UFP Tech (UFPT) Q4 2025 Earnings Call Transcript

Motley Fool Transcribing, The Motley Fool

Wed, February 25, 2026 astatine 8:41 AM CST 18 min read

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Wednesday, February 25, 2026 astatine 8:30 a.m. ET

• Chairman and Chief Executive Officer — R. Jeffrey Bailly

• Chief Financial Officer — Ronald J. Lataille

R. Jeffrey Bailly: Thank you, Ron. I americium pleased with our 2025 results and our advancement connected cardinal strategical initiatives. Sales grew 19.5% for the afloat year, bringing our full gross to $602.8 million. This is simply a important gross milestone and represents astir a tripling of gross since 2021. During that aforesaid four-year period, operating income grew 435% and EPS grew 419%. We besides made important advancement connected respective cardinal strategical initiatives related to declaration extensions, programme launches, installation expansions and related moves, and adding and grooming of caller nonstop labour endowment successful St. Charles, Illinois related to our antecedently disclosed E-Verify attrition issues. 2025 EPS grew 15.4% contempt absorbing $6.3 cardinal successful labour inefficiencies astatine our Illinois AJR facility.

The AJR E-Verify labour inefficiency was $1.2 cardinal successful Q4, little than fractional of the $3.0 cardinal Q3 impact, demonstrating the advancement that is being made successful onboarding and grooming caller nonstop labour squad members. We are continuing to marque advancement expanding our capabilities and capableness successful the Dominican Republic. In Santiago, we launched our 2nd large programme and person precocious negotiated a lease for a 3rd building, which volition let america to further grow our harmless diligent handling concern and transportation a 3rd large program. Each programme transfer, erstwhile complete, saves our customers wealth and increases our nett potential. In La Romana, Dominican Republic, 3 important caller programs launched.

Our 5th gathering and related determination of equipment, materials, and unit is present complete. It houses a caller expanded merchandise improvement center, a recently launched outer superior program, and a centralized warehouse to enactment Buildings One done Four. We program to instrumentality possession of a sixth gathering successful April, which volition further grow our robotic country capableness to enactment anticipated growth. We person besides expanded and extended our declaration with our largest customer, materially expanding the volumes connected existing programs and adding an further program. We person besides made breathtaking advancement successful different markets, backing a declaration hold with our largest corruption prevention lawsuit to tally done 2030.

In the orthopedic sterile packaging space, we person besides won caller concern and added caller capabilities successful Harlan, which adds important worth to our planetary offerings. On the quality resources front, our caller director-level talent, 1 level beneath our firm officers, is making important contributions successful the U.S., Ireland, and the Dominican Republic. This radical runs our day-to-day operations and is doing a large job. On the acquisition front, integrations of the 4 acquisitions completed successful 2024 and the 3 completed successful 2025 are each progressing well. We proceed to hunt for further strategical acquisitions that volition summation our worth to customers portion maintaining our disciplined approach.