Integer Holdings Conference Call Summary Company Overview - **Company**: Integer Holdings (NYSE: ITGR) - **Date**: March 18, 2026 - **Participants**: Payman Khales (CEO), Diron Smith (CFO), Kristen Stewart (Investor Relations) Key Points Management Transition - The transition to the new CEO has been smooth, with a strong foundation and strategy in place [3][4] - Focus areas include customer success, operational excellence, and talent development [4] Board of Directors and Governance - A cooperation agreement was reached with Irenic Capital Management, resulting in the addition of two new board members [6][7] - The board refreshment process has been ongoing, with five new members added in the last five years [6] 2026 Guidance and Market Performance - 2026 is viewed as a transition year with expected headwinds from three products that had strong growth in 2025 but are not meeting adoption expectations [10][11] - These three products contributed just under 6% of total revenues in 2025, but are expected to drop below 2% in 2026, resulting in a headwind of 300-400 basis points [13][14] - The underlying business is expected to grow at a rate of 4%-6% excluding the impact of these products [10][22] Market Growth Expectations - The company anticipates a return to market growth in the second half of 2026, with expectations of achieving 200 basis points above market growth in 2027 [12][26] - The growth rate is supported by a strong pipeline and new product launches in faster-growing markets such as neurovascular, structural heart, and electrophysiology [16][18] Margin and Cost Management - Operating margins are expected to experience pressure in Q1 2026 due to fixed cost deleveraging but are projected to improve throughout the year [28][29] - The company is focused on disciplined cost management and expects to leverage fixed costs as sales grow [28][30] Input Cost Volatility - The company does not foresee significant impacts from recent volatility in input costs, as a large portion of the supply base is in the US and there are price protections in place [32][34] Long-term Financial Objectives - Strategic financial objectives remain unchanged: to grow sales 200 basis points above market and to grow operating income at twice the rate of sales growth [36][37] Product Development and Pipeline - Product development sales have quadrupled since 2017, indicating a strong pipeline and customer relationships [50][51] - The PMA product portfolio is expected to grow at a CAGR of 15%-20% over the next 3-5 years [53] Capacity Expansion - The company is strategically expanding its capacity to avoid constraints on growth, with recent expansions in facilities in Ireland and Virginia [55][56] Market Positioning - Integer is well-positioned in the electrophysiology market, with a broad portfolio and strong pipeline [39][40] - Neuromodulation is expected to grow at a high single-digit rate, with various therapies addressing multiple conditions [61][62] Future Growth Opportunities - Renal denervation is viewed as a potential long-term growth opportunity, leveraging existing capabilities in electrophysiology [64] Conclusion - Integer Holdings is navigating through a transition year with temporary headwinds but remains optimistic about returning to growth in the latter half of 2026 and achieving above-market performance in 2027 and beyond [67]