Integer's Sales Decline Widens Ahead of KKR Close

The Tip Desk · October 31, 2026 · 2 min read

Third-quarter sales fell 3.9% to $450 million as the medical-device contract manufacturer skipped an outlook amid a pending acquisition with a $5.7 billion enterprise value.

Integer Holdings Corporation (ITGR), a medical device contract development and manufacturing organization, reported third-quarter sales of $450 million for the three months ended October 2, 2026, a 3.9% decline from a year earlier. Organic sales fell 2.2%.

The sequential contraction widened from the second quarter, when sales dropped 2.6% and organic sales declined 1.5%. Adjusted EBITDA fell 17% to $88 million, a sharper drop than the 4% decline in the prior quarter.

GAAP operating income from continuing operations was $28 million, down 50%. Non-GAAP adjusted operating income was $66 million, down 23%. GAAP diluted earnings from continuing operations were $0.43 a share. Non-GAAP adjusted EPS was $1.34.

Cardio & Vascular, the largest product line, posted sales of $263 million, down 5%. The company said the result reflected the previously communicated impact from two new Electrophysiology products. That sequential decline was wider than the 2% drop in the second quarter.

Cardiac Rhythm Management & Neuromodulation sales rose 4% to $176 million, growth the company said was partially offset by the previously communicated impact from one new Neuromodulation product. Other Markets sales were $11 million, primarily due to the Portable Medical exit.

The company is not providing a financial outlook and will not host a conference call, citing the pending acquisition by an affiliate of investment funds managed by KKR under a merger agreement dated August 2, 2026. On September 29, 2026, Integer received early termination of the Hart-Scott-Rodino waiting period. On October 21, 2026, stockholders approved the merger. The transaction is anticipated to close by the end of 2026, subject to remaining customary closing conditions, including required regulatory approvals.

In the second-quarter release, Integer and KKR announced a definitive agreement for an all-cash acquisition valued at an enterprise value of $5.7 billion, with stockholders to receive $127 a share.

From the end of 2025, total debt increased $34 million to $1.219 billion. Non-GAAP net total debt increased $33 million to $1.223 billion, for a leverage ratio of 3.3 times adjusted EBITDA as of October 2, 2026.

The company said it remains a CDMO serving cardio and vascular, neuromodulation, and cardiac rhythm management markets, with brands including Greatbatch Medical and Lake Region Medical.