Key Highlights

  • Net sales rose 11.6% to USD 172.4 million, including organic growth of 11.1%, and MedTech sales grew 12.5%.
  • Net income rose 25.8% to USD 20.6 million, with GAAP EPS of USD 2.64 and adjusted EPS of USD 2.88.
  • Gross Margin was 29.4%, compared with 27.7% a year earlier, and adjusted Operating Income grew 14.5% to USD 30.1 million.
  • Adjusted EBITDA rose 15.3% to USD 35.4 million, and nine-month net sales rose 10.3% to USD 500.6 million.

Sales and Margins

UFP Technologies, Inc. (NASDAQ:UFPT), a contract development and Manufacturing organization serving medical devices, sterile packaging and other custom products, reported third-quarter 2026 net sales of USD 172.4 million, compared with USD 154.6 million in the third quarter of 2025. Organic Sales growth was 11.1%. Gross Profit as a percentage of sales was 29.4%, compared with 27.7%.

President and Chief Executive Officer Mitch Rock said MedTech sales grew 12.5% and that adjusted operating income grew 14.5%. For the nine months, net sales were USD 500.6 million versus USD 453.9 million, organic growth was 7.9%, MedTech sales grew 11.7% and the top five MedTech customers collectively grew 11.7%. The nine-month gross margin was 29.2%, compared with 28.3%.

Selling, general and administrative expenses increased 21.4% to USD 23.2 million, or 13.4% of sales, compared with 12.3%. Adjusted SG&A was 12.0% of sales, compared with 10.7%. For the nine months, SG&A increased 18.5% to USD 66.9 million.

Analyst estimates were EPS of USD 2.49 against reported EPS of USD 2.64, and Revenue of USD 166.4 million against reported revenue of USD 172.4 million.

Earnings

Operating income increased 18.1% to USD 27.6 million from USD 23.4 million, and adjusted operating income increased 14.5% to USD 30.1 million from USD 26.3 million. Net Income increased 25.8% to USD 20.6 million from USD 16.4 million, and adjusted net income increased 21.1% to USD 22.5 million from USD 18.6 million.

GAAP diluted EPS was USD 2.64, compared with USD 2.11, and adjusted diluted EPS was USD 2.88, compared with USD 2.39. Adjusted EBITDA increased 15.3% to USD 35.4 million from USD 30.7 million.

For the nine months, operating income increased 11.6% to USD 79.1 million, and adjusted operating income increased 9.0% to USD 86.6 million. Net income increased 16.2% to USD 59.0 million, adjusted net income increased 13.0% to USD 64.5 million, and adjusted EBITDA increased 10.7% to USD 102.8 million. GAAP EPS was USD 7.56, and adjusted EPS was USD 8.28.

Operations and Growth Investments

The chief executive said the company is scaling new programs in the Dominican Republic and improving margins in its legacy UFP operations, and that its 2025 Investment in TPI gives it an initial position in injection molding. He also reported year-over-year progress at AJR in the United States and the Dominican Republic, and said scheduled program transfers to the Dominican Republic and margin improvement remain behind plan.

For 2027, the company has invested in additional capacity at DAS Medical to support double-digit growth. The chief executive said the company continues to see Acquisition opportunities, is making progress on several of them and is working to expand its Credit Facility to increase its capacity to invest.

Items to Follow

Items to follow are program transfers to the Dominican Republic, selling, general and administrative expenses as a share of sales, the credit facility expansion and acquisition activity.