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Integer Holdings Corporation (NYSE: ITGR) is a leading global contract development and manufacturing organization (CDMO) specializing in medical device technologies. The company partners with medical device companies and original equipment manufacturers (OEMs) to deliver innovative solutions that enhance patient care. Integer's offerings include a wide range of medical technologies and custom power solutions for niche applications in energy, military, and environmental markets.
- Cardio & Vascular - Develops and manufactures advanced medical devices and components for cardiovascular procedures, including catheters and guidewires.
- Cardiac Rhythm Management & Neuromodulation - Produces implantable devices and components that support heart rhythm management and neurological therapies.
- Advanced Surgical, Orthopedics & Portable Medical - Provides specialized devices and components for surgical, orthopedic, and portable medical applications.
- Non-Medical (Electrochem) - Offers custom power solutions for energy, military, and environmental applications. This segment was recently divested to focus on core medical operations.
- Your guidance suggests an acceleration to 11% organic growth in Q4 from 4% in Q3; given the anticipated lower CRM demand and potential lingering hurricane impacts, what gives you confidence in achieving this heightened growth in the fourth quarter?
- While you've explained that the reduction in R&D expenses is due to higher customer reimbursements, can you clarify whether your actual R&D investment levels are sufficient to support future growth, particularly for 2025 and 2026 product pipelines?
- Considering the softness in the CRM business and your expectation of normalized demand, are there signs of market share erosion or increased competition in this segment, and how are you addressing these potential challenges?
- You aim to surpass pre-COVID gross margins of 31%, but with ongoing supply chain disruptions and inflationary pressures, what specific initiatives will enable you to achieve and sustain this level of gross margin expansion?
- As you divest Electrochem to become a pure-play medical technology company, how do you plan to mitigate the loss of revenue and ensure that the EPS neutrality of this transaction doesn't adversely affect shareholder value in the long term?
| Customer | Relationship | Segment | Details |
|---|---|---|---|
Abbott Laboratories | Manufactures medical devices, high-volume purchase contracts | Medical | 17% of total sales in 2023. Represented part of 45% combined top-three customer revenue. |
Boston Scientific | Manufactures medical devices, high-volume purchase contracts | Medical | 16% of total sales in 2023. Represented part of 45% combined top-three customer revenue. |
Medtronic | Manufactures medical devices, high-volume purchase contracts | Medical | 13% of total sales in 2023. Represented part of 45% combined top-three customer revenue. |
Recent developments and announcements about ITGR.
Earnings
New Earnings (Q4 2024)
·6 days agoView full earnings summary →Integer posted strong Q4 2024 results with 11% organic growth, hitting the midpoint of guidance. Management expects 6–8% organic growth in 2025, citing expanded coverage in high-growth markets and new acquisitions. Tariff risks remain but outlook is positive.