Overview

* UFP Technologies ( UFPT ) Q3 sales rise 6.5% yr/yr, beating analyst expectations

* Net income for Q3 remains flat at $16.4 mln, impacted by increased labor costs

* Company expands operations in Dominican Republic, launches new robotic surgery programs

Outlook

* Company expects significant revenue from new robotic surgery programs in 2026 and beyond

* UFP Technologies ( UFPT ) in talks to extend and expand contract with largest customer

* Company plans continued expansion in Dominican Republic

Result Drivers

* MEDTECH SALES - MedTech sales increased 7.3%, offsetting a decline in non-medical sales

* LABOR COSTS - Incremental $3 mln labor costs at Illinois AJR facility impacted net income

* DOMINICAN REPUBLIC EXPANSION - Progress in ramp-up and qualification of programs in new Santiago facility

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Sales Beat $154.55 $149.60

mln mln (4

Analysts

)

Q3 EPS $2.12

Q3 Net $16.38

Income mln

Q3 Gross $42.74

Profit mln

Q3 $23.37

Operatin mln

g Income

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the medical equipment, supplies & distribution peer group is "buy"

* Wall Street's median 12-month price target for UFP Technologies Inc ( UFPT ) is $329.50, about 41.5% above its October 31 closing price of $192.64

* The stock recently traded at 20 times the next 12-month earnings vs. a P/E of 24 three months ago

Press Release:

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)