Integer (ITGR) Bank of America 2025 Healthcare Conference summary

Leadership transition and strategic continuity

• CEO transition planned for later this year, with Payman Khales, current COO, set to succeed after strong execution of strategic objectives since 2018.

• Strategic focus remains on growing faster than the market, expanding margins, and maintaining prudent debt leverage.

• Leadership team continuity emphasized, with collaborative strategy development and execution.

• No major strategic changes anticipated under new CEO; ongoing adaptation to market conditions expected.

Financial performance and guidance

• 2025 guidance projects 8%-10% reported sales growth, 6%-8% organic, net income up 19%-26%, and EPS up 16%-23%.

• Q1 delivered 6% organic growth despite a 3% headwind from fewer shipping/manufacturing days.

• Cardiovascular segment grew 17% reported, 11% organic; cardiac rhythm management and neuromodulation grew 2%.

• Operating income in Q1 grew 14%, about twice the sales growth, with margin improvement driven by gross margin and operational efficiencies.

• Full-year margin improvement expected, with less SG&A leverage in 2025 due to recent acquisitions.

Growth markets and portfolio management

• 80% of development pipeline focused on growth markets, with a 270% increase in pipeline opportunities.

• Cardiovascular business now exceeds $1 billion, driven by broad participation in high-growth areas like PFA, structural heart, and RDN.

• Neuromodulation and emerging PMA customers expected to drive 15%-20% growth, outpacing the overall market.

• Portfolio streamlined through divestitures of non-core businesses, focusing on segments with technology differentiation and strong cash generation.