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UTMD's Q3 Earnings Rise Y/Y on Lower Costs, Orion Acquisition

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Shares of Utah Medical Products, Inc. (UTMD - Free Report) have declined 2.2% since the company reported its earnings for the quarter ended Sept. 30, 2026. This compares with the S&P 500 index’s 0.7% decline over the same period. Over the past month, UTMD shares have fallen 2.5%, while the S&P 500 has gained 0.3%.

Utah Medical reported third-quarter 2026 earnings per share of 87.6 cents, which increased 6.8% year over year. 

Revenues of $8.6 million indicated a 12.1% decline from $9.8 million in the year-ago quarter. 

Net income rose 5.9% to $2.8 million from $2.6 million. The revenue decline primarily reflected lost customer sales and weaker demand for the Filshie Clip System, while reduced operating expenses and a lower effective tax rate supported earnings growth.

Utah Medical Products, Inc. Price, Consensus and EPS Surprise

Utah Medical Products, Inc. Price, Consensus and EPS Surprise

Utah Medical Products, Inc. price-consensus-eps-surprise-chart | Utah Medical Products, Inc. Quote

UTMD's Domestic and International Sales Decline

Domestic revenues declined 16.1% year over year to $4.9 million from $5.9 million. Domestic Filshie Clip System sales decreased $0.5 million to $0.7 million, while direct sales of other medical devices fell $0.5 million, primarily due to weaker neonatal product demand.

Domestic original equipment manufacturer revenues increased $0.04 million to $0.7 million, supported by new biopharmaceutical customers.

International revenues declined 6.3% to $3.7 million from $4 million. Sales to the company's former Chinese blood pressure monitoring distributor remained absent, although a replacement distributor generated $0.2 million in revenues.
Worldwide Filshie Clip System sales declined 32.7%, or $0.8 million, year over year. Meanwhile, the recently acquired Orion Medical Supplies contributed $0.6 million to quarterly revenues.

Foreign currency movements reduced consolidated revenues by approximately $0.01 million, representing a relatively limited impact on overall performance.

UTMD's Operating Margins Improve Despite Lower Sales

Gross profit declined 13.6% year over year to $4.8 million, while gross margin contracted to 56.1% from 57.1%. Management attributed the contraction to lower manufacturing volumes without proportional reductions in direct labor and overhead expenses.

However, operating income increased 7% to $2.8 million from $2.6 million. Operating margin expanded to 32.4% from 26.6%.

Total operating expenses declined to $2.1 million from $3 million, primarily reflecting lower litigation costs and reduced intangible asset amortization.

General and administrative expenses decreased to $1.4 million from $2.3 million. The completion of Femcare-related intangible asset amortization in the first quarter of 2026 contributed to the improvement.

The effective income tax rate declined to 18.1% from 20.5%, further supporting net income growth.

Nevertheless, adjusted EBITDA decreased to $3.7 million from $4.2 million, although the adjusted EBITDA margin improved to 43.3% from 42.5%.

UTMD Maintains Strong Liquidity Position

Utah Medical ended Sept. 30, 2026, with $85.2 million in cash and investments, compared with $85.8 million as of Dec. 31, 2025.

Total assets increased to $128.5 million from $122.5 million. 

Stockholders' equity grew to $123.3 million from $119.3 million. 

The company's current ratio declined to 21.2 from 37.6, although it remained debt-free.

During the first nine months of 2026, UTMD distributed approximately $3 million in dividends, repurchased $0.9 million of common shares and invested $0.5 million in capital equipment.

UTMD Provides Full-Year Revenue Outlook

Management expects consolidated revenues to decline approximately 7% in 2026, compared with the 12.2% decrease recorded during the first nine months of 2026.

The outlook reflects anticipated improvement in replacement customer sales, contributions from Orion Medical and easier year-over-year comparisons in the fourth quarter.

However, management acknowledged that sales growth among new biopharmaceutical customers has developed more slowly than originally expected, creating uncertainty around the projection.

Other Developments

Femcare Ltd., Utah Medical's U.K. subsidiary, acquired Orion Medical Supplies Ltd. at the end of August 2026 for approximately $5 million, including legal expenses and duties.

The acquisition expanded UTMD's U.K. operations and contributed $0.6 million in revenues during September 2026.

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