Integer Holdings Corporation Reports First Quarter 2025 Results

Core Insights - Integer Holdings Corporation reported a strong start to 2025 with a 7% year-over-year sales growth and a 14% increase in adjusted operating income [1][5] - The company raised its adjusted net income growth outlook to a range of 19% to 26% for 2025, while maintaining a sales growth forecast of 8% to 10% [1][4] Financial Performance - First quarter 2025 sales reached $437 million, up from $407.8 million in the same period last year, reflecting a 7% increase [5][18] - GAAP operating income increased by 28% to $50 million, while non-GAAP adjusted operating income rose by 14% to $71 million [5][37] - GAAP income from continuing operations showed a loss of $22 million, a decrease from a profit of $20.6 million in Q1 2024, primarily due to debt conversion inducement expenses [5][37] - Non-GAAP adjusted net income increased by 19% to $46 million, with adjusted EPS rising to $1.31 from $1.14 [5][41] Product Line Performance - Cardio & Vascular sales increased by 17% year-over-year, driven by new product launches and acquisitions [6] - Cardiac Rhythm Management & Neuromodulation sales grew by 2%, supported by emerging neuromodulation customers [6] - Other Markets sales decreased by 37%, primarily due to the planned exit from the Portable Medical market [6][18] 2025 Outlook - The company updated its 2025 outlook to reflect the impact of a $1 billion convertible note offering, which is expected to reduce interest expenses by $13 million [3][5] - Adjusted operating income for 2025 is projected to be between $331 million and $401 million, reflecting an 11% to 16% increase [4][5] - The leverage ratio as of March 28, 2025, was reported at 3.3 times adjusted EBITDA, with total debt increasing to $1.235 billion [5][12] Leadership Changes - The company announced that Joseph Dziedzic will retire as President and CEO on October 24, 2025, with Payman Khales set to assume the role [20]