Integra Lifesciences (IL3) Q3 2026 Earnings Report
DE:IL3 Q3 2026 EPS Results
- Actual EPS
- EUR 0.53
- Consensus EPS
- EUR 0.50
- Beat/Miss
- Beat by +EUR 0.03
- One Year Ago EPS
- EUR 0.48
DE:IL3 Q3 2026 Revenue Results
- Actual Revenue
- EUR 368.07M
- Expected Revenue
- EUR 369.84M
- Beat/Miss
- Missed by -EUR 1.77M
- YoY Revenue Growth
- +2.27%
Earnings Announcement Details
- Quarter
- Q3 2026
- Date
- 10/21/2026
- Time
- Before Open
- Conference Call
- Wednesday, October 21, 2026
Integra Lifesciences's next earnings date is estimated for March 3, 2027, based on past reporting schedules.
Q3 2026 Earnings Call Audio
Q3 2026 Earnings Slide Deck
Q3 2026 Earnings Call Summary
The call presented meaningful operational and financial progress, including record quarterly operating cash flow, leverage reduction, successful refinancing, improved product availability, strong neurosurgery performance, and several 2027 growth initiatives. However, these positives were balanced by the Cincinnati disruption, reduced revenue and EPS outlooks, Tissue Reconstruction weakness, gross-margin pressure, higher refinancing-related interest expense, and continued competitive and execution challenges. Overall sentiment was balanced, with a constructive long-term outlook but significant near-term headwinds.
For the fourth quarter, Integra expects revenue of $413 million to $433 million, representing a reported decline of 5.2% to 0.5% and an organic decline of 5.1% to 0.4%, with no material revenue contribution from SurgiMend and an expected $15 million-$20 million Cincinnati impact. For the full year, it continues to expect revenue of $1.634 billion to $1.654 billion, adjusted earnings per share of $2.30 to $2.40, adjusted gross margin to be approximately flat compared with 2025, and operating cash flow of approximately $190 million-$200 million; it expects to end fiscal 2026 just above its target leverage range of 2.5-3.5 times. Tissue Reconstruction revenue is expected to be approximately flat for the full year, while base Tissue Reconstruction is expected to be flat in 2027 versus 2026 and SurgiMend is expected to contribute growth. Cincinnati is expected to return to full manufacturing operations during the second quarter of 2027, with very limited revenue contribution in Q2 2027, a quarterly impact of $15 million to $20 million, and no meaningful back order clearance assumed. For 2027, revenue is expected to grow, EPS is expected to see some growth, incremental interest expense is expected to be $24 million, and transformation savings are expected to contribute an incremental $10 million-$15 million.
- Third-Quarter Revenue and EPS PerformanceThird-quarter revenue was $411.2 million, up 2.3% on a reported basis and 2.5% organically, at the low end of guidance. Adjusted earnings per share increased to $0.59 from $0.54 in the prior year, primarily reflecting higher revenue and lower operating expenses from cost-reduction initiatives.
- Record Operating Cash Flow and Free Cash FlowOperating cash flow was $96 million, a record quarter for Integra. Capital expenditures were $10 million, resulting in $86 million of free cash flow and adjusted free cash flow conversion of 185%. Year-to-date operating cash flow was just under $130 million, and full-year operating cash flow guidance remained approximately $190 million-$200 million.
- Leverage Reduction and Balance-Sheet ProgressNet debt was approximately $1.5 billion at quarter-end, total liquidity was approximately $559 million, and the consolidated total leverage ratio improved to 3.8 times. Integra repaid $46 million of debt during the quarter and expects to end fiscal 2026 just above its target leverage range of 2.5-3.5 times.
- Successful Debt RefinancingOn October 19, Integra completed a $2.1 billion refinancing consisting of a $1.65 billion senior secured credit facility and $450 million of 9.5% senior secured notes due 2033. The refinancing extended the debt maturity profile, increased financial flexibility, and provided additional covenant capacity.
- Specialty Surgery GrowthSpecialty Surgery revenue was $304.1 million, increasing 3.9% on a reported basis and 4.2% organically. Performance was driven by continued strength in neurosurgery and international markets, which largely offset the Cincinnati disruption.
- Neurosurgery MomentumNeurosurgery grew 6.5% organically despite an approximate $7 million revenue headwind from Cincinnati. Momentum was reported across CereLink, Certas Plus, Bactiseal, DuraSeal, and cranial perforators. Management described demand as healthy and expects the business to deliver longer-term low to mid-single-digit growth.
- International Specialty Surgery GrowthInternational Specialty Surgery grew 7.8% during the quarter, benefiting from improved product availability, strength across several geographies, and continued commercial execution.
- Improved Product Availability and Commercial FocusProduct availability improved dramatically across much of the portfolio. Management said this is allowing commercial teams to spend more time in clinical conversations and less time managing supply challenges, while the commercial organization has been sharpened around clearer priorities, stronger account planning, and more coordinated customer engagement.
- Tissue Reconstruction Product ProgressPriMatrix and DuraSorb grew meaningfully year-over-year, while PriMatrix run-rate sales remained above 50% of historical revenue levels. The largest and most strategic parts of the Tissue Reconstruction portfolio improved sequentially through each of the first three quarters of 2026.
- SurgiMend Relaunch ProgressPreparation for the planned fourth-quarter SurgiMend relaunch continued to advance. Management expects a December limited commercial launch, although fourth-quarter guidance assumes no material revenue contribution. The company reported encouraging early engagement with key opinion leaders and expects SurgiMend to contribute to growth in 2027.
- Long-Term Tissue Reconstruction OpportunitiesSurgiMend and DuraSorb are expected to provide greater clinical differentiation in hernia repair and implant-based breast reconstruction. Integra expects an expanded SurgiMend label in 2027, followed by DuraSorb, as part of its dual PMA strategy.
- Stable Broader Market and Capital FunnelManagement reported stable market conditions across the company's businesses and a strong capital funnel. The company said its markets are centered on trauma and acute-based procedures that are not purely elective, and it saw no near-term change in hospital capital expenditure conditions.
- CUSA Capital Expansion OpportunityCUSA received increased coverage in cardiovascular surgery and OBGYN surgery, opening larger markets beyond neurosurgery. Management also cited an opportunity to expand CUSA in U.S. liver surgery, in addition to existing international opportunities.
- Expected 2027 Revenue GrowthAlthough official 2027 guidance will be provided in February, management expects revenue growth in 2027, supported by the SurgiMend relaunch, continued PriMatrix momentum, improving international supply availability, and stronger execution across the base business.
- Transformation Savings and Cost DisciplineThe annualization of 2026 transformation work is expected to provide an incremental $10 million-$15 million in 2027. Management also expects lower remediation spending, improved productivity, strong cost discipline, and some operating leverage to help offset 2027 headwinds.
- Gross-Margin StabilizationFull-year 2026 adjusted gross margin is expected to be approximately flat compared with 2025. Management described this as meaningful progress after margins deteriorated in each of the prior two years and expects to hold a similar posture in 2027 and beyond.
- ENT Product and Market Development PlansManagement reported continued growth in AERA, increased collaboration around MicroFrance ENT instruments, and plans to introduce new products in 2027. It also identified potential small tuck-in acquisition opportunities in ENT toward the end of 2027 and into 2028.
- Breast Reconstruction Commercial OpportunityManagement described the U.S. implant-based breast reconstruction market as approximately $800 million in revenue. Integra plans to leverage its existing sales force, currently approximately 30 representatives, and expects to increase it to roughly 50 by the end of 2027 to support SurgiMend and DuraSorb.
DE:IL3 Earnings History
| Report Date | Fiscal Quarter | Forecast / EPS | Last Year's EPS | EPS YoY Change | Press Release |
|---|---|---|---|---|---|
| Mar 03, 2027 | 2026 (Q4) | 0.58- | 0.74 | ― | ― |
| Oct 21, 2026 | 2026 (Q3) | 0.500.53 | 0.48 | 9.26% (+0.04) | |
| Jul 29, 2026 | 2026 (Q2) | 0.430.50 | 0.4 | 24.44% (+0.10) | |
| May 05, 2026 | 2026 (Q1) | 0.360.48 | 0.37 | 31.71% (+0.12) | |
| Feb 26, 2026 | 2025 (Q4) | 0.720.74 | 0.87 | -14.43% (-0.13) | |
| Oct 30, 2025 | 2025 (Q3) | 0.390.48 | 0.37 | 31.71% (+0.12) | |
| Jul 31, 2025 | 2025 (Q2) | 0.390.40 | 0.56 | -28.57% (-0.16) | |
| May 05, 2025 | 2025 (Q1) | 0.390.37 | 0.49 | -25.45% (-0.13) | |
| Feb 25, 2025 | 2024 (Q4) | 0.760.87 | 0.8 | 8.99% (+0.07) | |
| Nov 04, 2024 | 2024 (Q3) | 0.350.37 | 0.68 | -46.05% (-0.31) |
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
