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UTAH MEDICAL PRODUCTS INC (UTMD)·Q3 2025 Earnings Summary

Executive Summary

  • Q3 2025 revenue was $9.812M and diluted EPS $0.820; margins compressed materially versus Q2 and YoY due to OUS distributor cancellations ($0.581M revenue impact) and a $0.395M bad-debt reserve, plus tariff-driven cost headwinds .
  • Management lowered full-year 2025 sales outlook to about a 7% YoY decline (from ~5% at the start of the year) and maintained adjusted EBITDA guidance of $17–$18M, signaling continued profitability despite volume/mix pressure .
  • Domestic sales grew (+3.0% YoY) with strong Filshie demand and pricing action offsetting OEM weakness (PendoTECH), while OUS sales declined (-8.5% YoY) amid cancellations and softer demand; FX modestly aided reported OUS revenue .
  • The Board increased the regular quarterly dividend to $0.31 per share (payable Jan 5, 2026), reinforcing shareholder returns alongside continued buybacks and a strong cash/investments balance of $84.3M, with no debt .
  • No Wall Street consensus estimates were available via S&P Global for Q3 2025, so beat/miss vs Street cannot be assessed; near-term stock narrative centers on tariff costs, OUS distributor risk, and the durability of domestic Filshie pricing/volume . Values retrieved from S&P Global.

What Went Well and What Went Wrong

What Went Well

  • Domestic U.S. sales increased to $5.859M (+3.0% YoY), driven by strong “direct other device” (+$0.290M, +7.7%) and Filshie device sales (+$0.169M, +16.5%) aided by price increases responding to tariffs .
  • Adjusted EBITDA remained robust at $4.170M in Q3 (42.5% of sales) despite headwinds; TTM adjusted EBITDA stood at $17.898M, supporting full-year $17–$18M guidance .
  • Shareholder returns continued: Q3 dividend payments of $0.305/share and buybacks (11,729 shares for $0.653M), followed by a dividend increase to $0.31 for the next quarter .
  • “Unusually hampered by global trade uncertainty,” management quickly recognized and quantified the impact of OUS distributor cancellations and booked a conservative bad-debt reserve, signaling disciplined financial controls .

What Went Wrong

  • OUS distributor cancellations reduced shipments by $0.976M and revenue by $0.581M; a $0.395M bad-debt provision further reduced operating income and diluted OI margin by ~5 percentage points .
  • Gross margin contraction (57.1% vs 58.0% YoY) from lower absorption at Ireland operations, higher raw material costs, and a new 15% U.S. tariff on medical device imports from Ireland acting as a “top-line” excise tax increasing consolidated expenses without sales benefit .
  • Non-operating income fell (Q3: $0.698M vs $0.836M YoY) on lower cash and interest rates, and the tax provision rate increased (20.5% vs 14.7% YoY), exacerbating EPS decline .

Financial Results

YoY comparison (Q3 2024 → Q3 2025)

MetricQ3 2024Q3 2025
Revenue ($USD Millions)$10.005 $9.812
Diluted EPS ($USD)$1.025 $0.820
Gross Profit Margin %58.0% 57.1%
Operating Income Margin %33.4% 26.6%
EBT Margin %41.8% 33.7%
Net Income Margin %35.6% 26.8%

Sequential trend (Q1 2025 → Q2 2025 → Q3 2025)

MetricQ1 2025Q2 2025Q3 2025
Revenue ($USD Millions)$9.710 $9.953 $9.812
Diluted EPS ($USD)$0.919 $0.939 $0.820
Gross Profit Margin %N/A56.2% 57.1%
Operating Income Margin %32.5% 32.1% 26.6%
EBT Margin %39.7% 38.5% 33.7%
Net Income Margin %31.3% 30.6% 26.8%

Segment breakdown (Q3 2025 vs Q3 2024)

SegmentQ3 2024 Revenue ($USD Millions)Q3 2025 Revenue ($USD Millions)
Domestic U.S.$5.687 $5.859
Outside U.S. (OUS)$4.318 $3.953

KPIs

KPIQ2 2025Q3 2025
Cash & Investments ($USD Millions)$82.179 $84.267
Current Ratio (x)41.9 32.1
Days in Trade Receivables (days)33.0 34.2
Average Inventory Turns (x)2.1 2.1
Net Debt ($USD Millions)$0 (no debt) $0 (no debt)
Share Repurchases (shares; $USD)64,988; $3.488M in Q2 11,729; $0.653M in Q3
Dividend per Share ($/share)$0.305 $0.305 (paid); raised to $0.31 next quarter
Closing Share Price ($)$56.92 $62.97

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Consolidated Sales YoYFY 2025About -5% vs 2024 About -7% vs 2024 Lowered
Adjusted EBITDA ($USD Millions)FY 2025$17–$18 $17–$18 Maintained
Regular Quarterly Dividend ($/share)Next declared$0.305 $0.31 (payable Jan 5, 2026) Raised

Earnings Call Themes & Trends

No Q3 2025 earnings call transcript was available; themes reflect published press releases.

TopicPrevious Mentions (Q1 2025 and Q2 2025)Current Period (Q3 2025)Trend
OUS distributor health/demandOUS sales -19.8% YoY in Q1; -15.5% YoY in 1H; timing and macro softness; Canada pressure on U.S. imports Two OUS distributors cancelled/delayed non-cancellable orders ($0.581M revenue impact) Deteriorating
PendoTECH OEM salesMajor decline: -$1.476M in Q1; expected ~$2M annual decline Continued decline but bottoming: Q3 $0.096M vs $0.290M YoY Stabilizing at lower level
Tariffs/macroNew stock buyback excise tax; tariff concerns noted in risk factors New 15% U.S. tariff on Irish medical device imports; passed through to U.S. facility pricing Intensifying cost headwind
FX impactFX modestly helped reported sales in Q2/1H; stronger EUR/GBP FX added ~$0.114M to OUS sales; increased USD G&A via stronger GBP/EUR Mixed tailwind/headwind
Litigation expenseLower vs prior year aided OI margins (Q1/Q2) Litigation still >3% of revenue but lower YoY Improving expense run-rate
R&D executionLower spend after sensor validation completion (Q1/Q2) R&D stable; no OUS R&D Normalized

Management Commentary

  • “Utah Medical Products, Inc. … reports third quarter (3Q) … results that were unusually hampered by global trade uncertainty.”
  • “Cancellation or possible delay of ‘non-changeable/non-cancellable orders’ by two OUS distributors… UTMD lost $976 in 3Q 2025 shipments and $581 in 3Q 2025 revenues … reserved an additional $395 in 3Q 2025 bad debt expense.”
  • “The U.S. government has recently set a 15% tariff on medical device imports from Ireland… a ‘top-line’ excise tax… substantially increases consolidated expenses without any impact on sales.”
  • “Management now expects that total annual 2025 consolidated sales may be about 7% lower compared to 2024, instead of the beginning of year 5% projection.”
  • “Adjusted consolidated EBITDA for 2025 calendar year as a whole is expected to be in the range of $17 to $18 million.”

Q&A Highlights

No Q3 2025 earnings call transcript found; Q&A highlights unavailable.

Estimates Context

  • S&P Global consensus estimates for Q3 2025 EPS and revenue were unavailable, likely reflecting limited sell-side coverage; therefore, beat/miss vs Street cannot be determined. Values retrieved from S&P Global.
  • Given management’s lowered FY sales outlook (~-7% YoY) and maintained EBITDA range, estimates (where they exist) may need to reflect continued OUS softness, tariff-driven cost increases, and stronger domestic Filshie pricing and volume dynamics .

Key Takeaways for Investors

  • Domestic momentum offsets some OUS weakness: focus near term on sustaining Filshie pricing/volume after tariff-driven price increases; monitor OEM recovery ex-PendoTECH .
  • OUS distributor cancellations are the swing factor: watch resolution of the China distributor fee and inventory exposure; any recovery could materially aid Ireland margins via better overhead absorption .
  • Margin compression should ease as Femcare IIA amortization ends in Q1 2026 and litigation costs trend lower; structurally supportive to OI from 2026 onward .
  • Cash-rich, no-debt balance sheet enables continued buybacks and dividend growth; dividend raised to $0.31 supports total-return profile even through demand variability .
  • FX remains a mixed factor: stronger EUR/GBP lift reported sales but inflate USD expenses and IIA amortization; hedge operationally via pricing and country mix .
  • Updated FY sales outlook (-7% YoY) sets a lower bar; near-term catalysts include stabilization in OUS distribution, tariff policy clarity, and domestic NICU/device demand trends .
  • Trading lens: absent Street estimates, stock moves will hinge on incremental headlines around distributor resolution, tariff cost pass-through sustainability, and cadence of buybacks/dividends; Q3-end price was $62.97 (+10.6% vs Q2-end) .