Integer Holdings Corporation Reports Second Quarter 2025 Results
~ Continued strong sales and profit growth in 2Q25 ~
~ Raising 2025 full year adjusted operating income and EPS outlook midpoint ~
PLANO, Texas, July 24, 2025 (GLOBE NEWSWIRE) -- Integer Holdings Corporation (NYSE:ITGR) today announced results for the three months ended June 27, 2025.
Second Quarter 2025 Highlights (compared to Second Quarter 2024, except as noted)
Sales increased 11% to $476 million, with organic growth of 11%.
GAAP operating income increased $5 million to $59 million, an increase of 9%. Non-GAAP adjusted operating income increased $10 million to $81 million, an increase of 15%.
GAAP income from continuing operations increased $6 million to $37 million, an increase of 19%. Non-GAAP adjusted net income increased $10 million to $55 million, an increase of 23%.
GAAP diluted EPS from continuing operations increased $0.16 to $1.04, an increase of 18%. Non-GAAP adjusted EPS increased $0.25 to $1.55, an increase of 19%.
Adjusted EBITDA increased $9 million to $99 million, an increase of 10%.
From the end of 2024, total debt increased $212 million to $1.202 billion and Non-GAAP net total debt increased $250 million to $1.204 billion, primarily to finance acquisitions and costs associated with the 2030 convertible note offering, resulting in a leverage ratio of 3.2 times adjusted EBITDA as of June 27, 2025.
"Integer delivered another strong quarter of growth with sales up 11%, adjusted operating income up 15%, and adjusted EPS growth of 19% as we continue to execute our strategy," said Joseph Dziedzic, Integer's president and CEO. "We are raising our 2025 profit outlook midpoint. We now expect adjusted operating income growth of 12% to 16% and adjusted EPS growth of 18% to 23%."
Discussion of Product Line Second Quarter 2025 Sales
Cardio & Vascular sales increased 24% in the second quarter 2025 compared to the second quarter 2024, driven by new product ramps in electrophysiology, Precision Coating and VSi Parylene acquisitions, and strong customer demand in neurovascular.
Cardiac Rhythm Management & Neuromodulation sales increased 2% in the second quarter 2025 compared to the second quarter 2024, driven by strong growth in emerging neuromodulation customers with PMA (pre-market approval) products, normalized cardiac rhythm management growth, and the final quarters of the planned decline of an early spinal cord stimulation neuromodulation finished implantable pulse generator (non-emerging) customer, announced in 2020.
Other Markets sales decreased 38% in the second quarter 2025 compared to the second quarter 2024, primarily driven by the planned multi-year portable medical exit announced in 2022.
2025 Outlook(a)
(dollars in millions, except per share amounts)
GAAP
Non-GAAP(b)
As Reported
Change from Prior Year
Adjusted
Change from Prior Year
Sales
$1,850 to $1,876
8% to 9%
N/A
N/A
Operating income
$232 to $244
11% to 17%
$319 to $331
12% to 16%
EBITDA
N/A
N/A
$402 to $418
11% to 16%
Income from continuing operations
$100 to $109
(17)% to (10)%
$222 to $231
21% to 26%
Diluted earnings per share
$2.79 to $3.05
(20)% to (13)%
$6.25 to $6.51
18% to 23%
Cash flow from operating activities(c)
$235 to $255
15% to 24%
N/A
N/A
(a)
Except as described below, further reconciliations by line item to the closest corresponding GAAP financial measure for adjusted operating income, adjusted EBITDA, adjusted net income and adjusted earnings per share ("EPS"), included in our "2025 Outlook" above, and adjusted total interest expense, adjusted effective tax rate and leverage ratio in "Supplemental Financial Information" below, are not available without unreasonable efforts on a forward-looking basis due to the high variability, complexity and visibility of the charges excluded from these non-GAAP financial measures.
(b)
Adjusted operating income for 2025 consists of GAAP operating income, excluding items such as amortization of intangible assets, restructuring and restructuring-related charges, and acquisition and integration costs, totaling approximately $87 million, pre-tax.
Adjusted net income for 2025 consists of GAAP income from continuing operations, excluding items such as amortization of intangible assets, restructuring and restructuring-related charges, acquisition and integration costs, debt conversion inducement expense, and gain or loss on equity investments totaling approximately $134 million, pre-tax. The after-tax impact of these items is estimated to be approximately $122 million, or approximately $3.39 per diluted share.
Adjusted EPS for 2025 consists of GAAP diluted EPS from continuing operations, excluding the after-tax impact of the Adjusted net income items noted above and the estimated dilution resulting from the potential conversion of our 2028 Convertible Notes expected to be offset by capped call option contracts, which is approximately $0.06 per diluted share.
Adjusted EBITDA is expected to consist of adjusted net income, excluding items such as depreciation, interest, stock-based compensation and taxes totaling approximately $180 million to $187 million.
(c)
Prior year cash flow from operating activities included an immaterial amount related to discontinued operations.
Supplemental Financial Information
(dollars in millions)
2025Outlook
2024Actual
Depreciation and amortization
$123 to $127
$107
Adjusted total interest expense(a)
$40 to $42
$56
Stock-based compensation
$23 to $26
$24
Restructuring, acquisition and other charges(b)
$20 to $24
$22
Adjusted effective tax rate(c)
18.5% to 19.5%
18.3%
Leverage ratio(d)
2.5x to 3.5x
2.6x
Capital expenditures(e)
$110 to $120
$105
Cash income tax payments
$36 to $40
$36
(a)
Adjusted total interest expense refers to our expected full-year GAAP interest expense, expected to range from $41 million to $43 million for 2025, adjusted to remove the full-year impact of charges associated with the accelerated write-off of debt discounts and deferred issuance costs (loss on extinguishment of debt) included in GAAP interest expense, if any. There were no adjustments to GAAP interest expense for 2024.
(b)
Restructuring, acquisition and other charges consists of restructuring and restructuring-related charges, acquisition and integration costs, other general expenses and incremental costs of complying with the new European Union medical device regulations.
(c)
Adjusted effective tax rate refers to our full-year GAAP effective tax rate, expected to range from 26.0% to 27.0% for 2025, adjusted to reflect the full-year impact of the items that are excluded in providing adjusted net income and certain other identified items. Adjusted effective tax rate of 18.3% for 2024 consists of GAAP effective tax rate of 18.0% adjusted to reflect the impact on the income tax provision related to Non-GAAP adjustments.
(d)
Please see "Notes Regarding Non-GAAP Financial Information" for additional information regarding leverage ratio.
(e)
Capital expenditures is calculated as cash used to acquire property, plant, and equipment ("PP&E") less cash proceeds from the sale of PP&E.
Summary Financial Results (dollars in thousands, except per share data)
Three Months Ended
Six Months Ended
June 27,2025
June 28,2024
QTD Change
June 27,2025
June 28,2024
YTD Change
Operating income
$
59,338
$
54,494
8.9
%
$
108,890
$
93,195
16.8
%
Income from continuing operations
$
37,009
$
31,207
18.6
%
$
14,544
$
51,798
(71.9
)%
Diluted EPS from continuing operations
$
1.04
$
0.88
18.2
%
$
0.41
$
1.47
(72.1
)%
EBITDA(a)
$
87,636
$
81,383
7.7
%
$
119,274
$
145,879
(18.2
)%
Adjusted EBITDA(a)
$
98,951
$
89,842
10.1
%
$
190,460
$
170,071
12.0
%
Adjusted operating income(a)
$
81,266
$
70,825
14.7
%
$
152,189
$
133,020
14.4
%
Adjusted net income(a)
$
54,818
$
44,683
22.7
%
$
100,756
$
83,351
20.9
%
Adjusted EPS(a)
$
1.55
$
1.30
19.2
%
$
2.85
$
2.44
16.8
%
(a)
EBITDA, adjusted EBITDA, Adjusted operating income, Adjusted net income, and Adjusted EPS are non-GAAP financial measures. Please see "Notes Regarding Non-GAAP Financial Information" for additional information regarding our use of non-GAAP financial measures. Refer to Tables A, B and C at the end of this release for reconciliations of adjusted amounts to the closest corresponding GAAP financial measures.
Summary Product Line Results(dollars in thousands)
Three Months Ended
June 27,2025
June 28,2024
QTD Change
Organic Change(a)
Product Line Sales
Cardio & Vascular
$
286,855
$
231,418
24.0
%
17.6
%
Cardiac Rhythm Management & Neuromodulation
171,998
168,061
2.3
%
2.3
%
Other Markets
17,641
28,407
(37.9
)%
(1.8
)%
Total Sales
$
476,494
$
427,886
11.4
%
10.8
%
Six Months Ended
June 27,2025
June 28,2024
YTD Change
Organic Change(a)
Product Line Sales
Cardio & Vascular
$
545,726
$
453,269
20.4
%
14.3
%
Cardiac Rhythm Management & Neuromodulation
332,343
324,992
2.3
%
2.3
%
Other Markets
35,817
57,421
(37.6
)%
(12.8
)%
Total Sales
$
913,886
$
835,682
9.4
%
8.6
%
(a)
Organic sales change is a non-GAAP financial measure. Please see "Notes Regarding Non-GAAP Financial Information" for additional information regarding our use of non-GAAP financial measures and refer to Table D at the end of this release for a reconciliation of these amounts to the closest corresponding GAAP financial measures.
Conference Call Information
The Company will host a conference call on Thursday, July 24, 2025, at 8 a.m. CT / 9 a.m. ET to discuss these results. The scheduled conference call will be webcast live and is accessible through our website at investor.integer.net or by dialing (800) 715-9871 (U.S.) or (646) 307-1963 (outside U.S.) and the conference ID is 3120125. The call will be archived on the Company's website. An earnings call slide presentation containing supplemental information about the Company's results will be posted to our website at investor.integer.net prior to the conference call and will be referenced during the conference call.
From time to time, the Company posts information that may be of interest to investors on its website. To automatically receive Integer financial news by email, please visit investor.integer.net and subscribe to email alerts.
About Integer®
Integer Holdings Corporation (NYSE:ITGR) is one of the largest medical device contract development and manufacturing organizations (CDMO) in the world, serving the cardiac rhythm management, neuromodulation, and cardio and vascular markets. As a strategic partner of choice to medical device companies and OEMs, Integer is committed to enhancing the lives of patients worldwide by providing innovative, high-quality products and solutions. The company's brands include Greatbatch Medical® and Lake Region Medical®. Additional information is available at www.integer.net.
Investor Relations:
Kristen
Notes Regarding Non-GAAP Financial Information
In addition to our results reported in accordance with generally accepted accounting principles in the United States of America ("GAAP"), we provide adjusted net income, adjusted EPS, earnings before interest, taxes, depreciation and amortization ("EBITDA"), adjusted EBITDA, adjusted operating income, and organic sales change. Unless otherwise indicated, all financial metrics presented reflect continuing operations only.
Adjusted net income and adjusted EPS consist of GAAP income (loss) from continuing operations and diluted EPS from continuing operations, respectively, adjusted for the following to the extent occurring during the period: (i) amortization of intangible assets, (ii) certain legal expenses; (iii) restructuring and restructuring-related charges; (iv) acquisition and integration related costs; (v) other general expenses; (vi) (gain) loss on equity investments; (vii) extinguishment of debt charges, (viii) debt conversion inducement expense; (ix) European Union medical device regulation incremental charges; (x) inventory step-up amortization; (xi) unusual, or infrequently occurring items; (xii) the income tax provision (benefit) related to these adjustments and (xiii) certain tax items that are outside the normal tax provision for the period. Adjusted EPS is calculated by dividing adjusted net income by adjusted weighted average shares.
The weighted average shares used to calculate diluted EPS in accordance with GAAP includes dilution, when applicable, resulting from the potential conversion of our 2028 Convertible Notes and 2030 Convertible Notes (collectively, the "Convertible Notes"). In connection with the issuance of the Convertible Notes, we entered into capped call contracts which are expected to reduce the potential dilution on our common stock in connection with any conversion of the Convertible Notes, subject to a cap. Adjusted weighted average shares consists of GAAP weighted average shares used to calculate diluted EPS, including, when applicable, dilutive common stock equivalents that were excluded from weighted average shares used to calculate diluted EPS as their inclusion would be anti-dilutive and excluding, when applicable, dilution resulting from the potential conversion of our Convertible Notes expected to be offset by the capped call contracts.
EBITDA is calculated by adding back interest expense, provision for income taxes, depreciation expense, and amortization expense from intangible assets and financing leases, to income (loss) from continuing operations, which is the most directly comparable GAAP financial measure. Adjusted EBITDA consists of EBITDA plus adding back stock-based compensation and the same adjustments as listed above except for items (i), (vii), (xii) and (xiii). Adjusted operating income consists of operating income adjusted for the same items listed above except for items (vi), (vii), (viii), (xii) and (xiii).
Organic sales change is reported sales growth adjusted to remove the impact of foreign currency, the contribution of acquisitions and the strategic exit of the Portable Medical market. To calculate the impact of foreign currency on sales growth rates, we convert any sale made in a foreign currency by converting current period sales into prior period sales using the exchange rate in effect at that time and then compare the two, negating any effect foreign currency had on our transactional revenue. For contribution of acquisitions, we exclude the impact on the growth rate attributable to the contribution of acquisitions in all periods where there were no comparable sales. For the strategic exit of the Portable Medical market, we exclude the impact on the growth rate attributable to Portable Medical sales for all periods presented.
We believe that the presentation of adjusted net income, adjusted EPS, EBITDA, adjusted EBITDA, adjusted operating income, and organic sales change, provides important supplemental information to management and investors seeking to understand the financial and business trends relating to our financial condition and results of operations. In addition to the performance measures identified above, we believe that net total debt and leverage ratio provide meaningful measures of liquidity and a useful basis for assessing our ability to fund our activities, including the financing of acquisitions and debt repayments. Net total debt is calculated as total principal amount of debt outstanding less cash and cash equivalents. We calculate leverage ratio as net total debt divided by adjusted EBITDA for the trailing 4 quarters.
Forward-Looking Statements
Some of the statements contained in this press release are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including statements relating to: our 2025 outlook, including with respect to future sales, cash flows from operating activities, expenses, and profitability; 2025 outlook for depreciation and amortization, interest expense, stock based compensation, restructuring, acquisition and other charges, tax rate, leverage ratio, capital expenditures and cash tax payments; and other events, conditions or developments that will or may occur in the future. You can identify forward-looking statements by terminology such as "outlook," "projected," "may," "will," "should," "could," "expects," "intends," "plans," "anticipates," "believes," "estimates," "predicts," "potential," "project," or "continue" or variations or the negative of these terms or other comparable terminology. These statements are only predictions. Actual events or results may differ materially from those stated or implied by these forward-looking statements. In evaluating these statements and our prospects, you should carefully consider the factors set forth below.
Although it is not possible to create a comprehensive list of all factors that may cause actual results to differ from the results expressed or implied by our forward-looking statements or that may affect our future results, some of these factors and other risks and uncertainties that arise from time to time are described in Item 1A, "Risk Factors" of our Annual Report on Form 10-K and in our other periodic filings with the SEC and include the following:
operational risks, such as our dependence upon a limited number of customers; pricing pressures and contractual pricing restraints we face from customers; our reliance on third-party suppliers for raw materials, key products and subcomponents; interruptions in our manufacturing operations; uncertainty surrounding macroeconomic and geopolitical factors in the U.S. and globally; our ability to attract, train and retain a sufficient number of qualified associates to maintain and grow our business; the potential for harm to our reputation and competitive advantage caused by quality problems related to our products; our dependence upon our information technology systems and our ability to prevent cyber-attacks and other failures; global climate change and the emphasis on Environmental, Social and Governance matters by various stakeholders; our dependence upon our senior management team and key technical personnel; and consolidation in the healthcare industry resulting in greater competition;
strategic risks, such as the intense competition we face and our ability to successfully market our products; our ability to respond to changes in technology; our ability to develop new products and expand into new geographic and product markets; and our ability to successfully identify, make and integrate acquisitions to expand and develop our business in accordance with expectations;
financial and indebtedness risks, such as our ability to accurately forecast future performance based on operating results that often fluctuate; our significant amount of outstanding indebtedness and our ability to remain in compliance with financial and other covenants under the credit agreement governing our Senior Secured Credit Facilities; economic and credit market uncertainties that could interrupt our access to capital markets, borrowings or financial transactions; the conditional conversion features of our Convertible Notes adversely impacting our liquidity; the conversion of our Convertible Notes diluting ownership interests of existing holders of our common stock; the counterparty risk associated with our capped call transactions; the financial and market risks related to our international sales and operations; our complex international tax profile; and our ability to realize the full value of our intangible assets;
legal and compliance risks, such as regulatory issues resulting from product complaints, recalls or regulatory audits; the potential of becoming subject to product liability or intellectual property claims; our ability to protect our intellectual property and proprietary rights; our ability to comply with customer-driven policies and third-party standards or certification requirements; our ability to obtain and/or retain necessary licenses from third parties for new technologies; our ability and the cost to comply with environmental regulations; legal and regulatory risks from our international operations; the fact that the healthcare industry is highly regulated and subject to various regulatory changes; and our business being indirectly subject to healthcare industry cost containment measures that could result in reduced sales of our products; and
other risks and uncertainties that arise from time to time.
Unless otherwise noted, the forward-looking information in this press release is representative as of today only. Except as may be required by law, we assume no obligation to update forward-looking statements in this press release whether to reflect changed assumptions, the occurrence of unanticipated events or changes in future operating results, financial conditions or prospects, or otherwise.
Condensed Consolidated Balance Sheets - Unaudited
(in thousands)
June 27,2025
December 31, 2024
ASSETS
Current assets:
Cash and cash equivalents
$
23,135
$
46,543
Accounts receivable, net
302,262
245,269
Inventories
266,437
247,126
Contract assets
103,224
103,772
Prepaid expenses and other current assets
42,372
28,409
Total current assets
737,430
671,119
Property, plant and equipment, net
511,784
465,798
Goodwill
1,100,371
1,017,729
Other intangible assets, net
854,545
778,286
Deferred income taxes
8,517
8,309
Operating lease assets
100,912
86,082
Financing lease assets
31,717
27,689
Other long-term assets
25,659
22,959
Total assets
$
3,370,935
$
3,077,971
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current portion of long-term debt
$
—
$
10,000
Accounts payable
117,367
101,498
Operating lease liabilities
8,922
7,352
Accrued expenses and other current liabilities
89,741
108,323
Total current liabilities
216,030
227,173
Long-term debt
1,202,495
980,153
Deferred income taxes
114,735
124,608
Operating lease liabilities
83,897
77,702
Financing lease liabilities
25,796
23,760
Other long-term liabilities
24,445
25,360
Total liabilities
1,667,398
1,458,756
Stockholders' equity:
Common stock
35
34
Additional paid-in capital
760,741
741,977
Treasury stock
(26,858
)
—
Retained earnings
905,769
891,247
Accumulated other comprehensive income (loss)
63,850
(14,043
)
Total stockholders' equity
1,703,537
1,619,215
Total liabilities and stockholders' equity
$
3,370,935
$
3,077,971
Condensed Consolidated Statements of Operations - Unaudited
(in thousands, except per share data)
Three Months Ended
Six Months Ended
June 27,2025
June 28,2024
June 27,2025
June 28,2024
Sales
$
476,494
$
427,886
$
913,886
$
835,682
Cost of sales
347,342
310,509
664,416
610,032
Gross profit
129,152
117,377
