Integer (ITGR) 2026 KeyBanc Capital Markets Healthcare Forum summary

Management transition and board updates

• CEO transition has been smooth, with continued focus on customer success, operational excellence, and talent development.

• Strategy remains consistent, emphasizing building critical capabilities for customers and evolving focus areas.

• Recent cooperation agreement with Irenic Capital Management led to two new board members, maintaining ongoing board refreshment.

• Seven board members have joined in the past five years, reflecting active governance updates.

• Board size remains unchanged, with new members expected to bring valuable expertise.

Financial guidance and growth outlook

• Three products underperformed adoption expectations, causing headwinds in 2026, but impact is isolated and temporary.

• These products represented just under 6% of 2025 revenue, expected to drop below 2% in 2026.

• Underlying business continues to perform at 4%-6% market growth, with faster-growing segments in neurovascular, structural heart, electrophysiology, and neuromodulation.

• Return to market growth anticipated in the second half of 2026, with above-market growth (200 basis points over market) targeted for 2027.

• New product launches and a strong pipeline are expected to drive performance beyond 2026.

Margin and cost management

• Operating margin faces pressure in Q1 2026 due to fixed cost deleveraging and labor inefficiencies, but sequential improvement is expected throughout the year.

• Disciplined cost management and investments in production systems support margin expansion.

• Input cost volatility is considered immaterial due to U.S.-based supply, price protections, and contract flexibility.

• Long-term objective remains to grow operating income at twice the rate of sales growth, with margin expansion as a priority.