Integer (US:ITGR)2025-04-24 18:21Financial Data and Key Metrics Changes - In Q1 2025, Integer Holdings Corporation reported sales of $437 million, reflecting a 7% year-over-year increase on a reported basis and a 6% increase on an organic basis [20][13] - Adjusted operating income grew by 14%, with adjusted net income reaching $46 million, up 19% year-over-year, and adjusted earnings per share totaled $1.31, up 15% from the same period last year [22][25] - The company reiterated its sales outlook for 2025, expecting reported growth of 8% to 10% and organic growth of 6% to 8% [14][32] Business Line Data and Key Metrics Changes - Cardiovascular sales increased by 17% in Q1 2025, driven by new product ramps in electrophysiology and contributions from recent acquisitions [22] - Cardiac rhythm management and neuromodulation sales grew by 2% in Q1 2025, with expectations of low to mid-single-digit growth for the full year [23][24] Market Data and Key Metrics Changes - The company expects CNV sales to grow in the mid-teens compared to 2024, while CRM and N sales are projected to grow low to mid-single digits [23][24] - The order book increased to approximately $800 million, reflecting strong demand and new product introductions [82] Company Strategy and Development Direction - Integer Holdings Corporation is focused on building differentiated capabilities and collaborating closely with customers to deliver innovative medical device technologies [12] - The company completed two tuck-in acquisitions, enhancing its service offerings and expanding its capabilities in proprietary coating technologies [17][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver strong sales growth, citing high visibility to customer demand and ramping programs in high-growth markets [14][40] - The company is managing its debt leverage within a target range of 2.5% to 3.5% times EBITDA, with a strategic refinancing completed to reduce interest expenses [29][30] Other Important Information - The company raised its adjusted net income outlook by $10 million, reflecting the impact of interest expense savings [34] - Cash flow from operations increased by 35% year-over-year to $31 million, with free cash flow improving by $12 million from the prior year [28][37] Q&A Session Summary Question: Impact of tariffs on adjusted operating income - Management confirmed the estimated impact of tariffs for 2025 remains between $1 to $5 million, with efforts to minimize this impact [44][49] Question: Deceleration in CRM segment growth - Management noted fewer selling days as a headwind and expects mid-single-digit growth in the CRM segment moving forward [50][56] Question: Growth in electrophysiology - Management stated that electrophysiology continues to outgrow the market, contributing significantly to overall cardiovascular growth [60][62] Question: Customer inventory levels and potential impacts - Management indicated no significant changes in customer ordering patterns related to tariffs, viewing any potential changes as timing issues [128][130] Question: Resilience in a recessionary environment - Management expressed confidence in the company's resilience during economic downturns, noting that most therapies supported are not elective [142][145]