Following heavy rains and flash flooding in the Cincinnati area this past July, Integra LifeSciences (NASDAQ: IART) said it expects the water damage at one of its manufacturing facilities will lead to millions lost in revenue, with a full recovery stretching into next year.
The plant, located on the city’s East Side near creeks that feed into the Ohio River, produces several products for the company’s specialty surgical technologies portfolio. Integra said portions of the facility were affected, as well as its equipment and inventory, after 4 to 5 in. of rain fell within a few hours.
The company lowered its financial forecasts for the year as part of its preliminary third-quarter earnings report today — with its IART shares dropping about 16% on the news, down to about $13.50.
The halt in operations cut the quarter’s revenue by about $7 million, according to Integra, which estimated additional impacts of between $15 million and $20 million for the remainder of the year. The company said a return to full manufacturing is expected during the second quarter of 2027.
“Our teams have made significant progress executing recovery plans and supporting customers,” CEO Stuart Essig said in a statement. “As we have gained additional visibility into the recovery timeline and production ramp, we now have a clearer understanding of the expected impact on our third quarter results and full-year outlook.”
“While we are lowering our full-year revenue and adjusted EPS outlook for 2026, we continue 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,” added Essig, who took the helm in May.
The company now projects annual revenues to land between $1.634 billion and $1.654 billion, down from a previous range of $1.654 billion to $1.695 billion. Adjusted earnings per diluted share fell to between $2.30 and $2.40, from the prior $2.40 to $2.50 forecast. Integra said a full report and conference call with investors will be scheduled for later this month.
For the third quarter, Integra expects to post about $411 million in revenue. The company also announced the launch of a proposed $600 million, seven-year secured term loan as part of a broader refinancing of its debts.
The Cincinnati facility is covered by property and business interruption insurance, the company noted, and Integra said it expects that will help absorb “a substantial portion” of the loss in earnings, as it continues to work with the policy carrier.
Integra acquired the location in 2004 from Schaerer Mayfield USA. At the time, it produced the Mayfield cranial stabilization and positioning systems as well as the Budde halo retractor for neurosurgery, plus related instruments.
