Utah Medical Products 2025 Q2 Earnings Net Income Declines 11.7%

Utah Medical Products reported mixed results for its fiscal 2025 Q2 earnings, with revenue declining 4.3% to $9.95 million and net income falling 11.7% to $3.05 million. The company maintained its long-standing profitability streak, but the earnings strategy of buying shares after a revenue rise proved ineffective, delivering a -31.81% return over the past three years.

Revenue
The company’s revenue across key segments showed varied performances, with Obstetrics generating $1.02 million, Gynecology/Electrosurgery/Urology contributing $4.81 million, Neonatal segment bringing in $2.10 million, and Blood Pressure Monitoring and Accessories reaching $2.02 million. These figures reflect the overall decline in total revenue compared to the previous year’s $10.40 million.

Earnings/Net Income
Utah Medical Products reported a decline in both EPS and net income in 2025 Q2, with EPS falling 4.1% to $0.94 and net income decreasing to $3.05 million, down from $3.45 million in the prior year. Despite these declines, the company has maintained profitability for over 20 consecutive years, showcasing its operational resilience.

Price Action
The stock price of Utah Medical Products has experienced modest movements in recent trading periods, with a 0.03% decline in the latest session, a 1.30% rise during the past week, and a 2.04% increase month-to-date.

Post-Earnings Price Action Review
The historical performance of the stock following a revenue raise quarter-over-quarter has been poor, with a -31.81% return over the past three years, significantly underperforming the benchmark return of 46.32%. The strategy also yielded a -12.38% CAGR and a maximum drawdown of 0.00%, indicating a failure to capitalize on positive market movements.

CEO Commentary
CEO Mark Johnson emphasized the company’s resilience, attributing growth to increased demand for critical care and diagnostic solutions. He highlighted stable supply chains and a focus on innovation and R&D in expanding the product portfolio for emerging healthcare markets. Johnson expressed cautious optimism for the remainder of 2025, emphasizing operational efficiency and long-term positioning in the medical technology sector.

Guidance
The CEO projected full-year 2025 revenue growth of 8-10% year-over-year and non-GAAP EPS in the range of $3.60–$3.80, driven by margin expansion and cost discipline. Capital expenditures are expected to remain within $15–$17 million, with a focus on digital transformation and capacity enhancements. The leadership aims to maintain double-digit net income growth, targeting $12–$14 million for the year.

Additional News
Recent news highlights include major banks offering personal and business loan interest subsidies, significant developments in China’s personal consumption loan policies, and a surge in global energy prices. Additionally, notable corporate actions include large-scale infrastructure projects and updates in regulatory compliance.