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UTAH MEDICAL PRODUCTS INC (UTMD)·Q1 2025 Earnings Summary

Executive Summary

  • UTMD’s Q1 2025 results were “consistent with its previously announced projections for calendar year 2025,” with net sales down 14.4% YoY to $9.71M, EPS of $0.919 down 16.0%, and NI down 23.1% .
  • Operating resilience despite lower volumes: OI margin was 32.5%, EBT margin 39.7%, and NI margin 31.3%, supported by reduced litigation expense and strong non-operating income .
  • OEM sales to PendoTECH were the primary headwind, accounting for 91% of the revenue decline; ex-PendoTECH, U.S. direct device sales increased and Filshie sales stabilized domestically .
  • Management reiterated a similar GPM pressure for the year given fixed overhead absorption and set a 2025 adjusted consolidated EBITDA target of $18M, framing expectations for the remainder of 2025 .
  • Capital allocation remains supportive: 54,267 shares repurchased at $59.35 average cost in Q1 and dividends of $0.305/share; cash/investments rose slightly to $83.3M with no debt, providing buyback capacity .

What Went Well and What Went Wrong

What Went Well

  • Domestic direct device sales rose $406 (+11.6%) YoY, led by NICU device recovery post supply chain disruption: “Direct sales… were $406 (+11.6%) higher… due to recovery of NICU device sales” .
  • Lower litigation costs (-$437 YoY) helped hold OI margin to 32.5% despite lower GPM; OI fell less than GP as OE declined $498 .
  • Balance sheet strength persisted: cash/investments increased to $83.3M and equity stayed ~flat QoQ despite $4.4M cash outflow for buybacks, dividends, and capex; current ratio 22.3 .

What Went Wrong

  • PendoTECH OEM sales fell $1.476M, representing 91% of the consolidated revenue decline; total net sales decreased 14.4% YoY .
  • OUS sales declined 19.8% in USD terms; a sporadic large Africa distributor ES order in 1Q24 did not repeat, and OUS OEM to PendoTECH fell $429 .
  • GPM compressed by ~300 bps as fixed manufacturing overhead did not fall proportionally with sales; management expects similar GPM pressure for the year .

Financial Results

Consolidated P&L (YoY/Sequential context)

Metric ($USD Thousands, except EPS)Q1 2024Q3 2024Q4 2024Q1 2025
Net Sales$11,340 $10,005 $9,157 $9,710
Gross Profit$6,766 $5,802 $5,323 $5,538
Operating Income$3,883 $3,343 $2,930 $3,154
Income Before Tax$4,798 $4,179 $3,614 $3,859
Net Income$3,956 $3,564 $2,902 $3,041
EPS ($)$1.093 $1.025 $0.857 $0.919

Margins (% of Sales)

MarginQ1 2024Q3 2024Q4 2024Q1 2025
Operating Income Margin %34.2% 33.4% 32.0% 32.5%
EBT Margin %42.3% 41.8% 39.5% 39.7%
Net Income Margin %34.9% 35.6% 31.7% 31.3%

Segment and Geographic Breakdown (Q1 2025 unless noted)

CategoryValue/Change
Domestic Sales (Q1 2025)$5,583
OUS Sales (Q1 2025)$4,127
Domestic Direct Sales (share of domestic; change)70% of domestic; +$406 (+11.6%) YoY
Domestic OEM Sales (change)-$993 (-61.3%) YoY; includes -$1,047 to PendoTECH
Domestic Filshie Sales (change)-$22 (-2.0%) YoY; stabilization indicated
OUS OEM to PendoTECH (change)-$429 YoY
OUS foreign currency sales$2,944; 71% of OUS; 30% of total
Constant currency OUS ex-PendoTECH$4,170; -11.7% YoY

KPIs and Capital Allocation

KPIQ1 2025
Shares repurchased (avg price)54,267 at $59.35
Dividends paid$1,017; $0.305/share
Cash & Investments$83,325
Stockholders’ Equity$117,047
Diluted Shares3,310,248
Current Ratio22.3
Days in Trade Receivables36.6
Adjusted Consolidated EBITDA (Q1)$4,652
Trailing Twelve Months (TTM) EBITDA$18,957

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Total WW RevenuesFY 2025“Likely to be lower again, in the low to mid-single percentage digits relative to 2024” (from 4Q release) “Revenues to be consistent with 1Q 2025 during the remainder of the year” Maintained trajectory; refined intra-year cadence
Gross Profit MarginFY 2025n/a“Projected a similar percentage decline in GPM for the year as a whole” Indicated decline maintained
Adjusted Consolidated EBITDAFY 2025n/aTarget ~$18M New explicit target
PendoTECH OEM RevenuesFY 2025“May be about $2.0M lower in 2025” No update beyond Q1 mix commentary Maintained
China BPM DistributorFY 2025“Fixed annual order for 2025 slightly higher than 2024” Not specifically updated in Q1 Maintained
OUS Distributors/FilshieFY 2025“Expect OUS distributor orders to bounce back; OUS Filshie sales to be higher” Stabilization domestically; OUS down in Q1 Watch for 2H recovery post approvals
Regular Quarterly DividendFrom Q1 2025$0.300/share in 4Q 2024 $0.305/share (increase began Jan 2025) Raised

Earnings Call Themes & Trends

Note: No earnings call transcript was available in our document set for Q1 2025; themes below reflect management commentary from press releases across quarters .

TopicPrevious Mentions (Q3 2024 and Q4 2024)Current Period (Q1 2025)Trend
PendoTECH OEMMajor driver of 2024 revenue decline; 2025 expected ~$2M lower vs 2024 -$1.476M YoY impact; 91% of Q1 revenue decline Deteriorating vs PY; consistent with plan
OUS Distributors (incl. China BPM)4Q: -$1.587M to China; approvals delay impacted OUS OUS sales -19.8% USD; no repeat Africa ES order; FX headwinds in CAD/AUD Mixed; approvals key to rebound
Filshie Clip System2024 WW Filshie -12% YoY; expected OUS improvement in 2025 Domestic Filshie -$22 (-2%); appears stabilized Stabilizing domestically
Supply Chain/NICU3Q: some recovery; earlier disruption cited NICU direct sales recovery drove +11.6% domestic direct growth Improving
Litigation Costs2024 elevated; 4Q lower QoQ; cases moving to summary judgments Litigation -$437 YoY helped OI margin Easing near term; risk if trials
FX3Q favorable GBP/EUR; 4Q mixed CAD/AUD weaker; GBP/EUR slightly weaker; minor net impact Neutral to slight headwind

Management Commentary

  • “Utah Medical Products, Inc. (Nasdaq: UTMD) attained financial results consistent with its previously announced projections for calendar year 2025.”
  • “Management expects revenues to be consistent with 1Q 2025 during the remainder of the year, so it has projected a similar percentage decline in GPM for the year as a whole.”
  • “Management believes that the 1Q 2025 operating performance provides a start that is consistent with achieving its financial performance projections for the calendar year 2025… UTMD’s trailing twelve-month EBITDA as of March 31, 2025 was $18,957.”
  • Drivers of sales mix: OEM sales to PendoTECH “were $1,476 lower, representing 91% of the decline. Excluding PendoTECH sales, domestic sales… were 9% higher.”
  • Margin dynamics: “The lower GPM was due to manufacturing overhead costs which did not decline proportionally to the sales decline.”

Q&A Highlights

  • No public earnings call transcript was available for Q1 2025 in our document set; management’s disclosures are drawn from the 8-K press release and exhibit .

Estimates Context

  • Wall Street consensus estimates via S&P Global for Q1 2025 EPS and revenue were unavailable; therefore, a beat/miss assessment vs consensus cannot be determined. Values retrieved from S&P Global.*

Key Takeaways for Investors

  • Mix headwinds from PendoTECH OEM will remain a central narrative; Q1’s $1.476M decline drove the bulk of YoY sales pressure, consistent with prior full-year expectations .
  • Operating quality remains high: OI margin 32.5%, NI margin 31.3% despite GPM compression and lower NOI; litigation easing supported margins .
  • Domestic core devices are recovering (NICU), helping offset OEM declines; Filshie appears to be stabilizing in the U.S. .
  • Management’s 2025 adjusted consolidated EBITDA target (~$18M) and commentary on steady intra-year revenues anchor expectations; watch OUS distributor approvals for a 2H inflection .
  • Strong cash and no debt support continued buybacks; Q1 repurchases and dividend increase provide EPS support and capital return visibility .
  • FX and fixed overhead absorption are recurring variables; expect similar GPM pressure through 2025 unless volumes rebound .
  • Litigation trajectory is favorable near term (lower Q1 expense), but adverse trial outcomes could re-accelerate costs; monitor case progression .