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• Total Revenue (Q4 2024): $443 million, representing year-over-year reported growth of 11.5%.

• Adjusted EPS (Q4 2024): $0.97, above guidance range.

• Full-Year Revenue (2024): $1.61 billion, 4.5% growth on a reported basis.

• Organic Revenue Growth (2024): Decline of 1.3% due to supply challenges and quality-related product holds.

• Gross Margin (2024): 64.5%, down 160 basis points from 2023.

• Adjusted EBITDA Margin (2024): 20%, down 400 basis points from 2023.

• Operating Cash Flow (2024): $129.4 million.

• Free Cash Flow Conversion (2024): 12.7%.

• Revenue Guidance (Q1 2025): $375 million to $385 million, reported growth of 1.6% to 4.4%.

• Adjusted EPS Guidance (Q1 2025): $0.40 to $0.45.

• Full-Year Revenue Guidance (2025): $1.65 billion to $1.72 billion.

• Full-Year Adjusted EPS Guidance (2025): $2.41 to $2.51.

• Warning! GuruFocus has detected 3 Warning Sign with IART.

Release Date: February 25, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Integra Lifesciences Holdings Corp (NASDAQ:IART) reported a total revenue of $443 million for the fourth quarter, representing a year-over-year growth of 11.5%, which was within their guidance range.

• The company successfully cleared many of the third-quarter shipping holds, contributing to a $62 million sequential revenue increase over the third quarter.

• Fourth-quarter adjusted EPS was $0.97, exceeding the guidance range, indicating strong financial performance.

• The company is making significant progress in its Compliance Master Plan, which aims to improve manufacturing processes and global quality management systems.

• Integra Lifesciences Holdings Corp (NASDAQ:IART) is advancing its global expansion strategy, with increased market presence in Brazil, India, Korea, and China, and is building in-China-for-China manufacturing capabilities.

Negative Points

• The company faces operational challenges, particularly in quality, manufacturing, and supply chain improvements, which remain a top priority.

• First-quarter 2025 revenues are forecasted to be between $375 million and $385 million, with organic growth expected to be negative, ranging from -6.2% to -3.5%.

• The company has identified $18 million to $20 million in quality-related shipping holds impacting the first quarter of 2025.

• Integra Skin production is expected to face constraints in the first quarter of 2025 due to scheduled maintenance and lower-than-historical safety stock levels.

• The company anticipates a 70 basis point decrease in gross margin for 2025 due to investments in the Compliance Master Plan and potential supply disruptions.