UFP Technologies Announces Record 2025 Results

Newburyport, MA, February 24, 2026 – UFP Technologies, Inc. (Nasdaq: UFPT), a contract development and manufacturing organization that specializes in single-use and single-patient medical devices, today reported 2025 net income of $68.3 million, 15.8% higher than net income of $59.0 million for 2024. Adjusted net income grew 12.7% to $76.1 million. Net sales for the year ended December 31, 2025 were $602.8 million, 19.5% higher than 2024 sales of $504.4 million. GAAP and adjusted earnings per diluted common share outstanding (“EPS”) for the year ended December 31, 2025 were $8.75 and $9.76, respectively.

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.

View the full press release with detailed financial information.

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.