Integer Holdings Q2 Earnings Miss Estimates, Revenues Up Y/Y

Core Insights - Integer Holdings Corporation (ITGR) reported adjusted earnings per share (EPS) of $1.55 for Q2 2025, a 19.2% increase year over year, but missed the Zacks Consensus Estimate by 1.3% [1] - The company achieved revenues of $476.5 million in Q2 2025, reflecting an 11.4% year-over-year growth and surpassing the Zacks Consensus Estimate by 2.9% [2][9] - The gross profit for the quarter was $129.2 million, up 10% year over year, although the gross margin contracted by 30 basis points to 27.1% [8] Revenue Breakdown - The Cardio and Vascular (C&V) segment generated revenues of $286.9 million, a 24% increase year over year, driven by organic growth and acquisitions [5] - The Cardiac Rhythm Management & Neuromodulation (CRM&N) segment reported revenues of $171.9 million, up 2.3% year over year, supported by growth in emerging Neuromodulation customers [6] - Revenues from the Other Markets segment were $17.6 million, down 37.9% year over year, attributed to the planned exit from the Portable Medical market [7] Margin and Expense Analysis - Selling, general and administrative expenses rose to $52.9 million, an increase of 13.9% year over year, while research and development costs decreased to $14.2 million, down 8.8% year over year [10] - Adjusted operating profit was $81.3 million, reflecting a 14.7% increase from the prior year, with an adjusted operating margin expanding by 50 basis points to 17.1% [10] Financial Position - At the end of Q2 2025, Integer Holdings had cash and cash equivalents of $23.1 million, down from $31.7 million at the end of Q1 2025, while total debt was $1.2 billion [11] - Cumulative net cash flow from operating activities was $75.1 million, compared to $70.5 million a year ago [11] 2025 Guidance - Integer Holdings updated its 2025 revenue guidance to a range of $1,850 million to $1,876 million, indicating an 8-9% improvement from 2024 [12] - The company expects full-year adjusted EPS to be between $6.25 and $6.51, representing an 18-23% increase from 2024 [12] Overall Performance - The company demonstrated strong year-over-year growth in both top-line and bottom-line metrics, with significant contributions from the C&V segment and recent acquisitions [13][14] - However, modest growth in the CRM&N segment and a decline in the Other Markets segment are areas of concern [15]