Key insights
- Integra Life Sciences (IART) shares dropped 14% after the company lowered its 2026 revenue and earnings outlook due to flood damage at its Cincinnati manufacturing facility. The disruption is expected to impact Q3 and Q4 revenue. Full manufacturing operations are anticipated by Q2 2027. The company expects insurance to mitigate a substantial portion of the earnings impact and maintains strong cash flow expectations. Integra also announced a proposed $600 million Senior Secured Term Loan B.
Investing.com -- Integra LifeSciences Holdings (NASDAQ: IART) shares fell 14% in Friday trading after the company cut its full-year 2026 guidance due to ongoing impacts from flooding at its Cincinnati manufacturing facility.
The medical technology company reduced its 2026 revenue outlook to a range of $1.634 billion to $1.654 billion, down from the previous range of $1.654 billion to $1.695 billion. Adjusted earnings per diluted share guidance was lowered to $2.30 to $2.40 from $2.40 to $2.50. Wall Street had expected full-year revenue of $1.67 billion and earnings of $2.46 per share.
For the third quarter, Integra expects revenue of approximately $410 million to $412 million and adjusted earnings per diluted share of $0.55 to $0.59, compared to analyst estimates of $416.3 million in revenue and $0.56 per share.
The flooding at the Cincinnati facility in July 2026 caused damage to portions of the facility, equipment, inventory and other assets. The company estimates the supply disruption negatively impacted third quarter revenue by approximately $7 million and is expected to negatively impact fourth quarter revenue by approximately $15 million to $20 million.
Integra expects a return to full manufacturing operations at the site during the second quarter of 2027. The facility manufactures and supports several products within the company's Specialty Surgical Technologies portfolio.
The company maintains property and business interruption insurance covering the Cincinnati facility and expects insurance recoveries to mitigate a substantial portion of the earnings impact associated with the disruption.
Despite the reduced outlook, Integra said it continues to expect strong cash generation, including greater than $85 million of operating cash flow in the third quarter and approximately $190 million to $200 million for the full year.
Separately, Integra announced the launch of a proposed $600 million seven-year Senior Secured Term Loan B as part of a broader refinancing transaction to refinance existing indebtedness and extend maturities.
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