Utah Medical Products Lifts Third-Quarter Operating Income

The Tip Desk · October 22, 2026 · 3 min read

Operating income rose 7.0% to $2,795 thousand as sales fell 12.1% to $8,621 thousand.

Utah Medical Products, Inc. (UTMD) reported third-quarter 2026 operating income of $2,795 thousand, 7.0% higher than $2,612 thousand a year earlier, even as worldwide sales declined 12.1% to $8,621 thousand from $9,812 thousand.

The medical-device maker said the profit increase came from a $692 drop in combined litigation and intangible-asset amortization expense, which totaled $228 thousand versus $920 thousand in the year-ago quarter. Femcare’s 15-year amortization of identifiable assets was completed in the first quarter of 2026.

Gross profit margin compressed to 56.1% from 57.1%. The company said lower sales did not proportionally reduce manufacturing direct labor and overhead, and that UTMD Ltd in Ireland, which manufactures the Filshie Clip System, recorded lower intercompany Filshie sales.

Sales to PendoTECH and the prior China blood-pressure-monitoring distributor were zero in the third quarter, versus $491 thousand combined in the third quarter of 2025. New biopharm customers contributed $116 thousand. A new China BPM distributor generated $195 thousand in its first quarter of sales.

Worldwide Filshie Clip System sales were $805 thousand, 32.7% lower than a year earlier. Domestic Filshie device sales were $656 thousand, $534 thousand lower, which the company described as a weak quarter after stronger first-half 2026 sales.

Femcare acquired Orion Medical Supplies Ltd in the United Kingdom at the end of August 2026, adding $619 thousand of third-quarter sales. Outside-U.S. sales were $3,704 thousand, 6.3% lower than $3,953 thousand. Direct sales to medical facilities in Ireland, the UK, France, Canada, Australia and New Zealand were 50% of outside-U.S. sales, compared with 37% a year earlier.

Domestic sales were $4,917 thousand, 16.1% lower than $5,859 thousand. Domestic OEM sales were $677 thousand, $41 thousand higher, including $66 thousand higher new domestic OEM biopharma sales.

Net income was $2,787 thousand, 5.9% higher than $2,631 thousand, with a two-percentage-point lower estimated average income tax provision rate of 18.1% versus 20.5%. Diluted earnings were $0.876 a share, 6.8% higher than $0.820 a share, on 3,180,343 diluted shares versus 3,207,490.

General and administrative expenses were $1,374 thousand, $936 thousand lower than $2,310 thousand. The year-ago quarter included a $395 thousand write-off of an uncollectible China-distributor receivable and $536 thousand of Femcare IIA amortization that was zero in the third quarter of 2026. U.S. litigation expense was $186 thousand lower.

Adjusted consolidated EBITDA was $3,735 thousand, or 43.3% of sales, versus $4,170 thousand, or 42.5% of sales. Trailing-twelve-month adjusted EBITDA was $15,269 thousand as of September 30, 2026.

Cash and investments were $85.2 million, with no debt. The company paid $3.0 million in cash dividends, repurchased $0.9 million of stock, spent $5.0 million on Orion including legal fees and duties, and made $0.5 million of other plant and equipment capital expenditures.

Management’s current-year 2026 sales projection is a total-year consolidated sales decline close to 7%, versus a 12% year-to-date actual decline in the nine months ended September 2026. The two former customers were only $35 thousand in the fourth quarter of 2025 and $338 thousand in the fourth quarter of 2024, so UTMD does not expect the same negative comparisons in the fourth quarter of 2026.