Integer Holdings Corporation (ITGR) Cash Flow Statement

The OCF/NI ratio ranged from 1.13 to 2.53, indicating that operating cash flow consistently outpaced net income, even in the loss quarter of 2025Q1. This gap is largely attributable to D&A and SBC, which are non-cash charges. The consistency of this relationship suggests that reported earnings are not being inflated by aggressive accruals, though the volatility in net income warrants monitoring.

The trajectory of FCF has been erratic, with negative quarters in 2024Q1 and near-zero in 2026Q1, reflecting working capital swings and acquisition activity. However, the most recent quarter shows a rebound to $37.0M, indicating that the company can generate meaningful cash when working capital normalizes. The FCF margin of 8.0% in 2026Q2 is above the peer average, but the volatility suggests that investors should focus on the longer-term trend rather than any single quarter.

CapEx as a percentage of revenue has been relatively stable, ranging from 4.0% to 7.3%, with no clear trend. This indicates that the company is not in a major expansion phase, but rather maintaining its asset base. The moderate capital intensity supports the view that the business does not require heavy reinvestment to sustain operations, which is positive for FCF generation.

The persistent negative working capital changes indicate that cash is being tied up in operations, which explains the volatility in FCF. The positive working capital change of $59.4M in 2024Q4 was an outlier, suggesting a release of cash that may have been due to seasonal factors. Investors should monitor whether the company can improve its working capital efficiency, as this could be a source of future cash flow improvement.

The company has not returned cash to shareholders via dividends, but has engaged in buybacks, particularly in recent quarters, which may indicate a view that the stock is undervalued. Acquisition activity has been lumpy, with significant outflows in 2025Q3 and 2025Q1, suggesting an ongoing M&A strategy. The low debt-to-equity ratio of 0.80% suggests ample capacity for further deployment, but the lack of dividends may be a consideration for income-focused investors.

The cumulative gap between operating cash flow and net income is substantial, indicating that the company's earnings are of high quality, as they are supported by actual cash inflows. However, this gap is also influenced by D&A and SBC, which are non-cash expenses. The divergence is not a red flag but rather a sign that the company's profitability is not being overstated by accruals.