0001628280-26-029906
SEC filingUFP Technologies reported Q1 2026 net sales of $154.2 million, up 4.1% year-over-year, with net income of $17.5 million and diluted EPS of $2.24 amid medical segment growth.
UFP Technologies delivered solid Q1 2026 results with net sales up 4.1% to $154.2 million, primarily fueled by a 5.9% increase in medical sales to $143.4 million, reflecting robust demand in high-growth areas like robotic surgery (7% growth), patient surfaces and support (11%), and interventional/surgical segments (15%). This medical momentum offset a 15% drop in non-medical sales to $10.8 million as the company strategically prioritizes MedTech opportunities. Gross margin expanded slightly to 28.8% from 28.5%, supporting a 1.0% rise in operating income to $23.4 million, though SG&A expenses grew 12.3% to $21.0 million (13.6% of sales), driven by investments and startup costs for four large ramping programs expected to contribute significantly in H2. Net income rose 1.8% to $17.5 million, with GAAP diluted EPS at $2.24 versus $2.21 last year; adjusted EPS edged up to $2.48 from $2.47, and adjusted EBITDA improved to $31.0 million. CEO R. Jeffrey Bailly highlighted softer AJR results from E-Verify labor inefficiencies and program startup expenses as EPS growth headwinds, but expressed optimism on recent acquisitions' smooth integrations, a strong balance sheet, healthy pipeline, and backlog. To meet demand, Q2 brings two new Dominican Republic facilities: one in La Romana for robotic surgery and one in Santiago for safe patient handling program transfers. Organic sales were flat, underscoring acquisition contributions to top-line growth. No formal guidance was provided, but forward-looking commentary signals confidence in sustained medical momentum and strategic expansions.