UFP Technologies (NASDAQ:UFPT) reported first-quarter financial results on Tuesday. The transcript from the company’s first-quarter earnings call has been provided below.
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View the webcast at https://event.choruscall.com/mediaframe/webcast.html?webcastid=4BtVhg5p
Summary
UFP Technologies reported a 4.1% increase in revenue for Q1 2026, with medical sales up 5.9% and non-medical sales down 15%, largely due to a strategic focus on fast-growing segments in the med-tech space.
Earnings per share growth lagged behind revenue due to startup costs for four new program launches, labor inefficiencies at AJR, and non-recurring legal expenses related to a cyber attack and CEO transition.
The company is expanding capacity with new buildings in the Dominican Republic and planning further expansion in the APAC region to meet demand. Strategic acquisitions are being pursued, although there have been some missed opportunities due to higher bids.
Operational highlights include a significant growth in sales in Santiago, Dominican Republic, and the successful ramp-up of new product development labs in La Romana and Grand Rapids.
Management expressed confidence in the future, citing strong customer relationships and a prepared leadership transition with Mitch Rock taking over as CEO in June.
Full Transcript
OPERATOR
Good day and welcome to UFP Technologies first quarter 2026 earnings conference call. All participants will be in listen only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today’s presentation there will be an opportunity to ask questions. To ask a question, you may press star then one on your telephone keypad. To withdraw your question, please press star then two. Please note this event is being recorded. I would now like to turn the conference over to Ron Letai, Chief Financial Officer. Please go ahead.
Ron Letai (Chief Financial Officer)
Thank you Operator Good morning and thank you for joining us on our 2026 first quarter earnings conference call. With me on today’s call is our CEO and Chairman Jeff Bailey. 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, including disclosures 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 gross margin, adjusted operating income, adjusted SG&A, adjusted earnings per share 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 Jeff.
Jeff Bailey (Chief Executive Officer and Chairman)
Thank you Ron and thank you to everyone joining the call. I am pleased with our first quarter results and start to the year including important progress on our strategic growth initiatives. Our revenue grew 4.1% with medical sales growing 5.9% and our non medical sales declining 15% as we continue to focus our efforts on best fit fast growing segments in the med tech space. Growth in our robotic surgery, patient services and support and interventional and surgical segments of 7%, 11% and 15% respectively were partially offset by declines in wound care as two major customers slowed temporarily due to excess inventory. EPS grew more slowly than revenue due in part to Number one, startup costs related to our four simultaneous program launches, each of which is slowly ramping up and expected to make meaningful contributions in the second half of the year. Number two softer results at AJR versus Q1 of 2025 as they continue to work through their labor inefficiency issues related to turnover following our E VERIFY or legal Right to Work process last year and Number three, non-recurring legal expenses related to a cyber attack and the CEO transition. A lot of exciting things are happening on the business expansion front. In addition to the four successful program launches, three of those four customers have already asked us to double our capacity on the new programs. We are also adding new buildings in both Santiago, Dominican Republic And La Romana, Dominican Republic To expand capacity and accommodate forecast growth in patient services and support and robotic surgery. in both locations. We are co investing with our customers and will take possession of the buildings in the second quarter of this year. We’re also in the planning stages to add capacity in the APAC region to meet growing demand in Asia. Our new product development labs in La Romana and Grand Rapids are performing well adding new programs and new talent to meet growing customer demand. On the acquisition front, we are reviewing multiple opportunities. Although we have been outbid on a couple of recent opportunities, we remain disciplined in our approach to vetting and valuing strategic acquisitions. The three acquisitions we completed in 2025 and the four in 2024 are all performing well and have increased our value to customers and strengthened our position in the market. Mitch Rock is excited to take over as CEO in June and is well prepared to succeed. We have a deep team of talented managers supporting him who understand our strategy and how they fit in. This team, together with our vendor partners, adds significant value to our blue chip customers and growing market segments. Each of these three critical components of our success. Our team, our customers and our vendor partners trusts and respects Mitch and looks forward to continuing to grow with ufp. So for these reasons and many more, I’m very excited about the future of UFP Technologies and the value it can create for our shareholders. Thank you and I will now hand it back to Ron to provide more color on our financials.
Ron Letai (Chief Financial Officer)
Thank you Jeff before reviewing operating results, I’d like to give a brief update on tariffs and the impact of the conflict in Iran on our raw material input costs. In general, effective tariffs are net down from our last update. This should have a positive prospective impact on margins. Additionally, as our suppliers seek refunds from the government, we will be looking for these to flow through to us in the form of vendor credits. Countering these savings are raw material inflationary increases caused by the increased price of oil stemming from the conflict in Iran. 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 these through to our customers. …
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