Utah Medical Products Inc Reports Q1 2025 Earnings: EPS at $0.919, Revenue at $9.71 Million

On April 29, 2025, Utah Medical Products Inc (UTMD, Financial) released its 8-K filing detailing the financial performance for the first quarter of 2025. The company, known for developing and distributing medical devices primarily for hospital use, reported a decline in key financial metrics compared to the same period last year.

Company Overview

Utah Medical Products Inc is engaged in the development, manufacturing, and distribution of proprietary, disposable medical devices. These products are used in various medical fields, including blood pressure monitoring, gynecology, neonatal critical care, and urology. The company’s product lineup includes electrosurgical pens, tenacula, endoscopic bulb irrigators, and blood bag spikes, serving critical care areas and outpatient clinics.

Financial Performance and Challenges

For the first quarter of 2025, UTMD reported a 14.4% decrease in revenues compared to the first quarter of 2024. This decline was primarily driven by a significant reduction in OEM sales to PendoTECH, which accounted for 91% of the sales drop. Despite a 9% increase in domestic sales excluding PendoTECH, sales outside the U.S. fell by 14% in USD terms.

The company’s gross profit margin decreased to 57.0% from 59.7% in the previous year, attributed to manufacturing overhead costs that did not decline proportionally with sales. Operating income also fell by 18.8%, and net income decreased by 23.1%, reflecting the overall challenging market conditions.

Key Financial Achievements

Despite the decline in net income, UTMD’s earnings per share (EPS) only decreased by 16.0% due to the repurchase of 313,120 shares over the past year. This strategic move helped mitigate the impact of lower net income on EPS.

Income Statement Highlights

Balance Sheet and Cash Flow

UTMD’s balance sheet remains robust, with a cash equivalent balance of $83.3 million as of March 31, 2025, slightly higher than the previous quarter. The company utilized $4.4 million in cash for share repurchases, dividends, and equipment purchases. Stockholders’ equity remained stable at $117 million, despite these expenditures.

Analysis and Outlook

Utah Medical Products Inc faces challenges due to declining sales, particularly in the OEM segment. However, the company’s strategic share repurchases have helped cushion the impact on EPS. The strong balance sheet and cash position provide a solid foundation for navigating current market conditions. Investors will be keen to see how the company addresses these challenges and leverages its strengths in the coming quarters.

Explore the complete 8-K earnings release (here) from Utah Medical Products Inc for further details.