A July flood at the medical-device maker's Cincinnati plant cost about $7 million of third-quarter revenue and will cost up to $20 million more. Full production is not expected back until the second quarter of 2027.
Business · FinancialMarkets.com · October 2, 2026 · Tickers: IART, XHE
Integra LifeSciences asked lenders for $600 million on Friday morning. Five minutes later, it told investors what a summer flood has cost it.
At 8 a.m. Eastern, the medical-technology company launched a $600 million senior secured term loan B to refinance existing debt. At 8:05 a.m., it released preliminary third-quarter results and cut its full-year outlook.
Third-quarter revenue came in at about $410 million to $412 million, the company said, with adjusted earnings of 55 cents to 59 cents a share. The figures are unaudited, and no earnings under generally accepted accounting principles were given.
The guide
For 2026, Integra now expects revenue of $1.634 billion to $1.654 billion, down from $1.654 billion to $1.695 billion. At the midpoint that is a reduction of about $30.5 million, or 1.8%. Adjusted earnings guidance fell to $2.30 to $2.40 a share from $2.40 to $2.50, a cut of 10 cents, or about 4.1%, at the midpoint.
The July flood at the company's Cincinnati facility reduced third-quarter revenue by about $7 million. Integra expects it to cost another $15 million to $20 million in the fourth quarter, and it does not expect full manufacturing to resume until sometime in the second quarter of 2027.
The arithmetic of the cut
The flood's disclosed revenue effect for the second half, about $22 million to $27 million, is close to the $30.5 million cut at the midpoint. The company said its new guidance also reflects "updated assumptions for the broader business," without putting a number on them. It did not say how much of the flood's cost was already reflected in its earlier range.
That leaves investors unable to separate the one-time disruption from any change in underlying demand. The split bears on 2027, when the company expects full production to return during the second quarter.
Cash and debt
Integra emphasized cash. It expects operating cash flow above $85 million in the third quarter and about $190 million to $200 million for the year. "Our third quarter results were impacted by the July flooding event at our Cincinnati facility," said Stuart Essig, chairman and chief executive, adding that the company continues "to expect strong cash generation."
The new loan is secured, meaning lenders have a claim on company assets, and it arrives with the 10-year Treasury yield above 5%. Pricing has not been disclosed. The company said it expects insurance recoveries to mitigate a substantial portion of the flood's earnings impact.
The reaction
Integra shares closed Thursday at $16.09 and opened at $13.30. They fell about 11% in the morning and kept falling, trading near $12.99 in the afternoon, down about 19.3%.
What comes next
Integra's full third-quarter report later this month is where management can split the cut between the flood and the rest of the business and give an estimate of insurance recoveries. The loan's final pricing, and progress on the Cincinnati restart, are the other markers.