Utah Medical Products (UTMD) investor relations material

Executive summary

• Q2 2026 net sales were $8.53M, down 14.3% YoY; H1 2026 sales were $17.3M, down 12.3%, mainly due to the loss of two major customers and slower-than-expected new product sales.

• Gross profit margin for Q2 2026 was 55.8% (vs. 56.2% in Q2 2025); H1 2026 margin was 58.2% (vs. 56.6% in H1 2025), with tariffs and lower sales volume impacting Q2 margins.

• Operating income and net income both declined, with Q2 2026 net income at $2.7M (down 11.9% YoY) and H1 2026 at $5.3M (down 13.1% YoY), impacted by higher litigation costs.

• Diluted EPS for Q2 2026 was $0.844 (down 10.1% YoY); H1 2026 was $1.661 (down 10.6% YoY).

• Balance sheet remains strong with no debt and $87.5M in cash and investments.

Financial highlights

• Adjusted EBITDA for Q2 2026 was $3.6M (42.1% margin); H1 2026 was $7.57M (43.9% margin), both down from prior year periods.

• Working capital rose to $98.6M, with a current ratio of 48.6, reflecting strong liquidity.

• Total assets were $124.6M, up $2.0M from December 2025; total liabilities decreased to $2.5M.

• Gross profit for H1 2026 was $10.04M (down 9.8%).

• Return on equity (ROE) annualized for H1 2026 was 9%, down from 10% in H1 2025.

Outlook and guidance

• Management projects a full-year 2026 sales decline of 10–13% versus 2025, revising earlier expectations of flat revenue.

• No further Filshie device tariffs are expected in 2H 2026; litigation expenses for 2026 are now estimated at under $1.6M, though full-year costs will exceed 2025.

• Strategic focus remains on new product introductions, regaining OUS business, and potential acquisitions.