What drove UFPT's strong earnings in 2024?

UFP Technologies' strong earnings in 2024 were driven by several key factors: 1. **Revenue Growth**: The company experienced significant revenue growth, with a cumulative total revenue of $504.42 million for the year. This was driven by strong performance across all quarters, including a 44% increase in revenue in the third quarter compared to the previous year. 2. **Net Income Growth**: UFP Technologies also saw a notable increase in net income, reaching $58.98 million by the end of the year. This growth was consistent throughout the year, with notable gains in the third and fourth quarters. 3. **Profit Margin Improvement**: The company's profit margin improved consistently throughout the year, with a profit margin of 11% in the third quarter and 12% in the second quarter. This indicates a strong efficiency in generating profits from revenue. 4. **Earnings Per Share (EPS) Growth**: The diluted EPS grew by 0.3, reaching $7.58 by the end of the year. This growth was steady throughout the year, reflecting a strong earnings power relative to the number of shares outstanding. 5. **Operational Efficiency**: UFP Technologies demonstrated improved operational efficiency, as evidenced by a decrease in adjusted SG&A as a percentage of sales. This suggests better management of costs and a more streamlined operation, which contributed to the overall profitability. In summary, UFP Technologies' strong earnings in 2024 were driven by robust revenue growth, improved profit margins, and effective cost management, resulting in a significant increase in net income and EPS.