medical sales. In contrast, the non‑medical segment contracted, reflecting a shift in customer mix and pricing pressures. The company’s operating income increased 14.1% to $92.3 million, supported by disciplined cost management and a favorable mix of high‑margin contracts.
Labor‑related inefficiencies at the AJR Illinois facility, which had cost $6.3 million for the year, were a significant headwind. The company reported that these inefficiencies dropped to $1.2 million in Q4 from $3.0 million in Q3, a reduction that helped mitigate the impact on gross margin, which fell to 28.3% from 29.1% in 2024. The company’s management noted that the inefficiencies were largely due to workforce attrition related to eligibility to work in the United States, and that progress is expected to continue until the issue is resolved.
UFP confirmed that its four acquisitions completed in 2024 and three in 2025 are progressing well, reinforcing the company’s strategy of growth through M&A. The company also expanded its presence in the Dominican Republic, extending its contract with its largest customer in La Romana through 2029 and adding an additional program. CEO R. Jeffrey Bailly said, "I am pleased with our 2025 results and our progress on a number of key strategic initiatives. Sales for the year grew 19.5% to $602.8 million, operating income grew 14.1% to $92.3 million, and EPS grew 15.4% to $8.75. Our growth was driven by a 23.2% increase in medical sales, partially offset by an 11.5% decrease in non‑medical sales." He added, "We achieved the 14.1% earnings growth despite absorbing approximately $6.3 million in labor‑related inefficiencies at our AJR facility in Illinois. These were due to the previously disclosed attrition in our workforce based on associates' eligibility to work in the United States. Of note, the impact in Q4 dropped to $1.2 million, less than half of the $3.0 million impact in Q3. We expect to make continued progress until the issue is resolved."
Investor sentiment was mixed, with some focusing on the EPS beat and others on the slight revenue miss. The company’s EPS beat of $0.18 per share, a 7.8% exceedance of consensus estimates, was driven by strong cost control and a favorable product mix, while the revenue miss of $1.63 million, a 0.7% shortfall to estimates, reflected modest demand softness in the non‑medical segment.
No forward guidance was disclosed in the release, leaving investors to interpret the results in the context of the company’s ongoing expansion and cost‑control initiatives.
The earnings release underscores UFP Technologies’ successful transition to a pure‑play medical CDMO, with strong top‑line growth driven by high‑margin medical contracts and a disciplined approach to cost management. The company’s continued acquisition activity and geographic expansion signal a strategy focused on scaling its medical capabilities while managing headwinds such as labor inefficiencies and non‑medical segment contraction.
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