Utah Medical Products, Inc. (UTMD) reported a decline in financial performance for the second quarter and first half of 2026 compared to the same periods in 2025. For the three months ended June 30, 2026, net sales were $8.5 million, a decrease of 14.3% from $10 million in the prior year. The company’s gross profit also fell to $4.8 million, down 15% from $5.6 million, resulting in a gross profit margin of 55.8%. Net income for the quarter was $2.7 million, reflecting an 11.9% decrease from $3.0 million in the previous year. Earnings per share (EPS) for the quarter were $0.84, down from $0.94 in 2025.
In the first half of 2026, UTMD's total revenues were $17.3 million, a 12.3% decline from $19.7 million in the same period last year. The decrease in sales was primarily attributed to the loss of business from two major customers, which accounted for a significant portion of the revenue drop. The company reported that sales to these customers were zero in both the second quarter and first half of 2026, compared to $1.1 million and $1.9 million, respectively, in the prior year. This loss represented 75% of the decline in second-quarter sales and 80% of the first-half decline.
Operationally, UTMD's balance sheet remained strong, with total assets increasing to $124.6 million as of June 30, 2026, up from $122.5 million at the end of 2025. Cash and investments rose to $87.5 million, reflecting a $1.8 million increase. The company maintained a healthy current ratio of 48.6, indicating strong liquidity. However, the average inventory turnover declined to 1.7, below management's target, due to lower sales activity and an increase in inventories. The company’s employee headcount remained stable, with no significant changes reported.
Looking ahead, UTMD's management expressed cautious optimism, outlining plans to regain lost business and introduce new products aimed at biopharmaceutical manufacturers. The company aims to resolve ongoing product liability lawsuits related to the Filshie Clip System and is exploring potential acquisitions to enhance growth. Despite the challenges faced in the first half of 2026, management anticipates a sales decline of 10-13% for the full year compared to 2025, with a focus on improving operational efficiency and maintaining shareholder returns through dividends and share repurchases.
About UTAH MEDICAL PRODUCTS INC
Utah Medical Products, Inc. designs and manufactures high-quality, safety-focused medical devices primarily for critical care, obstetrics, neonatal intensive care, gynecology, and urology. Its core offerings include fetal monitoring accessories, neonatal catheters, gynecological electrosurgical tools, and contraceptive devices like the Filshie clip. The company serves global markets through direct sales, distributors, and OEM partnerships, emphasizing clinical utility, reliability, and regulatory compliance.
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