UFP Technologies Q2 Sales Surge 15% to $174M, Margins Expand, but Cash Flow Tightens
UFPT sits 79% above its 52-week low of $173.86.
Summary
UFP Technologies posted Q2 2026 revenue of $174 million (+15% YoY) and EPS of $2.68, exceeding expectations, but operating cash flow dropped sharply due to a $30.5 million increase in receivables.
Key Events · Earnings and Guidance · UFPT
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Q2 Revenue +15% to $174M
Net sales rose 15.1% to $174.0 million, driven by growth in Surfaces and Support, Cardiovascular, Infection Control, and Orthopedics sub-markets. Organic growth was 12.4%.
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Margins Expand, EPS Beats
Gross margin improved to 29.3% from 28.8% a year ago. Diluted EPS of $2.68 compared to $2.21 in Q2 2025, a 21% increase.
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Operating Cash Flow Halves
Operating cash flow fell to $18.8 million in H1 2026 from $39.1 million in H1 2025, primarily due to a $30.5 million increase in accounts receivable from higher sales volume.
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Cash Reserves Dwindle
Cash and equivalents dropped to $9.0 million at June 30, 2026, from $20.3 million at year-end 2025. Total debt stands at $117.3 million, with $150 million available under the revolving credit facility.
Analysis · UFPT · Industrial Applications And Services
A strong top-line performance lifted sales 15% to $174 million, fueled by medical device demand. Gross margins widened to 29.3%, and net income climbed 21% to $20.9 million. Yet operating cash flow was cut in half year-over-year to $18.8 million as receivables swelled by $30.5 million, and cash reserves dwindled to $9 million. The company remains heavily reliant on two customers that represent nearly half of sales. Adding operational risk are a previously undisclosed February 2026 cyber incident and persistent labor issues at AJR. The balance sheet carries $117 million in debt, but the $150 million revolver provides a liquidity backstop. In sum, robust demand and margin gains are tempered by deteriorating cash conversion and concentration risk.
At the time of this filing, UFPT was trading at $311.87 on NASDAQ in the Industrial Applications And Services sector, with a market capitalization of approximately $2.4B. The 52-week trading range was $173.86 to $338.71. This filing was assessed with neutral market sentiment and an importance score of 8 out of 10.