UFP Technologies Announces Strong Q1 Results (Form 8-K)

UFP Technologies Announces Strong Q1 Results

Newburyport, Mass., May 4, 2026. UFP Technologies, Inc. (Nasdaq: UFPT), a contract development and manufacturing organization that specializes in single-use and single-patient medical devices, today reported net income of $17.5 million for its first quarter ended March 31, 2026, 1.8% higher than net income of $17.2 million for the first quarter of 2025. Net sales for the quarter ended March 31, 2026 were $154.2 million, 4.1% higher than 2025 first quarter sales of $148.1 million. GAAP and adjusted earnings per diluted common share outstanding ("EPS") for the quarter ended March 31, 2026 were $2.24 and $2.48, respectively.

Throughout this news release, reference is made to non-GAAP measures including organic sales growth, adjusted gross margin, adjusted operating income, adjusted SG&A, adjusted net income and EPS, and EBITDA and adjusted EBITDA. Please see "Non-GAAP Financial Information" at the end of this news release.

"I am pleased with our first quarter results and continued progress with our strategic initiatives," said R. Jeffrey Bailly, Chairman and CEO. "Revenue grew 4.1%, driven by a 5.9% increase in our medical sales. This was offset by a 15% decline in our non-medical sales as we continue to focus our efforts on high-growth opportunities in the MedTech space. Our robotic surgery, patient surfaces and support, and interventional and surgical segments showed the strongest growth at 7%, 11%, and 15%, respectively. To increase capacity to meet strong forecasted demand, in Q2 we will take possession of two new facilities in the Dominican Republic - one in La Romana to support continued growth in our robotic surgery business, and one in Santiago to support growth and additional program transfers in the safe patient handling space."

"EPS growth of 1.4% was slower than revenue growth, due in part to softer results at our AJR operation related to continued E-Verify labor inefficiency costs," Bailly said. "We also absorbed the start-up expenses associated with four large programs that are currently ramping and expected to be significant contributors in the second half of the year."

"Our recent acquisitions are all performing well and the integrations are essentially complete. And we continue to evaluate new acquisition opportunities that will further increase our value to customers," said Bailly. "With our strong balance sheet, healthy pipeline of new growth opportunities, ramping newly launched programs, and a strong backlog, we remain very bullish about our future."

Financial Highlights:

•Sales for the first quarter increased 4.1% to $154.2 million, from $148.1 million in the same period of 2025. Organic sales were essentially flat for the quarter ended March 31, 2026 as compared to the same period in 2025.

•First quarter sales to the medical market increased 5.9% to $143.4 million. Non-medical sales for the first quarter decreased 15.0% to $10.8 million.

•Gross profit as a percentage of sales ("gross margin") increased to 28.8% for the first quarter of 2026, from 28.5% in the same quarter of 2025.

•Selling, general and administrative expenses ("SG&A") increased 12.3% to $21.0 million for the first quarter of 2026 compared to $18.7 million in the same quarter of 2025. As a percentage of sales, SG&A increased to 13.6% in the first quarter of 2026, from 12.6% in the same period of 2025. As a percentage of sales, adjusted SG&A increased in the first quarter of 2026 to 12.0% from 11.0% in the same period of 2025.

•For the first quarter of 2026, operating income increased 1.0% to $23.4 million, from $23.1 million in the same quarter of 2025. Adjusted operating income for the first quarter of 2026 remained consistent at $25.8 million compared to the first quarter of 2025.

•Net income was $17.5 million in the first quarter of 2026, compared to $17.2 million in the same period of 2025. Adjusted net income increased 0.6% to $19.3 million in the first quarter of 2026, from $19.2 million in the same period of 2025. GAAP and adjusted EPS for the first quarter of 2026 were $2.24 and $2.48, respectively, as compared to $2.21 and $2.47, respectively, for the same period in 2025.

•Adjusted EBITDA for the first quarter of 2026 increased to $31.0 million from $30.2 million in the first quarter of 2025.

About UFP Technologies, Inc.

UFP Technologies is a contract development and manufacturing organization that specializes in single-use and single-patient medical devices. UFP is a vital link in the medical device supply chain and a valued outsourcing partner to many of the world's top medical device manufacturers. The Company's single-use and single-patient devices and components are used in a wide range of medical devices and packaging for minimally invasive surgery, infection prevention, wound care, wearables, orthopedic soft goods, and orthopedic implants.

Contact: Ron Lataille

978-234-0926

Consolidated Condensed Statements of Income

(in thousands, except per share data)

(Unaudited)

			Three Months Ended
			March 31,
			2026						2025
Net sales			$	154,202					$	148,148
Cost of sales			109,840						105,997
Gross profit			44,362						42,151
Selling, general & administrative expenses			21,021						18,725
Acquisition costs			-						37
Change in fair value of contingent consideration			-						263
Gain on disposal of property, plant & equipment			(26)						-
Operating income			23,367						23,126
Interest expense, net			1,737						2,809
Other expense			22						36
Income before income tax expense			21,608						20,281
Income tax expense			4,113						3,097
Net income			$	17,495					$	17,184
Net income per share			$	2.27					$	2.24
Net income per diluted share			$	2.24					$	2.21
Weighted average common shares outstanding			7,721						7,688
Weighted average diluted common shares outstanding			7,799						7,776

Consolidated Condensed Balance Sheets

(in thousands)

(Unaudited)

			March 31, 2026						December 31, 2025
Assets:
Cash and cash equivalents			$	19,976					$	20,301
Receivables, net			98,566						82,914
Inventories			93,983						86,856
Other current assets			11,581						10,930
Net property, plant, and equipment			78,396						79,109
Goodwill			196,648						197,403
Intangible assets, net			137,856						140,849
Other assets			37,678						36,715
Total assets			$	674,684					$	655,077
Liabilities and equity:
Accounts payable			$	27,026					$	24,289
Current installments, net of long-term debt			12,500						12,500
Other current liabilities			37,487						38,073
Long-term debt, excluding current installments			125,110						122,955
Other liabilities			33,686						33,383
Total liabilities			235,809						231,200
Total equity			438,875						423,877
Total liabilities and stockholders' equity			$	674,684					$	655,077

Conference Call

The Company has scheduled a conference call on Tuesday, May 5, 2026, at 8:30 AM Eastern time. Participants may join the call using the following dial-in numbers:

•Toll-Free: 1-412-206-6478

•International: 1-833-890-4010

A live webcast of the conference call and accompanying materials will be available at www.ufpt.com.

A replay of the webcast will be accessible following the event on the Company's Investor Relations website at https://ufpt.com/investors/.