Integer (ITGR) Oppenheimer 36th Annual Healthcare MedTech & Services Conference summary

Strategic direction and business fundamentals

• Leadership remains committed to the current strategy, emphasizing value creation through design, development, and manufacturing partnerships that accelerate customer product launches.

• Growth will be driven by expanding critical capabilities both organically and via tuck-in M&A, with a robust acquisition pipeline and $700 million invested since 2021.

• The business is resilient to macroeconomic shocks, with minimal direct exposure to Middle East tensions and a primarily U.S.-based supply chain.

• No structural changes are planned in response to recent product-specific headwinds, as these are attributed to lower-than-expected market adoption rather than customer or competitive losses.

• The underlying business is expected to grow 4%-6%, in line with market rates, with above-market growth targeted for 2027.

Market outlook and product pipeline

• Three products will create a $70 million headwind in 2026 due to slower adoption, but normalization and growth are expected in H2 2026 and 2027, supported by new product launches.

• The electrophysiology (EP) segment is projected to grow at double digits, with the rest of the EP portfolio expected to perform strongly even after excluding two headwind products.

• 80% of the pipeline is focused on faster-growing markets such as EP, structural heart, neurovascular, and neuromodulation.

• The emerging PMA customer segment has grown from $10 million in 2018 to $125 million in 2024, with a projected 15%-20% CAGR over the next 3-5 years.

Financial performance and capital allocation

• Operating margin compression is expected in Q1 due to lower sales and fixed cost deleveraging, but sequential margin improvement is anticipated throughout the year.

• Capital allocation prioritizes organic investment and tuck-in acquisitions, with share repurchases considered opportunistically after these priorities.

• The company maintains a leverage ratio of 2.5x-3.5x, providing capacity for future acquisitions.