Integra LifeSciences began 2025 with operational and supply chain headwinds that weighed on its performance, prompting a significant negative market reaction. Management attributed the quarter’s challenges to ongoing ship holds—temporary pauses in product shipments related to the company’s compliance master plan—and supply constraints affecting both the Codman Specialty Surgical segment and Tissue Technologies. CEO Mojdeh Poul described these disruptions as expected, but acknowledged that organizational inefficiencies and the need for improved execution were more acute than anticipated. Poul stated, “I have also gained a more nuanced understanding of where organizational inefficiencies exist and where improvements are needed.”
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Integra LifeSciences (IART) Q1 CY2025 Highlights:
- Revenue: $382.7 million vs analyst estimates of $381.2 million (3.7% year-on-year growth, in line)
- Adjusted EPS: $0.41 vs analyst expectations of $0.43 (4.9% miss)
- Adjusted EBITDA: $63.61 million vs analyst estimates of $65.34 million (16.6% margin, 2.7% miss)
- The company reconfirmed its revenue guidance for the full year of $1.68 billion at the midpoint
- Management lowered its full-year Adjusted EPS guidance to $2.24 at the midpoint, a 8.9% decrease
- Operating Margin: 8.2%, down from 11% in the same quarter last year
- Organic Revenue fell 3.5% year on year (-2.5% in the same quarter last year)
- Market Capitalization: $922.4 million
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions Integra LifeSciences’s Q1 Earnings Call
- Young Li (Jefferies) questioned the drivers behind increased ship holds and confidence in second-half recovery; CFO Lea Knight detailed that the guide had built in risk for additional ship holds, with expected production improvements and seasonal demand supporting the outlook.
- Iseult McMahon (BTIG) asked about visibility into private label demand and future growth; CEO Mojdeh Poul said the business would see a second-half step-up, though full-year expectations were revised to a low-single-digit decline.
- Vik Chopra (Wells Fargo) inquired about surprises since CEO Mojdeh Poul joined; Poul highlighted deeper-than-expected execution challenges, leading to the creation of a transformation office to improve program management and prioritization.
- Lilia-Celine Lozada (JPMorgan) pressed for details on the $22 million tariff impact and confidence in the guidance given the increased ship holds; Poul and Knight broke down the immediate and rolling effects of tariffs, while reaffirming that the guidance could absorb further disruptions.
- Ravi Misra (Truist) sought clarity on remediation timelines and regulatory clearance, especially regarding the Braintree facility; Poul explained most remediation actions should conclude by year-end, but some may extend into 2026, with ongoing dialogue with the FDA.
Catalysts in Upcoming Quarters
In the coming quarters, the StockStory team will closely monitor (1) Integra’s progress in resolving ship holds and completing compliance remediation, (2) effectiveness of tariff mitigation strategies and any resulting improvements in profitability, and (3) the ramp-up of Integra Skin and private label production. Additionally, we will watch for updates on the Braintree facility and progress toward resolving FDA warning letters.
Integra LifeSciences currently trades at $12.22, down from $16.82 just before the earnings. Is there an opportunity in the stock?Find out in our full research report (it’s free).
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