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 2025 results and our progress on a number of key strategic initiatives," said R. Jeffrey Bailly, CEO. "Sales for the year grew 19.5% to $602.8 million, operating income grew 14.1% to $92.3 million, and EPS grew 15.4% to $8.75. Our growth was driven by a 23.2% increase in medical sales, partially offset by an 11.5% decrease in non-medical sales."
"We achieved the 14.1% earnings growth despite absorbing approximately $6.3 million in labor-related inefficiencies at our AJR facility in Illinois," Bailly said. "These were due to the previously disclosed attrition in our workforce based on associates' eligibility to work in the United States. Of note, the impact in Q4 dropped to $1.2 million, less than half of the $3.0 million impact in Q3. We expect to make continued progress until the issue is resolved."
"We also made significant progress expanding our businesses in the Dominican Republic," Bailly said. "In La Romana, we extended our contract with our largest customer through 2029, increasing volumes on current programs and adding a new program. We also launched three new programs, and after taking possession of a fifth building in 2025, we will soon add a sixth facility to accommodate anticipated growth. In Santiago, we successfully launched our second transfer program and plan to add a new facility in Q2 2026, which will allow us to localize and ramp up a third major program in the Safe Patient Handling space. This market opportunity is substantial, with significant growth anticipated again in 2026."
"The four acquisitions we completed in 2024 and three we completed in 2025 are all progressing well with integrations either well underway or complete," said Bailly. "With new talent in place across the Company, new programs recently launched, new contract extensions with several major customers, and a robust pipeline, we remain bullish about our future."
Financial Highlights for Q4 and YTD 2025
Sales for the fourth quarter increased 3.4% to $148.9 million, from $144.1 million in the same period of 2024. Year-to-date sales increased 19.5% to $602.8 million, from $504.4 million in the same period of 2024. Organic sales were essentially flat for the three-month period ended December 31, 2025 as compared to the same period in 2024. Organic growth for the year ended December 31, 2025, was approximately 1.5%.
Fourth quarter sales to the medical market increased 4.2% to $138.2 million. Non-medical sales for the fourth quarter decreased 6.0% to $10.7 million. For the year ended December 31, 2025, sales to the medical market increased 23.2% to $555.3 million. Non-medical sales for 2025 decreased 11.5% to $47.5 million.
Gross profit as a percentage of sales ("gross margin") decreased to 28.2% for the fourth quarter of 2025, from 29.2% in the same quarter of 2024. Gross margin for the year ended December 31, 2025, decreased to 28.3% from 29.1% in the same period of 2024. Approximately $6.3 million and $1.2 million in incremental labor cost was incurred at AJR during the full year and fourth quarter of 2025, respectively. Absent these expenses, full-year and fourth quarter of 2025 gross margins would have been 29.3% and 29.0%, respectively.
Selling, general and administrative expenses ("SG&A") increased 12.6% to $21.0 million for the fourth quarter of 2025 compared to $18.6 million in the same quarter of 2024. As a percentage of sales, SG&A increased to 14.1% in the fourth quarter of 2025, from 12.9% in the same period of 2024. As a percentage of sales, adjusted SG&A increased in the fourth quarter of 2025 to 12.4% from 11.2% in the same period of 2024. For the year ended December 31, 2025, SG&A increased 24.5% to $77.4 million from $62.2 million in the same period of 2024. As a percentage of sales, SG&A in the year ended December 31, 2025, increased to 12.8% from 12.3% in the same period of 2024. For the year ended December 31, 2025, as a percentage of sales, adjusted SG&A increased to 11.2% from 11.0% in the same period of 2024.
For the fourth quarter of 2025, operating income decreased 3.4% to $21.5 million, from $22.3 million in the same quarter of 2024. Adjusted operating income for the fourth quarter of 2025 decreased 9.6% to $23.5 million from $26.0 million in the fourth quarter of 2024. For the year ended December 31, 2025, operating income increased 14.1% to $92.3 million from $80.9 million in the same period of 2024. Adjusted operating income for the year ended December 31, 2025, increased 11.5% to $102.9 million from $92.3 million in the same period of 2024.
Net income was $17.6 million in the fourth quarter of 2025, compared to $16.4 million in the same period of 2024. Adjusted net income decreased 0.7% to $19.0 million in the fourth quarter of 2025, from $19.2 million in the same period of 2024. For the year ended December 31, 2025, net income increased to $68.3 million, from $59.0 million in the same period of 2024. Adjusted net income for the year ended December 31, 2025 increased 12.7% to $76.1 million from $67.6 million for the year ended December 31, 2024. GAAP and adjusted EPS for the fourth quarter of 2025 were $2.25 and $2.44, respectively, as compared to $2.10 and $2.46, respectively, for the same period in 2024. GAAP and adjusted EPS for the year ended December 31, 2025 were $8.75 and $9.76, respectively, as compared to $7.58 and $8.68, respectively, for the same period of 2024.
Adjusted EBITDA for the fourth quarter of 2025 decreased to $28.3 million from $30.4 million in the fourth quarter of 2024. Adjusted EBITDA for the year ended December 31, 2025, increased to $121.1 million from $107.3 million in the same period of 2024.
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 Lataille978-234-0926
Consolidated Condensed Statements of Income(in thousands, except per share data)(Unaudited)
Three Months Ended
Year Ended
December 31,
December 31,
2025
2024
2025
2024
Net sales
$
148,915
$
144,070
$
602,797
$
504,421
Cost of sales
106,947
102,014
432,387
357,728
Gross profit
41,968
42,056
170,410
146,693
Selling, general & administrative expenses
20,965
18,618
77,439
62,218
Acquisition costs
—
844
334
2,520
Change in fair value of contingent consideration
(528
)
238
261
952
Loss on disposal of property, plant & equipment
27
99
38
106
Operating income
21,504
22,257
92,338
80,897
Interest expense, net
1,931
3,377
9,804
8,061
Other expense (income)
31
(219
)
21
(189
)
Income before income tax expense
19,542
19,099
82,513
73,025
Income tax expense
1,976
2,724
14,200
14,044
Net income
$
17,566
$
16,375
$
68,313
$
58,981
Net income per share
$
2.28
$
2.13
$
8.87
$
7.69
Net income per diluted share
$
2.25
$
2.10
$
8.75
$
7.58
Weighted average common shares outstanding
7,713
7,675
7,705
7,668
Weighted average diluted common shares outstanding
7,806
7,794
7,804
7,785
Consolidated Condensed Balance Sheets(in thousands)(Unaudited)
December 31, 2025
December 31, 2024
Assets:
Cash and cash equivalents
$
20,301
$
13,450
Receivables, net
82,914
84,677
Inventories
86,856
87,536
Other current assets
10,930
9,282
Net property, plant, and equipment
79,109
70,564
Goodwill
