Integer (ITGR) Q1 2025 earnings summary

Executive summary

• Q1 2025 sales rose 7% year-over-year to $437 million, with organic growth of 6% and strong demand from new product ramps and acquisitions.

• Adjusted operating income increased 14% to $71 million; adjusted net income up 19% to $46 million; adjusted EPS grew 15% to $1.31.

• GAAP net loss from continuing operations was $22.5 million, or $(0.66) per share, due to a $46.7 million debt conversion inducement expense.

• CEO succession announced: Payman Khales to become CEO in October 2025, with Joseph Dziedzic staying as advisor through March 2026.

• Completed acquisitions of Precision Coating and VSi Parylene, expanding proprietary coating capabilities.

Financial highlights

• Q1 2025 sales reached $437 million, up 7% reported and 6% organic year-over-year; adjusted EBITDA was $92 million, up 14%.

• Adjusted net income was $46 million, up 19% year-over-year; adjusted EPS was $1.31, up from $1.14 in Q1 2024.

• Free cash flow improved to $6 million, up $12 million from prior year; cash flow from operations was $31 million, up 35%.

• Net total debt at quarter-end was $1.23 billion, with leverage ratio at 3.3x trailing four-quarter adjusted EBITDA.

• Capex spending in Q1 2025 was $25 million; 2025 capital expenditures expected at $110–$120 million.

Outlook and guidance

• 2025 sales outlook: $1.846–$1.88 billion, up 8–10% reported and 6–8% organic.

• Adjusted EBITDA guidance: $401–$422 million (11–17% growth); adjusted operating income: $315–$331 million (11–16% growth).

• Adjusted net income outlook raised to $218–$231 million (19–26% growth); adjusted EPS outlook raised to $6.15–$6.51, up 16–23%.

• Free cash flow guidance increased to $120–$140 million for 2025, up 20–40% year-over-year.

• Leverage ratio targeted at 2.5x–3.5x; adjusted effective tax rate expected at 19–21%.