Utah Medical Products (UTMD) Q1 2026 earnings summary

Executive summary

• First quarter 2026 results aligned with prior projections, with a 10.2% year-over-year decline in sales and a 14.4% drop in net income.

• Loss of major customers in China and OEM segment accounted for most of the sales decline.

• Domestic sales remained stable, while international sales fell sharply, especially in China.

Financial highlights

• Net sales were $8,722K, down 10.2% from $9,710K in 1Q 2025.

• Gross profit decreased 4.6% to $5,282K; gross margin improved to 60.6% from 57.0%.

• Operating income dropped 18.7% to $2,565K; operating margin fell to 29.4%.

• Net income was $2,604K, down 14.4%; EPS declined 11.0% to $0.818.

• Cash and investments rose to $87,406K, up $4,081K year-over-year.

Outlook and guidance

• Litigation and healthcare costs expected to normalize for the remainder of 2026.

• Management expects lower litigation expenses for the full year 2026 compared to 2025.