Figma Shares Indicated To Open $105/$110
Executive Summary
Integer Holdings Corporation (NYSE:ITGR) reported solid first quarter 2025 results during its earnings conference call on April 24, 2025, with sales growth of 7% year-over-year and adjusted earnings per share increasing 15% to $1.31. The medical device manufacturer also announced a CEO succession plan and strategic debt restructuring that boosted its full-year earnings outlook.
The company’s shares were trading up 2.14% following the earnings release, with premarket activity showing continued momentum at $122.51, up 1.66%.
As shown in the following summary of Integer’s Q1 2025 performance and outlook:
Quarterly Performance Highlights
Integer delivered Q1 2025 sales of $437 million, representing a 7% increase from the $408 million reported in Q1 2024, with organic growth contributing 6%. Adjusted operating income rose 14% to $71 million, while adjusted EPS climbed 15% to $1.31 from $1.14 in the prior-year period.
The detailed financial results demonstrate consistent improvement across key metrics:
Free cash flow showed significant improvement, turning positive at $6 million compared to negative $6 million in Q1 2024. Cash flow from operations increased from $23 million to $31 million year-over-year, reflecting stronger operational performance despite higher capital expenditures of $25 million in the quarter.
The company’s leverage ratio stood at 3.3x, within its strategic target range of 2.5x to 3.5x, though net total debt increased to $1,230 million from $954 million in Q4 2024, primarily due to acquisition activity.
Strategic Initiatives
In a significant leadership announcement, Integer revealed that Payman Khales, currently President and CEO Elect and Chief Operating Officer, will succeed Joseph Dziedzic as President and CEO effective October 24, 2025. Khales brings approximately 30 years of experience, including seven years as part of Integer’s Executive Leadership Team, and has been instrumental in doubling sales in the Cardio & Vascular business over seven years.
As shown in the CEO succession plan details:
Integer also completed a strategic debt restructuring through convertible note offerings, which significantly reduced its interest expense. The company increased its convertible note debt to $1.1 billion at a 1.9% average rate and increased fixed rate debt to 88% of total debt, up from 43% previously. This financial maneuver is expected to provide $0.31 of adjusted EPS accretion in 2025.
The following chart illustrates Integer’s interest expense reduction strategy:
Segment Performance
The Cardio & Vascular segment, which accounts for 56% of Integer’s sales, was the standout performer with 17% year-over-year growth in Q1 2025, reaching $259 million. This growth was driven by new product ramps in Electrophysiology and contributions from the Precision Coating and VSi Parylene acquisitions. Management expects this segment to deliver mid-teens growth for the full year 2025.
The segment’s performance is illustrated in the following chart:
The CRM & Neuromodulation segment, representing 38% of sales, posted more modest growth of 2% year-over-year, with sales of $160 million in Q1 2025 compared to $157 million in Q1 2024. This growth was primarily driven by strong performance in emerging Neuromodulation customers with PMA products. Management expects this segment to grow at a low to mid-single-digit rate for the full year.
The Other Markets segment saw a 37% year-over-year decline in sales, primarily due to the planned multi-year exit from the Portable Medical (TASE:BLWV) business announced in 2022. Management expects this segment’s trailing four-quarter sales to decline by approximately $30-$35 million in 2025, including an estimated $29 million impact from the Portable Medical exit.
Forward-Looking Statements
Integer maintained its 2025 sales outlook of $1,846-$1,880 million, representing 8-10% growth over 2024, but increased its adjusted EPS guidance to $6.15-$6.51 (up by $0.31) and free cash flow projection to $120-$140 million (up by $10 million).
The company’s detailed financial outlook for 2025 shows continued momentum:
The outlook includes organic sales growth of 6-8% for the full year, with high single-digit reported sales growth expected in Q2 2025 compared to Q2 2024. Management noted that minimal inorganic sales contribution is expected in Q2 as acquisition benefits are mostly offset by the Portable Medical exit.
Integer’s investment thesis emphasizes its portfolio strategy focused on Cardio & Vascular, Cardiac Rhythm Management, and Neuromodulation, with financial objectives including sales growth 200 basis points above market and operating profit growth at twice the sales growth rate.
With its strong Q1 2025 performance, strategic leadership transition plan, and improved financial outlook, Integer appears well-positioned to continue executing its growth strategy through 2025 and beyond.
Full presentation:
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.