UFP Technologies, Inc.

Good day and welcome to the UFP Technologies fourth quarter 2025 earnings conference call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on your telephone keypad. To withdraw your question, please press star then two. Please note this event is being recorded. I would now like to turn the conference over to Ron Latai, Vice President, Treasurer, and Chief Financial Officer. Please go ahead.

Thank you, Operator. Good morning, and thank you for joining us on our 2025 Year-End Earnings Conference Call. With me on today's call is our CEO and Chairman, Jeff Bailey. Today, We will make some forward-looking statements within the meaning of the US Private Securities Litigation Reform Act of 1995, the accuracy of which is subject to risks and uncertainties. Wherever possible, we will try to identify those forward-looking statements by using words such as believe, expect, anticipate, pursue, forecast, and similar expressions. Our forward-looking statements are based on our estimates and assumptions as of today and should not be relied upon as representing our estimates or views on any subsequent date. Please refer to the cautionary statement regarding forward-looking information and the risk factors in our most recent 10-K and subsequent 10-Qs and 8-Ks, including disclosure of the factors that could cause results to differ materially from those expressed or implied. During this call, we will discuss non-GAAP financial measures, which include organic sales growth, adjusted gross margin, adjusted operating income, adjusted SG&A, adjusted EPS, and EBITDA and adjusted EBITDA. A reconciliation of GAAP to non-GAAP measures discussed in this call is contained in the associated press release and is available in the investor relations section of our website. I'll now turn the call over to Jeff.

Thank you, Ron. I am pleased with our 2025 results and our progress on key strategic initiatives. Sales grew 19.5% for the full year, bringing our total revenue to $602.8 million. This is a significant revenue milestone and represents nearly a tripling of revenue since 2021. During that same four-year period, operating income grew 435% and EPS grew 419%. We also made significant progress on several key strategic initiatives related to contract extensions, program launches, facility expansions and related moves, and adding in training of new direct labor talent in St. Charles, Illinois, related to our previously disclosed E-Verify attrition issues. 2025 EPS grew 15.4% despite absorbing 6.3 million in labor inefficiencies at our Illinois AJR facility. The AJR E-Verify labor inefficiency was 1.2 million in Q4, less than half of the $3 million Q3 impact. demonstrating the progress that is being made in onboarding and training new direct labor team members. We are continuing to make progress, expanding our capabilities and capacity in the Dominican Republic. In Santiago, we launched our second major program and have recently negotiated a lease for a third building, which will allow us to further expand our safe patient handling business and transfer a third major program. Each program transfer when complete saves our customers money and increases our profit potential. In La Romana DR, three significant new programs launched. Our fifth building and related move of equipment, materials, and personnel is now complete. It houses a new expanded product development center, a newly launched external capital program, and a centralized warehouse to support buildings one through four. We plan to take possession of a sixth building in April, which will further expand our robotic surgery capacity to support anticipated growth. We have also expanded and extended our contract with our largest customer, materially increasing the volumes on existing programs and adding an additional program. We have also made exciting progress in other markets. funding a contract extension with our largest infection prevention customer to run through 2030. In the orthopedic sterile packaging space, we have also won new business and added new capabilities in Ireland, which adds significant value to our global offerings. On the human resources front, our new director-level talent, one level below our corporate officers, is making significant contributions in the U.S., Ireland, and the D.R., This group runs our day-to-day operations and is doing a great job. On the acquisition front, integrations of the four acquisitions completed in 2024 and the three completed in 2025 are all progressing well. We continue to search for additional strategic acquisitions that will increase our value to customers while maintaining our disciplined approach. And finally, our CEO transition planning for Mitch Rock is essentially complete, and he is well prepared to succeed me as CEO in June. I will continue for one year as executive chair to support him and provide assistance in vetting new acquisition opportunities and key strategic hires. With a robust pipeline of new growth opportunities, significant progress on our strategic initiatives, including multiple successful program launches, exciting new talent in our company, and a strong balance sheet to fund future growth, we remain very bullish about our future. I'll now hand it over to Ron to provide more color on our financials.