Companies

Integra Cuts 2026 Outlook After Cincinnati Flood

The Tip Desk · October 2, 2026 · 3 min read

The medical technology company now sees third-quarter revenue of about $410 million to $412 million and full-year adjusted EPS of $2.30 to $2.40.

Integra LifeSciences Holdings Corporation (IART), a global medical technology company, lowered its full-year 2026 revenue and adjusted earnings outlook after July flooding at its Cincinnati plant disrupted Specialty Surgical Technologies production.

The company now expects full-year 2026 revenue of $1.634 billion to $1.654 billion, down from a prior range of $1.654 billion to $1.695 billion. Adjusted earnings per diluted share guidance moved to $2.30 to $2.40 from $2.40 to $2.50. The update reflects revised assumptions about the flooding and the rest of the year.

Chairman and Chief Executive Officer Stuart Essig said third-quarter results were impacted by the July flooding event at the Cincinnati facility, which manufactures and supports products in the Specialty Surgical Technologies portfolio. The company has used available inventory, activated alternate supply for certain products, and advanced restoration work.

Integra estimates the supply disruption reduced third-quarter revenue by about $7 million. It expects a further $15 million to $20 million hit to fourth-quarter revenue. Full manufacturing operations at the site are expected to return in the second quarter of 2027. Integra maintains property and business interruption insurance covering the facility and expects recoveries to mitigate a substantial portion of the earnings impact through the recovery period.

For the third quarter of 2026, Integra expects revenue of approximately $410 million to $412 million and adjusted earnings of $0.55 to $0.59 a share. Those preliminary, unaudited figures sit below second-quarter revenue of $418.8 million. Second-quarter adjusted earnings were $0.56 a share.

The flood interrupted a modest recovery in the top line. First-quarter 2026 revenue was $391.9 million, up 2.4% reported and 1.3% organic from a year earlier. Second-quarter revenue rose 0.8% reported and 0.7% organic.

Specialty Surgery, about 70% of revenue, was $309.3 million in the second quarter, with reported growth of 1.7% and organic growth of 1.6% versus the year-ago quarter. Neuro sales rose 1.9% organically on Certas Plus, Bactiseal and CUSA. Instruments grew 3.2% organically. ENT sales declined 1.9%.

Tissue Reconstruction, about 30% of revenue, was $109.5 million in the second quarter, with reported and organic declines of 1.9% and 2.0% versus the year-ago quarter. Wound reconstruction fell at a mid-single-digit rate as DuraSorb and the PriMatrix relaunch were offset by declines in MicroMatrix and Integra Skin. Private label sales grew 4.7%.

GAAP gross margin was 52.5% in the second quarter. Adjusted gross margin was 61.3%. Adjusted EBITDA was $78.4 million, or 18.7% of revenue. GAAP net income was $4.5 million, or $0.06 a share. Adjusted net income was $43.7 million, or $0.56 a share.

Cash generation remained a focus. The company generated $22.8 million of cash from operations in the second quarter. It now expects greater than $85 million of operating cash flow in the third quarter and approximately $190 million to $200 million for the full year. Net debt at the end of the second quarter was $1.6 billion, with a consolidated total leverage ratio of 4.1x and total liquidity of about $496 million.

In the second quarter, Integra initiated production at its Braintree manufacturing facility and remained on track for a planned fourth-quarter relaunch of SurgiMend. Essig said the company continues to expect strong cash generation and remains encouraged by improving product availability, the return of key products to market, and commercial execution.

The company will report third-quarter 2026 results on a conference call in October and will provide additional information on the quarter and the full-year outlook at that time.