- **Q3 2025 Strong Performance**: 8% sales growth, 14% operating income growth, $1.79 EPS (25% YoY increase).
- **2025 Outlook Adjustment**: $16M sales reduction due to 3 underperforming products, revised to 7-8% sales growth.
- **2026 Challenges**: Flat to +4% organic sales growth, 5-6% EPS decline risk, 3-4% headwind from 3 products.
- **Long-Term Growth**: 2027+ above-market growth driven by 39 emerging customers and 10 launching PMA products.
- **Margin Resilience**: 17.4% operating margin target maintained, cost control and IPS efficiency to offset volume decline.

**【CEO Summary Section】**
- **Joe Dziedzic's Farewell Remarks**: Reflected on 8 years of leadership, noting 39% sales growth (2022-2025), 77% adjusted operating income growth, and 73% adjusted EPS growth. Highlighted transition to Payman Khales as CEO, emphasizing confidence in long-term strategy despite short-term headwinds.
- **Payman Khales' Inaugural Remarks**: Acknowledged strong Q3 results (8% reported/7% organic sales growth, 14% adjusted operating income growth) but announced $16M sales reduction for 2025 due to slower-than-expected adoption of 3 new products (2 EP, 1 neuromodulation). 2025 outlook revised to 7-8% sales growth, 12-14% adjusted operating income growth, and 19-21% adjusted EPS growth.
- **2026 Outlook**: Organic sales expected to be flat to +4% (reported -2% to +2%), with headwinds from 3 underperforming products (3-4% drag) offset by 4-7% growth elsewhere. Adjusted operating income and EPS expected to decline 5-6% or grow 4-5%. 2027 outlook remains +200bps above market growth driven by pipeline.

**【CFO Financial Commentary】**
- **Q3 2025 Results**: 
  - Sales: $468M (+8% reported, +7% organic)
  - Adjusted EBITDA: $106M (+11% YoY)
  - Adjusted Operating Income: $106M (+14% YoY)
  - Adjusted EPS: $1.79 (+25% YoY)
- **2025 Full Year Guidance**: 
  - Sales: $1.84-1.85B (7-8% growth)
  - Adjusted Operating Income: $319-325M (12-14% growth)
  - Adjusted EPS: $6.29-6.43 (19-21% growth)
- **Cash Flow**: Free cash flow expected to grow 35% YoY to $130-140M.
- **Tax Rate**: Full year adjusted effective tax rate improved to 17-18% (vs. prior 18.5%).

**【Q&A Highlights】**
- **EP Product Headwinds**: 2 electrophysiology products with Q3 2025 ramp saw slower-than-expected adoption, causing 2026 sales decline. Customers revised forecasts due to market demand underperformance.
- **Neuromodulation Impact**: 1 emerging customer's PMA product adoption slower than expected, contributing to CRM&amp;N sales decline.
- **Pipeline Confidence**: 39 emerging customers with PMA products, 10 in launch phase, driving long-term growth despite short-term volatility.
- **Cost Management**: Disciplined expense control and Integer Production System (IPS) efficiency to mitigate margin pressure.
- **Backlog Visibility**: $730M backlog (1.5+ quarters visibility) remains stable, despite near-term product underperformance.


Integer Holdings Corporation (ITGR) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

ITGR

ITGR fundamentals

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