Financial Data and Key Metrics Changes - In Q2 2025, the company reported sales of $476 million, reflecting an 11% year-over-year growth on both a reported and organic basis [6][9] - Adjusted operating income grew 15% year-over-year, with adjusted earnings per share increasing 19% to $1.55 [6][10] - For the first half of 2025, sales increased by 9%, and adjusted operating profit rose by 14%, indicating a strong performance above market growth [6][21] Business Line Data and Key Metrics Changes - Cardio and vascular sales increased by 24% in Q2 2025, driven by new product ramps and strong customer demand [11] - Cardiac Rhythm Management and Neuromodulation sales grew by 2% in Q2 2025, with expectations for mid-single-digit growth for the full year [12] - Adjusted net income for Q2 2025 was $55 million, up 23% year-over-year, attributed to operational improvements and lower interest expenses [13] Market Data and Key Metrics Changes - The company expects sales growth in the mid-teens for Cardio and Vascular for the full year 2025, while CRM and Neuromodulation are projected to grow in the mid-single digits [11][12] - The company anticipates second-half sales growth of approximately 8% at the midpoint, with similar growth rates in Q3 and Q4 [19] Company Strategy and Development Direction - The company is focused on expanding margins through manufacturing and business excellence initiatives, alongside integrating tuck-in acquisitions [8] - The strategic outlook includes maintaining a leverage ratio within the target range of 2.5 to 3.5 times trailing four-quarter adjusted EBITDA [20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving sustained performance levels that will produce a premium valuation for shareholders [21] - The company has good visibility to customer demand and maintains a backlog of approximately $700 million, which supports its guidance for the year [19][75] Other Important Information - The adjusted effective tax rate for Q2 2025 was 19%, down from 20.7% in the prior year, with expectations for the full year to be between 18.5% and 19.5% [13] - The company experienced a foreign exchange headwind of $3 million in Q2 2025, primarily due to a weakening U.S. dollar [14] Q&A Session Summary Question: Full year organic growth guidance update - Management explained that while Q2 showed strong performance, the guidance for the second half remains at 8% due to typical customer demand shifts and tough comparisons from the previous year [25][28] Question: CRM and Neuromodulation growth outlook - Management indicated that the improvement in the full year outlook for CRM and Neuromodulation is driven by strong customer demand and a planned decline in a specific program that is expected to lessen in the second half [33][34] Question: Inventory management and tariffs - Management confirmed that inventory management has normalized and that the impact of tariffs on the business remains minimal, with a range of $1 million to $5 million expected [44][49] Question: Revenue pull forward and future performance - Management clarified that the 11% growth in Q2 included some pull forward of demand from Q3, but overall guidance for the year remains unchanged [60][63] Question: Strategic priorities under new CEO - The new CEO emphasized the continuation of existing strategies focused on growth markets, margin expansion, and tuck-in acquisitions [56][58] Question: Impact of tariffs on customer relationships - Management stated that while tariffs have minimal direct impact, they are actively working with customers to minimize any logistical challenges [95][97]

Financial Data and Key Metrics Changes - In Q2 2025, the company reported sales of $476 million, reflecting an 11% year-over-year growth on both a reported and organic basis [9][6] - Adjusted operating income grew 15% year-over-year, with adjusted earnings per share increasing 19% to $1.55 [6][11] - For the first half of 2025, sales increased by 9%, and adjusted operating profit increased by 14%, outpacing sales growth [6][23] - The company raised the midpoint of its adjusted operating income and EPS outlook while maintaining the sales outlook midpoint [7][17] Business Line Data and Key Metrics Changes - Cardio and vascular sales increased by 24% in Q2 2025, driven by new product ramps and strong customer demand [12] - Cardiac Rhythm Management and Neuromodulation sales increased by 2% in Q2 2025, with expectations for mid-single-digit growth for the full year [13][20] - The company expects Cardio and Vascular sales to grow in the mid-teens for the full year 2025 [12][20] Market Data and Key Metrics Changes - The company anticipates second-half 2025 reported sales growth to be approximately 8% at the midpoint, with similar growth rates in Q3 and Q4 [21][18] - The adjusted effective tax rate for Q2 2025 was 19%, down from 20.7% in the prior year, with expectations for the full year to be between 18.5% and 19.5% [14][20] Company Strategy and Development Direction - The company is focused on expanding margins through manufacturing and business excellence initiatives and integrating tuck-in acquisitions [7][23] - The strategic exit from the portable medical market is expected to be completed by the end of 2025, with a negligible impact from tariffs anticipated [21][20] - The company aims to maintain a leverage ratio within the target range of 2.5 to 3.5 times trailing four-quarter adjusted EBITDA [22][20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustaining above-market performance and achieving financial objectives [23] - The company highlighted strong visibility to customer demand for the second half of the year, supported by a backlog of approximately $700 million [45][78] - Management noted that the second half of the year will face tough comparisons due to strong growth in Q4 of the previous year [89][90] Other Important Information - The company generated $44 million in cash flow from operations in Q2 2025, with free cash flow increasing by 55% year-over-year to $25 million [16][17] - The company expects capital expenditures to remain between $110 million and $120 million for the full year [22][20] Q&A Session Summary Question: Full year organic growth guidance update - Management maintained the full year organic growth guidance at 8.5% midpoint, despite a strong Q2 performance [30][34] Question: CRM and Neuromodulation growth outlook - Management indicated that CRM and Neuromodulation growth is expected to improve in the second half due to customer demand and reduced impact from planned declines [36][37] Question: Inventory management and tariffs - Management confirmed that inventory management has normalized and that the impact of tariffs remains minimal, with a range of $1 million to $5 million expected [50][101] Question: Revenue pull-through and contract flexibility - Management explained that while 70% of contracts are long-term, there is variability in customer forecasts, but overall visibility remains strong [114][117] Question: Electrophysiology growth sustainability - Management expressed confidence in the sustainability of growth in electrophysiology, supported by strong market demand and a robust product pipeline [70][72]

Financial Performance - Sales increased by 11% compared to Q2 2024, with organic sales also up by 11%[14, 61] - Adjusted operating income rose by 15% compared to Q2 2024[14, 61] - Adjusted EPS reached $1.55, a 19% increase from $1.30 in Q2 2024[14, 61] - Free cash flow is up $9 million, +55% compared to 2Q24[42] Outlook - The company narrowed its sales outlook to $1,850 to $1,876 million, reflecting an 8% to 9% increase compared to 2024[14, 61] - Adjusted operating income outlook increased by $2 million at the midpoint, ranging from $319 to $331 million, a 12% to 16% increase vs 2024[12, 14, 61] - Adjusted EPS outlook increased by $0.05 at the midpoint, ranging from $6.25 to $6.51, an 18% to 23% increase vs 2024[12, 14, 61] - Free cash flow is projected to be between $120 to $140 million, up 20% to 40% vs 2024[14, 61] Business Segments - Cardio & Vascular (C&V) trailing 4 quarter sales increased 17% year-over-year in 2Q25[24] - CRM & Neuromodulation trailing 4 quarter sales increased 5% year-over-year in 2Q25[31]

[Financial Highlights and Outlook](index=1&type=section&id=Financial%20Highlights%20and%20Outlook) This section presents Integer's strong Q2 2025 financial performance and its updated full-year 2025 outlook [Second Quarter 2025 Highlights](index=1&type=section&id=Second%20Quarter%202025%20Highlights) Integer reported strong Q2 2025 results with double-digit growth in sales, adjusted operating income, and adjusted EPS, driven by the continued execution of its strategy - Integer's President and CEO, Joseph Dziedzic, highlighted the strong quarter with **11% sales growth**, **15% adjusted operating income growth**, and **19% adjusted EPS growth**[3](index=3&type=chunk) - Total debt increased by **$212 million** from the end of 2024 to **$1.202 billion** Net total debt increased by **$250 million** to **$1.204 billion**, resulting in a leverage ratio of **3.2 times adjusted EBITDA**[5](index=5&type=chunk) Q2 2025 Financial Highlights vs. Q2 2024 | Metric | Q2 2025 | Change vs. Q2 2024 | | :--- | :--- | :--- | | Sales | $476 million | +11% | | GAAP Operating Income | $59 million | +9% | | Non-GAAP Adjusted Operating Income | $81 million | +15% | | GAAP Income from Continuing Operations | $37 million | +19% | | Non-GAAP Adjusted Net Income | $55 million | +23% | | GAAP Diluted EPS from Continuing Operations | $1.04 | +18% | | Non-GAAP Adjusted EPS | $1.55 | +19% | | Adjusted EBITDA | $99 million | +10% | [2025 Full Year Outlook](index=1&type=section&id=2025%20Full%20Year%20Outlook) The company raised its full-year 2025 profit outlook, now expecting adjusted operating income growth of 12-16% and adjusted EPS growth of 18-23% - Projected non-GAAP adjustments for 2025 include approximately **$87 million pre-tax** for adjusted operating income and **$134 million pre-tax** for adjusted net income These adjustments primarily consist of amortization, restructuring, acquisition costs, and debt conversion expenses[8](index=8&type=chunk)[9](index=9&type=chunk) 2025 Full Year Outlook (in millions, except per share) | Metric | GAAP | Change from Prior Year | Adjusted (Non-GAAP) | Change from Prior Year | | :--- | :--- | :--- | :--- | :--- | | Sales | $1,850 to $1,876 | 8% to 9% | N/A | N/A | | Operating income | $232 to $244 | 11% to 17% | $319 to $331 | 12% to 16% | | EBITDA | N/A | N/A | $402 to $418 | 11% to 16% | | Income from continuing operations | $100 to $109 | (17)% to (10)% | $222 to $231 | 21% to 26% | | Diluted earnings per share | $2.79 to $3.05 | (20)% to (13)% | $6.25 to $6.51 | 18% to 23% | [Financial Performance Analysis](index=1&type=section&id=Financial%20Performance%20Analysis) This section details Integer's product line sales performance and summarizes key financial results for Q2 and YTD 2025 [Product Line Sales Performance](index=1&type=section&id=Product%20Line%20Sales%20Performance) In Q2 2025, Cardio & Vascular sales grew strongly by 24.0% (17.6% organic), while Other Markets sales declined due to a planned exit - Growth in the Cardio & Vascular segment was driven by new product introductions in electrophysiology, contributions from the Precision Coating and VSi Parylene acquisitions, and strong neurovascular demand[6](index=6&type=chunk) - The decline in the Other Markets segment was primarily due to the planned multi-year exit from the portable medical market, which was announced in 2022[6](index=6&type=chunk) Product Line Sales (Q2 & YTD 2025 vs 2024) | Product Line | Q2 2025 Sales ($M) | QTD Change | QTD Organic Change | YTD 2025 Sales ($M) | YTD Change | YTD Organic Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Cardio & Vascular | $286.9 | 24.0% | 17.6% | $545.7 | 20.4% | 14.3% | | Cardiac Rhythm Management & Neuromodulation | $172.0 | 2.3% | 2.3% | $332.3 | 2.3% | 2.3% | | Other Markets | $17.6 | (37.9)% | (1.8)% | $35.8 | (37.6)% | (12.8)% | | **Total Sales** | **$476.5** | **11.4%** | **10.8%** | **$913.9** | **9.4%** | **8.6%** | [Summary Financial Results](index=3&type=section&id=Summary%20Financial%20Results) The company's summary financials show increased Q2 2025 adjusted net income and EPS, but a sharp YTD GAAP decline due to a debt conversion expense - The significant year-to-date decrease in GAAP income from continuing operations was heavily impacted by a **$46.7 million debt conversion inducement expense** related to the partial exchange of the 2028 Convertible Notes[41](index=41&type=chunk)[50](index=50&type=chunk) Summary Financial Results (in thousands, except per share data) | Metric | Q2 2025 | Q2 2024 | QTD Change | YTD 2025 | YTD 2024 | YTD Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Operating income | $59,338 | $54,494 | 8.9% | $108,890 | $93,195 | 16.8% | | Income from continuing operations | $37,009 | $31,207 | 18.6% | $14,544 | $51,798 | (71.9)% | | Diluted EPS from continuing operations | $1.04 | $0.88 | 18.2% | $0.41 | $1.47 | (72.1)% | | Adjusted operating income | $81,266 | $70,825 | 14.7% | $152,189 | $133,020 | 14.4% | | Adjusted net income | $54,818 | $44,683 | 22.7% | $100,756 | $83,351 | 20.9% | | Adjusted EPS | $1.55 | $1.30 | 19.2% | $2.85 | $2.44 | 16.8% | [Consolidated Financial Statements](index=6&type=section&id=Consolidated%20Financial%20Statements) This section provides an overview of Integer's condensed consolidated balance sheets, statements of operations, and cash flows [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 27, 2025, total assets increased to $3.37 billion, driven by goodwill and intangibles, while total liabilities grew to $1.67 billion due to rising long-term debt Balance Sheet Summary (in thousands) | Account | June 27, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Current Assets** | **$737,430** | **$671,119** | | Goodwill | $1,100,371 | $1,017,729 | | Other intangible assets, net | $854,545 | $778,286 | | **Total Assets** | **$3,370,935** | **$3,077,971** | | **Total Current Liabilities** | **$216,030** | **$227,173** | | Long-term debt | $1,202,495 | $980,153 | | **Total Liabilities** | **$1,667,398** | **$1,458,756** | | **Total Stockholders' Equity** | **$1,703,537** | **$1,619,215** | [Condensed Consolidated Statements of Operations](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) For Q2 2025, sales and operating income increased, but a significant 'Other (income) loss' for the six-month period reduced income from continuing operations Statement of Operations Summary (in thousands) | Account | Three Months Ended June 27, 2025 | Six Months Ended June 27, 2025 | | :--- | :--- | :--- | | Sales | $476,494 | $913,886 | | Gross Profit | $129,152 | $249,470 | | Operating Income | $59,338 | $108,890 | | Other (income) loss, net | $3,980 | $51,907 | | Income from continuing operations | $37,009 | $14,544 | | Net Income | $37,009 | $14,522 | | Diluted EPS | $1.04 | $0.41 | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the first six months of 2025, operating activities provided $75.1 million, while investing activities used $215.0 million, primarily for acquisitions Cash Flow Summary - Six Months Ended (in thousands) | Activity | June 27, 2025 | June 28, 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $75,138 | $70,474 | | Net cash used in investing activities | ($214,994) | ($198,796) | | Net cash provided by financing activities | $115,989 | $138,768 | | Net (decrease) in cash and cash equivalents | ($23,408) | $10,463 | [Reconciliation of GAAP to Non-GAAP Financial Measures](index=9&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Financial%20Measures) This section provides detailed reconciliations of GAAP financial measures to their corresponding non-GAAP adjusted counterparts [Table A: Adjusted Net Income and Diluted EPS](index=9&type=section&id=Table%20A%3A%20Adjusted%20Net%20Income%20and%20Diluted%20EPS) This table reconciles GAAP income from continuing operations to non-GAAP adjusted net income, highlighting the impact of a significant debt conversion inducement expense - For the six months ended June 27, 2025, a **debt conversion inducement expense of $46.7 million** was a major reconciling item between GAAP and non-GAAP net income[41](index=41&type=chunk)[50](index=50&type=chunk) Q2 2025 Net Income Reconciliation (in thousands) | Description | Pre-Tax | Net of Tax | | :--- | :--- | :--- | | Income from continuing operations (GAAP) | $45,596 | $37,009 | | Amortization of intangible assets | $16,120 | $12,978 | | Restructuring and restructuring-related charges | $2,575 | $2,049 | | Acquisition and integration costs | $2,007 | $1,596 | | **Adjusted net income (non-GAAP)** | **$67,662** | **$54,818** | [Table B: Adjusted Operating Income](index=11&type=section&id=Table%20B%3A%20Adjusted%20Operating%20Income) This table reconciles GAAP operating income to non-GAAP adjusted operating income, primarily by adding back amortization of intangible assets Q2 2025 Operating Income Reconciliation (in thousands) | Description | Amount | | :--- | :--- | | Operating income (GAAP) | $59,338 | | Amortization of intangible assets | $16,120 | | Restructuring and restructuring-related charges | $2,575 | | Acquisition and integration costs | $2,007 | | **Adjusted operating income (non-GAAP)** | **$81,266** | [Table C: EBITDA](index=12&type=section&id=Table%20C%3A%20EBITDA) This table reconciles GAAP income from continuing operations to non-GAAP EBITDA and adjusted EBITDA, including adjustments for interest, taxes, depreciation, and amortization Q2 2025 EBITDA Reconciliation (in thousands) | Description | Amount | | :--- | :--- | | Income from continuing operations (GAAP) | $37,009 | | Interest expense | $9,754 | | Provision for income taxes | $8,587 | | Depreciation | $15,040 | | Amortization of intangible assets and financing leases | $17,246 | | **EBITDA (non-GAAP)** | **$87,636** | | Stock-based compensation | $5,499 | | Other adjustments (Restructuring, Acquisition, etc.) | $5,808 | | **Adjusted EBITDA (non-GAAP)** | **$98,951** | [Table D: Organic Sales Change](index=12&type=section&id=Table%20D%3A%20Organic%20Sales%20Change) This table reconciles GAAP reported sales growth to non-GAAP organic sales growth by adjusting for foreign currency impacts and strategic exits/acquisitions Q2 2025 Sales Growth Reconciliation (%) | Product Line | GAAP Reported Growth | Impact of Foreign Currency | Impact of Exits and Acquisitions | Non-GAAP Organic Change | | :--- | :--- | :--- | :--- | :--- | | Cardio & Vascular | 24.0% | 0.3% | 6.1% | 17.6% | | Other Markets | (37.9)% | —% | (36.1)% | (1.8)% | | **Total Sales** | **11.4%** | **0.2%** | **0.4%** | **10.8%** | [Table E: Net Total Debt](index=13&type=section&id=Table%20E%3A%20Net%20Total%20Debt) This table reconciles total debt to non-GAAP net total debt by subtracting cash and cash equivalents from the total principal amount of debt outstanding Net Total Debt Reconciliation (in thousands) | Description | June 27, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total debt (GAAP) | $1,202,495 | $990,153 | | Total principal amount of debt outstanding | $1,227,301 | $1,000,994 | | Less: Cash and cash equivalents | $23,135 | $46,543 | | **Net Total Debt (Non-GAAP)** | **$1,204,166** | **$954,451** | [Supplementary Information](index=2&type=section&id=Supplementary%20Information) This section provides important context regarding the company's use of non-GAAP financial measures and outlines key forward-looking statements and risk factors [Notes Regarding Non-GAAP Financial Information](index=4&type=section&id=Notes%20Regarding%20Non-GAAP%20Financial%20Information) The company uses non-GAAP measures to provide supplemental information on business trends, excluding specific items to enhance comparability of financial results - Adjusted net income and adjusted EPS exclude items such as amortization of intangibles, certain legal expenses, restructuring costs, acquisition costs, and gains/losses on equity investments[23](index=23&type=chunk) - Organic sales change is a non-GAAP measure that adjusts reported sales growth to remove the impacts of foreign currency fluctuations, acquisitions, and the strategic exit of the Portable Medical market[27](index=27&type=chunk) - The company believes these non-GAAP measures provide important supplemental information to management and investors for understanding financial and business trends[28](index=28&type=chunk) [Forward-Looking Statements and Risk Factors](index=5&type=section&id=Forward-Looking%20Statements%20and%20Risk%20Factors) The report contains forward-looking statements subject to various risks, including operational, strategic, financial, and legal/compliance factors - The press release contains forward-looking statements concerning the 2025 outlook and future performance, which are predictions and may differ materially from actual results[29](index=29&type=chunk) - Key operational risks include dependence on a limited number of customers, pricing pressures, and reliance on third-party suppliers[30](index=30&type=chunk) - Key financial and strategic risks include intense competition, ability to integrate acquisitions, significant outstanding debt, and economic uncertainties affecting access to capital[34](index=34&type=chunk)

Core Insights - Integer Holdings Corporation reported strong financial performance in Q2 2025, with sales increasing by 11%, adjusted operating income rising by 15%, and adjusted EPS growing by 19% compared to Q2 2024. The company has raised its full-year 2025 profit outlook midpoint, expecting adjusted operating income growth of 12% to 16% and adjusted EPS growth of 18% to 23% [1][4]. Financial Performance - Q2 2025 sales reached $476 million, reflecting an 11% increase, with organic growth also at 11% [4][12]. - GAAP operating income increased by $5 million to $59 million, a 9% rise, while non-GAAP adjusted operating income rose by $10 million to $81 million, marking a 15% increase [4][31]. - GAAP income from continuing operations grew by $6 million to $37 million, a 19% increase, and non-GAAP adjusted net income increased by $10 million to $55 million, a 23% rise [4][31]. - Adjusted EBITDA increased by $9 million to $99 million, a 10% increase [4][31]. Product Line Performance - Cardio & Vascular sales surged by 24% in Q2 2025 compared to Q2 2024, driven by new product launches and strong customer demand [5]. - Cardiac Rhythm Management & Neuromodulation sales saw a modest increase of 2%, attributed to growth in emerging neuromodulation customers and normalized cardiac rhythm management growth [5]. - Sales in Other Markets decreased by 38%, primarily due to the planned exit from the portable medical market [5]. 2025 Outlook - The company anticipates full-year sales between $1.850 billion and $1.876 billion, representing an 8% to 9% increase from the prior year [3]. - Adjusted operating income is projected to be between $319 million and $331 million, reflecting a growth of 12% to 16% [3]. - Adjusted EPS is expected to range from $6.25 to $6.51, indicating an increase of 18% to 23% [3]. Debt and Cash Flow - Total debt increased by $212 million to $1.202 billion, with a leverage ratio of 3.2 times adjusted EBITDA as of June 27, 2025 [4][28]. - Cash flow from operating activities is projected to be between $235 million and $255 million, a 15% to 24% increase [3].

Investment Rating - The report maintains a "Buy" rating for Boston Scientific (BSX), Edwards Lifesciences (EW), GE Healthcare (GEHC), Intuitive Surgical (ISRG), and Haemonetics (HAE), while downgrading Tandem Diabetes (TNDM) to "Sell/High Risk" from "Neutral/High Risk" [1][5][20]. Core Insights - The MedTech sector has shown resilience against healthcare headwinds, with a focus on returning to fundamentals and several catalysts expected to drive momentum in the second half of 2025 [1][9]. - The S&P Equipment and Supplies Index has outperformed the broader market, with a year-to-date increase of 7.2%, while relative P/E multiples remain below historical averages [2][12]. - Key upcoming catalysts include product launches and data readouts from various companies, which are anticipated to influence stock performance positively [3][10][11]. Summary by Sections Market Overview - The MedTech industry has largely absorbed tariff impacts, with a weakening USD providing additional support [1][9]. - The S&P 500 is up 6.2% year-to-date, while the S&P Equipment and Supplies Index has increased by 7.2% [2][12]. Company-Specific Insights - Boston Scientific (BSX) is expected to benefit from Farapulse and new product launches, projecting a revenue increase of 80.1% year-over-year in 2Q25 [3][10]. - Edwards Lifesciences (EW) anticipates pivotal data releases and the reopening of TAVR NCD, which could enhance its market position [3][10]. - Intuitive Surgical (ISRG) plans a broad launch of its DV5 system, which is expected to drive stock performance [4][10]. - Haemonetics (HAE) has been upgraded to "Buy" due to improved guidance and revenue growth expectations [5][20]. - Tandem Diabetes (TNDM) faces competitive pressures, leading to its downgrade to "Sell/High Risk" [5][20]. Valuation and Target Prices - Target prices have been adjusted for several companies, with BSX at $125, EW at $95, GEHC at $86, and ISRG at $650 [20][21]. - The report highlights that the relative P/E multiple for the MedTech sector is currently at 1.14x, below historical averages, indicating potential undervaluation [2][12][14].

Group 1 - Integer Holdings Corporation has appointed Michael Coyle to its Board of Directors, bringing over 40 years of leadership experience in the medical device industry [1][2] - Coyle's previous roles include president and CEO of iRhythm Technologies and executive vice president at Medtronic, along with leadership positions at St. Jude Medical and Eli Lilly [2] - He holds a master's degree from the Wharton School and a bachelor's degree from Case Western Reserve University, along with six U.S. patents related to cardiovascular medical devices [3] Group 2 - The Board of Integer regularly evaluates its composition to ensure it has the necessary skills and perspectives for growth [4] - Coyle's extensive experience is expected to significantly contribute to Integer's strategic initiatives and corporate culture [4] - The executive leadership team anticipates that Coyle's expertise will enhance Integer's contract development and manufacturing outsourcing strategy [4][5]

Core Viewpoint - Integer Holdings Corporation will host a conference call to discuss its financial results and business highlights for the second quarter of 2025 on July 24, 2025 [1]. Group 1: Conference Call Details - The conference call is scheduled for Thursday, July 24, 2025, at 8 a.m. CT / 9 a.m. ET [1][6]. - An audio replay of the call will be available for seven days, accessible by dialing (800) 770-2030 or (609) 800-9909 with Conference ID 3120125 [2]. - The call will also be available live or via archived replay on the Investor Relations section of the Integer website [2]. Group 2: Company Overview - Integer Holdings Corporation is one of the largest medical device contract development and manufacturing organizations (CDMO) globally, serving markets such as cardiac rhythm management and neuromodulation [4]. - The company aims to enhance patient lives by providing innovative, high-quality products and solutions [4]. - Integer's brands include Greatbatch Medical® and Lake Region Medical® [4].

Integer (ITGR) Update / Briefing Summary Company Overview - Integer is one of the largest medical device Contract Development Manufacturing Organizations (CDMOs) globally, providing comprehensive services from concept to coding [13][18] - Recently acquired VSI Perylene, enhancing its coating capabilities with precision coatings including PTFE, hydrophilic, and perylene coatings [13][14] Industry Insights - The medical device industry has become increasingly complex, particularly in the coatings sector due to heightened environmental awareness and regulatory challenges [16][24] - Integer has initiated a comprehensive program to address the multifunctional challenges in coatings, focusing on supply chain, regulatory affairs, and quality assurance [20] Coating Technologies - Integer specializes in both hydrophilic and hydrophobic coatings, with a strategy to improve legacy platforms while investing in new coatings [20][21] - The two main areas of focus are perylene and PTFE coatings, with an emphasis on balancing lubricity and durability [22][41] Regulatory Landscape - There is growing scrutiny on PFAS materials, particularly due to potential health concerns and environmental impacts associated with their production and disposal [24][26] - The regulatory landscape is evolving, with no global alignment on timelines or impacts, leading to uncertainty in the medical device industry [25][32] Alternatives to PFAS - Integer is committed to providing known PTFE coatings while preparing for potential regulatory changes by developing alternatives [28][29] - Perylene was selected as a PFAS alternative due to its proven track record in the medical device industry, offering reliable performance and regulatory familiarity [35] - The transition from PFAS to alternatives involves trade-offs in durability, lubricity, and regulatory alignment [48][49] Future Applications - The adoption of PFAS-free alternatives may lead to new applications, particularly in wearable health tech sensors, which could transition from external to internal use [54][58] - Integer aims to support customers through every phase of product development, ensuring that coatings fit regulatory paths and end-user needs [62] Challenges and Considerations - Early integration of coating considerations in product development is crucial for cost efficiency and performance optimization [112] - Education on the capabilities and applications of alternatives like Perylene is necessary to overcome underutilization [114] Conclusion - Integer emphasizes the importance of proactive planning in response to regulatory changes and the need for a diverse portfolio of coating solutions to meet various application requirements [90][121] - The company encourages open communication with clients to navigate the complexities of transitioning from traditional coatings to alternatives [119][122]

Summary of Conference Call Company Overview - The company discussed is Integer, which operates in the cardiovascular medical device industry. The transition of CEO from Joe to Peyman is highlighted, with Peyman having been part of the leadership team since early 2018 [1][2]. Core Strategies and Goals - Integer's strategy focuses on four targeted growth markets: electrophysiology, structural heart, neurovascular, and neuromodulation. The company aims to grow at 200 basis points above market growth rates [5][10]. - The company has established growth teams to refine and execute strategies in these markets, leading to a 270% increase in development work since 2017 [10][11]. - Profitability targets are set to grow at twice the rate of sales growth, supported by the Integer Production System [6][51]. Market Dynamics - The company is positioned to benefit from innovation in the industry, focusing on unmet patient needs and ensuring integration into customer programs [8][9]. - The electrophysiology market is projected to double in size to $20 billion over the next five years, providing significant growth opportunities [28][31]. - Integer's vertical integration allows it to manufacture a larger portion of devices, reducing the need for multiple suppliers and enhancing competitive advantage [32]. Financial Performance - The company reported an 11% organic growth rate in its C and D segments, with expectations for mid-teens growth in the CNV business [21][22]. - The backlog is currently at $800 million, expected to decrease to around $600 million by year-end due to the exit of the Portal Medical business and improved manufacturing capacity [56][57]. Acquisitions and Growth - Integer's acquisition strategy focuses on tuck-in acquisitions that enhance critical capabilities in targeted growth markets [16][20]. - The company has fostered relationships with smaller, founder-led businesses, positioning itself as a credible partner for growth [19][20]. Emerging Markets and Innovations - Neuromodulation is identified as a key area for growth, with a 40% increase in the number of customers and programs since 2020 [43][45]. - The company is actively involved in the development of therapies for ischemic stroke and intracranial aneurysm through its acquisition of Inuraco [40][41]. Operational Efficiency - Integer emphasizes continuous improvement in manufacturing processes, aiming to enhance efficiency and reduce waste [54][55]. - The company has a strong manufacturing footprint that aligns with customer needs for design and development [55]. Conclusion - Integer is well-positioned for sustained growth through its strategic focus on innovation, targeted markets, and operational efficiencies, with a clear roadmap for future profitability and market expansion [6][51].