ITGR

This morning, we announced our first quarter financial results which were in line with our February outlook. Adjusted operating income declined 230 basis points driven primarily by lower fixed cost absorption. We updated our 2026 outlook ranges to reflect recent customer forecast updates and further risk adjustments. The electrophysiology market is normalizing. Our focus remains on high-growth markets such as electrophysiology, structural heart, neurovascular, and neuromodulation with a strong product pipeline

We now expect reported sales to be in the range of down 1 to 3% compared to the prior year. On an organic basis, sales are expected to be flat to down 1%. Adjusted EBITDA is expected to be in the range of $375 to $399 million, adjusted operating income in the range of $285 to $305 million, adjusted net income between $200 and $220 million, and adjusted earnings per share between $5.83 and $6.40

First quarter sales totaled $440 million, up 0.5% on a reported basis versus last year and up 1.3% on an organic basis. Cardio and vascular sales increased 1% to $262 million in the first quarter of 2026. Cardiac rhythm management neuromodulation sales increased 5% to $168 million in the first quarter of 2026

The electrophysiology market has been dynamic with rapid adoption of PFA technologies causing complexity in forecasting. Recent customer forecast updates and the need to risk adjust across the portfolio pose risks. There is a risk of additional forecast erosion as the market normalizes

Q: Matthew O'Brien on EP forecast reduction; A: Adjustments not related to prior products, market normalizing.

Q: Brad Fishman on strategic review; A: Board exploring options to maximize shareholder value.

Q: Richard Newiter on forecast reduction vs risk adjustment; A: Risk adjustment across portfolio to minimize further reductions.

Q: Nathan Trebek on EP wallet share; A: Strong EP portfolio, expected to contribute to above-market growth.

Q: Andrew Cooper on EP mismatch; A: Adjustment due to market normalization, short-term.

Q: Travis Teed on EP market volume; A: Procedure volumes still strong.

Q: Joanne Winch on CRM and Neuromod; A: CRM performing well, Neuromod affected by one product but expected to grow.

Q: Suraj Kalia on strategic review timing; A: Board exploring options due to heightened interest.

Q: Darren on fixed vs variable costs; A: Opex has fixed portion, variable costs managed with sales volume