Should You Continue to Hold Integra Stock in Your Portfolio Now?

Integra LifeSciences Holdings Corporation IART is seeing healthy demand for its industry-leading products within the Codman Specialty Surgical (“CSS”) segment. The company is also successfully expanding its international footprint through certain key developments on the overseas front. Further, the Tissue Technologies business is consistently gaining traction through efficient growth strategies and a better price management policy. Yet, macroeconomic challenges and unfavorable liquidity raise concerns for Integra.

In the past year, this Zacks Rank #3 (Hold) stock has declined 12.1% compared with the industry’s 16.6% fall. Meanwhile, the S&P 500 composite has risen 18.8% in the same time frame. 

The renowned medical device company has a market capitalization of $1.17 billion. Integra has an earnings yield of 14.7% against the industry’s yield of -4.2%. Its earnings surpassed estimates in three of the trailing four quarters and missed on one occasion, delivering an average surprise of 4.8%.

Let’s delve deeper.

Tailwinds for IART Stock

Strong Prospects in CSS: The segment is benefiting from the growing market acceptance of the company’s global neurosurgery line-ups, representing a continuum of care from pre-operative, to the neurosurgery operating room, to the neuro-critical care unit, and post care for both adult and pediatric patients suffering from brain tumors, brain injury, cerebrospinal fluid pressure complications and other neurological conditions. In the second quarter of 2025, the company benefited from strong performance in the CUSA platform, the Aurora Surgiscope, Mayfield cranial stabilization systems, DuraSeal, BactiSeal and CereLink monitors.

Integra is also upbeat about the recently closed acquisition of Acclarent, which positions the company as a leader in the ENT segments, expands addressable markets, and provides immediate scale and accretive growth to the CSS portfolio. This acquisition contributed approximately $30 million in revenues in the quarter. Internationally, underlying CSS demand also remained strong, with high single-digit growth in China.

Solid Growth in International Business: During 2023 and 2024, several new products were introduced in select international markets, including MicroMatrix and Certas Plus Programmable Valve, which were launched in Europe, and CUSA Clarity laparoscopic tip, which was launched in Australia, New Zealand, Japan, Canada, South Africa and Israel. DuraGen Secure received approval in Japan, while DuraGen Plus and Certas Plus were approved in China. In the second quarter of 2025, international revenues saw a boost from strong performance in CSF Management.

In addition, Integra is witnessing strong market uptake of CereLink, demonstrating the resilience and differentiation of the company’s intracranial pressor monitoring portfolio. On a global basis, Integra accelerated investments in digital capabilities that will enable the commercial teams to reach a broader customer base. The company expects to continue to build on this momentum in its international markets, with more access to its products in new markets, broadening commercial reach and capabilities.

Decent Sales Projections Within Tissue Technologies: Within this, the wound reconstruction subcategory is gaining momentum, banking on the sustained demand and improved production output of Integra Skin, as well as strong demand for DuraSorb. Integra reported high single-digit growth in MicroMatrix and Cytal in the second quarter. As a major development within this business, in 2024, the company announced its plans to restart the production of PriMatrix and SurgiMend at the new state-of-the-art manufacturing facility in Braintree, MA, which is expected to become operational in the first half of 2026.

As Integra faces manufacturing complications surrounding the Boston facility, and associated limitations of the physical space and layout there, the company is looking at the Braintree facility as its current focus of development.

What Ails Integra?

A Choppy Macro Environment: Integra’s operations remain exposed to macroeconomic uncertainties, including supply-chain disruptions, inflation, escalation of wars and other armed conflicts, among others. These factors may reduce demand for its products and services, increase competition, and lead to lower sales volumes and downward pricing pressure, longer sales cycles and slower adoption of new technologies. In addition, U.S. import tariffs and reciprocal measures by China are expected to raise the company’s cost of goods sold. In the first half of 2025, Integra paid approximately $5.4 million of tariffs on imported goods, with the cost of goods sold increasing 11.3% year over year.

A Tough Liquidity Position: Integra’s position looks quite tight from the liquidity point of view, having ended the second quarter of 2025 with total debt (including the current portion) of $1.84 billion, and cash and cash equivalents were $217.9 million. Further, the company has $613 million of short-term payable debt on its balance sheet, which is also much higher than the company’s current cash on hand. The company’s debt-to-capital jumped 9.2% sequentially to 63.4%.

IART Stock’s Estimate Trend

The Zacks Consensus Estimate for the company’s 2025 earnings per share (EPS) has remained constant at $2.22 in the past 30 days.

The consensus estimate for the company’s 2025 revenues is pegged at $1.67 billion. This suggests a 2.9% rise from the year-ago reported number.

Key Picks

Some better-ranked stocks in the broader medical space are Masimo MASI, Phibro Animal Health PAHC and Cardinal Health CAH.

Masimo has an estimated long-term earnings growth rate of 12.5% compared with the industry’s 9.9%. Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 9.17%. MASI shares have rallied 26.7% against the industry’s 16.6% fall in the past year.

MASI sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Phibro Animal Health, carrying a Zacks Rank #2 (Buy), has an earnings yield of 6.3% against the industry’s -0.3%. Shares of the company have surged 76.8% compared with the industry’s 0.7% growth. PAHC’s earnings outpaced estimates in each of the trailing four quarters, with the average surprise being 27.9%.

Cardinal Health, carrying a Zacks Rank #2, has an estimated long-term earnings growth rate of 12.5% compared with the industry’s 9.7% growth. Shares of the company have rallied 35% against the industry’s 1.6% fall. CAH’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 9.2%.

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This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research