Integer Holdings Corporation (NYSE: ITGR) has reported its second-quarter 2025 results, showing continued strong sales and profit growth. The company's sales increased by 11% to $476 million, with organic growth also at 11%. GAAP operating income increased by $5 million to $59 million, marking a 9% increase, while non-GAAP adjusted operating income increased by $10 million to $81 million, a 15% increase. GAAP income from continuing operations increased by $6 million to $37 million, a 19% increase, and non-GAAP adjusted net income increased by $10 million to $55 million, a 23% increase. GAAP diluted EPS from continuing operations increased by $0.16 to $1.04, an 18% increase, while non-GAAP adjusted EPS increased by $0.25 to $1.55, a 19% increase.
Adjusted EBITDA also saw an increase, rising by $9 million to $99 million, a 10% increase. The company's total debt increased by $212 million to $1.202 billion, and non-GAAP net total debt increased by $250 million to $1.204 billion, primarily to finance acquisitions and costs associated with the 2030 convertible note offering. This led to a leverage ratio of 3.2 times adjusted EBITDA as of June 27, 2025.
In terms of product line sales, cardio & vascular sales saw a significant increase of 24% in the second quarter of 2025 compared to the same period in 2024, driven by new product ramps in electrophysiology, precision coating, and VSIParylene acquisitions, along with strong customer demand in neurovascular. Cardiac rhythm management & neuromodulation sales increased by 2%, while other markets sales decreased by 38%, primarily driven by the planned multi-year portable medical exit announced in 2022.
The company has also raised its 2025 profit outlook midpoint, now expecting adjusted operating income growth of 12% to 16% and adjusted EPS growth of 18% to 23%.
The press release also mentions the company's outlook for 2025, with projected changes from the prior year in various financial metrics. Sales are expected to range from $1,850 to $1,876 million, representing an 8% to 9% increase, while operating income is projected to be $232 to $244 million, an 11% to 17% increase. Adjusted EBITDA is expected to range from $402 to $418 million, an 11% to 16% increase, and income from continuing operations is projected to be $100 to $109 million, representing a (17)% to (10)% change. Diluted EPS is expected to be $2.79 to $3.05, representing a (20)% to (13)% change.
The company's financial results for the three months and six months ended June 27, 2025, also reflect the positive changes, with operating income, income from continuing operations, diluted EPS from continuing operations, EBITDA, adjusted EBITDA, adjusted operating income, adjusted net income, and adjusted EPS all showing increases compared to the same periods in 2024.
As a result of these announcements, the company's shares have moved 1.27% on the market, and are now trading at a price of $115.77. For the full picture, make sure to review Integer's 8-K report.
