Integer Holdings Corporation

Good morning and thank you for standing by. Welcome to Integer Holdings Corporation's first quarter 2026 earnings call. My name is Kate and I will be your conference operator today. At this time, all participants are in a listen-only mode. After the prepared remarks, there will be a question and answer session. Please note this call is being recorded. I would now like to turn the conference over to Kristen Stewart, Director of Investor Relations. Please go ahead.

Good morning, everyone. Thank you for joining us and welcome to Integer's first quarter 2026 earnings conference call. With me today are Pavement Kales, President and Chief Executive Officer, and Dyron Smith, Executive Vice President and Chief Financial Officer. This morning, we issued a press release announcing our first quarter 2026 financial results. We have posted a presentation to accompany today's call on the investor relations page on our website at Integer.net. On today's call, Payman will provide opening comments. Dyron will then review our adjusted financial results for the first quarter, 2026, and our financial outlook. Payman will provide his closing remarks, and then we'll open the line for your questions. As a reminder, the results and data we discussed today reflect the consolidated results of integer for the periods indicated. During our call, we will discuss some non-GAAP financial measures. For reconciliations of non-GAAP financial measures, please refer to the appendix of today's presentation, today's earnings press release, and the trending schedules, which are available on our website at integer.net. Please note that today's presentation includes forward-looking statements. Please refer to the company's SEC filings for a discussion of the risk factors that could cause our actual results to differ materially. With that, I will turn the call over to Payman.

Thank you, Kristen. And thank you to everyone for joining the call today. This morning, we announced our first quarter financial results, which were in line with our February outlook. Sales were up 0.5% on a reported basis versus last year. As expected, our first quarter sales performance primarily reflected the decline associated with the three new products, which we first discussed last October, as well as the exit of our portable medical business. On an organic basis, sales grew 1.3% versus the prior year. Our adjusted operating income declined 230 basis points, driven primarily by lower fixed cost absorption. This was at the midpoint of our prior outlook commentary. Adjusted earnings per share totaled $1.20, benefiting from lower interest expense offset by the decline in adjusted operating income. We also announced this morning that we were updating our 2026 outlook ranges to reflect the recent customer forecast updates and further risk adjustments we have made. We now expect reported sales to be in the range of down 1 to 3% compared to the prior year. On an organic basis, we expect sales to be flat to down 1%. We continue to expect a 3 to 4% headwind from the three new products. The outlook for these three products has not changed. Customer purchase orders and forecast updates are tracking in line with this outlook. We now expect organic sales, excluding the three new products, to go approximately 3% to 4%. This is compared to our prior outlook of 4% to 6% and driven by recent customer forecast updates and further risk adjustments across our portfolio. As a reminder, we receive purchase orders from our customers, and those typically provide us with strong visibility for the next one to two quarters. In addition, we continuously communicate with our customers and most of them regularly share a rolling 12-month forecast. Our customers adjust their forecast higher or lower based on their manufacturing plans. Therefore, we typically risk adjust the forecast with a balanced view of the risk and opportunities. The recent customer forecast updates primarily affect the second half outlook for a few products in electrophysiology. Given our recent experience of reductions outside the three new products, We further risk adjusted our outlook across our portfolio to minimize the risk of additional forecast erosion. With regards to electrophysiology, over the last couple of years, this market has been very dynamic with the rapid adoption of pulse field ablation or PFA technologies, which added complexity to forecasting. Understandably, OEMs wanted to ensure sufficient availability of various products used in EP procedures to be prepared for a wide range of potential adoption scenarios. This contributed to increased variability in forecasts and ordering patterns. We appear to be entering a period of normalization in the market. We believe there is a clearer view of the market dynamics and needs for various EP products. As a result, certain customers have adjusted their forecasts for a few products. We expect the impact of these updates to be short-term, primarily impacting the second half of 2026. These reductions are not due to insourcing or a shift to alternative suppliers. We continue to manufacture these products for our customers. The electrophysiology market continues to be an attractive high growth market opportunity for us, and we believe we are well positioned. We have strong relationships with the leading players in the market, a broad product portfolio, and a strong new product pipeline. Our focus and investments have enabled us to significantly grow our EP business over the past several years. While we are seeing some pressure in 2026, we expect our EP business to contribute to our above-market growth in 2027 and to our growth profile over the long term. And finally, I want to emphasize that we do not take the outlook change lightly. Our outlook reflects additional cost reduction actions underway to mitigate the impact on our bottom line results that do not compromise our ability to service our customers, deliver on our 2027 sales outlook commitments, or affect our longer-term growth potential. I will now turn the call over to Darren to review the first quarter results and 2026 outlook in greater detail.