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UTAH MEDICAL PRODUCTS INC (UTMD)·Q2 2025 Earnings Summary

Executive Summary

  • Q2 2025 revenue was $9.95M (-4.3% YoY; +2.5% QoQ) and diluted EPS was $0.939 (-4.0% YoY; +2.2% QoQ), with margin compression driven by unfavorable mix and lower Ireland sales; domestic direct device and U.S. Filshie sales grew solidly .
  • Management reiterated PendoTECH sales headwinds are bottoming and guided 2025 PendoTECH revenue to be about $2M lower vs 2024; adjusted EBITDA TTM was $18.69M and the $17–$18M 2025 target still looks achievable .
  • Operating expenses fell YoY on sharply lower litigation costs, partially offset by FX-driven increases in UK amortization; net non-operating income decreased on lower interest rates and lower cash balances post buybacks .
  • No S&P Global Wall Street consensus estimates were available for EPS or revenue; therefore beats/misses vs estimates cannot be assessed (Values retrieved from S&P Global)*.

What Went Well and What Went Wrong

What Went Well

  • Domestic performance resilient: U.S. Filshie sales +8% YoY to $1.107M and direct non-Filshie device sales +10% YoY to $4.047M; domestic sales rose to $5.865M despite PendoTECH decline .
  • Litigation costs down meaningfully: U.S. litigation expense was $280K in Q2 vs $635K in Q2 2024; OE -$416K YoY supported OI margin resilience at 32.1% .
  • Management confidence in EBITDA: “Management’s beginning of year EBITDA target of $17–$18 million continues to look achievable,” with TTM adjusted EBITDA at $18.686M .

What Went Wrong

  • International softness and mix: OUS sales fell to $4.088M (vs $4.569M), with direct end-user sales -15.8% and Ireland, Canada, Australia/NZ notably weaker, pressuring gross margins (56.2% vs 60.1% YoY) .
  • Non-operating income headwind: Net NOI declined to $640K (vs $773K) on lower rates and reduced cash from buybacks; EBT margin fell to 38.5% (vs 40.5%) .
  • FX and tariffs added friction: FX boosted reported OUS revenues modestly, but constant currency OUS sales were -21.4% YoY; management cited “threat of reciprocal tariffs” possibly causing ordering pauses .

Financial Results

Income Statement Trend (USD $000s unless noted)

MetricQ4 2024Q1 2025Q2 2025
Net Sales$9,157 $9,710 $9,953
Gross Profit$5,323 $5,538 $5,595
Operating Income$2,930 $3,154 $3,196
Income Before Tax$3,614 $3,859 $3,835
Net Income$2,902 $3,041 $3,048
Diluted EPS ($)$0.857 $0.919 $0.939
Gross Profit Margin %58.1% 57.0% (calc from GP/rev) 56.2%
Operating Income Margin %32.0% 32.5% 32.1%
EBT Margin %39.5% 39.7% 38.5%
Net Income Margin %31.7% 31.3% 30.6%

Q2 2025 vs Prior Periods and Estimates

MetricQ2 2025 ActualQoQ vs Q1 2025YoY vs Q2 2024vs S&P Global Consensus
Revenue ($M)$9.953 +$0.243, +2.5% (calc) -$0.447, -4.3% N/A*
Diluted EPS ($)$0.939 +$0.020, +2.2% (calc) -$0.039, -4.0% N/A*
Gross Margin %56.2% -80 bps (calc) -390 bps N/A*
OI Margin %32.1% -40 bps -100 bps N/A*
EBT Margin %38.5% -120 bps -200 bps N/A*
NI Margin %30.6% -70 bps -260 bps N/A*

Note: N/A indicates consensus unavailable in S&P Global. Values retrieved from S&P Global*.

Segment and Channel Breakdown (Q2 2025 vs Q2 2024)

CategoryQ2 2024 ($000)Q2 2025 ($000)Change
Domestic Sales (Total)$5,831 $5,865 +$34 (+0.6%)
- U.S. Filshie direct$1,021 $1,107 +$86 (+8.4%)
- Direct non-Filshie$3,670 $4,047 +$377 (+10.3%)
- OEM (incl. PendoTECH)$1,140 $712 -$428 (-37.5%)
OUS Sales (Total)$4,569 $4,088 -$481 (-10.5%)
- OUS direct (end-user)$1,785 $1,503 -$282 (-15.8%)
- OUS distributors$2,785 (calc) $2,585 -$200 (-7.2%)
PendoTECH (OEM)$511 $196 -$315 (-61.7%)

Non-GAAP EBITDA

MetricQ2 2024Q2 20251H 20241H 2025
Adjusted EBITDA ($000)$4,942 $4,671 $10,489 $9,323
Adjusted EBITDA Margin %47.5% 46.9% 48.3% 47.4%
TTM Adjusted EBITDA ($000)—$18,686 ——

KPIs and Balance Sheet Metrics

KPIQ4 2024Q1 2025Q2 2025
Cash & Investments ($000)$82,976 $83,325 $82,179
Current Ratio (x)25.6 22.3 41.9
Days Receivables (days)40.3 36.6 33
Inventory Turns (x)1.8 1.9 2.1
Diluted Shares (000)3,388 3,310 3,246
Dividends Paid ($/share)$0.300 $0.305 $0.305
Buybacks (shares)105,369 in Q4 2024 54,267 in Q1 2025 64,988 in Q2 2025

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
PendoTECH OEM revenueFY 2025“May be about $2.0M lower vs 2024” (Jan guidance) “About $2M lower vs 2024; 2H 2025 ~$200K lower vs 2H 2024” Maintained
Adjusted EBITDAFY 2025Target $17–$18M; 1Q supports ~$18M TTM $18.686M; “continues to look achievable” Maintained
China BPM kits (Ireland)FY 2025Fixed annual order slightly higher than 2024 2Q: +$93K vs prior; 1H: +$71K vs prior On track
DividendOngoingRaised to $0.305 starting Jan 2025 Paid $0.305/share in Q1 and Q2 Maintained
Filshie UK amortizationThrough 1Q 2026~$2M/year amortization continues Still ongoing; fully amortized by 1Q 2026 Maintained timeline

Earnings Call Themes & Trends

Note: No Q2 2025 earnings call transcript was available; themes synthesized from press releases.

TopicPrevious Mentions (Q4 2024 and Q1 2025)Current Period (Q2 2025)Trend
PendoTECH OEM2025 likely ~$2M lower vs 2024 ; 1Q decline drove -91% of sales decrease 2Q sales $196K vs $511K; 2H expected ~$200K lower YoY; full-year -$2M vs 2024 Bottoming; still headwind
OUS distributors/China BPM2024 shipments to China down; 2025 fixed order slightly higher Ireland shipments to China +$93K in 2Q; +$71K in 1H Stabilizing
Domestic FilshieU.S. Filshie down in 2024; stabilized in 1Q U.S. Filshie +8% YoY in 2Q Improving
FX impactModestly favorable in 2024 ; minor in 1Q EUR/GBP stronger; FX added $173 to OUS sales in 2Q Slight tailwind
Tariffs/logisticsOUS distributor orders timing; regulatory delays “Threat of reciprocal tariffs” may have caused ordering pause Ongoing risk
Litigation expenseElevated in 2024; down in 4Q Q2 litigation $280K vs $635K YoY; 1H -$791K YoY Decreasing
R&D execution1Q lower due to prior validation spend R&D $135K in Q2; program costs normalized Normalizing
Share repurchases$19.97M in 2024; continued in 1Q 2Q: 64,988 shares at $53.67; 1H: 119,255 shares Ongoing capital return

Management Commentary

  • “Reports second calendar quarter (2Q) and first half (1H) 2025 financial results which are consistent with overall beginning-of-year projections.”
  • “Although the negative PendoTECH sales comparisons are bottoming out... UTMD expects 2H of 2025 PendoTECH sales will be about $200 lower than in 2H 2024… about $2 million lower compared to year 2024.”
  • “Management’s beginning of year EBITDA target of $17–$18 million continues to look achievable.”
  • “Canadian medical facilities openly put pressure on Canada distributors to not purchase medical devices from the U.S.”
  • “The threat of reciprocal tariffs… may have caused a pause for some [OUS distributors].”
  • “Shares repurchased in 2Q 2025 were 64,988 at an average price of $53.67… The Company retains the strong desire and financial ability for repurchasing its shares…”

Q&A Highlights

No Q2 2025 earnings call transcript was available in our document set, so Q&A highlights and any call-specific guidance clarifications are unavailable.

Estimates Context

  • S&P Global consensus EPS and revenue for UTMD were not available for Q2 2025, Q1 2025, or Q4 2024, indicating limited or no analyst coverage for near-term quarterly forecasts (Values retrieved from S&P Global)*.
  • Without consensus, we do not assess beats/misses; following this print, sell-side models (where they exist) may need to reflect: (1) domestic strength, (2) sustained OUS weakness in direct end-user channels, (3) lower litigation expense run-rate, and (4) mix/FX dynamics impacting GP margin .

Key Takeaways for Investors

  • Domestic demand is solid and offsetting OEM headwinds: U.S. Filshie and direct device sales grew double-digit YoY, supporting OI margin stability despite GP compression .
  • International mix remains the swing factor: Ireland/Canada/Australia softness and distributor timing create variability; watch FX and tariff-related behavior into 2H .
  • Litigation expense trending down materially, providing upside to OI vs 2024 levels even with lower GP; monitor cadence in 2H .
  • PendoTECH drag is bottoming; full-year 2025 expected ~$2M lower vs 2024 is consistent with plan—reduces uncertainty into 2H .
  • Capital returns continue: steady dividend ($0.305/share) and ongoing buybacks reduced diluted shares, mitigating EPS declines; potential technical support for the stock .
  • EBITDA trajectory in range: TTM $18.686M and reiterated $17–$18M target suggest resilient cash-generation; watch GP mix from Ireland .
  • Near-term trading: Stock may react to signs of OUS demand recovery and continued litigation cost moderation; medium-term thesis hinges on stabilizing OUS channels, mix improvement, and amortization relief by 1Q 2026 .

Additional detail and cross-references:

  • Income Statement and Margins:
  • Segment/Channel Dynamics and FX:
  • Non-Operating Income and EBITDA:
  • Litigation/Opex:
  • Balance Sheet, KPIs, Buybacks/Dividends:

Estimates note: *Values retrieved from S&P Global.