Integer (US:ITGR)2025-10-23 12:08Financial Performance - Integer Holdings Corporation reported third quarter 2025 sales of $468 million, an increase of 8% compared to the same period in 2024, with organic growth of 7%[4] - Adjusted operating income for the third quarter 2025 rose to $86 million, reflecting a 14% increase year-over-year, while GAAP operating income decreased by 3% to $56 million[4] - Adjusted diluted EPS increased by 25% to $1.79, while GAAP diluted EPS from continuing operations rose by 10% to $1.11[4] - The company expects 2025 sales to range from $1.840 billion to $1.854 billion, representing a growth of 7% to 8% compared to 2024[3] - Adjusted EBITDA for the third quarter 2025 increased by 11% to $106 million[4] - Adjusted operating income for 2025 to be between $319 million and $325 million, a growth of 12% to 14% year-over-year[3] - Sales for the three months ended September 26, 2025, reached $467,691,000, up from $431,417,000 in the prior year, indicating a growth of about 8.4%[35] - Gross profit for the nine months ended September 26, 2025, was $375,630,000, compared to $342,218,000 for the same period in 2024, representing an increase of approximately 9.8%[35] - Operating income for the three months ended September 26, 2025, was $56,439,000, slightly down from $58,011,000 in the same period last year, a decrease of about 2.7%[35] - Net income for the nine months ended September 26, 2025, was $54,200,000, a decrease from $87,193,000 for the same period in 2024, representing a decline of approximately 38%[38] - Adjusted net income for the nine months ended September 26, 2025, was $198,670,000, up from $163,882,000 in 2024, reflecting an increase of approximately 21%[41] - Diluted earnings per share (EPS) for the nine months ended September 26, 2025, was $4.64, compared to $3.87 for the same period in 2024, indicating a growth of about 20%[41] Sales and Market Performance - Cardio & Vascular sales increased by 15% in Q3 2025, driven by new product ramps and strong customer demand[5] - Other Markets sales decreased by 16% in Q3 2025, primarily due to the planned exit from portable medical markets[5] - Total sales growth for Q3 2025 was 8.4%, with an organic change of 6.6% after excluding foreign currency impacts and strategic exits[59] - Cardio & Vascular product line sales increased by 15.0% in Q3 2025, contributing significantly to overall sales growth[59] - The company reported a decrease in other markets sales by 15.5% in Q3 2025, with an organic change of 27.5%[59] Debt and Liquidity - Total debt increased by $204 million to $1.194 billion, resulting in a leverage ratio of 3.0 times adjusted EBITDA as of September 26, 2025[4] - Net total debt as of September 26, 2025, was $1.158 billion, an increase from $954.451 million as of December 31, 2024[60] - Total debt outstanding increased to $1.217 billion as of September 26, 2025, from $1.000 billion at the end of 2024[60] - The company’s net total debt was calculated as total principal amount of debt outstanding less cash and cash equivalents, which is crucial for assessing liquidity[28] - The leverage ratio, calculated as net total debt divided by adjusted EBITDA for the trailing four quarters, is a key measure for evaluating the company's ability to fund activities[28] Cash Flow and Investments - Net cash provided by operating activities for the nine months ended September 26, 2025, was $140,733,000, slightly down from $141,974,000 in 2024[39] - Total cash used in investing activities increased to $235,262,000 for the nine months ended September 26, 2025, compared to $225,031,000 in 2024[39] - The company reported principal payments of long-term debt totaling $657,697,000 for the nine months ended September 26, 2025, compared to only $2,000 in the same period of 2024[39] - The company’s cash flows from financing activities provided $105,278,000 for the nine months ended September 26, 2025, compared to $95,625,000 in 2024, reflecting an increase of approximately 10%[39] Forward-Looking Statements - For 2026, the preliminary outlook indicates reported sales may decline by 2% to increase by 2%, with organic sales expected to be flat to up 4%[16] - Forward-looking statements indicate expectations for 2025 regarding future sales, cash flows, and profitability, with specific metrics to be monitored closely[30] Other Financial Metrics - Total assets as of September 26, 2025, were $3,397,310,000, an increase from $3,077,971,000 as of December 31, 2024, representing a growth of about 10.4%[34] - Total liabilities increased to $1,651,473,000 as of September 26, 2025, from $1,458,756,000 as of December 31, 2024, indicating a rise of approximately 13.2%[34] - The company wrote off a deferred tax asset of $4.1 million in Q1 2025 related to the 2028 Convertible Notes[51] - The company incurred $46,681,000 in debt conversion inducement expense during the nine months ended September 26, 2025, with no such expense reported in 2024[41] - The company reported a decrease in accounts receivable by $46,793,000 for the nine months ended September 26, 2025, compared to a decrease of $4,888,000 in 2024[38] - EBITDA for Q3 2025 was reported at $88.399 million, compared to $86.346 million in Q3 2024, indicating a growth of 2.4%[56] - Adjusted EBITDA for the nine months ended September 26, 2025, was $296.358 million, up from $265.597 million in the same period of 2024[57] - Adjusted operating income for Q3 2025 was $85.896 million, compared to $75.647 million in Q3 2024, reflecting a year-over-year increase of 16.5%[55] - The company incurred $2.749 million in restructuring charges during Q3 2025, compared to $1.916 million in Q3 2024[55]