Medical technology company Integer Holdings (NYSE:ITGR) reported Q1 CY2025 results exceeding the market’s revenue expectations , with sales up 7.3% year on year to $437.4 million. The company expects the full year’s revenue to be around $1.86 billion, close to analysts’ estimates. Its non-GAAP profit of $1.31 per share was 5.5% above analysts’ consensus estimates.
Is now the time to buy ITGR? Find out in our full research report (it’s free).
-
Revenue: $437.4 million vs analyst estimates of $428.7 million (7.3% year-on-year growth, 2% beat)
-
Adjusted EPS: $1.31 vs analyst estimates of $1.24 (5.5% beat)
-
Adjusted EBITDA: $91.51 million vs analyst estimates of $88.82 million (20.9% margin, 3% beat)
-
The company reconfirmed its revenue guidance for the full year of $1.86 billion at the midpoint
-
Management raised its full-year Adjusted EPS guidance to $6.33 at the midpoint, a 5.1% increase
-
EBITDA guidance for the full year is $411.5 million at the midpoint, above analyst estimates of $408.2 million
-
Operating Margin: 11.3%, up from 9.5% in the same quarter last year
-
Free Cash Flow was $6.06 million, up from -$5.83 million in the same quarter last year
-
Organic Revenue rose 6.3% year on year, in line with the same quarter last year
-
Market Capitalization: $4.13 billion
Integer Holdings’ Q1 results were driven by continued demand in its cardiovascular and advanced neuromodulation markets, as well as contributions from recent acquisitions. CEO Joe Dziedzic attributed margin improvement to manufacturing efficiencies and disciplined expense management, highlighting that “adjusted operating income grew 14% as we improved our gross margin rate and leveraged our operating expenses.” The company also discussed the planned CEO transition to Peyman Kales, who is credited with key growth in the cardiovascular division.
Looking forward, management’s full-year guidance reflects confidence in sustained organic growth and the benefits of the company’s recent refinancing. CFO Diron Smith cited the impact of interest savings and operational execution, stating, “We are raising our adjusted earnings per share outlook by $0.31 to include the benefit of our March convertible note offering.” The company expects continued above-market growth, margin expansion, and disciplined leverage, even as it navigates external factors such as tariffs and integration of recent acquisitions.
Integer Holdings’ leadership emphasized the impact of segment performance, new capabilities from acquisitions, and ongoing external challenges. The company’s margin and cash flow expansion were supported by targeted investments and strategic execution, while management also discussed industry-wide dynamics affecting customer behavior and manufacturing.
-
CEO Transition Announced: The company disclosed a planned CEO succession, with Peyman Kales set to assume the role in October 2025. Kales’ prior leadership in the cardiovascular segment was credited with doubling sales and improving profitability, ensuring continuity of strategy.
-
Cardiovascular Segment Momentum: Cardiovascular sales grew 17% in the quarter, outpacing market trends. Dziedzic attributed this to strong new product ramps in electrophysiology and structural heart, as well as contributions from recent acquisitions, reinforcing the company’s position in high-growth categories.
-
Acquisitions Expand Capabilities: Integer Holdings completed two tuck-in acquisitions—Precision Coating and BSI PERILING—that add proprietary coating capabilities. Management noted these deals support vertical integration and enhance the company’s roadmap in core markets.
-
Tariff Impact and Mitigation: Management estimated a $1–5 million impact from tariffs in 2025, stressing that sourcing is primarily from US-based suppliers, insulating the company from major disruptions. Dziedzic noted, “We source very, very little from China, so the very high tariff on imports to and from China impacts us in a negligible manner.”
-
Backlog and Customer Demand: The order book increased to nearly $800 million, providing visibility for the year. Management expects the backlog to normalize by year-end as customers’ ordering patterns shift and the portable medical product exit completes.
Management’s outlook for the year is shaped by ongoing product launches, operational improvements, and integration of acquisitions, balanced against tariff headwinds and evolving customer trends.
-
Operational Efficiency Initiatives: Continued investments in manufacturing and business excellence are expected to support margin expansion and offset inflationary and tariff-related pressures.
-
Acquisition Integration Benefits: The addition of proprietary coating capabilities from recent acquisitions is anticipated to drive demand from existing and new customers, supporting mid-teens growth in cardiovascular sales.
-
Tariff and Industry Uncertainty: The company’s exposure to tariffs is limited, but management continues to monitor potential supply chain impacts and customer inventory behavior, noting that broader industry shifts or economic downturns could influence order patterns.
-
Brett Fishbin (KeyBanc): Asked about the $1–5 million estimated tariff impact and how Integer Holdings limits exposure. Management explained its global manufacturing and supplier sourcing insulate most product flows from tariffs.
-
Craig Bijou (Bank of America): Inquired whether electrophysiology growth in cardiovascular outpaces the market and about the sustainability of tariff impacts in 2026. Dziedzic confirmed above-market growth in electrophysiology and expects similar tariff influence next year.
-
Richard Newitter (Truist Securities): Sought updates on OEM customer engagement and backlog trends. Management indicated no major strategy shifts among OEMs due to tariffs and shared that the order book has grown, but should decline as portable medical products phase out.
-
Nathan Treybeck (Wells Fargo): Asked if guidance includes the possibility of proposed tariffs taking effect and whether new product ramps will drive gross margin. Management confirmed guidance factors in tariff scenarios; margin variability should be expected as new lines ramp up.
-
Amanda (Piper Sandler): Queried whether suppliers might pass on tariff costs and the outlook for the renal denervation market. Dziedzic said suppliers have not signaled significant tariff impact, and the company is optimistic about renal denervation’s contribution as it becomes commercially available.
Looking ahead, the StockStory team will track (1) progress on integrating recent acquisitions and the associated new product launches, (2) the impact of ongoing manufacturing efficiency initiatives on margin expansion, and (3) order book normalization as the portable medical exit completes and customer inventory strategies adapt. Additional focus will be placed on any changes in tariff policy and their downstream effects on cost structure and demand.
Integer Holdings currently trades at a forward P/E ratio of 18.9×. Should you load up, cash out, or stay put? Find out in our free research report.
The market surged in 2024 and reached record highs after Donald Trump’s presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025.
While the crowd speculates what might happen next, we’re homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver’s seat and build a durable portfolio by checking out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years.
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.