Integer (ITGR) Q2 2026 earnings summary

Executive summary

• Entered into a definitive merger agreement on August 2, 2026, to be acquired by affiliates of KKR for $127 per share in cash, valuing the company at $5.7 billion, pending customary closing conditions and shareholder approval.

• Q2 2026 income from continuing operations was $23.6M ($0.69/diluted share), down from $37.0M ($1.04/diluted share) in Q2 2025; adjusted net income was flat at $55M, and adjusted EPS rose 3% to $1.60.

• Sales declined 2.6% year-over-year in Q2 2026 to $464.1M, with organic sales down 1.5%, driven by lower Cardio & Vascular and Other Markets sales, partially offset by Cardiac Rhythm Management & Neuromodulation growth.

• GAAP operating income fell 42% to $35M; adjusted operating income dropped 10% to $73M.

• No earnings call or webcast will be held for this quarter, and the previously issued financial outlook was withdrawn due to the pending acquisition.

Financial highlights

• Q2 2026 sales: $464.1M, down 2.6% year-over-year; six months: $903.7M, down 1.1%.

• Gross margin for Q2 2026 was 24.3% (down from 27.1% in Q2 2025); gross profit for the quarter was $113M, down from $129M a year ago.

• Operating income for Q2 2026 was $34.5M (7.4% margin), down 41.8% year-over-year; adjusted operating margin was approximately 15.7%.

• Adjusted EBITDA was $95M, down 4% year-over-year; EBITDA margin (GAAP) was 14.6%, adjusted EBITDA margin was 20.5%.

• Cash from operations for six months: $84.4M; cash and equivalents at period end: $21.4M.

Outlook and guidance

• 2026 sales growth expected to be impacted by lower-than-anticipated adoption of three new products, considered highly unusual in magnitude.

• Management expects gross margin to fluctuate due to ongoing cost reduction initiatives and market factors.

• Sufficient liquidity and borrowing capacity projected to meet working capital, debt service, and capital expenditure needs for the next twelve months.

• Previously issued financial outlook withdrawn due to pending acquisition.