Integer (ITGR) KeyBanc Annual Health Care Forum 2025 summary

Growth outlook and guidance

• Organic growth guidance for 2025 is set at 6%-8%, targeting at least 200 basis points above the estimated 4%-6% market growth rate.

• New product launches and customer innovation are key drivers for achieving the higher end of the growth range.

• First half 2025 sales growth will be lower due to the Portable Medical exit, with stronger growth expected in the second half.

• First quarter 2025 faces a calendar headwind from fewer manufacturing days, impacting reported growth.

• The company expects to deliver 6%-8% organic growth again in 2025, consistent with its strategic objectives.

Profitability and margin expansion

• Adjusted operating income is projected to grow 11%-16%, below the target of doubling sales growth due to ongoing investments.

• Margin expansion is expected from manufacturing efficiencies and leverage on SG&A and R&D.

• Unique business model allows for increased R&D activity with lower reported R&D expenses, as customers fund development work.

• Investments in acquisition and integration are ongoing to support long-term strategy.

• The goal remains to drive profit growth at twice the rate of sales over time.

Tariffs and external impacts

• Estimated 2025 pre-tax income impact from tariffs is $1-$5 million, mainly from Mexico operations.

• Operational changes have been implemented to mitigate tariff effects, with the goal to reduce impact to zero.

• USMCA exemptions cover a significant portion of Mexican production, and the $1-$5 million estimate incorporates current trade agreements.

• Tariff impact is considered manageable within the $16 million operating income guidance range.