Integer Holdings (WGB) AI Stock Analysis

Company Guidance

Integer updated its 2026 guidance with full‑year reported sales now expected at $1.805–$1.835 billion (down 1%–3% YoY) and organic sales flat to down 1% (including a ~3%–4% headwind from three new products; organic growth excluding those products ~3%–4%); inorganic decline ~1% (Portable Medical exit); C&V expected flat to down low‑single digits, CRM&N flat to up low‑single digits, and other markets down ~$34M–$36M. Profitability outlook: adjusted EBITDA $375M–$399M (down 1%–7%), adjusted operating income $285M–$305M (down 5%–11%) with sequential margin improvement expected (Q2 operating margin +80–140 bps and continuing improvement through 2026), adjusted net income $200M–$220M (down 3%–11%) and adjusted EPS $5.83–$6.40 (flat to down 9%). Cash/debt targets: cash flow from operations $185M–$205M (≈$15M lower at midpoint), CapEx $95M–$105M (~5%–6% of sales), free cash flow $85M–$105M, year‑end net total debt $1.185B–$1.205B and leverage expected in the 2.5x–3.5x trailing‑4Q adjusted EBITDA target range (Q1 net total debt $1.264B, leverage 3.2x). Q1 actuals and drivers: sales $440M (+0.5% reported, +1.3% organic), adjusted EBITDA $85M (‑7%), adjusted operating margin 13.9% (‑230 bps), adjusted net income $41M (‑10%), adjusted EPS $1.20 (‑8%), cash from ops $25M, CapEx $24M, free cash flow $1M; interest expense was $4M lower (helping EPS by ~$0.10), and share repurchases of $50M in Q4 ’25 (~700k shares) and $50M in Q1 ’26 (~600k shares) reduced weighted shares ~2% (adding ~$0.02 to EPS).