ITGRMEDIUM SIGNALOPERATIONAL10-K

Integer Holdings strengthened its market position through the Biocoat acquisition while completing its strategic exit from non-medical segments, though execution challenges are evident in deteriorating profitability metrics.

The company has successfully transformed into a pure-play medical device CDMO with enhanced surface coating capabilities through the Biocoat acquisition. However, the strategic repositioning comes with near-term execution risks as evidenced by declining net income and rising interest expenses, suggesting investors should monitor whether the operational improvements can offset the increased financial leverage.

Comparing 2026-02-23 vs 2025-02-20View on EDGAR →
FINANCIAL ANALYSIS

The financial picture reflects a company in strategic transition with mixed results - while total assets grew 10.8% and accounts receivable surged 41.1% indicating business expansion, profitability declined with net income falling 14.3% and interest expense jumping 38.1%. The dramatic 63.1% drop in cash combined with a 19.7% increase in total debt signals the company is funding its growth strategy and acquisitions through increased leverage, creating both opportunity for enhanced returns and elevated financial risk that requires careful monitoring.

FINANCIAL STATEMENT CHANGES
Cash & Equivalents
Balance Sheet
-63.1%
$46.5M→$17.2M

Cash declined 63.1% — significant cash burn or deployment; verify adequacy of remaining liquidity runway.

Accounts Receivable
Balance Sheet
+41.1%
$245.3M→$346.1M

Receivables surged 41.1% — revenue recognized but not yet collected; watch for collection issues or channel stuffing.

Interest Expense
P&L
+38.1%
$38.6M→$53.4M

Interest expense surged 38.1% — significant debt increase or rising rates materially impacting earnings.

Total Debt
Balance Sheet
+19.7%
$990.2M→$1.2B

Debt rose 19.7% — additional borrowing for investment or operations; monitor coverage ratios.

Current Assets
Balance Sheet
+14.7%
$671.1M→$770.1M

Current assets grew 14.7% — improving short-term liquidity or inventory/receivables build.

Net Income
P&L
-14.3%
$119.9M→$102.8M

Net income declined 14.3% — review whether driven by operations, interest costs, or non-recurring items.

SG&A Expense
P&L
+14.3%
$185.2M→$211.7M

SG&A increased modestly — likely reflects growth-related hiring or sales expansion investment.

Total Liabilities
Balance Sheet
+14.1%
$1.5B→$1.7B

Liabilities increased 14.1% — monitor debt-to-equity ratio and interest coverage.

Total Assets
Balance Sheet
+10.8%
$3.1B→$3.4B

Asset base grew 10.8% — expansion through organic growth, acquisitions, or capital deployment.

LANGUAGE CHANGES
NEW — 2026-02-23
PRIOR — 2025-02-20
ADDED
BUSINESS OVERVIEW Integer Holdings Corporation, headquartered in Plano, Texas, is one of the world s largest medical device contract development and manufacturing organizations ( CDMOs ), serving the Cardio and Vascular, Neuromodulation, and Cardiac Rhythm Management markets.
As a strategic partner of choice, we advance the goals of our medical device customers through industry-leading engineering and manufacturing, with a relentless commitment to quality, service, and innovation.
Our primary customers include large, multi-national original equipment manufacturers ( OEMs ) and their affiliated subsidiaries.
Our Acquisitions The following is a summary of our acquisitions since the beginning of 2025.
On December 4, 2025, we acquired certain assets of Biocoat Incorporated ( Biocoat ).
Prior to the acquisition, Biocoat was a privately-held manufacturer specializing in high value surface coating technology platforms, including UV and thermal cure hydrophilic coatings.
On February 28, 2025, we acquired substantially all of the assets and assumed certain liabilities of Vertical Solutions, Inc., d/b/a VSi Parylene ( VSi ).
Prior to the acquisition, VSi was a privately-held full-service provider of parylene coating solutions, primarily focused on complex medical device applications.
On January 7, 2025, we acquired substantially all of the assets and assumed certain liabilities of certain subsidiaries of Katahdin Industries, Inc., including its main operating subsidiary, Precision Coating LLC (collectively Precision ).
Prior to the acquisition, Precision was a privately-held manufacturer specializing in high value surface coating technology platforms, including fluoropolymer, anodic coatings, ion treatment solutions and laser processing.
REMOVED
BUSINESS OVERVIEW Integer Holdings Corporation, headquartered in Plano, Texas, is among the world s largest medical device contract development and manufacturing organizations in the world, serving the cardiac rhythm management, neuromodulation, and cardio and vascular markets.
As a strategic partner of choice to medical device companies and original equipment manufacturers ( OEMs ), we are committed to enhancing the lives of patients worldwide by providing innovative, high-quality products and solutions.
Our primary customers include large, multi-national OEMs and their affiliated subsidiaries.
We exited our legacy non-Medical reportable operating segment, Electrochem, in the fourth quarter of 2024 and expect to complete the exit of our Portable Medical business, announced in early 2022, by the end of 2026.
During the fourth quarter of 2024, we began referring to our Advanced Surgical, Orthopedics Portable Medical product line as the Other Markets product line, to better capture the evolving nature of our products and ongoing strategic focus.
The name change has no impact on financial information previously reported.
Our Acquisitions and Divestitures On October 31, 2024, we completed the sale of our wholly-owned subsidiary Electrochem Solutions, Inc.
( Electrochem ), which focused on nonmedical applications for the energy, military and environmental sectors.
As a result, we classified the results of operations of Electrochem as discontinued operations in the Consolidated Statements of Operations for all periods presented and classified the related assets and liabilities associated with the discontinued operations as held for sale on the Consolidated Balance Sheets as of December 31, 2023.
All results and information are presented as continuing operations and exclude the Electrochem business unless otherwise noted or identified specifically as discontinued operations.
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