UFP Technologies (UFPT) Q2 FY26 earnings call: guidance and Q&A

Asked for more detail on the strength, specifically mentioning surfaces and support, cardiovascular, infection control, and orthopedics.

Mitch Rock confirmed growth across core markets like cardiovascular, infection prevention, patient handling, and orthopedics, noting that robotic surgical market was flat to down as expected. He emphasized broad-based growth from existing customer relationships and product families rather than new launches.

“We continue to see growth across several of the core markets, including cardiovascular, infection prevention, patient handling, orthopedics.”

asked by Brett Fishbin · answered by Mitchell Rock

Inquired if the strong performance in surfaces and support was due to working through backlog and if labor issues were resolved.

Mitch Rock stated that the backlog has been resolved and labor issues are fully ramped in St. Charles. He clarified that the business continues to grow significantly, but the strong Q2 FY26 growth was partly due to a low comparable base in Q2 FY25.

“We are through the backlog. So we would no longer talk about the backlog. We are through the labor issue. So we are fully ramped in St. Charles and the platform continues to grow.”

asked by Brett Fishbin · answered by Mitchell Rock

Asked if the current SG&A level represents a "new normal" going forward.

Ron Lataille confirmed that the current SG&A level is approximately the new normal, with some temporary relief expected mid-2027 due to CEO transition costs cycling through.

“The answer is yes. We have made investments. I think that there's ultimately a little cushion in there because there's temporary costs that will cycle through due to the CEO transition from Jeff to Mitch. So we'll get some relief in midway through 2027. But the current level is approximately where we should be going forward.”

asked by Justin Ages · answered by Ronald Lataille

Asked for an indication of the M&A pipeline, including the number of opportunities and target platforms.

Mitch Rock stated they are looking at 5 to 10 opportunities ranging from $5 million to $30 million of EBITDA, describing the pipeline as robust.

“What I can say is we were looking at anywhere from 5 to 10 opportunities that range from $5 million to $30 million of EBITDA. As stated, the pipeline is robust, so we're excited about it.”

asked by Justin Ages · answered by Mitchell Rock

Inquired about the percentage of product transferred to the DR and how many remaining phases are waiting on customer sign-off versus needing more work.

Mitch Rock clarified that out of three original programs planned for transfer to the DR, two have transferred, and the third is delayed, with the customer controlling the timeline.

“So the original thesis when we go back a little over a year ago, we have 3 programs that transfer to the DR. 2 of them have transferred and a third one is still in process. And that is delayed.”

asked by Andrew Cooper · answered by Mitchell Rock

Asked for more detail on the two new robotics programs announced last November and their expected contribution in 2026 and 2027.

Mitch Rock confirmed the programs have launched and are ramping, expecting an 8-figure contribution and growth in FY27.

“As we move into '27, it's an 8-figure contribution and growing.”

asked by Maxwell Michaelis · answered by Mitchell Rock

Asked how to think about organic growth directionally for the rest of the year, given the strong Q2 performance and the long-term target of 6% to 9%.

Ron Lataille stated they would not provide specific guidance but indicated that Q2 FY25 was a low comparable base. He expects organic growth to be within the 6% to 9% target range for the rest of the year, not at the double-digit Q2 level.

“The second quarter organic growth was impressive, but you have to remember that second quarter of last year was kind of the low point for the labor inefficiencies that we had. So I think as we go out through the rest of the year, the comp from a year ago will begin to improve. So I think we will be in our target range for organic growth, but I don't think you'll see the same double digits that you saw in Q2.”

asked by Brett Fishbin · answered by Ronald Lataille