UFP Technologies 2Q net sales $174.0M, est. $159.5M

UFP Technologies, Inc. (Nasdaq: UFPT) reported second-quarter net sales of $174.0 million, exceeding the estimated $159.5 million, according to recent data. This represents a significant increase compared to the $151.2 million in net sales reported for the second quarter of 2025. The year-over-year growth underscores the company’s continued expansion, driven by both organic performance and strategic acquisitions.

The company’s medical market segment saw robust growth, with sales reaching $139.3 million in Q2 2025, a 46.0% increase compared to the same period in 2024. This segment has remained a core driver of UFP Technologies’ performance, reflecting strong demand for single-use and single-patient medical devices. In contrast, non-medical sales declined by 19.8% to $11.8 million in the second quarter.

Despite the overall sales growth, gross margin decreased to 28.8% from 30.0% in the prior-year period. The decline was attributed to approximately $1.2 million in incremental labor costs at the AJR facility, stemming from workforce turnover related to post-acquisition employment eligibility reviews. The company has since recruited legally eligible replacements and expects labor inefficiencies to peak in Q3, with gradual improvement anticipated in Q4.

Operating income rose to $24.3 million, up from $18.0 million in the second quarter of 2024. Adjusted operating income increased by 34.8% to $27.3 million, reflecting improved operational efficiency and cost management. Net income for the quarter was $17.2 million, or $2.21 per diluted common share, compared to $13.6 million, or $1.75 per diluted common share, in the prior-year period.

UFP Technologies also completed two acquisitions during the second quarter: Universal Plastics & Engineering (UNIPEC) and Techno Plastics Industries (TPI). These acquisitions are expected to enhance the company’s capabilities in thermoplastic molding and specialty film components for the medical device market. Additionally, the company is advancing expansion plans in Santiago and La Romana, Dominican Republic, to support anticipated growth in robotic-assisted surgery and safe patient handling markets.

Looking ahead, UFP Technologies remains focused on leveraging both internal growth and strategic acquisitions to drive long-term value. The company’s strong financial performance and expanding capabilities position it to continue capitalizing on opportunities in the medical device manufacturing sector.