Shares of Integer Holdings Corporation (NYSE:ITGR) declined 5% following the company’s second-quarter earnings report, which met profit expectations but exceeded revenue forecasts. The medical device maker posted adjusted earnings per share in line with estimates, despite strong sales gains hinting at margin pressures.
Integer reported adjusted EPS of $1.55 for the quarter, matching analyst forecasts, while revenue rose 11% year-over-year to $476 million, beating the consensus estimate of $464.37 million. Organic growth also reached 11% compared to the prior year. The share price drop suggests investors had anticipated stronger earnings given the revenue outperformance.
“Integer delivered another strong quarter of growth with sales up 11%, adjusted operating income up 15%, and adjusted EPS growth of 19% as we continue to execute our strategy,” said Joseph Dziedzic, president and CEO of Integer.
The Cardio & Vascular segment was a key driver, posting a 24% sales increase fueled by new electrophysiology product launches, acquisitions, and robust neurovascular demand. Cardiac Rhythm Management & Neuromodulation sales rose modestly by 2%, while Other Markets revenue declined 38%, reflecting a planned exit from the portable medical device sector.
Integer raised its full-year 2025 guidance, now forecasting adjusted operating income growth between 12% and 16%, and adjusted EPS growth ranging from 18% to 23%. Revenue is projected between $1.85 billion and $1.876 billion, slightly above the analyst consensus of $1.869 billion. EPS guidance of $6.25 to $6.51 brackets the consensus estimate of $6.31.
The company’s debt increased by $212 million since the end of 2024, reaching $1.202 billion, mainly to support acquisitions and expenses related to a 2030 convertible note offering. This pushed the leverage ratio to 3.2 times adjusted EBITDA.
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