Integer Holdings Corporation Q1 FY2025 earnings call

• Planned CEO succession: Joe Dziedzic is transitioning the CEO role to Peyman Kales effective October 24, 2025, with Joe staying as an adviser until March 31, 2026.
• First quarter results: Sales increased 7% year over year reported and 6% organic; adjusted operating income grew 14%; completed two tuck-in acquisitions (Precision Coating and BSI PERILING) to expand service offerings.
• Operational improvements: Manufacturing and business excellence initiatives driving margin expansion, and strong execution of strategy leading to sustained above-market growth.

Cardio and vascular sales increased 17% in the first quarter, with a trailing four-quarter growth of 14%. Cardiac rhythm management and neuromodulation (CRM and N) sales increased 2% in the first quarter, and had a trailing four-quarter growth of 6%. Revenue contribution details were mentioned in the presentation appendix available on the website.

• Reiterated sales outlook: $1.806 billion to $1.88 billion, 8%-10% growth vs last year; organic sales growth 6%-8%.
• Adjusted EBITDA outlook: $401 million to $422 million, 11%-17% growth.
• Adjusted operating income outlook: $315 million to $331 million, 11%-16% growth, inclusive of $1-$5 million tariff impact.
• Raised adjusted net income and EPS outlook: Adjusted net income $218 million to $231 million (19%-26% growth), adjusted EPS $6.15 to $6.51 (16%-23% growth), a $0.31 raise from February outlook.

• Tariffs: Estimated $1-$5 million impact in 2025, with minimal exposure to China-sourced materials; working to reduce this impact.
• Economic recession: Potential slower growth in the med device industry, but insulated to some extent due to non-elective therapies supported.