United-Guardian, Inc. reported second-quarter 2025 net sales of $2.84 million, a 16.3% decline from $3.39 million in the previous year. Net income fell 34.5% year-over-year to $626,826 (14 cents per share), compared to $956,225 (21 cents per share) a year prior. Over the first half of 2025, net sales decreased 20% to $5.32 million, while net income slid 36.9% to $1.19 million (26 cents per share).
The decline in revenue was predominantly attributed to a sharp drop in cosmetic ingredient sales due to inventory issues with the company’s largest distributor, Ashland Specialty Ingredients. In contrast, pharmaceuticals and medical lubricants showed growth, with sales increasing 11% and 12% respectively. Management expects a recovery in cosmetic sales in the second half of the year as efforts are made to manage the inventory issue.
Operating expenses increased 15.1% to $694,050, influenced by higher marketing costs. Investment income was $70,573, down from $100,007 a year earlier. The company’s stock has seen a 1.5% increase following the earnings report but has dropped 0.6% over the past month, lagging behind the S&P 500.
