Integra revenue rises 2.3% to $411.2 million as earnings per share improve
Key Facts
Integra LifeSciences reported third-quarter 2026 revenue of $411.2 million, up 2.3% year on year, with adjusted earnings per share improving despite lingering effects from supply disruptions in Cincinnati. Organic revenue growth was 2.5% during the period, according to the company's earnings statement, exceeding the reported growth rate. Sales were within the preliminary range Integra announced on October 2, when it projected quarterly revenue of between $410 million and $412 million. The company posted adjusted earnings per share of $0.59, compared with $0.54 in the third quarter of 2025. Earnings per share thus reached the upper end of its preliminary range of $0.55 to $0.59, which the company announced alongside its sales estimates.
The improvement in earnings per share was accompanied by a decline in adjusted gross margin, which stood at 61.1% in the third quarter of 2026, according to Integra's statement. The company had recorded an adjusted margin of 62.9% in the corresponding period of 2025, with sales growth thus accompanied by a decline in the margin from its year-earlier level. Adjusted earnings before interest, taxes, depreciation and amortization totaled $79.8 million for the same quarter. By business, the Specialty Surgical segment recorded revenue of $304.1 million, according to the company. Within the neurosurgery business, organic sales rose 6.5% from the corresponding period a year earlier. Integra attributed growth in that business to its CereLink, Certas Plus, Bactiseal and DuraSeal products, alongside a recovery in cranial drill sales.
Instrument sales, by contrast, fell 0.9% organically in the third quarter of 2026, a decline the company attributed to order timing. Sales in the ear, nose and throat business fell 1.1% in the same period, primarily because of weaker sinus balloon sales, according to the earnings statement. On supply, Integra used available inventory to mitigate the disruption associated with its Cincinnati facility, according to its preliminary announcement on October 2. It also activated existing alternative supply sources for certain products as part of its measures to address the disruption. The company said in the announcement that it used "available inventory" and "activated existing alternative supply sources," describing the steps it took to mitigate the impact of supply disruptions on its business.
The final earnings announcement was preceded by a cut to full-year financial guidance on October 2, after Integra had expected 2026 revenue of between $1.654 billion and $1.695 billion, according to the preliminary earnings announcement. That range represented the company's estimates before the revision announced on that date. Against the backdrop of the manufacturing developments, Integra had begun production at its Braintree facility during the second quarter, according to the earnings statement for that period. On its financial position at the end of the third quarter, net debt stood at $1.5 billion, according to the latest earnings statement. Total available liquidity was approximately $559 million at the end of the same period. Regarding the note guarantee arrangements, the company said the guarantees were provided by wholly owned domestic subsidiaries, which are also guarantors under its secured credit facilities.
For the fourth quarter of 2026, Integra expects reported revenue to decline from the corresponding period a year earlier, according to the guidance in its third-quarter earnings statement. The company set the expected year-on-year change at between a decline of 5.2% and a decline of 0.5%. On products, Integra had targeted a fourth-quarter relaunch of SurgiMend, according to its announcement when it released second-quarter results. The company scheduled its discussion of third-quarter results for October 21, 2026, according to its investor events and presentations page. The earnings call is scheduled to begin at 8:30 a.m. Eastern Daylight Time.