Integer (ITGR) Q1 2026 earnings summary

Executive summary

• First quarter 2026 results were in line with prior outlook, with reported sales up 0.5% and organic sales up 1.3% year-over-year, but impacted by headwinds from three new products.

• Adjusted operating income and EPS declined due to lower fixed cost absorption, though lower interest expense provided some benefit.

• Net income reached $16.5 million in Q1 2026, reversing a prior-year loss, with diluted EPS of $0.48.

• 2026 is viewed as a transition year, with temporary headwinds in electrophysiology and the exit of the Portable Medical business impacting results.

• The board initiated a strategic review to explore options including sale, merger, or business combination, with no set timeline or guaranteed outcome.

Financial highlights

• Q1 2026 sales: $439.6–$440 million, up 0.5% year-over-year; organic sales up 1.3%.

• Adjusted EBITDA: $85 million, down 7% year-over-year; adjusted operating income down 14% to $61 million.

• Adjusted net income: $41 million, down 10%; adjusted EPS: $1.20, down 8%.

• Gross margin declined to 24.9%–26.3% from 27.5%–28.7% year-over-year.

• Cash flow from operations: $24.7–$25 million; free cash flow: $1 million.

Outlook and guidance

• 2026 reported sales expected to decline 1%–3% year-over-year; organic sales flat to down 1%.

• Adjusted EBITDA guidance: $375–$399 million, down 1%–7%; adjusted operating income: $285–$305 million, down 5%–11%.

• Adjusted net income: $200–$220 million, down 3%–11%; adjusted EPS: $5.83–$6.40, flat to down 9%.

• Free cash flow expected between $85–$105 million; year-end net total debt projected at $1.185–$1.205 billion.

• Organic growth excluding three new products expected at 3%–4%, revised down from 4%–6%.

• Sequential sales ramp expected through 2026, with return to market growth in Q4 and above-market growth targeted for 2027.