Jaeson Schmidt's questions to UFP Technologies Inc (UFPT) leadership • Q2 2025
Question
Jaeson Schmidt from Lake Street Capital Markets asked about customer channel inventory levels, the sequential growth trajectory of the largest robotics customer, and the gross margin outlook for the second half of the year.
Answer
Chairman & CEO R. Jeffrey Bailly stated that the inventory destocking issue appears to be resolved, with channel inventory at some customers now running low. He confirmed that after a slight Q1 decline, the largest robotics customer saw a nice increase in Q2, aligning with annual forecasts. CFO Ronald Lataille added that while Q3 gross margins will face pressure from labor issues, he expects a rebound in Q4, with minimal impact from tariffs.