UFP Technologies Inc (NASDAQ: UFPT) stock is soaring 5.82% in pre-market trading on Tuesday, following the company's announcement of record-breaking second-quarter results. The medical technology and advanced components manufacturer reported a substantial 37% increase in sales and a 27% growth in earnings per share, surpassing market expectations.
For the quarter ended June 30, 2025, UFP Technologies posted a net income of $17.2 million, or $2.21 per diluted share, up from $13.6 million, or $1.75 per diluted share, in the same period last year. The company's adjusted earnings per diluted share grew by an impressive 27% to $2.50. Sales for the quarter reached $151.2 million, a significant jump from $110.2 million in the second quarter of 2024.
CEO R. Jeffrey Bailly attributed the strong performance to contributions from acquisitions made in 2024 and a 5% organic growth. The company's MedTech business was a standout, experiencing a robust 46% growth. However, UFP Technologies faced some challenges, including a 20% decline in its Advanced Components business and labor cost issues at its AJR facility. Despite these hurdles, the company maintained a solid gross margin of 28.8% and expects gradual improvements in labor inefficiencies, with the third quarter projected to be the low point. The positive outlook and strong financial results are driving investor optimism, as reflected in the stock's pre-market surge.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.