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Integer Holdings Q2 Earnings Miss Estimates, Revenues Up Y/Y
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Key Takeaways
ITGR's Q2 adjusted EPS rose 19.2% Y/Y but missed the consensus estimate by 1.3%.
ITGR's Q2 revenue climbed 11.4% Y/Y to $476.5M, beating expectations by 2.9%.
ITGR's C&V segment jumped 24% on acquisitions and strength in electrophysiology.
Integer Holdings Corporation (ITGR - Free Report) delivered adjusted earnings per share (EPS) of $1.55 in the second quarter of 2025, which improved 19.2% year over year. However, the figure missed the Zacks Consensus Estimate by 1.3%.
The adjustments include expenses related to the amortization of intangible assets and restructuring and restructuring-related charges, among others.
GAAP EPS for the quarter was $1.04, up 18.2% from the prior-year quarter.
ITGR Revenues in Detail
Integer Holdings registered revenues of $476.5 million in the second quarter, up 11.4% year over year. The figure topped the Zacks Consensus Estimate by 2.9%.
Organically, revenues increased 10.8%.
Robust sales from the majority of the product lines drove the company’s top line in the reported period.
Integer Holdings Segmental Analysis
Integer Holdings operates through three product lines — Cardio and Vascular (C&V); Cardiac Rhythm Management & Neuromodulation (CRM&N) and Other Markets.
During the fourth quarter of 2024, management began referring to ITGR’s Advanced Surgical, Orthopedics & Portable Medical product line as the Other Markets product line. This was aimed at better capturing the evolving nature of the company’s products and ongoing strategic focus. Per management, the name change has no impact on the financial information previously reported.
Revenues of the C&V business totaled $286.9 million, up 24% from the prior-year quarter on a reported basis and up 17.6% organically. Strong growth in the segment was driven by organic momentum and recent acquisitions (Precision Coating and VSi Parylene). Electrophysiology remained a key driver, supported by Integer Holdings’ broader role in procedures like pulsed field ablation. This compares to our second-quarter projection of $261.9 million.
Revenues of the CRM&N business were $171.9 million, up 2.3% year over year on a reported as well as on an organic basis. The solid year-over-year performance was driven by strong growth in emerging Neuromodulation customers with premarket approval products and normalized CRM growth. This compares to our second-quarter projection of $173.8 million for the product line.
Integer Holdings’ Other Markets revenues amounted to $17.6 million, down 37.9% year over year on a reported basis, and down 1.8% on an organic basis. Per management, this resulted from the execution of the planned multi-year Portable Medical exit announced in 2022. This compares to our second-quarter projection of $26.7 million for Other Markets revenues.
Integer Holdings Corporation Price, Consensus and EPS Surprise
Integer Holdings generated a gross profit of $129.2 million in the second quarter, up 10% year over year. The gross margin in the reported quarter contracted 30 basis points (bps) to 27.1%. We had projected 28.4% of gross margin for the second quarter.
Selling, general and administrative expenses were $52.9 million, up 13.9% year over year. Research, development and engineering costs were $14.2 million in the quarter, down 8.8% year over year. Total operating expenses of $69.8 million increased 11% year over year.
Adjusted operating profit totaled $81.3 million, reflecting a 14.7% uptick from the prior-year quarter. Adjusted operating margin in the second quarter expanded 50 bps to 17.1%.
Integer Holdings’ Financial Position
Integer Holdings exited the second quarter of 2025 with cash and cash equivalents of $23.1 million compared with $31.7 million at the first-quarter end. Total debt (including the current portion) at the end of second-quarter 2025 was $1.2 billion compared with $1.24 billion at the first-quarter end.
Cumulative net cash flow from operating activities at the end of second-quarter 2025 was $75.1 million compared with $70.5 million a year ago.
ITGR’s 2025 Guidance
Integer Holdings has updated its financial outlook for 2025.
For 2025, the company now expects revenues between $1,850 million and $1,876 million (implying an improvement of 8-9% from the 2024 reported figure). The Zacks Consensus Estimate is pegged at $1.87 billion.
The company now expects full-year adjusted EPS in the band of $6.25-$6.51 (indicating a rise of 18-23% from the 2024 reported figure). The Zacks Consensus Estimate is pegged at $6.33.
Our Take
Integer Holdings exited the second quarter of 2025 with mixed results. The strong year-over-year top-line and bottom-line performances were impressive. Strength in the majority of the product lines was encouraging. The expansion of the adjusted operating margin bodes well for the stock.
Growth was primarily driven by continued momentum in the C&V segment, fueled by new product ramps, especially in electrophysiology and structural heart. The recent acquisitions of Precision Coating and VSi Parylene expanded Integer Holdings’ capabilities in differentiated and proprietary coatings, positioning the company for deeper integration into customer roadmaps and future product pipelines.
However, modest growth in the CRM&N segment and continued decline in the Other Markets segment remain areas to watch.
Integer Holdings’ Zacks Rank and Key Picks
Integer Holdings currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the broader medical space that are expected to report earnings soon are Boston Scientific Corporation (BSX - Free Report) , Cardinal Health, Inc. (CAH - Free Report) and Cencora, Inc. (COR - Free Report) .
The Zacks Consensus Estimate for Boston Scientific’s second-quarter 2025 adjusted earnings per share (EPS) is currently pegged at 72 cents. The consensus estimate for revenues is pegged at $4.89 billion. BSX currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Boston Scientific has an estimated long-term growth rate of 13.2%. BSX’s earnings yield of 2.8% compares favorably with the industry’s 1.1%.
Cardinal Health currently has a Zacks Rank #2. The Zacks Consensus Estimate for fourth-quarter fiscal 2025 adjusted EPS is currently pegged at $2.03, and the same for revenues is pinned at $60.67 billion.
Cardinal Health has an estimated long-term growth rate of 10.9%. CAH’s earnings yield of 5.7% compares favorably with the industry’s 5.5%.
Cencora currently carries a Zacks Rank #2. The Zacks Consensus Estimate for third-quarter fiscal 2025 adjusted EPS is currently pegged at $3.78, and the same for revenues is pegged at $80.33 billion.
Cencora has an estimated long-term growth rate of 12.8%. COR’s earnings yield of 5.4% compares favorably with the industry’s 4.1%.
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Integer Holdings Q2 Earnings Miss Estimates, Revenues Up Y/Y
Key Takeaways
Integer Holdings Corporation (ITGR - Free Report) delivered adjusted earnings per share (EPS) of $1.55 in the second quarter of 2025, which improved 19.2% year over year. However, the figure missed the Zacks Consensus Estimate by 1.3%.
The adjustments include expenses related to the amortization of intangible assets and restructuring and restructuring-related charges, among others.
GAAP EPS for the quarter was $1.04, up 18.2% from the prior-year quarter.
ITGR Revenues in Detail
Integer Holdings registered revenues of $476.5 million in the second quarter, up 11.4% year over year. The figure topped the Zacks Consensus Estimate by 2.9%.
Organically, revenues increased 10.8%.
Robust sales from the majority of the product lines drove the company’s top line in the reported period.
Integer Holdings Segmental Analysis
Integer Holdings operates through three product lines — Cardio and Vascular (C&V); Cardiac Rhythm Management & Neuromodulation (CRM&N) and Other Markets.
During the fourth quarter of 2024, management began referring to ITGR’s Advanced Surgical, Orthopedics & Portable Medical product line as the Other Markets product line. This was aimed at better capturing the evolving nature of the company’s products and ongoing strategic focus. Per management, the name change has no impact on the financial information previously reported.
Revenues of the C&V business totaled $286.9 million, up 24% from the prior-year quarter on a reported basis and up 17.6% organically. Strong growth in the segment was driven by organic momentum and recent acquisitions (Precision Coating and VSi Parylene). Electrophysiology remained a key driver, supported by Integer Holdings’ broader role in procedures like pulsed field ablation. This compares to our second-quarter projection of $261.9 million.
Revenues of the CRM&N business were $171.9 million, up 2.3% year over year on a reported as well as on an organic basis. The solid year-over-year performance was driven by strong growth in emerging Neuromodulation customers with premarket approval products and normalized CRM growth. This compares to our second-quarter projection of $173.8 million for the product line.
Integer Holdings’ Other Markets revenues amounted to $17.6 million, down 37.9% year over year on a reported basis, and down 1.8% on an organic basis. Per management, this resulted from the execution of the planned multi-year Portable Medical exit announced in 2022. This compares to our second-quarter projection of $26.7 million for Other Markets revenues.
Integer Holdings Corporation Price, Consensus and EPS Surprise
Integer Holdings Corporation price-consensus-eps-surprise-chart | Integer Holdings Corporation Quote
ITGR’s Margin Analysis
Integer Holdings generated a gross profit of $129.2 million in the second quarter, up 10% year over year. The gross margin in the reported quarter contracted 30 basis points (bps) to 27.1%. We had projected 28.4% of gross margin for the second quarter.
Selling, general and administrative expenses were $52.9 million, up 13.9% year over year. Research, development and engineering costs were $14.2 million in the quarter, down 8.8% year over year. Total operating expenses of $69.8 million increased 11% year over year.
Adjusted operating profit totaled $81.3 million, reflecting a 14.7% uptick from the prior-year quarter. Adjusted operating margin in the second quarter expanded 50 bps to 17.1%.
Integer Holdings’ Financial Position
Integer Holdings exited the second quarter of 2025 with cash and cash equivalents of $23.1 million compared with $31.7 million at the first-quarter end. Total debt (including the current portion) at the end of second-quarter 2025 was $1.2 billion compared with $1.24 billion at the first-quarter end.
Cumulative net cash flow from operating activities at the end of second-quarter 2025 was $75.1 million compared with $70.5 million a year ago.
ITGR’s 2025 Guidance
Integer Holdings has updated its financial outlook for 2025.
For 2025, the company now expects revenues between $1,850 million and $1,876 million (implying an improvement of 8-9% from the 2024 reported figure). The Zacks Consensus Estimate is pegged at $1.87 billion.
The company now expects full-year adjusted EPS in the band of $6.25-$6.51 (indicating a rise of 18-23% from the 2024 reported figure). The Zacks Consensus Estimate is pegged at $6.33.
Our Take
Integer Holdings exited the second quarter of 2025 with mixed results. The strong year-over-year top-line and bottom-line performances were impressive. Strength in the majority of the product lines was encouraging. The expansion of the adjusted operating margin bodes well for the stock.
Growth was primarily driven by continued momentum in the C&V segment, fueled by new product ramps, especially in electrophysiology and structural heart. The recent acquisitions of Precision Coating and VSi Parylene expanded Integer Holdings’ capabilities in differentiated and proprietary coatings, positioning the company for deeper integration into customer roadmaps and future product pipelines.
However, modest growth in the CRM&N segment and continued decline in the Other Markets segment remain areas to watch.
Integer Holdings’ Zacks Rank and Key Picks
Integer Holdings currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the broader medical space that are expected to report earnings soon are Boston Scientific Corporation (BSX - Free Report) , Cardinal Health, Inc. (CAH - Free Report) and Cencora, Inc. (COR - Free Report) .
The Zacks Consensus Estimate for Boston Scientific’s second-quarter 2025 adjusted earnings per share (EPS) is currently pegged at 72 cents. The consensus estimate for revenues is pegged at $4.89 billion. BSX currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Boston Scientific has an estimated long-term growth rate of 13.2%. BSX’s earnings yield of 2.8% compares favorably with the industry’s 1.1%.
Cardinal Health currently has a Zacks Rank #2. The Zacks Consensus Estimate for fourth-quarter fiscal 2025 adjusted EPS is currently pegged at $2.03, and the same for revenues is pinned at $60.67 billion.
Cardinal Health has an estimated long-term growth rate of 10.9%. CAH’s earnings yield of 5.7% compares favorably with the industry’s 5.5%.
Cencora currently carries a Zacks Rank #2. The Zacks Consensus Estimate for third-quarter fiscal 2025 adjusted EPS is currently pegged at $3.78, and the same for revenues is pegged at $80.33 billion.
Cencora has an estimated long-term growth rate of 12.8%. COR’s earnings yield of 5.4% compares favorably with the industry’s 4.1%.