ITGR - Earnings call transcript Q4 2024 | Integer Holdings Corporation

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Operator

Hello, and welcome to the Integer Holdings Corporation Fourth Quarter 2024 Earnings Call. [Operator Instructions]. I would now like to turn the conference over to Andrew Senn, Senior Vice President of Strategy, Business Development and Investor Relations.

You may begin.

Andrew Senn

Good morning, everyone. Thank you for joining us, and welcome to Integer's Fourth Quarter 2024 Earnings Conference Call. Joe Executive and Financial Vice are and Executive Officer. today Smith, Diron President me Dziedzic, Chief President Officer; With and Chief new Also Kristen the on Director our joining Relations. of call Investor us Stewart, is

business reminder, continuing have the results Except been exclude reflect for recast a discuss periods measures, operations flow Electrochem for consolidated the data to of the As we consistent and prior GAAP today cash the presentation. Integer with U.S. indicated. results period the amounts

financial non-GAAP some discuss will we call, our measures. During

how your an on then update adjusted of today's and full reconciliation for factors an available today's schedules, refer integer.net. Please and financial to to and then the the please materially. provide For review at our comments and are results fourth Please forward-looking these to measures, Diron earnings full note financial non-GAAP of and Integer's that sustain our appendix results SEC On which come presentation provide that on refer cause year will quarter the followed website will risk we'll the by above-market of the that, growth. XXXX With includes back presentation, open to XXXX call our company's to release Joe remarks, today's our opening press closing our trending today's actual his for will provide Joe. a call, I his differ outlook. filings for will turn year statements. could overview discussion questions. Integer over strategy, will Joe the call of

Joseph Dziedzic

sales XX% both a basis. finished today. for everyone fourth an organic joining quarter, the up Thank call on you, Andrew, to the you year strong with in and Integer and reported growth thank the

double XXXX or For year, income growth. XX% sales the grew adjusted grew over operating Xx rate levels sales digit at of the and XX% full

range, a completed company. of leverage strategic $XX ended the the fourth Electrochem medical with device continue million, year low During to X.Xx executing at end creates adjusted We a EBITDA Integer divestiture our pure-play capacity we the our for which ratio target acquisitions. the of quarter, making tuck-in of

previously have vertical target acquire As our $XXX with range. After XXXX. we These differentiated capabilities margins. definitive for we million agreement signed XXXX announced And acquired our in while Parylene of debt a the and with expanding within integration morning, X XXXX, strategic above this Coating and strong for $XX our we to to expect coating a proprietary we we to January leverage grow further VSi market acquisitions continue million. announced, maintaining Precision

expect X% of adjusted we XXXX, reported grow sales For to to XX%. growth to and operating XX% XX% income

expect above organic market to X%. at sales the growing continue to X% We

North clear a for and our compelling valuation strategy as the we Our continues premium and Star outperform create to market be drive shareholders. our relentlessly to

strategy our We markets on the and line in execute win enable continue optimize strategies we to product to that portfolio us serve.

create a achieve the The our Our taken our model, to the define Integer to we've and in a the fundamentals engage slide of culture. resilient how values defines elements growth our business other. approach articulates industry develop do, that strategy and we with each operational strategy performance we bottom everything we sales how disciplined of and the excellence generate

investors. slide sales profit summarizes X.X X.Xx measurable. valuation points and operating objectives strategy Everything Sales between as to strategy. leverage and premium This Our market, sustained deliver to the twice least the in is a growth anchored financial growth are clear to we outperformance basis our EBITDA. journey do as at and XXX above for this debt company growth ultimately fast

which of as us higher position exit technology planned. our product our shift growth markets. previously differentiation and as business for Our is low proceeding we line, sustained to growth The growth strategies to of announced and limited above-market continue the has Portable portfolio product Medical line mix

the exit fourth last pure-play year, XXXX. October be of of medical quarter we of Medical completed Integer business, In device We in Portable our company. the completed a Electrochem to making expect the divestiture

our services make Consistent organic in labor our an investments From Coating VSi coating our to supply environments signed capabilities we capacity and and capabilities inorganic expanding and to tuck-in agreement continue Precision have margins. have We our formulation pipeline. strategy, execute our enable and with we acquired definitive and strengthening a targeted manufacturing stabilized, to expand our Parylene, our excellence we chain have perspective, initiatives the refocused coating and organization acquisition operational growth. to and that further acquire

Coating As trailing many acquired leveraged anodic are price XXx a XX-month is technologies I consideration, solutions $XXX manufacturer and Coating that surface of coatings, amongst Precision ion laser adjusted high-value a our high-value treatment high-value including These representing and others. This targeted a vertically to contingent the plus we million brings and developer outsourced. previously Electrophysiology acquisition for purchase coating platforms, opportunity neurovascular, fluoropolymer, for markets approximately integrate technology EBITDA. is capability of Precision mentioned, earlier month this widely across such as texturing. applications a

parylene We're sales We VSi the margin VSi to Integer entering complex our announced of expanding an on Parylene, excited further and differentiated approximately targeted in expect million $XX rate. with solutions, We're Coating Precision family. Today, acquire markets. XXX to Precision associates excited welcome the This a across our coating coating Integer welcome accretive into we a contribution will a on devices. talented also full-service Coatings's medical definitive proprietary build capabilities our provider Parylene into acquisition, family. focused to XXXX of primarily transaction services to coating agreement

Technologies, Xx in serve approximately XX-month while our InNeuroCo, $X is pay differentiated the approximately have to and XXXX, or fifth closes, trailing cash in X EBITDA. sales and markets Aran After tuck-in Coating Pulse we to capabilities transaction impact. contribute a the approximately Precision in our Integer's and past Oscor, in expect we the years year stock VSi million VSi to and and position $XX adjusted with million customers. partial to months. represent acquisitions of adding X Parylene expect sixth Together strengthened acquisitions Biomedical, which high-growth We

Pulse to our integrate help further their are execute with business. to to Oscor, our VSi These annualized acquisitions X tracking and as of all contributing I'm strategy chains. acquisitions vertical forward consolidate ahead of and able planned highlight and I accretive synergies. to deal generate on into look Coating original million our that $XXX as supply margins. InNeuroCo, growth Aran, Our Parylene our been our approximately simplify we pleased them we've sales of customers operational to Precision integration models

can several that are acquisitions and we to past the consistently that enhance capabilities our and tuck-in our years, Over have execute growth accretive rate sales we margins. demonstrated profit

our targeted acquisition are we that very the relative disciplined We in remained have and criteria. companies pursue to

cultivate million. million to now robust with continue businesses. to pipeline We founder-led annual privately of owned $XXX and We estimate $XXX relationships a capacity is acquisition our

our confident to supplement organic tuck-in to are continue we with can sales We acquisitions growth. single-digit double-digit high strong deliver growth low total to

be on In the These growth. growth, a executed for have positions pipeline been formed a process our to continue that development strategy XXXX. achieving teams our product organization expand the strategy. our XXXX approach critical teams been focused addition capabilities inorganic strong are to to to have and markets, and aligned and generating sustained to products in disciplined has portfolio and growth above-market We investments our our and shift This in we outperformance. high-growth us market-focused ensure developed will and Integer disciplined structured sustained across to pipeline structured

areas The customers the We customers serve where uniquely phases markets continue bottom our of slide highlight with markets. in and are of investing deep in areas cycle and high-growth capabilities the breadth manufacturing highest our global capacity, all our concentrated greatest footprint development products markets, the across growth our on pipeline the of technology, invest continued need. the the clinical these is to CMD of life products, end and because to in product Integer and vertical the and same is product unmet capabilities integration. positioned investment

technologically the that to Integer companies development is continue of for the of including market, to uniquely are high-growth partners bottom with the breadth of bring of component and our innovation. bring Neuromodulation our offer that Management have development technologies other design also property where manufacturing throughout CRM&N within from while Rhythm to intellectual technology are on design, cycle. invest concentrated. integrating depth the full and Cardiac Neuromodulation Integer paid and to own positioned vertically subsegments able customers our Cardiac innovative to development the product we high-growth offers these fewer in this components slide Rhythm our the even high-volume development is few highlight be differentiated Very and areas pipeline decades service traditional advanced both to We medical customers, most our and and capabilities serve products product capabilities The of Integer Management. customers. also emerging to products, the with the the

life-enhancing to growth. of and the ramp life-saving for the these sustained indicators being products sales introduced manufacturing growth The and enter product and phase, rate benefits products are sales market amount growth. accelerated from As of sales Integer developed the leading above-market the are development market

has designed products. into means Our our new developed are product novel we of and XXXX, being programs pipeline development sales have our since grown our strategy in increased XXX% significantly, which we customers'

We are deliver current to sales sustained continue above-market of development will the level confident that growth.

of our markets. growth development product sales development mature a rate to remaining are our in markets to We basis. opportunities have on high-growth markets strategically with sustainable more target in XX% XX% continued the high-growth accelerate currently in

and the mature to our deliver development mix our We customers sales believe and The in continue of Integer. the our to cycle our is is for the mature long. accelerate appropriate relatively industry while markets XX% benefits balance they growth sustaining rate to products XX% high-growth

level sales to for growth. us sustain development of above-market mix necessary achieve a meaningful to is it So, the product and program milestone

share time focused XXXX. our We for the update therapy We annual in slide are third of the is this quarter emerging PMA new the customers. customers on first primarily call to a are market. our that earnings presented These excited PMA on innovative fifth to single on

programs been of or launch. contributor highlights novel right-hand approximately at The product pipeline the the of of side above-market sales to $XXX generated of for actual either PMA XXXX, success This number we're growth. many products the years, market In our in We came a our investing XXXX, slide key for each side this product in phase have in reflects shows The the advancement of these introduction sales XXXX range left-hand XXXX, in growth with, projected and the therapies. sales and for this million. at these working is XXXX, the above customers process. development customers

we over to X next a X sales rate years. XX% of we the As PMA product XX% emerging to annual expect look compound grow at ahead, our to

this of In customers above-market addition the to and increased phases. have pipeline our growth, clinical in development we

and by of to XXX% organic Prior organic highlighted growth to strategy, customers' sales high-growth which into of an key Integer most markets, executing product and XX% market. get is I our rate is growth confident; starts Integer discussed, These inorganic growth points our development strategy XXX growing which in have strategic is have why and with portfolio implementation market growth we at pipeline As markets. was sales remain of the our above our in products designed have the is product we development organic growth high-growth metrics development, basis deliver strategy. the our about to how focused sustained X%. development reinforce we demonstrated the of

double partner for combined results choice [Break] end we vision investments launched [Technical sales Our in single low grow I'll integrated pipeline the our strategy to now our that generated and breadth fastest-growing turn development strong innovative technologies to our and is Difficulty] Our customers depth organic provider with customer's so serve over in high being and capability, strategy and has we inorganic a have to sustainably significant has This product and our markets. Integer can can XXXX of us accomplish forward. the call vertically medical most acquisition services. customers we producing digit helped digit the The confidence strategy, going in gives Diron. added its of focused better

Diron Smith

to again I'll acquisitions million closer stock million. last strategic market income in full fourth XXXX. of strong an higher income year-over-year XXXX at XXXX up to the few of fluctuations. XX% the $X.XXX We which I adjusted you year C&V fourth-quarter adjusted of first a we earnings point expense year last Compared acquisitions. the operating while sales of the Thank delivering operating $X.XX operating excludes and Integer note, these include a share more a the delivered in share growth year pending the currency adjusted $XXX XXXX quarter adjusted in manufacturing expansion. efficiency of XX.X%, the improved out then higher the adjusted VSi convertible our to versus impact our XX% margin Thank delivered year, Portable moments. $X.XX sales today's are million, $XXX of year. X% closed adjusted rate. both sales increase representing our our driven that improvement reported share, provide basis. earnings color dilution We of acquisition from was $X.XX year-over-year and joining the on outlook in Good prior more taxes, growth on It XX-basis year full-year of million $XX increase by prior earnings the was the million foreign $X quarter, higher compared versus look XX% versus fourth Parylene, CRM&N and quarter mostly adjusted trailing of a price strong improvement, acquisition, delivered adjusted increased or a year-over-year does as note our improvement $X.XX share. on We Adjusted XXXX, growth up a per outlook. and and XXXX strong fourth reflecting XXXX, strong fourth-quarter up you, percent diluted year sales, With EBITDA, performance fourth $XX EBITDA, operating organic interest, Adjusted ago, year, announced Medical grew net income exit continue Joe. foreign make to in net provide a delivered our of XXXX We Xx to progress or ended to XX% year-over-year million compared by our everyone. continued quarter results basis of recent operating our our financial January XX%, we of will a quarter both income, up results Precision income a Pulse the the the year-over-year income full and and million product our line details leverage. organic is Adjusted or not as sales XX% lines. on million sales discussion. an important for from morning, delivered offset growth of is The year-over-year Coating $XXX for growth exchange, and impacted and adjusted $XXX the provide by of billion, prior prior in fourth per realized the up in of sales diluted income or the X% year. around X-quarter of per organically. with adjusted with XXXX $XX net Taking and we XX% of XX% product delivered in year

ramps XX% Electrophysiology year-over-year. was Heart new For growth Rhythm of product INeuroCo in sales from trailing and markets. our Rhythm by was and emerging increased trailing growth C&V increased year-over-year X-quarter and targeted Neuromodulation the Pulse across product with Management. performance customers Cardio Neuromodulation & Cardiac X-quarter This Vascular driven acquisitions. X% line, Structural strong double-digit sales in by driven growth This Management Cardiac low normalized our single-digit and and

increased further XXXX. adjusted website $XX expense respectively. are primarily taxes. on we well our offset integer.net. share. to Strong due performance, partially million the adjusted year. of by XXXX and and per driven Pulse million This For our $XX as million or balance equivalent provide net the at a by To debt acquisitions $X.XX of included operational to full-year and improvements compared than details XXXX late product the by year, incurred InNeuroCo presentation $XX was affected throughout the is $X last exchange in XXXX, as of appendix more interest approximately This in higher higher higher We income to color million, delivered line on sales tax foreign interest Technologies total and early

of of adjusted is expiration execution are in by prior continued inclusive free Pillar XX%, Malaysian to closing a capital. to XXXX generated million per On This the primary by that effective compared to year. million driven doubling fourth XX.X% dilution operations. full fourth to XX.X% residual reduction Europe, in compared higher our is Our a since expenditures. the higher $XXX XXXX a was cash share. tax XXXX. for enacted shares or our rate convertible note the a XXXX adjusted net our was effective cash million rate adjusted working with adjusted this full-year of year the million share generation The from $XX holiday. approximately the of the strong activities, minimum of important XXXX. operational adjusted outstanding. management $XX of prior drivers both tax legislation in primarily to In to our February cash in a rate versus earnings per is price the of impact adjusted the quarter strong in $XX increase tax increase basis, flow, X% X XX% drove tax the It flow higher we of quarter, our and XXXX another We delivered shares improved XX-year stock impacted average income establishing average of the cash flow Integer quarter in outstanding equates a This notes $X.XX year of performance The earnings effective year-over-year adjusted capital of operating and weighted weighted of from due in and

outlook quarter ending $XXX throughout of balance. ended million up $XXX free compared line versus to the $XXX year million XXXX. decrease was a expenditures, $XXX fourth of million quarter third capital Net reflects the XXXX, million, for our of flow in cash at debt a Our total ago, full-year with XX% in which

result, a end of of strategic net X.Xx leverage As at of our X-quarter target which the at of at debt low is the XXXX. fourth X.Xx down was adjusted quarter trailing end our total from and XXXX the the EBITDA, end range

for We to on expanding full-year cash. will The our summarized providing with outlook detail transition more reflects sustained profit, margins. growth outlook, sales, and strategy to deliver above-market now XXXX earlier, as our

range be XX% to X% billion XXXX $X.XXX to of the increase billion, We to expect of in an year. versus last sales $X.XXX

growth X% to underlying X% reflects rate growth to points above of is XXX of organic outlook market estimate X%, Our basis which our X%.

addition In growth. partially X% growth, growth decline The from inorganic acquisitions, from and announced to we a net VSi X% to Precision inorganic Parylene to is previously X% expect approximately of deliver organic our offset Coating the Portable exit. Medical by

Our is between XX% is outlook which million, EBITDA $XXX to for XXXX year-over-year. million XX% growth $XXX adjusted and

interest stock XXX% is outstanding. and and up million. shares adjusted XX%. performance This some EPS than Integer expect is outlook be a to delivers XX%. the growth We dilution between XX% $XX income XX% of growth at XXXX, reflecting income $XXX X.Xx XXXX between price, effective operating between which of and to reflecting rate This adjusted year-over-year outlook. adjusted It which is adjusted million, and rate average net important $XXX an weighted our does drive February and is million, million the million expected growth to be our assumes XX% more Adjusted tax adjusted to an $XXX since $XX in is XX% note expected growth million $XXX sales of of assumes the between XX%, between our and of expense midpoint to to strong $X.XX XX% $X.XX,

XX.X Year-over-year, at outstanding Our estimated the quarter first X% XXXX, an million or expected represents notes. full the average year shares and $X.XX of dilution XX.X reflecting approximately outstanding that the EPS shares midpoint. dilution the adjusted EPS outlook includes weighted for convertible approximately from million for

from XX% X% growth confidence ended to the of continues million, Medical million a outlook with and of sales the Portable strong acquisitions growth of which million, pre-pandemic announced of by to XXXX us XXXX $XX from XXXX above $XXX earlier, approximately inorganic by exit, XXXX. We inclusive to level is previously which of decline is of giving an XXXX offset discussed our the sales million VSi approximate Parylene expected Precision Our sales in we end backlog be $XX approximately complete outlook. be $XXX the

while improve. previously, capacity nearly to Medical shared fully we further normalize normalize the our As continue We pre-pandemic last-time lead fulfill Irish we level. Portable expansion, expected remaining complete as Xx to times as buys and throughout anticipate the backlog the backlog the to XXXX

We in X%, XXXX. approximate the growth Medical to expected to from quarter growth sales XXXX to first of to first of year expect quarter fewer is growth XXXX the the days recent approximately working reported X% XXXX sales. declining the quarter of the the rate sales sales of be by first X% full less in Most largely of the versus quarter XX%, first acquisitions Portable organic are sales offset as due

operating to adjusted outlook, would expect as cash I We manufacturing XXXX. our net expense total efficiencies debt throughout improved our projections flow a from Shifting percent and operating cash to XXXX expand like and income our sales leverage. of generation summarize XXXX to for

represents We cash million, $XXX which XX% increase midpoint at million a operations outlook. to of between from flow $XXX year-over-year expect

capital for continue capabilities million million $XXX is we capacity. outlook $XXX invest Our to to as and in expenditures

pending and the Coating acquisition we $XX a we the between to and to $X.XXX year-over-year. to Precision million cash million. of million million debt between generate which the and billion, free expect billion expect be million $XXX total year-end is acquisitions net Parylene, our approximate VSi up $XXX $XXX As of $X.XXX of for Inclusive result, flow XXXX $XX

ratio the We With end back to Thank within adjusted that, year the call our trailing target EBITDA. of you. our leverage expect X.Xx with to to turn X.X range X-quarter Joe. I'll

Joseph Dziedzic

the In X delivered Thank XX% full grown XXXX very a by sales sales operating adjusted we income with adjusted last operating Diron. year increased and XX% have XX% up over strong improving We and income by years, you, XXXX. XX%.

margins. of to XXXX continue our producing increase premium on shareholders. with executing a to our an demonstrate for organically with an XX% strategy sales X% remain outlook strategy, expanding XX% performance growth both strong to to this to is as XX% expect We and of growth The adjusted We results our above-market income. execution into sales in and valuation we create focused continue inorganically operating

turn the to over the call now call. for will Q&A portion the We of our moderator

Operator

Instructions] Your comes from Fishbin Markets. [Operator with Brett Capital question KeyBanc first

Brett Fishbin

wanted of some from Cardio in growing moving the little guidance a segment start & deceleration bit pieces. the low to XXXX. the the to Just on range off XXXX. XXXX We little really double-digit On in saw segment on Vascular, bit was a of

was So, I not, were see if return for back curious to well? couple seeing different if a just potential if years low in double-digit from you ago? if And XXXX go that's you a things range that of there's anything holding you what

Joseph Dziedzic

question. the for thanks Brett,

So actually on double guidance low yes, slide to on expect year-over-year XXXX we Cardiovascular for in the the Cardiovascular, some we a sales grow digit provided the product basis. line that on appendix

we our strong very various success of we very do finished the side Cardiovascular strong expected, back saw And given high-growth continue in markets. we year PMA. Rhythm the have growth Cardiac And its XXXX. the for half absolutely of that's expect on year, to into CRM half low to and, baked digits, more of normalize the Neuromodulation single going in forward Management, targeted emerging So, the what and we have as second especially business, to the on the second traditional

Brett Fishbin

at the parties? asset both bit sense. give the right you maybe an lot how hoping Coating, deal. of it Yes, and just time been this why was looking could together, background long And for you've little then a deal came interesting seems think makes on I specific Precision on a was like of how you

Joseph Dziedzic

in and had we try we of kind we've fit to strategy. and question. on of happen targeted capability and process the We've growth how then our high-growth list and may off and I a built where we're for manufacturing our build that. in would We strategy great know created most part the into or time. a our we've customers' is and timing think organically so And ready, that's our then buyer, identified different see shift a seller most as And the time. and capability the a of to we're ready analysis, trying capability is designed a value where We've capitalize back And sellers seller that all think do company or of market, perspective. getting technology a it's strategy behind in outside we we part for on when who very into very are point systematically that like a this in for know what acquisitions. case, the is Yes, highest like the those that story been they know-how culture do that players have XXXX acquisitions our what way long relationships so And of And deals, both we we those of our to XXXX, that monitoring you we Ideally, markets, And because our and and did road our to be inorganically. market to in as many wait we the important to ready. and checking part do our understand strategy. Certainly. is from products. long getting the coatings been most about talked map, and your those to development to

So, for is a studying really together monitoring time excited. case, long we've to been time. opportunities were same we in to coatings-as-a-service that X this and a know around have and We're segment fortunate and the the getting came players,

they products We coatings themselves, coatings. depth formulate do And people's other differentiated they service. coatings a the we Parylene and manufacture. have is and of and that in products proprietary coatings great very quote VSi What does Precision also as for applications

capabilities and customers, and so, now again, with as adds proprietary capabilities integrating coating differentiated the service. And our proprietary a we see this compounds that helping the offering as step great our and towards vertically have, formulations but a differentiated the offering we

look we're Parylene to and and Precision leveraging our Coating the the excited to welcome in relationships family by And their deep we customers growth to currently and so, industry with. the forward both Integer support that VSi all accelerating products

Brett Fishbin

then last the one for me. And right. All

of your some your hoping continued just particularly I in Just given help the this Mexico, was in could on frame tariffs, there. given just exposure footprint you uncertainty and area,

Joseph Dziedzic

tariff structure that Certainly. if a knew what uncertainty. is you the Well, of nailed mean the how the going will I be, you tariffs exceptions it, be life-saving, on if you life-enhancing going to would you value portion. Obviously, what there to it add in Maquiladoras. then it, I anything administration bring it be device then Maquiladoras it's only Mexico, pay the topic process for prior administration. will it the tariffs tariffs, there the impact the current you to which or experience tax and structure in going like knew the take industry current the going value-added and to there's devices in Mexico the be, structure out and to environment, our or are into from in with what be, unclear operations I Will prior Maquiladoras the back and were were material medical tariffs it's are

to necessary be going the tariffs how the it is what tariffs and we're some I'll operational our disposal. there we're ourselves reinforce, and until at quantify So the won't though to mitigation right customers. as going the are this for plans the But exceptions implemented have point, impact point and impact implementing our of will structure, be of at will in possible not be are changes operate But structure now, ultimately as some are, at we to at both operating the it's to Maquiladoras time, our the what really or tariffs we it that tariffs implementing know minimize view implemented, the though we're to be we're going and time.

Operator

from with comes Craig next question Bijou Bank of America. The

Craig Bijou

your C&V, ask line in XX% to expectations for on follow-up I want the trend growth QX, in 'XX. look the at QX. and trailing it for growth XX% X-quarter was a C&V If I maybe

nice growth. saw You in QX a acceleration actual the

So, with some like that growth those EP of underlying structural it accelerate. markets, the to markets heart, the seems high-growth those continue serving you're in of markets and

markets your we of growth So, to versus be serving as why expecting? low markets? I question about that the I maintain you're how closer the those double digits markets other some should couldn't And guess you the C&V faster as fast is, growth target not within versus C&V guess, you're growing contribution from may think the that that mid-teens

Joseph Dziedzic

Craig. question, Great. Great you. Thank

So, we aggregate big in Structural markets. Cardiovascular Heart, and meaningfully underlying to in those still outgrowing the and Electrophysiology to from growth are those especially We're see and strong expect market continue contributors. do in

X.X% double we've pointing into the double-digit range above for year points Cardiovascular X%. targeting for deliver growth guidance ended We is the our be the I'd organic XXXX of above-market to in growth. the that creep X% total. of you're goal so, given could basis XXX full to say growth, least low the to. to area up What to is of kind And the continue organic of on at market. growth organic in guidance has beginning XXXX We at gave We're a that digit. range at year in up Low

that to markets As faster-growing to those guiding we be contributors going driving XXXX, We're look make we underlying you're growth. of are big and number that. course, we're to X% as that organic at can to referencing a as big X% to

So, expect emerging and a PMA will CME the growing keep to digits also strong we strong in manner, very continue double grow. customers to do

markets the So, always we're of the ultimately strategic we're and with excited delivering and about the to products goal that double-digit outgrow line introducing on supplement margins. our continue products with side on the with basis and organic that low expanding single-digit, then high tuck-ins expect to top we're on the an new acquisition

Craig Bijou

on helpful. tariff to That's I'm Got bit And I push the little impact. apologize, it. going but Joe, a Mexico you

investors what determined. be value-add are then what component actual is understand piece to yet just tariff and of, there's is to or that the that the of the think I uncertainty is understanding So, trying exposure

from any frame is the Even of way U.S.? have help that there, percentage or employees Anything still of of can exposure, amount there's that the percentage direct investors around can some you understanding say that uncertainty come potential into lot that in Mexico of it. of know sales you you terms filings, in recognizing there assets. to long-lived general have your a So, some I

Joseph Dziedzic

the the Without customers' tariffs, hard of I our products over changes. the potential quantify the the being can we is, reality ship the manufacturing manufacture What say structure this, change, the tariff number. it all all then any underlying And over really assumptions to really, about is and we specifics the as specific world, tariffs granular world. number plants the of Yes. and on it's a and to

Mexico, And is California, over so, our in plants customers' Rica, Galloway Costa wherever in Puerto manufacturing hubs customers, Rico, Ireland, Northeast all U.S., are. Asia. product you shipping of in the every to one the Minneapolis, Southeast some our manufacturing has our plants world the you know And the know in industry

The manufacturing our of industry that global. manufacture products go of to majority we customers' they globe. go over one the footprint manufacturing so vast the plants, So, is all the

implemented, country we've any minimize of We're some plans be, analysis you could So, what the that operations be in the it do changing where of there's more myriad because as put potential certainty mitigate requires number and to one it And to that any on uncertain at our changes ships any though point, that plants, seem because a number or it to credible regularly. tariffs should be really to mitigation of shipping. we're shipping we and a will putting tariffs of assume done place. a have operating are at implementing our look on everything one until wouldn't And impact to variables not about tariffs. We're logistics be destinations.

Operator

from comes question next Sandler. The with Matthew Piper O'Brien

Matthew O'Brien

acquisition to on to the follow bit side. little the up question, on start Maybe just first with a

areas for you What new on the or there rest of of these that to push areas. technologies applications from effect in about coating business other kind already going seeing or new top talk can bit these just a the little these Neurovascular fast have, Just in you that's you're of you into? growth EP what applications halo get

Joseph Dziedzic

Certainly.

So, it's coatings-as-a-service.

tends and to products. giving early customers with an visibility what working think And outsourced on products something the means designing And at customers process. to and are engaging so, it they're developing the look be we very have of in it's primarily us process, is that that to process the in early and about because this is

chain by service allowing and offer the we us already a in offer like to application coat what see the process, us manufacture today industry. use expand what today. are as that earlier as to as involved now coatings-as-a-service simplify done processes we allowing integrating really that where service can to most the a allowing and coating we products be or and manufacture do customer what and So, of products we we this our for the do, that supply coatings We vertically take in to us the we in addition

have coatings a deep expertise as So, in process. today we

but coatings. thing us other end some products The get today, to that this we into faster-growing of allows markets are have in maybe that require the that other don't

but so, making And where the can today, We service markets a a this tap markets. that faster-growing maybe faster-growing on coating in to listed aren't participate slide. service us allows end of end into product those those summary couple we is the those

first-mover we to think allow beneficial market to about service a help and simplifying again, suppliers gain is go customers their the growth both fastest of we in earlier So, allowing our with the the to with allows it's more us. to as to work and is engage that see and faster that us get deeply fewer them allows products this us us where that advantage. And and them process to chain supply

Matthew O'Brien

think then a Galway bit Appreciate manufacturing a and your a in new as might though, big and but customers this running. that's mentioned a you Obviously, follow-up, a be little And up of have of now wondering benefit stretch that. facility of if one headwind. out one facility of you're area your big a that facility for growth potentially I new customers just or to an expecting of. manufacturing It's that I'm if it's lot from they're going there. a

over benefit years. kind of wondering just what couple the Integer next of that I'm So, might see from

Joseph Dziedzic

be the a X% I'd we're their had continue But the and we're markets really guidance our that it organic gives organic don't customers and us you able all give programs with about X.X% an on that we're organic launching the they're the growth that on and that new growth products to us that on supports X% in of to delivered outgrow products XXXX for customers confidence the love basis. going talking our doing. to that list want to to XXXX, we things

to the guidance. grow do work we're deliver we development so, making the can tuck-in that organic work focused acquisitions the development we that our growth And the that growing sure on and and we've continue included on to continuing and in

a brand-new the the closing is in any maybe consolidation And Galway. Greenfield built point benefit facility we so from in industry. We

to that's and facility built new going think to big operation in together Galway, smaller happening whole want a a capacity. Galway We amount out have a to of because co-develop work in completely development the Galway in of over our we physically time. We contributor that's that's customers growth and be of

you. X% I our the in so, we year. could X% wish And with we're organic aware about factored XX% we're environment excited But for share in think into it's this the that's guidance. X% them anything that growth XXXX the it, And programs we're is and to that, of in strong happening to outlook on. more like with I detail industry, a

Operator

next with Securities. Newitter question comes Richard from The Truist

Richard Newitter

quarter. curious if out call bit in to or performance our gross our versus And despite shy of the came there? at baked we I'm better could least. gross improving what's and the talk expectations 'XX It think margin into forecast on not wondering gross in trend little fourth moving to basis should Anything target? a margin Just a you margin margin revenue that XX about how standpoint operating your the expansion or point in into into

Joseph Dziedzic

question. Rich, Great. thanks for the

this few call, year quarter. the of I actually there all people the like We've landed We with, And growth into our a We weeks in for organic asking, sales know growth. So quarter, big guidance. that's step-up what were to. X organic what is let guided we we me we're already the is. had planning wow, which exactly hey, long. demand land start the pretty we know right third said, at And quarter on been fourth XX% midpoint a in customers'

profit little start I'll delivered the with, very of quarter, growth so, our And XX% at a right midpoint in was better. we strong guidance. the organic Operating

emerging And the but in little very versus we of were folks different might to income be we significant point statement had had the PMA quarter. customers we a in end expecting, the thing And some it We with ramps the range high know look to what provided. were actuals that is what at highlighted product line were that the was going highlighted we in expecting. the I'll geography of our so, I that much new the

may range. the that came in have on high we slide of seen slightly the You end the above

had growth launch. we other and that we So, strong continue to there products new

we the work the out we're get of lot hire which some launch either more and of a growth, of inefficiencies of quarter, take growth with what's a always you So, It XXXX. of people, a programs preparing have those that up for fueling of there's few us periods. quarters you given a some amount organic to is new train part balanced the load inefficiencies level until to may resources those ramp we during because of people, to what when happens lot lot have in any that's X% X% lines to a in

So, summarize programs. of we growth, weren't surprised organic lot new it, as it by would that. XX% a maybe I characterize

they're proficient do those the what as and phases. XX% we'll which doing. balanced organic And to continue processes. building products. improve associates is ramp, got got early lines when problem more new lots new trained. you become we great They're people, it's to as growth associates and And proficient what at in to have you've with the the get them hire volumes efficient, do, level always more of loaded You a not become

Richard Newitter

was it year-over-year? can think margin how think just because you gross Maybe operating a we with I that efficiency sound direction and line ballpark in basis expectations. Okay. Should margin 'XX margin getting 'XX, like should it transient, gross there with to year us above Just guess some in issued the the should how improvement your roughly of of and It direction? were about sounds full a gross directionally you we below? 'XX just guidance, productivity margin give down. be how on line came things the you're

Joseph Dziedzic

Sure.

is. want areas improvement margins the start the operating to as profit costs in business. operating fast system, our the as our overall grow sales our we that's think manufacturing of because then a with all We excellence, leverage. fast growing want about don't our I'll strategy of driving continuous maybe twice culture some gross And production operating we We So sales. Integer as want way of from as contribution

to every year. expect leverage we get So, operating

margins. XX%, from basis cost and great there, In upon We that had gross the operating points products and expect year expansion. margin that's and We gross it what margins think a came implement from sales to continuous XX% any basis XXXX, leverage we year, our expansion launching expansion gross XXX given will and every operating margin get from improvement, and expect with margin depending operating leverage. we much XXX what how up in we operating points we're operating programs fast year. from vary introducing basis profit up of comes And how from of XX we're year-to-year points

into continue our cost year. next to lower line as the expect year, doing next But more would work we we the that development sales As RD&E grow RD&E item. will we look we're

a the be would nominally little expect well basis, year-over-year below to growth So, rate to We'd we at on than a less sales. of RD&E but higher expect it the sales grow rate.

we line the bring and company, We something expect in to SG&A, leverage grow would we'll The sales SG&A with more to SG&A work overall across expect the be in sales. always SG&A some closer our acquisitions infrastructure rate. to to continuing on but

margin gross wish was and a we'll go-forward basis. that get continuing then gross But leverage would while to to across expansion linear. expect the always I it going it our year. to we expansion, get is some margin of perfectly some vary mix OpEx on so, And

Operator

Treybeck Wells question comes next from The Nathan with Fargo.

Nathan Treybeck

feel whether called to ramp Medtronic that? is NCD. Recore? a it comfortable expect And have target you its disclose slide following supply it's final significant you'll Can Your growth in Denervation the are out both what deck market. you product? further, And capacity Denervation Do a manufacturing, Renal you and or we working Renal as with you're components

Joseph Dziedzic

it's visibility We're as give excited you more a I well. all about patients. for that And I We the our core and look, We're capabilities, capability. on. to business incredibly exciting very, and our potential terms the we're leveraging We, and leverages in programs really helping our well. could lot in in And working help we've I participate both if bit getting we're Ablation an really to you it's a the and excited have Catheters, Catheters. helping more lately. on customers it opportunity see and think and the like capabilities time. It's the the it's market growing patients individual all it space and more Diagnostic this a a wish been mean, well of with businesses. in we're think Yes. a we core list customers this that fits the long patients of for our huge end participate helping We of market, very Electrophysiology

Nathan Treybeck

XX% so now about X- a talk be at year and a to growth? Okay. expect we your you this And the that you Can to this sequencing follow-up, as to have growth? above next X-year below or the portfolio Should outlook XX% line, after for in TMA CAGR. year a of

Joseph Dziedzic

was XX%. pivot XX% it characterized part would, companies serving We've what did linear. We some as ago wish business think the at there. a We to perfectly was could we reason nice portfolio the gone to launch question. we've $XXX that I market. of million. of and in still portfolio of X-year the increments that was rounding to the mean thing we launch, have which Xx from We great is is well at market error that Yes, closer $XX products, were awesome. say It I inventory. lumpiness the to loading above we're of X I is programs that love initial they The showing the is years can a million growing

different number have with there's development there perfectly it don't slide we're I'll there. because you because launch. of the a phases the the what it on if think And more the will little deck, product highlight look and a in of working So, that customers we've got in is rate business launches. the will base be growth linear of to that particular in I predictability be now will continue

customers Here's what had the XX quarter XXXX, working X first time we slide, In were I'll highlight. with of third showed this those across the we we phases.

Now XX. we have

revenues grown we've that chart we grow, our development of Last to XXX% strategy. highlighted So, launched as our since continuing that year, XXX%. we and part said

little So, that to you million would work. that to getting We're linear at some because more had the continue We're pipeline of RD&E still is been, item lumpiness accelerated rate, growing there excited $XXX just an which be line we're because to at Xx it the product And we but be of the see rate. lower helps launches. than expect that about market paid portfolio will we for what about of nature a grow customers. excited it

Operator

with Kalia The next question from comes Oppenheimer. Suraj

Suraj Kalia

for question one Joe, and one So you Diron. for

this. maybe So, doing something Diron, wrong, me I'm you, first forgive for and please on

push forth And and somewhere. there out you close and right, screwing strip that Maybe I the you look reported, XXXX. in I math morning, know X,XXX certainly mentioned and and to you growth lot X% help been at X% acquisitions it math. our even are reconcile roughly have this Coating getting know And Precision announced versus up guys. that is other Diron, you, so Joe, asked So, your and guide to so getting I'm if is Renal if doing one X,XXX on X questions about or X% I this organic us of CRM somewhere focus for done Can core on tricuspid that could announced the I were therapies. EP from the I'm Denervation. we on transcatheter I to as a lower the LSD you a and that cases the end.

XXXX, how enter us outlook? on Any are give additional terms can manufacturing be you would As of appreciated. some you you guidepost thinking in color greatly

Diron Smith

the announced inorganic have on of you just market XXXX the in piece what look and is we XXXX. effect Portable versus the at its back growth Medical exit on Suraj, calculation, to the that Yes,

to down is versus Medical Portable we 'XX, you million $XX about 'XX. million of 'XX 'XX, sales year-over-year the in the out and that back need had in $XX So,

Portable able So, where and adjust to when you'll the that's 'XX X% exclude Medical, you growth. X% organic calculate 'XX to in to be

Operator

closing call This question-and-answer the Andrew I'll concludes the to turn session. for remarks.

Joseph Dziedzic

Yes.

on than heart. and Structural have the serve Let than Heart. X.Xx accelerate but what about answer programs, strong into the that on overall prepared as we're we were in to start call; get they feel individual in development support customers really in last you market Heart, or growing other continue new to question with; Structural said to we're a market We if was part than introduce just market those I'd Suraj's pipeline X.Xx we our me the products structural I'll like and and programs, well love well continue or that of were specifics feel as positioned faster asking. outgrow faster we that ramp that to

growth So, excited drivers Structural our delivering as multiple that growth. in market Heart of on about we're the organic one

Operator

the to concludes call remarks. turn session. I'll closing question-and-answer for the This Andrew

Andrew Senn

the for call today. you, Okay. joining everyone, Great. Thank

on concludes in of replay presentation for and As and always, access interest Thank the can you call. Integer, you that our call the our the your website.

Operator

for call. conference joining. This you concludes today's Thank

disconnect. now may You

Integer (ITGR) 20 Feb 252024 Q4 Earnings call transcript