Key Highlights

  • Sales of USD 449.66 million fell 3.9% year over year and missed the consensus estimate of USD 456.91 million.
  • EPS of USD 1.34 trailed the consensus estimate of USD 1.68, while GAAP continuing EPS was USD 0.43.
  • Gross Margin dropped to 22.6% from 27.0%, and Operating Income halved to USD 28.2 million.
  • Nine month operating cash of USD 121.1 million funded USD 67.2 million of capex and USD 50.0 million of buybacks.

Integer Holdings Corporation (NYSE:ITGR) reported third quarter 2026 sales of USD 449.66 million, down 3.9% from USD 467.69 million a year earlier and below the consensus estimate of USD 456.91 million. Earnings Per Share of USD 1.34 fell short of the consensus estimate of USD 1.68. GAAP Diluted Earnings per Share from continuing operations were USD 0.43 compared with USD 1.11 a year earlier, as income from continuing operations fell 62.3% to USD 15.0 million.

On August 2, 2026 the company agreed to be acquired by affiliates of Investment funds managed by Kohlberg Kravis Roberts for USD 127 per share in cash. Stockholders approved the transaction, the antitrust Waiting Period ended early on September 29, 2026, and the company anticipates closing by the end of 2026.

Product Line Detail and Margin Pressure

Cardio and Vascular sales fell 5.1% to USD 263.1 million, partly because two new Electrophysiology products saw lower than anticipated market adoption. Other Markets sales dropped 49.7% to USD 10.8 million, while Cardiac Rhythm Management and Neuromodulation sales rose 3.9% to USD 175.8 million. Lower than anticipated adoption of three new products weighed on quarterly sales.

Gross profit fell USD 24.6 million to USD 101.6 million, a margin of 22.6% against 27.0%, driven by lower Fixed Cost absorption on reduced production volumes and raw material price inflation. Operating expenses rose 5.2% to USD 73.4 million, led by selling, general and administrative costs of USD 54.1 million and research, development and engineering spending of USD 13.5 million, up 23.6%. Operating Margin was 6.3% against 12.1%, and restructuring and other charges eased to USD 5.7 million from USD 8.3 million.

Cash Flow, Debt and Risk Disclosures

For the first nine months, net cash from Operating Activities was USD 121.1 million, down from USD 140.7 million. The company spent USD 67.2 million on property, plant and equipment, repurchased USD 50.0 million of common stock, and made a USD 14.0 million investment in a convertible debt instrument. Net borrowings on the revolving Credit Facility added USD 30.0 million, and cash stood at USD 14.1 million against USD 17.2 million at the end of 2025.

Interest expense was USD 9.7 million for the quarter, up USD 0.3 million on a higher average debt balance. The effective tax rate was 14.5% against 13.7%. Risks cited include Supply chain disruption, inflation, tariffs and trade barriers, and the company said it can adjust its cost structure and Working Capital if Revenue weakens.

Signposts for the Fourth Quarter

Several figures frame the next report. Gross margin of 22.6% compares with 23.9% for the nine months, so the path of fixed cost absorption and raw material costs is a central variable. Cardio and Vascular sales, at USD 263.1 million for the quarter, depend on how the two Electrophysiology products and the broader group of three new products gain adoption.

Balance sheet items also matter: working capital of USD 600.3 million and a current ratio of 3.98, inventories of USD 278.6 million against USD 253.7 million at year end, and revolver activity of USD 221.0 million drawn and USD 191.0 million repaid year to date. The 2028 convertible notes become freely convertible on November 15, 2027.