UFPT

UFP Technologies delivered a calendar second quarter marked by strong, broad-based growth across its MedTech platform, which exceeded Wall Street’s revenue and profit expectations. Management pointed to robust performance in key submarkets such as cardiovascular, infection control, and orthopedics, as well as continued diversification across customer programs. CEO Mitchell Rock, in his first earnings call as chief executive, emphasized that growth this quarter was not tied to any one customer or product, highlighting the company’s diversified exposure and execution across multiple medical end markets. Investments in capacity, particularly in the Dominican Republic, have begun to yield operational benefits, even as some program transfers are progressing more slowly than anticipated. Is now the time to buy UFPT? Find out in our full research report (it’s free). Revenue: $174 million vs analyst estimates of $159.4 million (15.1% year-on-year growth, 9.1% beat) Adjusted EPS: $2.92 vs analyst estimates of $2.56 (14.2% beat) Adjusted EBITDA: $36.39 million vs analyst estimates of $32.65 million (20.9% margin, 11.5% beat) Operating Margin: 16.2%, in line with the same quarter last year Market Capitalization: $2.43 billion While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Brett Fishbin (KeyBanc Capital Markets) asked for more detail on which submarkets and trends drove the quarter’s strength. CEO Mitchell Rock highlighted cardiovascular, infection control, patient handling, and orthopedics, while noting that the robotic surgical market was flat to down. Justin Ages (CJS Securities) questioned whether the current level of SG&A is sustainable. CFO Ronald Lataille confirmed that SG&A should remain at current levels, with some relief expected once CEO transition costs cycle out by mid-2027. Justin Ages (CJS Securities) also asked about the acquisition pipeline and focus areas. Rock responded that the company is reviewing five to ten opportunities, primarily in surfaces and support and infection control, with a disciplined approach to valuation. Andrew Harris Cooper (Raymond James) inquired about backlog normalization and labor issues at AJR. Rock confirmed that both the backlog and labor challenges are resolved, and that the St. Charles facility is fully ramped, with remaining transfers to the Dominican Republic awaiting customer sign-off. Maxwell Michaelis (Lake Street) sought color on growth outside the top five MedTech customers and specific new program ramp-ups, including robotics. Rock noted nearly 20% growth outside top customers and that new robotics programs are ramping, with more significant contributions expected in the coming year. In the coming quarters, the StockStory team will be monitoring (1) the pace and successful completion of key customer program transfers to the Dominican Republic, (2) the scaling and profitability of recently launched and ramping customer programs, and (3) the company’s ability to maintain broad-based growth across diversified medical submarkets. We will also track any material acquisition activity and management’s execution on integrating new leadership hires. UFP Technologies currently trades at $313.83, up from $267.53 just before the earnings. Is the company at an inflection point that warrants a buy or sell? See for yourself in our full research report (it’s free for active Edge members). WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don’t just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses. But our AI platform says the party isn’t over. Find out which 9 stocks made the cut this week — FREE. Get Our Top 9 Market-Beating Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+271% between June 2020 and June 2025). Find your next big winner with StockStory today.

Image source: The Motley Fool. Monday, Aug. 3, 2026 at 9:00 a.m. ET President and Chief Executive Officer - Mitchell Rock Chief Financial Officer - Ronald Lataille Operator: Good day, and welcome to the UFPT Second Quarter 2026 Earnings Call and Webcast Conference Call. [Operator Instructions] Please note, this event is being recorded. I would now like to turn the conference over to Ron Lataille, Chief Financial Officer. Please go ahead. Ronald Lataille: Thank you, operator. Good morning, and thank you for joining us on our 2026 second quarter earnings conference call. With me on today's call is our President and CEO, Mitch Rock. Today, we will make some forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995, the accuracy of which is subject to risks and uncertainties. Wherever possible, we will try to identify those forward-looking statements by using words such as believe, expect, anticipate, pursue, forecast and similar expressions. Our forward-looking statements are based on our estimates and assumptions as of today and should not be relied upon as representing our estimates or views on any subsequent date. Please refer to the cautionary statement regarding forward-looking information and the risk factors in our most recent 10-K and 10-Q, including disclosure of the factors that could cause results to differ materially from those expressed or implied. During this call, we will discuss non-GAAP financial measures, which include organic sales growth, adjusted operating income, adjusted SG&A, adjusted EPS and EBITDA and adjusted EBITDA. A reconciliation of GAAP to non-GAAP measures discussed in this call is contained in the associated press release and is available in the Investor Relations section of our website. I'll now turn the call over to Mitch. Mitchell Rock: Good morning, everyone, and thank you for joining us. Before discussing the quarter, I want to briefly acknowledge my first earnings call as President and Chief Executive Officer of UFP Technologies. Having spent many years helping build the company and the platform we operate today, I view this transition as a continuation of the strategy that has driven our success. Our priorities remain unchanged, supporting our customers, investing in our team and capabilities, pursuing disciplined acquisitions and creating long-term values for shareholders. Our second quarter and first half results reflect solid execution across the platform and continued progress towards our long-term growth strategy. During the second quarter, sales increased 15.1% to $174 million, gross margins increased to 29.3% and operating income grew 15.5%. We also delivered adjusted earnings per share growth of 16.8% to a company record of $2.92. These results were driven by contributions across the UFP platform and demonstrate the strength and diversity of our MedTech business. Growth remained broad-based throughout the portfolio with our top 5 customers growing 14.7%, while the balance of our MedTech business grew 19.7%. One of the most important aspects of the quarter is that growth was not dependent on any single customer, product category or end market. Rather, performance was driven by a diverse set of customer programs, the breadth of our businesses and the continued execution of our teams across the organization. We continue to invest in the Dominican Republic to support customer-driven growth initiatives, expand capacity and enhance our cost structure over time. These investments are generating early operational benefits and strengthening our ability to support future growth. While the full realization of those benefits is taking longer than originally anticipated, we remain confident in the long-term value of these investments and the opportunities they create for our customers and our business. We also continued to strengthen our organization during the quarter. Recent additions in business development, operations and legal increased our leadership capacity and support our next phase of growth. As we grow with existing customers, launch new programs and evaluate acquisition opportunities, we believe investing in organizational capacity is just as important as investing in facilities and equipment. These investments also position us to onboard additional companies into our decentralized operating model as we continue to expand the platform. Our acquisition strategy remains unchanged, and our pipeline of opportunities is robust. We continue to evaluate businesses that can expand our capabilities and strengthen our position in attractive MedTech markets. As always, we remain disciplined in our valuation approach and committed to deploying capital in ways that create long-term shareholder value. Looking ahead, we continue to see meaningful opportunities to grow with existing customers, support new program launches, pursue disciplined acquisitions and invest in our people and capabilities. We believe the combination of our customer relationships, manufacturing footprint, robust acquisition pipeline and strengthened leadership team position us well for continued growth. The markets we serve remain attractive. Our customer relationships remain strong, and we remain focused on disciplined execution and long-term value creation for our customers and shareholders. Most importantly, I want to thank our team members around the world for their continued dedication to our customers and each other. Their commitment, expertise and execution remain the foundation of UFP's success as we enter the next chapter of the company's growth. With that, I'll turn the call over to Ron to review our financial results in greater detail. Ronald Lataille: Thank you, Mitch. Before reviewing operating results, I'd like to give a brief update on the impact of the conflict in Iran on our raw material input costs. Given that a portion of our raw material input cost is petroleum-based, we continue to face inflationary price increases due to the impact on oil prices from the conflict in Iran. As was true at the end of Q1, it is difficult to estimate the ultimate impact as the news changes daily, and therefore, the price of oil has been volatile. It remains our expectation that we will pass through these increases to the market in kind. Moving to operations. As Mitch mentioned, overall sales for the second quarter were up 15.1%, fueled by strength across our platform, more specifically within the surfaces and support, cardiovascular, infection control and orthopedics submarkets. Organic sales growth for the quarter was strong at 12.4% as our launch programs accelerate and we continue to build capacity at AJR. With regard to customer concentration, sales to our top 5 customers comprised 61% of our overall year-to-date sales, but are diversified into a broad range of programs consisting of hundreds of SKUs, each subject to validation and qualification requirements. Gross profit as a percentage of sales or gross margin increased to 29.3% from 28.8% last year. This improvement was despite continued margin pressure at AJR as programs scheduled to be transferred to the DR continue to be contingent on customer qualification. SG&A expenses for our second quarter of 2026 increased by $4.1 million to $22.8 million. This is largely due to approximately $1.9 million in wages and benefits for back-office investments made at various times to support our larger organization. The increase also reflects growth of our senior management team as well as approximately $1 million in additional noncash equity compensation caused partially by CEO transition costs. Adjusted operating margin for the second quarter was 17.6% of sales and adjusted earnings per share outstanding was $2.92, up significantly from last year. We generated approximately $15.6 million in cash from operations during our second quarter. Capital expenditures were $1.2 million during our second quarter, and we ended with a leverage ratio of under 1x. With that, I now turn it back to the operator for questions. Operator: [Operator Instructions] First question comes from Brett Fishbin with KeyBanc Capital Markets. Brett Fishbin: So a really strong quarter, especially on the revenue growth front. I was hoping you could just unpack a little bit more some of the strength that you saw. I know you called out surfaces and cardio, infection control and orthopedics as a few areas that did really well. But maybe just if you could just dive a little bit deeper into some of the trends that you saw this quarter and what got better? Mitchell Rock: Brett, thanks for the question. So we continue to see growth across several of the core markets, including cardiovascular, infection prevention, patient handling, orthopedics. We specifically called out that the robotic surgical market would be flat to down this year, and that was true. Brett Fishbin: All right. Maybe just following up on surfaces and support. I know there's been a little bit of a conversation about backlog with AJR and you guys have been ramping capacity and activities in that area. Maybe if you could just expand a little bit on if you saw any benefit specifically from the backlog or if there was anything else in surfaces and support that made it a strong end market this quarter? Mitchell Rock: We've moved through the backlog that the discussion with regard to what's going on with our customers' business where we won't address. What we can say is that business continues to grow significantly. And so we continue to see opportunity as we move forward. Brett Fishbin: All right. And then maybe just one more on the revenue front. I think like in past quarters, you guys have talked about 4 or so new programs that were expected to start ramping this year. So I was curious how like those new programs have progressed and how you're thinking about the contribution at this point for 2026? Mitchell Rock: Good question. I know we've discussed these new programs in prior quarters. What I would say is that the new program activity contributed to the quarter as expected. However, I would not characterize the quarter as being driven primarily by launches. Most of the growth came from existing customer relationships, existing product families and the continued expansion of the broad base of customer applications we have across the portfolio. Ronald Lataille: And Brett, it's Ron. To elaborate and clarify, it's really only 3 programs. The fourth program that we referred to in previous calls is an internal transfer. So it's not net new. There's 3 actual net new programs that are being transferred into us from outside. Operator: The next question comes from Justin Ages with CJS Securities. Justin Ages: It seems like the investments that you're making are paying off even in the short term with the growth that we're seeing. Can you give us an indication whether we're at a new normal level for SG&A going forward? Ronald Lataille: I'll tackle that one, Justin. The answer is yes. We have made investments. I think that there's ultimately a little cushion in there because there's temporary costs that will cycle through due to the CEO transition from Jeff to Mitch. So we'll get some relief in midway through 2027. But the current level is approximately where we should be going forward. Justin Ages: All right. And then you mentioned leverage and being disciplined in your approach. Can you give us an indication of the pipeline? How many are you looking at in what platform, surfaces and support, infection control or any indication there? Mitchell Rock: What I can say is we were looking at anywhere from 5 to 10 opportunities that range from $5 million to $30 million of EBITDA. As stated, the pipeline is robust, so we're excited about it. Operator: The next question comes from Andrew Cooper with Raymond James. Andrew Harris Cooper: Maybe just to double-click on the AJR frameworks. I guess as the takeaway here, you commented that you've resolved the backlog. So is it safe to assume the labor issues feel pretty fully resolved at this point? And then I think the last backlog number we had gotten was around $8 million and that it had grown a little bit from there. So is there any normalization we need to think about from these 2Q levels back towards a rate that's maybe closer to end market pull-through versus that backlog work down? Mitchell Rock: So Andrew, what I would say about that is go back to Q2 of '25. So that's a low point, right, as far as the comp goes. We are through the backlog. So we would no longer talk about the backlog. We are through the labor issue. So we are fully ramped in St. Charles and the platform continues to grow. Our only challenge is that we continue to have activity in St. Charles that we plan to put in the DR. Andrew Harris Cooper: Okay. Helpful. And maybe just a little bit more flavor for -- it sounds like the customer is controlling the time line there, but what percentage of product you expect to transfer to the DR is transferred at this point? And of the remaining sort of phases, how many are waiting on that sign-off from the customer versus needing more work to be done before you're able to move those down to the Dominican? Mitchell Rock: Good question. So the original thesis when we go back a little over a year ago, we have 3 programs that transfer to the DR. 2 of them have transferred and a third one is still in process. And that is delayed. Operator: The next question comes from Max Michaelis with Lake Street. Maxwell Michaelis: Congrats on the great quarter. Just one for me. When we talk about sort of outside the top 5 MedTech customers growing 20%, can you kind of go into a little bit more detail on sort of those new programs ramping? And can you remind me, are one of those the 2 new robotics programs you guys announced last November? Just kind of give us a little bit more detail on how that's kind of tracking in 2026 and where you expect that to kind of go in 2027? Mitchell Rock: Okay. Max, -- two parts to the question. The broad growth across the platform really demonstrates the durability and diversity of UFP's exposure to multiple products in multiple markets, right? So the -- outside of our top customers, we grew close to 20% in the MedTech space. So that addresses that question. As it relates to the 2 programs that are in the robotic-assisted surgical space, those are all -- they have launched, they're ramping, and we expect to see more meaningful contribution as we move into '27. Maxwell Michaelis: Okay. I mean I can't remember if you did the last time when you guys talked about those programs, but did you give any sort of expected contribution or revenue outlook in 2026? Mitchell Rock: Yes. So I would -- so as we move into '27, it's an 8-figure contribution and growing. Operator: There is a follow-up question from Brett Fishbin. Brett Fishbin: Just had one more quick one to kind of tie this together. Just thinking about the rest of the year, UFPT usually talks about 6% to 9% organic growth as kind of the long-term target. So just given the higher trend in 2Q, like how should we think about the rest of the year directionally from a modeling perspective? And any color on direction from here would be really helpful. Ronald Lataille: Brett, it's Ron. So you and I will chat later today. We will not obviously provide guidance for the rest of the year. The second quarter organic growth was impressive, but you have to remember that second quarter of last year was kind of the low point for the labor inefficiencies that we had. So I think as we go out through the rest of the year, the comp from a year ago will begin to improve. So I think we will be in our target range for organic growth, but I don't think you'll see the same double digits that you saw in Q2. Operator: This concludes our question-and-answer session. I would like to turn the conference back over to Mitch Rock, CEO, for any closing remarks. Mitchell Rock: Thank you. If there's one takeaway from today, it's the strength of the UFP platform. Our growth is broad-based. Our end markets remain attractive, and our operating businesses are deeply embedded with customers across multiple medical applications. Combined with our disciplined approach to investment and acquisitions, we believe UFP is well positioned for the next chapter of growth. Thank you. Operator: The conference has now concluded. Thank you for attending today's presentation. You may now disconnect. 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This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool recommends UFP Technologies. The Motley Fool has a disclosure policy. UFP Technologies (UFPT) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Interested in UFP Technologies, Inc.? Here are five stocks we like better. Strong second-quarter performance: UFP Technologies increased sales 15.1% to $174 million and adjusted EPS 16.8% to a record $2.92. Gross margin improved to 29.3%, supported by broad-based MedTech demand and 12.4% organic growth. Operational improvements are underway: AJR’s backlog and labor issues have been resolved, while two of three planned program transfers to the Dominican Republic are complete. However, qualification delays continue to pressure AJR margins and postpone the full benefits of the lower-cost facility. Growth outlook remains measured: Management expects full-year organic growth to stay within its long-term 6%–9% target rather than repeat the quarter’s double-digit pace. UFP is evaluating roughly five to 10 acquisition opportunities, and two robotic-surgery programs are expected to contribute meaningfully in 2027. Small Caps Are Crushing the S&P 500—3 Stocks Still Worth Buying UFP Technologies (NASDAQ:UFPT) reported second-quarter 2026 sales growth of 15.1% to $174 million, supported by broad-based demand across its medical technology portfolio, while adjusted earnings per share rose 16.8% to a company-record $2.92. President and Chief Executive Officer Mitch Rock, speaking on his first earnings call since taking the role, said the company’s strategy remains centered on customer support, investment in personnel and capabilities, disciplined acquisitions and long-term shareholder value creation. → SpaceX’s First Earnings Report Could Decide Whether Shorts or Bulls Have Control These 3 Small-Cap Stocks Are Built to Weather a Slowdown “Our second quarter and first half results reflect solid execution across the platform and continued progress towards our long-term growth strategy,” Rock said. Gross margin increased to 29.3% from 28.8% in the prior-year quarter, while operating income grew 15.5%. Adjusted operating margin was 17.6% of sales, according to Chief Financial Officer Ron Lataille. → Financials Hit Record Highs as the AI Trade Unravels—Can They Keep Leading? UFP said organic sales growth was 12.4% in the quarter, driven by accelerating launch programs and continued capacity expansion at AJR. The company identified strength in surfaces and support, cardiovascular, infection control and orthopedics. Sales to the company’s five largest customers rose 14.7%, while the remainder of the MedTech business grew 19.7%. Lataille said the top five customers represented 61% of year-to-date sales, though those sales are spread across hundreds of stock-keeping units and a range of programs subject to validation and qualification requirements. → Why Rare Earth Processing Could Be the Real 2027 Opportunity Rock said growth was not dependent on a single customer, product category or end market. Instead, he attributed performance to a range of customer programs, the breadth of the company’s operations and execution by its teams. During the question-and-answer session, Rock said cardiovascular, infection prevention, patient handling and orthopedics continued to grow. He added that the robotic surgical market was “flat to down” during the year, consistent with prior company commentary. New program activity contributed to quarterly results as expected, but Rock said most of the growth came from existing customer relationships, existing product families and expansion across the company’s broader customer base. Lataille clarified that UFP has three net-new programs being transferred from outside the company, while a previously discussed fourth program is an internal transfer. Management said AJR has moved through a previously discussed backlog and that labor issues at its St. Charles operation have been resolved. Rock said the facility is fully ramped and that the platform continues to grow. However, the company continues to have production activity in St. Charles that it expects to move to the Dominican Republic. Rock said the original plan involved transferring three programs to the Dominican Republic; two have transferred, while the third remains in process. UFP has continued to invest in the Dominican Republic to support customer growth initiatives, add capacity and improve its cost structure over time. Rock said those investments are producing early operational benefits, although the full benefits are taking longer than initially anticipated because program transfers depend on customer qualification. Margin pressure at AJR persisted in the second quarter as programs scheduled for transfer to the Dominican Republic remained contingent on customer qualification, Lataille said. Second-quarter selling, general and administrative expense increased $4.1 million to $22.8 million. Lataille attributed approximately $1.9 million of that increase to wages and benefits associated with back-office investments supporting the larger organization. The increase also reflected senior-management expansion and about $1 million in additional non-cash equity compensation, partially related to CEO transition costs. Lataille said current SG&A levels are approximately where the company expects them to remain going forward, although temporary costs tied to the transition from former CEO Jeff to Rock are expected to ease around mid-2027. The company generated about $15.6 million in operating cash flow during the quarter and spent $1.2 million on capital expenditures. It ended the period with a leverage ratio below 1x. Lataille also said UFP continues to face inflation in petroleum-based raw-material costs because of oil-price volatility associated with the conflict in Iran. He said the company expects to pass those cost increases through to the market, though he noted the ultimate effect is difficult to estimate. Rock said UFP’s acquisition pipeline remains robust, with the company evaluating roughly five to 10 opportunities involving businesses with EBITDA ranging from $5 million to $30 million. He said the company remains disciplined in its valuation approach and is seeking acquisitions that expand capabilities and strengthen its position in attractive MedTech markets. The company did not provide formal guidance for the remainder of 2026. Lataille said second-quarter organic growth benefited partly from comparison with a weaker second quarter of 2025, when labor inefficiencies were more pronounced. He said UFP expects to remain within its long-term organic growth target range of 6% to 9% for the rest of the year, rather than sustain the double-digit growth reported in the second quarter. Regarding two robotic-assisted surgical programs announced previously, Rock said both have launched and are ramping. He expects a more meaningful contribution in 2027, describing it as an eight-figure contribution that is expected to grow. UFP Technologies, Inc (NASDAQ: UFPT) is a global designer and manufacturer of custom-engineered products using plastics, foams and adhesives. The company partners with customers to develop application-specific solutions through a range of in-house processes, including foam fabrication, die cutting, sheet processing, lamination, machining and assembly services. Its components find use in industries requiring precise material properties, such as medical devices, aerospace, defense, electronics and transportation. Building on its origins as a specialty foam converter, UFP Technologies has expanded its capabilities to include advanced material technologies, such as thermal management and electromagnetic interference (EMI) shielding solutions. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "UFP Technologies Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Performance was characterized by broad-based growth across the MedTech portfolio, with the top 5 customers growing 14.7% while the remainder of the MedTech business grew 19.7%. Management attributed the record results to a diverse set of customer programs and applications rather than reliance on any single product category or end market. Investments in the Dominican Republic are generating early operational benefits, though the full realization of these benefits is taking longer than initially anticipated due to customer qualification timelines. The company is intentionally investing in leadership capacity across business development, operations, and legal to support a decentralized operating model and future platform expansion. Organic growth of 12.4% was supported by accelerating launch programs and the successful resolution of labor issues at the St. Charles facility. Management noted that while the robotic surgical market was flat to down as expected, other core markets like cardiovascular and infection prevention showed significant strength. Management expects organic growth to return to the target range of 6% to 9% for the remainder of the year as year-over-year comparisons become more difficult. The acquisition pipeline is described as robust, with 5 to 10 active opportunities ranging from $5 million to $30 million in EBITDA. Two new robotic-assisted surgical programs are expected to provide an eight-figure revenue contribution starting in 2027 as they continue to ramp. Inflationary pressures on petroleum-based raw materials due to geopolitical conflict in Iran are expected to be passed through to the market in kind. SG&A expenses are expected to remain at current levels in the near term, with some potential relief in mid-2027 as temporary CEO transition costs cycle through. Gross margins improved to 29.3% despite continued pressure at AJR caused by delays in transferring programs to the Dominican Republic. The company maintains a disciplined capital allocation strategy with a leverage ratio currently under 1x, providing significant flexibility for M&A. A third major program transfer to the Dominican Republic remains delayed pending customer qualification and sign-off. Non-cash equity compensation increased by approximately $1 million, partially driven by costs associated with the CEO transition. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management confirmed they have moved through the previous $8 million backlog and that labor issues at the St. Charles facility are fully resolved. The primary remaining challenge is the timing of transferring specific activities from St. Charles to the Dominican Republic facility. While new programs contributed as expected, management clarified that the quarter's growth was primarily driven by existing customer relationships and product families. Of the four programs previously discussed, three are net new external transfers while one is an internal transfer. Management cautioned that the 12.4% organic growth in Q2 benefited from a low comparison point in the prior year due to labor inefficiencies. They expect growth to normalize toward the long-term 6% to 9% target range as comparisons improve in the second half of the year.

Find your next quality investment with Simply Wall St's easy and powerful screener, trusted by over 7 million individual investors worldwide. UFP Technologies (UFPT) is back in focus after reporting record Q2 2026 results, with sales of $173.96 million and net income of $20.85 million. Both figures were above the prior year’s levels. See our latest analysis for UFP Technologies. The strong Q2 2026 earnings have come alongside a clear pickup in momentum for UFP Technologies, with a 22.61% 90 day share price return and a 19.75% year to date share price return, while the 5 year total shareholder return of 319.98% points to substantial longer term value creation. If UFP Technologies’s move has you looking for the next potential opportunity, this is a good moment to broaden your search and check out our 41 healthcare AI stocks After UFP Technologies’ strong run on the back of record Q2 results, the key issue now is where the balance of potential lies. Is most of the upside already reflected in the US$267.53 share price, or is it not yet fully priced in? On a P/E of 30.2x, UFP Technologies currently trades at a premium to the Medical Equipment industry average of 29x, even though the share price of $267.53 is 8.4% below one DCF based fair value estimate of $292.16. The P/E multiple compares the company’s share price to its earnings per share. For a business like UFP Technologies, with an established earnings base and a strong medical focus, this is a common yardstick investors use to gauge how much they are paying for each dollar of earnings. The company’s earnings have grown 28.2% per year over the past 5 years, while earnings are now forecast to grow 12.46% per year. A 30.2x P/E suggests investors are still paying up for that track record and for further growth, even though the forecast pace is more moderate and earnings growth over the past year of 8.1% is below both the 5 year average and the broader US market forecast. Compared to peers, UFP Technologies looks expensive versus the Medical Equipment industry P/E of 29x and also above an estimated fair P/E of 24x, which points to a level the market could move towards if expectations cool. At the same time, the 30.2x P/E screens as good value relative to a higher peer group average of 50.2x, which highlights how different reference points can paint very different pictures for the same stock. Explore the SWS fair ratio for UFP Technologies Result: Price-to-earnings of 30.2x (OVERVALUED) However, UFP Technologies still faces risks if medical device demand slows or if key end markets, such as aerospace and defence, order fewer packaging and protection solutions. Find out about the key risks to this UFP Technologies narrative. While the 30.2x P/E points to UFP Technologies looking expensive against some benchmarks, the SWS DCF model tells a different story. On this view, the current $267.53 share price sits about 8.4% below an estimated fair value of $292.16, which frames the stock as modestly undervalued and raises the question of which signal may be more relevant for an investor. Look into how the SWS DCF model arrives at its fair value. Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out UFP Technologies for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 53 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity. Given the mix of strong recent results and some clear question marks around risks and rewards for UFP Technologies, this is a good moment to look at the data yourself and decide how comfortable you feel with the current setup. To see how the positives stack up against the concerns in one place, review the 3 key rewards and 1 important warning sign If UFP Technologies has sharpened your focus, do not stop here. Broaden your watchlist with a few targeted stock ideas that match different investing angles. Target potential mispricing by scanning companies that combine quality fundamentals with attractive valuations through the 53 high quality undervalued stocks Prioritise resilience by focusing on companies that show stronger balance sheets and fundamentals using the solid balance sheet and fundamentals stocks screener (46 results) Hunt for under-followed opportunities that still screen well on quality by checking the screener containing 18 high quality undiscovered gems This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include UFPT. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

NEWBURYPORT, Mass., August 03, 2026--(BUSINESS WIRE)--UFP Technologies, Inc. (Nasdaq: UFPT), a trusted contract development and manufacturing organization specializing in comprehensive solutions for medical devices, sterile packaging and other highly engineered custom products, today reported net income of $20.9 million for its second quarter ended June 30, 2026, 21.4% higher than net income of $17.2 million for the second quarter of 2025. Net sales for the quarter ended June 30, 2026 were $174.0 million, 15.1% higher than 2025 second quarter sales of $151.2 million. Generally accepted accounting principles ("GAAP") and adjusted earnings per diluted common share outstanding ("EPS") for the quarter ended June 30, 2026 were $2.68 and $2.92, respectively. Net sales, net income, and EPS for the second quarter of 2026 reflect record quarterly results for the Company. Net income for the six-month period ended June 30, 2026 was $38.3 million, 11.6% higher than net income of $34.4 million for the same period in 2025. Net sales for the six-month period ended June 30, 2026 were $328.2 million, compared to sales of $299.3 million in the same period of 2025. GAAP and adjusted EPS for the six-month period ended June 30, 2026 were $4.92 and $5.39, respectively. Throughout this news release, reference is made to non-GAAP measures including organic sales growth; adjusted selling, general and administrative expenses ("SG&A"); adjusted operating income; adjusted net income and EPS; and EBITDA and adjusted EBITDA. Please see "Non-GAAP Financial Information" at the end of this news release. "Our second quarter and first-half results reflect solid execution across the platform and continued progress toward our long-term growth strategy," said Mitch Rock, President and Chief Executive Officer. "In the second quarter, the team delivered 15.1% sales growth, increased gross margins to 29.3%, and grew operating income by 15.5%. These results were driven by contributions across the UFP platform, demonstrating the strength and diversity of our MedTech business." "During the quarter, our top five customers grew 14.7%, the balance of our MedTech business grew 19.7%, and our non-medical business was flat," continued Rock. "We continue to invest in our Dominican Republic operations to support customer-driven growth initiatives, expand capacity, and enhance our cost structure over time. These investments are generating early operational benefits and strengthening our ability to support future growth. While the full realization of these benefits is taking longer than anticipated, the investments are creating near-term mix and margin pressure within our U.S. operations. We also continue to strengthen our leadership team, adding experienced executives in business development, operations, and legal to increase organizational capacity and support the continued growth of the UFP platform." "Looking ahead, we continue to see meaningful opportunities to grow with existing customers, support new program launches, pursue disciplined acquisitions, and invest in our people and capabilities," said Rock. "The fundamentals of the markets we serve remain attractive, and we remain focused on disciplined execution and long-term value creation for our customers and shareholders." Financial Highlights: Sales for the second quarter increased 15.1% to $174.0 million, from $151.2 million in the same period of 2025. Year-to-date sales through June increased 9.6% to $328.2 million, from $299.3 million in the same period of 2025. Organic sales growth for the three- and six-month periods ended June 30, 2026, was 12.4% and 6.8%, respectively. Gross profit as a percentage of sales ("gross margin") increased to 29.3% for the second quarter of 2026, from 28.8% in the same quarter of 2025. Gross margin for the six-month period ended June 30, 2026, increased to 29.0% from 28.6% in the same period of 2025. SG&A increased 21.8% to $22.8 million for the second quarter of 2026 compared to $18.7 million in the same quarter of 2025. As a percentage of sales, SG&A increased to 13.1% in the second quarter of 2026, from 12.4% in the same period of 2025. For the six-month period ended June 30, 2026, SG&A increased 17.0% to $43.8 million from $37.4 million in the same period of 2025. As a percentage of sales, SG&A in the six-month period ended June 30, 2026, increased to 13.3% from 12.5% in the same period of 2025. As a percentage of sales, adjusted SG&A increased to 11.7% and 11.8% for the three- and six-month periods ended June 30, 2026, respectively, from 10.8% and 10.9%, respectively in the same periods of 2025. Operating income increased 15.5% to $28.1 million for the second quarter of 2026, from $24.3 million in the same quarter of 2025. Adjusted operating income for the second quarter of 2026 increased 12.3% to $30.6 million from $27.3 million in the same period of 2025. For the six-month period ended June 30, 2026, operating income increased 8.5% to $51.5 million from $47.5 million in the same period of 2025. Adjusted operating income for the six-month period ended June 30, 2026, increased 6.4% to $56.5 million from $53.1 million in the same period of 2025. Net income was $20.9 million in the second quarter of 2026, compared to $17.2 million in the same period of 2025. Adjusted net income increased 17.2% to $22.7 million in the second quarter of 2026, from $19.4 million in the same period of 2025. GAAP and adjusted diluted EPS for the second quarter of 2026 were $2.68 and $2.92, respectively, as compared to $2.21 and $2.50, respectively, for the same period in 2025. For the six-month period ended June 30, 2026, net income increased to $38.3 million, from $34.4 million in the same period of 2025. Adjusted net income increased 8.9% to $42.1 million for the six-month period ended June 30, 2026, from $38.6 in the same period of 2025. Adjusted EBITDA for the second quarter of 2026 increased 14.3% to $36.4 million from $31.8 million in the second quarter of 2025. Adjusted EBITDA for the six-month period ended June 30, 2026, increased 8.5% to $67.3 million, from $62.1 million in the same period of 2025. About UFP Technologies, Inc. UFP Technologies is a trusted contract development and manufacturing organization specializing in comprehensive solutions for medical devices, sterile packaging and other highly engineered custom products. The company’s single-use and single-patient devices and components are used across a wide range of medical products in segments including robotic assisted surgery, patient beds, infection control, cardiovascular, orthopedics and spine and wound care. For more information, visit ufpt.com. Conference Call The Company has scheduled a conference call on Tuesday, August 4, 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/. Forward-Looking Statements Certain statements in this press release may be considered "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements are subject to known and unknown risks, uncertainties, and other factors, which may cause our or our industry’s actual results, performance, or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Forward-looking statements generally relate to future events or the Company’s future financial or operating performance and may be identified by words such as "may," "should," "expect," "intend," "will," "estimate," "anticipate," "believe," "predict," or similar words. Such statements include, but are not limited to, statements about the Company’s future financial or operating performance; statements of the Company about the marketplace and the Company’s position in the marketplace; statements about the Company’s acquisition strategies and opportunities and the Company’s growth potential and strategies for growth; statements about the integration and performance of recent acquisitions, including that such acquisitions will be accretive to the Company's revenue, income and EBITDA; statements about the Company’s ability to realize the benefits expected from our pipeline of acquisition opportunities and recently completed acquisitions, including any related synergies; expectations regarding an increase in revenue as a result of the Company’s new robotic programs and facility expansions in the Dominican Republic and the completion of program transfers to the Dominican Republic in the safe patient handling space; statements about the Company’s ability to realize the benefits expected from our four large programs; expectations regarding an increase in product demand as a result of negotiating favorable terms with the Company’s largest customer; expectations regarding customer demand; and any indication that the Company may be able to sustain or increase its sales, earnings or earnings per share, or its sales, earnings or earnings per share growth rates. Factors that may cause actual results to differ materially from current expectations include, but are not limited to: the Company's general ability to execute its business plans; industry conditions, including fluctuations in supply, demand and prices for the Company's products and services due to inflation or otherwise; risks associated with governmental regulations and/or sanctions affecting the import and export of products, including tariffs, global trade barriers, additional taxes, tariff increases or uncertainties, cash repatriation restrictions, retaliations and boycotts between the U.S. and other countries; risks associated with domestic, regional and global political risks and uncertainties, including the ongoing conflict between the U.S. and Iran; risks relating to cyber security, such as cyber-attacks on the Company’s information technology infrastructure, products, suppliers, customers and partners, including the potential consequences of the Cyber Incident (as defined in Item 1C, Cybersecurity in our Annual Report on Form 10-K for the fiscal year ended December 31, 2025) could result in data or financial loss, reputational harm, business disruption, damage to our relationships with customers, consumers, employees and third parties on which we rely, litigation, regulatory investigations, enforcement actions or other negative impacts under cybersecurity related regulations or otherwise; risks associated with our or third-party use of artificial intelligence technologies; risks related to our indebtedness and compliance with covenants contained in our financing arrangements, and whether any available financing may be sufficient to address our needs; risks relating to delayed payments by our customers and the potential for reduced or canceled orders; risks related to customer concentration; risks associated with new product and program launches; risks relating to our performance and the performance of our counterparties under the agreements we have entered into; the risk that our two largest customers, on whom we depend for a substantial portion of our annual revenues, will not purchase the expected volume of goods under the supply agreements we have entered into with them because, among other things, they no longer require the products at all or to the degree they anticipated or because, among other things, our largest customer decides to manufacture the products itself or through one of its affiliates or it obtains the products from other listed suppliers specified in our agreement; risks associated with our inability to extend or otherwise renegotiate favorable terms with the Company's largest customer, if at all; the risk that we will not achieve expected rebates under the applicable supply agreement; risks relating to our ability to maintain increased levels of production at profitable levels, if at all; or to continue to increase production rates and/or timely and successfully transfer programs to the Dominican Republic and risks relating to disruptions and delays in our supply chain or labor force; risks relating to our new robotic programs and facility expansions in the Dominican Republic; risks associated with the identification of suitable acquisition candidates and the successful, efficient execution of acquisition transactions, the integration of any such acquisition candidates, the value of those acquisitions to our customers and shareholders, and the financing of such acquisitions; and other risks and uncertainties set forth in the sections entitled "Risk Factors" and "Cautionary Note Regarding Forward-Looking Statements" in the Company's filings with the Securities and Exchange Commission ("SEC"), which are available on the SEC's website at www.sec.gov. The Company expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any such statement to reflect any change in the Company’s expectations or any change in events, conditions, or circumstances on which any such statement is based. Forward-looking statements are also subject to the risks and other issues described below under "Non-GAAP Financial Information," which could cause actual results to differ materially from current expectations included in the Company’s forward-looking statements included in this press release. Non-GAAP Financial Information This news release includes non-GAAP performance measures. Management considers organic sales growth, adjusted SG&A, adjusted operating income, adjusted net income and EPS, EBITDA and adjusted EBITDA, non-GAAP measures. The Company uses these non-GAAP financial measures to facilitate management's financial and operational decision-making, including evaluation of the Company’s historical operating results. The Company’s management believes these non-GAAP measures are useful in evaluating the Company’s operating performance and are similar to measures reported by publicly listed U.S. competitors, and regularly used by securities analysts, institutional investors, and other interested parties in analyzing operating performance and prospects. These non-GAAP financial measures reflect an additional way of viewing aspects of the Company's operations that, when viewed with GAAP results and the reconciliations to corresponding GAAP financial measures, may provide a more complete understanding of factors and trends affecting the Company’s business. By providing these non-GAAP measures, the Company’s management intends to provide investors with a meaningful, consistent comparison of the Company’s performance for the periods presented. These non-GAAP financial measures should be considered supplemental to, and not a substitute for, financial information prepared in accordance with GAAP. The Company's definition of these non-GAAP measures may differ from similarly titled measures of performance used by other companies in other industries or within the same industry. View source version on businesswire.com: https://www.businesswire.com/news/home/20260803095671/en/ Contacts Ron Lataille978-234-0926

UFP Technologies (UFPT) came out with quarterly earnings of $2.92 per share, beating the Zacks Consensus Estimate of $2.51 per share. This compares to earnings of $2.5 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +16.34%. A quarter ago, it was expected that this packaging company and component manufacturer would post earnings of $2.18 per share when it actually produced earnings of $2.48, delivering a surprise of +13.76%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. UFP, which belongs to the Zacks Medical - Instruments industry, posted revenues of $173.96 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 8.85%. This compares to year-ago revenues of $151.18 million. The company has topped consensus revenue estimates two times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. UFP shares have added about 14.8% since the beginning of the year versus the S&P 500's gain of 9.4%. While UFP has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for UFP was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $2.68 on $165.01 million in revenues for the coming quarter and $10.23 on $639.81 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Medical - Instruments is currently in the bottom 38% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, RxSight, Inc. (RXST), has yet to report results for the quarter ended June 2026. The results are expected to be released on August 5. This company is expected to post quarterly loss of $0.21 per share in its upcoming report, which represents a year-over-year change of -162.5%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. RxSight, Inc.'s revenues are expected to be $32.9 million, down 2.2% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report UFP Technologies, Inc. (UFPT) : Free Stock Analysis Report RxSight, Inc. (RXST) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research