Integer Holdings’ first quarter results were positively received by the market, reflecting management’s focus on margin improvement, operational efficiency, and the positive impact from recent tuck-in acquisitions. CEO Joe Dziedzic highlighted that the company delivered “strong performance with sales increasing 7% year over year,” driven by higher demand in cardiovascular products and successful integration of Precision Coating and BSI PERILING. Management cited gains in manufacturing efficiency and operating expense leverage as key contributors to the company’s improved profitability this quarter.
Is now the time to buy ITGR? Find out in our full research report (it’s free).
Integer Holdings (ITGR) Q1 CY2025 Highlights:
- Revenue: $437.4 million vs analyst estimates of $428.7 million (7.3% year-on-year growth, 2% beat)
- Adjusted EPS: $1.31 vs analyst estimates of $1.24 (5.5% beat)
- Adjusted EBITDA: $91.51 million vs analyst estimates of $88.82 million (20.9% margin, 3% beat)
- The company reconfirmed its revenue guidance for the full year of $1.86 billion at the midpoint
- Management raised its full-year Adjusted EPS guidance to $6.33 at the midpoint, a 5.1% increase
- EBITDA guidance for the full year is $411.5 million at the midpoint, above analyst estimates of $408.2 million
- Operating Margin: 11.3%, up from 9.5% in the same quarter last year
- Organic Revenue rose 6.3% year on year, in line with the same quarter last year
- Market Capitalization: $4.11 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions Integer Holdings’s Q1 Earnings Call
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Brett Fishbin (KeyBanc): Asked about the estimated $1-$5 million tariff impact and how Integer Holdings limited exposure. CEO Joe Dziedzic explained the company’s sourcing strategy and minimal China exposure.
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Craig Bijou (Bank of America): Questioned cardiovascular growth drivers, especially electrophysiology’s outperformance versus the market. Dziedzic confirmed above-market growth and highlighted a robust development pipeline.
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Richard Newitter (Truist Securities): Inquired about changes in customer engagement due to tariffs and supply chain diversification trends. Dziedzic noted no major customer shifts, citing the global and stable nature of manufacturing footprints.
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Amanda (Piper Sandler): Asked if suppliers might raise prices due to tariffs and how Integer Holdings would respond. Dziedzic stated no significant supplier cost increases have been observed and expects any new costs would be passed through to customers.
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Joanne Wuensch (Citi): Queried about resilience in a potential recession. Dziedzic emphasized the non-elective nature of most products and the ongoing trend of OEMs outsourcing manufacturing to Integer Holdings.
Catalysts in Upcoming Quarters
In the coming quarters, the StockStory team will focus on (1) monitoring the pace of integration and customer uptake for newly acquired coating capabilities, (2) tracking sustained margin expansion as manufacturing efficiency initiatives mature, and (3) watching for any shifts in tariff exposure or supplier dynamics. Continued strength in cardiovascular product launches and the company’s exit from the portable medical segment will also be key indicators of progress.
Integer Holdings currently trades at $117.80, down from $120.28 just before the earnings. Is the company at an inflection point that warrants a buy or sell? The answer lies in our full research report (it’s free).
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