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UFP TECHNOLOGIES INC (UFPT)·Q4 2024 Earnings Summary

Executive Summary

  • Q4 2024 delivered strong top- and bottom-line growth with net sales of $144.1M (+41.9% y/y) and GAAP diluted EPS of $2.10; adjusted EPS was $2.46, reflecting acquisitions and robust MedTech demand .
  • The company beat third-party Wall Street consensus on EPS and revenue; S&P Global consensus was unavailable. EPS beat by approximately $0.45 vs $2.01, and revenue beat by ~$2.4M vs $141.7M, driven by acquisitions and organic growth in robotic surgery and infection prevention; note SPGI data unavailable .
  • Gross margin expanded to 29.2% (+350 bps y/y), and adjusted EBITDA reached $30.37M (+77.9% y/y), supported by improved manufacturing efficiency and integration of recent acquisitions .
  • Management highlighted ongoing Dominican Republic capacity expansion, two major programs launching in H2’25, and using strong cash flow to deleverage—key catalysts for sentiment and future M&A optionality .

What Went Well and What Went Wrong

What Went Well

  • Significant y/y growth: Q4 net sales +41.9% to $144.1M; GAAP EPS $2.10 and adjusted EPS $2.46, with adjusted net income +51.6% to $19.2M, reflecting strong execution and acquisitions performing ahead of expectations .
  • Margin expansion: Q4 gross margin increased to 29.2% from 25.7% y/y; adjusted operating income +84.0% to $26.0M and adjusted EBITDA +77.9% to $30.37M .
  • Management execution: “I am very pleased with our fourth quarter and full-year 2024 results… Organic growth for the quarter and year was 6.7% and 8.5%” (R. Jeffrey Bailly, Chairman & CEO) and “our newly acquired companies… are performing ahead of expectations” .

What Went Wrong

  • Non‑MedTech softness: Q4 sales to all other markets decreased 7.0% to $11.4M, underscoring continued concentration in MedTech and mixed demand in non-core verticals .
  • Higher interest burden: Net interest expense rose to $3.377M in Q4 (from $0.755M y/y), reflecting debt financing for acquisitions and higher rates .
  • SG&A dollars increased with scale: Q4 SG&A up 41.9% y/y to $18.6M, though adjusted SG&A as a % of sales improved to 11.2% from 11.8% y/y, suggesting efficiency gains but higher absolute overhead .

Financial Results

MetricQ4 2023Q2 2024Q3 2024Q4 2024Consensus (Q4 2024)
Revenue ($USD Millions)$101.5 $110.2 $145.2 $144.1 $141.7
Net Income ($USD Millions)$11.6 $13.6 $16.4 $16.4 N/A (SPGI unavailable)
Diluted EPS (GAAP, $)$1.51 $1.75 $2.11 $2.10 $2.01
Adjusted EPS (Non-GAAP, $)$1.64 $1.86 $2.39 $2.46 $1.98
Gross Margin (%)25.7% 30.0% 28.6% 29.2% N/A (SPGI unavailable)
Operating Income ($USD Millions)$12.7 $18.0 $24.8 $22.3 N/A (SPGI unavailable)
Operating Margin (%)12.5% (calc) 16.3% (calc) 17.1% (calc) 15.4% (calc) N/A
Adjusted Operating Income ($USD Millions)$14.1 $19.1 $27.7 $26.0 N/A
Adjusted EBITDA ($USD Millions)$17.07 $23.90 $31.23 $30.37 $29.28

Note: Operating Margin % calculated as Operating Income / Net Sales using cited figures.

Segment breakdown (Q4 2024):

SegmentQ4 2024 Sales ($M)YoY Growth
MedTech$132.7 +48.6%
All Other Markets$11.4 -7.0%

KPIs (Q4 2024):

KPIQ4 2024Prior Period Reference
Organic growth6.7% Company-stated Q4 organic growth
Adjusted SG&A as % sales11.2% Q4 2023: 11.8%
Adjusted Operating Income$26.0M Q4 2023: $14.1M
Adjusted EBITDA$30.37M Q4 2023: $17.07M

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
RevenueFY 2025Not providedNot provided in Q4/FY releaseMaintained “no formal guidance”
Gross Margin %FY 2025Not providedNot provided in Q4/FY releaseMaintained “no formal guidance”
EPS (GAAP)FY 2025Not providedNot provided in Q4/FY releaseMaintained “no formal guidance”
Adjusted EBITDAFY 2025Not providedNot provided in Q4/FY releaseMaintained “no formal guidance”
SG&A / OpExFY 2025Not providedNot provided in Q4/FY releaseMaintained “no formal guidance”
Tax rateFY 2025Not providedNot provided in Q4/FY releaseMaintained “no formal guidance”

Management directional commentary: Expansion in the Dominican Republic, two major programs launching in H2’25, ongoing acquisition efforts, and intent to reduce debt via strong cash flow .

Earnings Call Themes & Trends

Note: A Q4 2024 earnings call transcript for UFPT was not available in our sources (S&P Global tool and document catalog); press release themes are summarized instead .

TopicPrevious Mentions (Q-2: Q2 2024)Previous Mentions (Q-1: Q3 2024)Current Period (Q4 2024)Trend
Acquisitions integration & performanceClosed Marble Medical, AJR, Welch; expected +$90M revenue and +$20M EBITDA; new $275M credit line Accretive to EPS (~$0.17) despite ~$3.1M higher interest; operating well above expectations “Performing ahead of expectations”; strong growth in safe patient handling Strengthening
Dominican Republic (DR) expansionStrategic expansion and capacity investments underway Continued expansion to support low-cost country manufacturing programs Further expansion to fulfill new wins and robotic surgery demand; additional plant/equipment investments Accelerating
Robotic surgery & infection prevention demandKey growth drivers (Q2) Continued strength; organic growth +9.7% Continued growth noted; pipeline robust Positive
Margin trajectoryQ2 gross margin 30.0% Q3 gross margin 28.6% Q4 gross margin 29.2%; adjusted operating income +84% y/y Improving vs LY
Interest expense / leveragePro-forma leverage ~1.8x post-deals Interest expense elevated Interest expense $3.377M in Q4; management intends to reduce debt via cash flow Manageable, deleveraging planned
Non-MedTech marketsNon-medical up modestly H1 Non-medical down (auto weakness) All other markets down 7% Mixed

Management Commentary

  • “Sales for the quarter and the year grew 42% and 26%, respectively. Organic growth for the quarter and year was 6.7% and 8.5%… Adjusted EPS… grew 50% and 31%” — R. Jeffrey Bailly, Chairman & CEO .
  • “Our newly acquired companies—AJR Enterprises, Welch Fluorocarbon, Marble Medical, and AQF Medical… are performing ahead of expectations with particularly strong growth in the safe patient handling space” — R. Jeffrey Bailly .
  • “We are again expanding our operations in the Dominican Republic… [to] accommodate new business wins, continued growth of our existing Robotic Surgery business, and planned business transfers” — R. Jeffrey Bailly .
  • “We have two major programs launching in the second half of 2025… continuing our efforts on the acquisition front… We anticipate that our strong cash flow will help us quickly reduce our debt and position us to finance new deals” — R. Jeffrey Bailly .

Q&A Highlights

  • A full Q4 2024 earnings call transcript for UFPT was not available in our document catalog or via S&P Global; therefore, specific Q&A themes and clarifications cannot be cited from a transcript .
  • The company announced the reporting date and indicated a conference call schedule, but transcript access was unavailable in our tools .

Estimates Context

  • S&P Global (Capital IQ) consensus was unavailable in our tool at query time; therefore, we cite third-party consensus for context.
  • Q4 2024 performance vs third-party consensus:
MetricActualConsensusSurprise
EPS (GAAP or Adjusted context)$2.46 (Adjusted) $2.01 (EPS consensus) +$0.45 (Beat)
Revenue ($M)$144.1 $141.7 +$2.4 (Beat)

Additional third-party references: iTiger cites EPS consensus $1.98 (beat by 24.2%) ; Yahoo Finance context highlights the beat across metrics .

Key Takeaways for Investors

  • Beat on EPS and revenue vs third-party consensus; margin expansion and robust MedTech growth underpin the quality of the print; S&P Global consensus unavailable in-tool .
  • Acquisitions are outperforming and expanding UFPT’s capability set (patient handling, adhesives, thin-film molding), supporting cross-sell and deepening customer relationships—an important driver of sustained growth .
  • Capacity expansion in the Dominican Republic is a tangible lever to meet rising demand (including robotic surgery programs) and improve cost structure—watch H2’25 program launches as potential catalysts .
  • Interest expense stepped up with higher debt to fund M&A; management plans to deleverage quickly via strong cash flow—monitor debt trajectory and interest cost run-rate through 2025 .
  • Non‑MedTech remains mixed (down 7% in Q4); continued MedTech concentration helps growth but warrants vigilance on diversification and end-market cyclicality .
  • Adjusted metrics (EPS, EBITDA) improved sharply y/y; ensure attention to non-GAAP add-backs (amortization, acquisition costs, contingent consideration) when assessing quality of earnings .
  • Near-term: positive momentum and capacity investments present constructive trading setup; medium-term: pipeline and M&A optionality support the thesis, with deleveraging as a key execution item .