Integer Holdings Corporation ITGR delivered adjusted earnings per share (EPS) of $1.31 in the first quarter of 2025, which improved 14.9% year over year. The figure topped the Zacks Consensus Estimate by 3.2%.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
The adjustments include expenses related to the amortization of intangible assets and restructuring and restructuring-related charges, among others.
GAAP loss per share for the quarter was 66 cents, against EPS of 59 cents in the prior-year quarter.
ITGR Revenues in Detail
Integer Holdings registered revenues of $437.4 million in the first quarter, up 7.3% year over year. The figure topped the Zacks Consensus Estimate by 1.3%.
Organically, revenues increased 6.3%.
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 $258.9 million, up 16.7% from the prior-year quarter on a reported basis and up 10.9% 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. Structural heart technologies and ongoing product innovation also contributed. This compares to our first-quarter projection of $259.5 million.
Revenues of the CRM&N business were $160.3 million, up 2.2% year over year on a reported as well as on 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 first-quarter projection of $166.4 million for the product line.
Integer Holdings’ Other Markets revenues amounted to $18.2 million, down 34.4% year over year on a reported basis, and down 22.9% 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 first-quarter projection of $29.8 million for Other Markets revenues.
Integer Holdings Corporation Price, Consensus and EPS Surprise
Integer Holdings Corporation Price, Consensus and EPS Surprise
Integer Holdings generated a gross profit of $120.3 million in the first quarter, up 11.1% year over year. The gross margin in the reported quarter expanded 100 basis points (bps) to 27.5%. We had projected 27.8% of gross margin for the first quarter.
Selling, general and administrative expenses were $51.2 million, up 10.2% year over year. Research, development and engineering costs were $14.2 million in the quarter, down 7% year over year. Adjusted operating expenses of $65.4 million increased 5.9% year over year.
Adjusted operating profit totaled $70.9 million, reflecting a 14% uptick from the prior-year quarter. Adjusted operating margin in the first quarter expanded 100 bps to 16.2%.
Integer Holdings’ Financial Position
Integer Holdings exited the first quarter of 2025 with cash and cash equivalents of $31.7 million compared with $46.5 million at 2024-end. Total debt (including the current portion) at the end of first-quarter 2025 was $1.24 billion compared with $990.2 million at 2024-end.
Net cash flow from operating activities at the end of first-quarter 2025 was $31.3 million compared with $23.2 million a year ago.
ITGR’s 2025 Guidance
Integer Holdings has updated its financial outlook for 2025.
For 2025, the company expects revenues between $1,846 million and $1,880 million (implying an improvement of 8-10% from the 2024 reported figure). The Zacks Consensus Estimate is pegged at $1.86 billion.
The company expects full-year adjusted EPS in the band of $6.15-$6.51 (indicating a rise of 16-23% from the 2024 reported figure). The Zacks Consensus Estimate is pegged at $6.06.
Our Take
Integer Holdings exited the first quarter of 2025 with better-than-expected 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 same medical industry are Fresenius Medical Care FMS, Masimo MASI and Glaukos GKOS.
Fresenius Medical, sporting a Zacks Rank #1 (Strong Buy) at present, has an estimated growth rate of 28.9% for 2025. You can see the complete list of today’s Zacks #1 Rank stocks here.
FMS’ earnings beat estimates in three of the trailing four quarters and met in one, delivering an average surprise of 15.67%. The company is expected to release first-quarter results next month.
FMS’ shares have gained 6% so far this year.
Masimo, sporting a Zacks Rank of 1 at present, has an estimated growth rate of 20% for 2025.
MASI’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 14.41%. Its shares have risen 58.5% compared with the industry’s 3.9% growth year to date. The company is expected to release first-quarter results in May.
MASI’s shares have lost 8% so far this year.
Glaukos, carrying a Zacks Rank #2 (Buy) at present, has an estimated earnings growth rate of 48.9% for 2025. It delivered a trailing four-quarter average earnings surprise of 8.11%. The company’s earnings beat estimates in two of the trailing four quarters, met in one and missed in the other, delivering an average surprise of 8.11%. The company is expected to release first-quarter results on April 30.
GKOS’ shares have plunged 40.1% so far this year.
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