UFP Technologies Reports 41.1% Revenue Growth to $148.1 Million in Q1 2025

UFP Technologies, Inc. reported a significant increase in financial performance for the first quarter of 2025, with net sales reaching $148.1 million, a 41.1% rise from $105.0 million in the same period last year. This growth was primarily driven by a 50.4% increase in sales to the medical market, which contributed approximately $40.7 million in revenue from acquisitions made in 2024. The company also experienced organic sales growth of 2.3%, with notable performance in interventional and surgical infection prevention segments. Gross profit for the quarter was $42.2 million, resulting in a gross margin of 28.5%, slightly down from 28.6% in the prior year.

In terms of profitability, UFP Technologies reported a net income of $17.2 million, or $2.24 per share, compared to $12.7 million, or $1.66 per share, in the first quarter of 2024. The increase in net income was attributed to higher sales volumes, although the company faced increased costs in materials and labor, which slightly impacted gross margins. Selling, general, and administrative expenses rose to $18.7 million, up 34.6% from $13.9 million, largely due to the integration of acquired companies. The effective tax rate decreased to 15.3% from 17.2% in the previous year, benefiting from discrete tax items.

UFP Technologies has made several strategic acquisitions in 2024, including Marble Medical, AJR Enterprises, Welch Fluorocarbon, and AQF Medical, which collectively enhanced its capabilities in the medical device sector. The company also announced the acquisition of AJR Specialty Products and AJR Custom Foam Products in April 2025 for $2.8 million, further expanding its footprint in the single-use patient handling market. These acquisitions are expected to contribute to future revenue growth and operational synergies.

Operationally, UFP Technologies reported an increase in accounts receivable and inventory levels, reflecting the growth in sales and preparations for anticipated demand. The company’s total assets increased to $642.6 million as of March 31, 2025, up from $629.0 million at the end of 2024. The company’s long-term debt stood at $182.8 million, with a weighted average interest rate of approximately 5.9%. UFP Technologies remains compliant with its debt covenants and continues to leverage its credit facilities to support growth initiatives.

Looking ahead, UFP Technologies aims to sustain its growth trajectory through both organic expansion and strategic acquisitions. The company anticipates continued demand in the medical market, although it acknowledges potential challenges from market conditions, including tariffs and supply chain disruptions. Management remains optimistic about leveraging its recent acquisitions to enhance operational efficiencies and expand its market share in the medical device industry.