Utah Medical profit rises 5.9% despite 12.1% drop in third-quarter sales
Key Facts
Utah Medical Products' net profit rose 5.9% year on year in the third quarter of 2026, despite a continued contraction in revenue, according to the company's earnings release. Diluted earnings per share under generally accepted accounting principles were $0.876 for the period. Quarterly revenue totaled $8.621 million, compared with $9.812 million in the third quarter of 2025. Sales thus fell by $1.191 million, or 12.1%, from the corresponding period. Net profit growth was supported by lower litigation expenses and intangible asset amortization, along with a lower income tax provision rate. For the first nine months of 2026, however, net profit fell 7.4% from the same period a year earlier.
The company attributed a significant part of the quarterly sales weakness to the loss of business from its former customer PendoTECH. Pressure also came from worldwide Filshie sales, which fell by $805 thousand in the third quarter from the corresponding period. Those sales declined 32.7% year on year, according to the earnings release. Revenue weakness had carried over from the previous quarter, when the company reported a year-on-year decline in sales for the second quarter of 2026. That decline totaled $1.424 million, or 14.3%, according to the second-quarter earnings disclosure. Revenue therefore continued to fall in the third quarter, although the annual pace of decline was slower than in the previous quarter.
The company said lower litigation expenses and intangible asset amortization supported an improvement in operating profit despite weaker sales. The quarterly income tax provision rate was 18.1%. That compares with 20.5% in the third quarter of 2025, a reduction that also supported net profit, according to the official disclosure. However, adjusted earnings before interest, taxes, depreciation and amortization declined during the period, based on the company's non-GAAP measure. Those earnings totaled $3.735 million in the third quarter of 2026. They had stood at $4.170 million in the corresponding quarter a year earlier.
The acquisition of Orion Medical added $619 thousand in sales to third-quarter results, according to the company. Utah Medical announced the acquisition in August 2026, adding new business to its consolidated sales. Orion's purchase price was about £3.6 million, according to the official deal announcement. The company paid for the acquisition from its cash reserves. When announcing the acquisition, it said Orion "would add approximately $6 million to Utah Medical's current annual consolidated sales." That estimate concerns the expected annual contribution from the acquired business, while the contribution recorded in the results relates to third-quarter sales.
On its balance sheet, Utah Medical held $85.2 million in cash and investments at the end of September 2026, according to the earnings release. The company ended the period debt-free after funding the Orion purchase from cash reserves. During the third quarter, it paid total cash dividends of $987 thousand to shareholders. The dividend per share was $0.310. Alongside the dividends, the company is offering to repurchase up to 650000 shares of its common stock. It set the purchase price for the offer outstanding during October at $75.00 per share, according to the offer extension announcement.
The extended deadline for the share repurchase offer falls on 27 October 2026, according to the company's announcement. The offer expires at 17:00 New York time. For fiscal 2026, management expects annual sales to continue declining. It put the expected decline at "approximately 7%," according to the earnings release. That estimate follows revenue declines in the second and third quarters, as Orion began contributing to quarterly sales. The company plans to submit its detailed quarterly filing in November.