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1. Company Snapshot

1.a. Company Description

Integer Holdings Corporation operates as a medical device outsource manufacturer in the United States, Puerto Rico, Costa Rica, and internationally.It operates through Medical and Non-Medical segments.The company offers products for interventional cardiology, structural heart, heart failure, peripheral vascular, neurovascular, interventional oncology, electrophysiology, vascular access, infusion therapy, hemodialysis, urology, and gastroenterology procedures.


It also provides cardiac rhythm management products, including implantable pacemakers, implantable cardioverter defibrillators, insertable cardiac monitors, implantable cardiac pacing and defibrillation leads, and heart failure therapies; neuromodulation products, such as implantable spinal cord stimulators; and non-rechargeable batteries, feedthroughs, device enclosures, machined components, and lead components and sub-assemblies.In addition, the company offers rechargeable batteries and chargers; and arthroscopic, laparoscopic, and general surgery devices and components, such as harmonic scalpels, shaver blades, burr shavers, radio frequency probes, biopsy probes, trocars, electrocautery components, wound dressings, GERD treatment components, and phacoemulsification needles.Further, it provides orthopedic products that include instruments used in hip, knee, and spine surgeries, as well as reamers and chisels.


Additionally, the company offers customized battery power and power management systems, and battery solutions for the energy, military, and environmental markets.Furthermore, the company provides medical technologies.It serves multi-national original equipment manufacturers and their affiliated subsidiaries in the cardiac, neuromodulation, orthopedics, vascular, and advanced surgical and portable medical markets.


Integer Holdings Corporation was founded in 1970 and is headquartered in Plano, Texas.

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1.b. Last Insights on ITGR

Integer Holdings Corporation's recent performance was negatively impacted by a softer 2026 growth outlook, despite strong Q3 earnings and revenue beats. The company's slower-than-expected uptake of new products led to a disappointing preliminary forecast for 2026. However, Integer reported continued strong sales and profit growth in Q3 2025, with organic growth of 7%. A share buyback program was also approved, allowing the company to repurchase up to 8.3% of its shares. According to MarketBeat Ratings, the stock has a consensus rating of "Moderate Buy" from analysts.

1.c. Company Highlights

2. Integer Holdings Corporation: A Temporary Setback

Integer Holdings Corporation delivered a strong third quarter, with sales reaching $468 million, an 8% increase, adjusted EBITDA of $106 million, an 11% increase, and adjusted net income of $63 million, a 27% increase. The company's adjusted EPS came in at $1.79, beating estimates of $1.68. The year-to-date sales are up 9%, adjusted operating income up 14%, and adjusted EPS up 20%. The company's financial performance indicates a solid foundation, despite some challenges ahead.

Publication Date: Oct -27

📋 Highlights
  • CEO Transition:: Joe Dziedzic retired after 8 years as CEO, succeeded by Payman Khales, who outlined a vision for future growth.
  • Q3 Performance:: Reported $468M in sales (8% YoY), $106M adjusted EBITDA (11% growth), and $63M adjusted net income (27% growth).
  • 2025 Outlook Revised:: Sales guidance narrowed to $1.840B–$1.854B, with adjusted operating income of $319M–$325M.
  • 2026 Headwinds:: Sales growth projected at -2% to +2% due to slower adoption of 3 products, causing a $70M revenue reduction.
  • 2027 Growth Confidence:: Anticipates above-market growth (200 bps above) driven by a strong pipeline, with product development sales rising >300% by 2025.

Guidance and Outlook

The company has revised its sales outlook for 2025, with a range of $1.840 billion to $1.854 billion, and adjusted operating income of $319 million to $325 million. However, the outlook for 2026 is more challenging, with reported sales expected to be down 2% to up 2%, and an organic sales basis of flat to up low single digits. The headwinds are primarily due to slower adoption rates for certain products, including two electrophysiology products and one neuromodulation product.

Product Performance and Pipeline

The company's product development pipeline remains strong, with a projected increase in product development sales of over 300% by the end of 2025. The mix of emerging and growth markets remains at 80%, with 70% of sales under multiyear agreements. The company is confident that it will return to above-market growth in 2027, driven by its strong new product development pipeline.

Valuation and Metrics

Integer Holdings Corporation's current valuation metrics indicate a relatively stable position, with a P/E Ratio of 29.43, P/B Ratio of 1.47, and P/S Ratio of 1.4. The EV/EBITDA ratio stands at 14.99, and the Free Cash Flow Yield is 7.24%. The company's ROE and ROIC are 5.21% and 5.15%, respectively. Analysts estimate next year's revenue growth at 0.1%, which is already factored into the current valuation. The company's ability to return to above-market growth in 2027 will be crucial in justifying its current valuation.

Management's Confidence

The new CEO, Payman Khales, expressed confidence in the company's ability to navigate the current challenges and return to growth in the second half of 2026. The company's backlog of $730 million provides visibility into at least 1.5 quarters of orders, and the management is working closely with customers to meet their demand needs. The company's adjusted operating income is expected to be down 5% to up 4% in 2026, which is consistent with the sales range.

3. NewsRoom

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Edgestream Partners L.P. Reduces Position in Integer Holdings Corporation $ITGR

Dec -04

Source: defenseworld.net

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Integer Holdings Corporation (ITGR) Presents at Citi Annual Global Healthcare Conference 2025 Transcript

Dec -03

Source: seekingalpha.com

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Macquarie Small Cap Value Fund Q3 2025 Portfolio Performance

Nov -30

Source: seekingalpha.com

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Integer to Participate at Upcoming Investor Conferences

Nov -18

Source: globenewswire.com

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Stock Repurchase Plan Approved by Integer (NYSE:ITGR)

Nov -05

Source: defenseworld.net

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Integer Holdings Corporation Board Authorizes $200 Million Share Repurchase Program

Nov -04

Source: globenewswire.com

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Is Integer Holdings Stock a Buy After the CEO Purchased Shares?

Oct -31

Source: fool.com

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Integer Holdings: Growth Standstill Comes As A Shock

Oct -24

Source: seekingalpha.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (7.95%)

6. Segments

Medical

Expected Growth: 8%

Integer Holdings Corporation's Medical segment growth is driven by increasing demand for minimally invasive medical devices, advancements in medical technology, and an aging population requiring more medical interventions. Additionally, the company's focus on research and development, strategic acquisitions, and expansion into emerging markets contribute to its 8% growth rate.

Non-Medical

Expected Growth: 6%

Integer Holdings Corporation's Non-Medical segment growth is driven by increasing demand for portable and wearable devices, expansion into new markets, and strategic partnerships. Additionally, advancements in technology, such as miniaturization and wireless connectivity, are enabling innovative product designs, further fueling growth.

7. Detailed Products

Cardiac Rhythm Management (CRM) Products

Integer Holdings Corporation offers a range of CRM products, including pacemakers, implantable cardioverter defibrillators (ICDs), and cardiac resynchronization therapy (CRT) devices.

Neuromodulation Products

The company provides neuromodulation products, including spinal cord stimulation, deep brain stimulation, and vagus nerve stimulation systems.

Orthopedic Products

Integer Holdings Corporation offers orthopedic products, including hip and knee implants, surgical instruments, and orthobiologics.

Electrophysiology (EP) Products

The company provides EP products, including diagnostic and therapeutic catheters, and ablation systems.

Portable Defibrillator Products

Integer Holdings Corporation offers portable defibrillator products, including automated external defibrillators (AEDs) and wearable cardioverter defibrillators (WCDs).

8. Integer Holdings Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Integer Holdings Corporation is moderate due to the presence of alternative products and services in the market.

Bargaining Power Of Customers

The bargaining power of customers is high due to the concentration of large customers and the availability of alternative products.

Bargaining Power Of Suppliers

The bargaining power of suppliers is low due to the presence of multiple suppliers and the company's ability to negotiate prices.

Threat Of New Entrants

The threat of new entrants is moderate due to the presence of barriers to entry, such as high capital requirements and regulatory hurdles.

Intensity Of Rivalry

The intensity of rivalry is high due to the presence of several competitors in the market, leading to a highly competitive environment.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 38.94%
Debt Cost 6.07%
Equity Weight 61.06%
Equity Cost 9.53%
WACC 8.18%
Leverage 63.76%

11. Quality Control: Integer Holdings Corporation passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Growth: 9.8

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Yield: 0.0

Momentum: 5.0

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Integer

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Bruker

A-Score: 2.5/10

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Quality: 3.4

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

69.84$

Current Price

69.84$

Potential

-0.00%

Expected Cash-Flows