UFP Technologies Restores Double-Digit Sales Growth
Second-quarter net sales reached $174.0 million, 15.1% above a year earlier, after first-quarter growth of 4.1%.
UFP Technologies, Inc. (UFPT), a contract development and manufacturing organization for medical devices and sterile packaging, reported record second-quarter results as sales growth accelerated from the first quarter.
Net sales for the quarter ended June 30, 2026, were $174.0 million, 15.1% higher than $151.2 million a year earlier. That compared with 4.1% growth to $154.2 million in the first quarter. Organic sales growth was 12.4% for the three months ended June 30, after organic sales were essentially flat in the first quarter.
Net income was $20.9 million, 21.4% higher than $17.2 million in the second quarter of 2025, after a 1.8% year-over-year increase to $17.5 million in the first quarter. GAAP diluted earnings were $2.68 a share and adjusted diluted earnings were $2.92 a share. The company said net sales, net income, and EPS were record quarterly results.
President and Chief Executive Officer Mitch Rock said the quarter reflected execution across the platform. He said the team delivered 15.1% sales growth, increased gross margins to 29.3%, and grew operating income by 15.5%. Gross margin had been 28.8% in the first quarter. Operating income was $28.1 million, after a 1.0% increase to $23.4 million in the first quarter. Adjusted operating income rose 12.3% to $30.6 million from a year earlier, after remaining consistent at $25.8 million in the first quarter. Adjusted EBITDA increased 14.3% to $36.4 million.
Rock said the top five customers grew 14.7%, the balance of the MedTech business grew 19.7%, and the non-medical business was flat. In the first quarter, medical sales had risen 5.9% to $143.4 million and non-medical sales had fallen 15.0% to $10.8 million.
Selling, general and administrative expenses were $22.8 million, or 13.1% of sales. Adjusted SG&A as a percentage of sales was 11.7%.
Rock said the company continues to invest in Dominican Republic operations to support customer-driven growth, expand capacity, and enhance the cost structure. He said those investments are generating early operational benefits and strengthening the ability to support future growth, while the full realization of those benefits is taking longer than anticipated and is creating near-term mix and margin pressure within U.S. operations. In the first quarter, Chairman and Chief Executive Officer R. Jeffrey Bailly had said the company would take possession of two new Dominican Republic facilities in the second quarter, one in La Romana for robotic surgery and one in Santiago for safe patient handling.
Rock said the company is adding experienced executives in business development, operations, and legal. He said it continues to see opportunities to grow with existing customers, support new program launches, and pursue disciplined acquisitions.
Cash and cash equivalents were $9.0 million at June 30, 2026. Long-term debt excluding current installments was $104.8 million.
For the six months ended June 30, 2026, net sales were $328.2 million, 9.6% higher than $299.3 million a year earlier. Organic sales growth for the six-month period was 6.8%. Net income for the six-month period was $38.3 million. GAAP and adjusted diluted EPS for the six months were $4.92 and $5.39, respectively. Gross margin for the six-month period was 29.0%. Operating income for the six months was $51.5 million. Adjusted EBITDA for the six months was $67.3 million.
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