Core Viewpoint - Enovis Corporation has launched the Manafuse® bone growth stimulator, a portable device utilizing low-intensity pulsed ultrasound (LIPUS) technology for non-invasive treatment of fresh fractures and non-union fractures, aiming to accelerate healing processes [1][3][4]. Product Overview - Manafuse® stimulates the body's natural healing process by emitting LIPUS signals, designed for specific fresh fractures and non-union fractures, excluding cranial and vertebral bones [3][4]. - The device is portable, battery-operated, and requires only 20 minutes of daily use, with a maximum usage period of 343 days, making it suitable for home use [4]. - LIPUS technology has 30 years of clinical evidence supporting its effectiveness in improving fracture healing [4][7]. Clinical Data - A prospective, randomized, double-blind, placebo-controlled study indicated that LIPUS treatment can accelerate healing by 38%, with a difference of over 8 weeks [9]. - Clinical studies report a success rate of up to 86% for Manafuse in treating non-union fractures [9]. Market Overview - The global bone growth stimulator market is projected to grow from $1.4 billion in 2022 to $1.8 billion by 2027, with a compound annual growth rate (CAGR) of 5.9% [13]. - Key growth drivers include an increasing target patient population, rising sports and orthopedic-related injuries, and an aging population [13]. - Major competitors in the market include Orthofix Medical Inc., ZimVie, Bioventus LLC, Medtronic, Stryker, and DePuy Synthes [13]. Financial Performance - Enovis reported a loss of $703.3 million, with a net loss attributed to a non-cash goodwill impairment charge of $645 million related to its Recon and P&R business segments [22]. - Despite a 23.3% increase in sales to approximately $561 million, the company faced significant net losses [22]. - Adjusted earnings per share are expected to be between $3.10 and $3.25 for 2025, with sales projected between $2.19 billion and $2.22 billion [22].

Core Viewpoint - Enovis Corporation will host an investor conference call and live webcast to discuss its second quarter 2025 financial results on August 7, 2025, at 8:30 a.m. Eastern Time, with an earnings press release issued earlier that morning [1]. Group 1: Conference Call/Webcast Information - Investors can access the live webcast via a link on the Enovis website, and those participating in the call can dial (833) 685-0901. A replay of the call will be available on the Enovis website later that day [2]. Group 2: Company Overview - Enovis Corporation is an innovation-driven medical technology growth company focused on developing clinically differentiated solutions that improve patient outcomes and transform workflows. The company offers a wide range of products, services, and integrated technologies aimed at supporting active lifestyles in orthopedics and beyond [3]. Group 3: Information Availability - Enovis routinely announces material information to investors and the marketplace through SEC filings, press releases, public conference calls, webcasts, and its Investor Relations website. The company encourages stakeholders to review the information shared on its Investor Relations site [4].

Financial Data and Key Metrics Changes - The company has increased its revenue from over $1.2 billion to over $2.1 billion, with EBITDA margins improving from 14% to closer to 18% [3][4] - The company aims for consistent growth of 7% plus, with a strong start in Q1 showing high single-digit growth [54][55] - The company expects to see a structural mix benefit in gross margins over time, projecting an annual improvement of 50 basis points [59] Business Line Data and Key Metrics Changes - The reconstructive business has grown from approximately $300 million to over $1 billion, with significant acquisitions enhancing its market position [8][10] - The Prevention and Recovery (P&R) segment is generating reliable growth, with a focus on mid-single-digit growth and strong cash generation capabilities [41][43] Market Data and Key Metrics Changes - The company has a market share of high single to low double digits in the foot and ankle business, and is ranked number three in shoulder globally [10][12] - The company is seeing a shift towards outpatient settings, which may come with price pressure but is expected to be offset by positive price momentum in revisions and enabling technologies [36][37] Company Strategy and Development Direction - The company is transitioning from a build mode to an enhanced mode, focusing on integrating recent acquisitions and driving down debt leverage [12][16] - The strategy includes diversifying growth across different geographies and anatomical areas, with a strong emphasis on innovation and product differentiation [28][29] Management's Comments on Operating Environment and Future Outlook - Management is cautiously optimistic about the future, noting a solid start to the year and a focus on building a portfolio capable of consistent growth [54][55] - The company is addressing tariff impacts and expects improvements in the current environment, with a focus on maintaining strong cash flow and margin expansion [56][58] Other Important Information - The company has made significant investments in software integration for P&R, enhancing clinic efficiency and patient management [45][46] - The integration of Lima is expected to yield $40 million in synergies over three years, with $15 million already realized in the first year [16][17] Q&A Session Summary Question: How do you see the shoulder replacement market unfolding with robotics? - The company believes that robotics will evolve over time, focusing on planning and navigation to enhance precision in shoulder procedures [49][50] Question: Can you provide an update on financial guidance and tariff impacts? - The company has seen improvements in tariff impacts and expects less than $20 million of impact as they move into 2026, with a focus on maintaining a conservative outlook [56][58] Question: What is the strategy for growth in the ASC setting? - The company aims to win in the ASC setting by offering modernized implant systems and efficient solutions tailored for outpatient procedures [39][40]

Financial Data and Key Metrics Changes - The company reported first quarter sales of $559 million, an increase of 8% year-over-year and 10% on a constant currency basis [12][14] - Adjusted EBITDA margins improved by 160 basis points, reaching 17.7%, with adjusted earnings per share increasing by 62% to $0.81 [14][15] - Adjusted gross margins rose to 61.7%, an increase of 300 basis points year-over-year, driven by favorable segment and product mix [13][14] Business Line Data and Key Metrics Changes - The recon business experienced a comparable growth of 13%, with U.S. recon growing by 11%, including 12% growth in U.S. extremities and 10% growth in hips and knees [7][13] - The PNR segment achieved 8% comparable growth, with adjusted EBITDA margins improving by 50 basis points year-over-year [10][14] - The company anticipates high single-digit growth in recon and low single-digit growth in PNR for the year [15] Market Data and Key Metrics Changes - Internationally, the company grew by 14%, indicating strong performance in resilient markets [9] - The U.S. market showed a healthy start, with expectations for at least normal growth throughout the year [30][36] - The company noted a slight downward trend in the recon price environment, although new products are helping to offset this [88] Company Strategy and Development Direction - The company is focused on mitigating tariff impacts and enhancing supply chain resilience, with plans to transition at least 50% of tariff exposure by mid-2026 [19][66] - New product launches are expected to drive growth, with several key innovations scheduled for release throughout the year [9][59] - The management emphasized the importance of maintaining operational momentum and strategic goals despite external challenges [20][77] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate the current economic environment, citing the resilience of the markets served [73][74] - The company remains committed to achieving annual margin expansion goals, despite potential delays due to tariffs [76][78] - Management highlighted a strong foundation and operational momentum, indicating optimism for continued growth [12][20] Other Important Information - The company is transitioning leadership, with Damian McDonald set to take over as CEO [102] - The company expects to maintain positive free cash flow in 2025, despite challenges from tariffs [15][49] Q&A Session Summary Question: What mitigating actions are most significant for long-term supply availability? - Management indicated that moving sourcing out of China is the most significant opportunity to mitigate tariff exposure [24] Question: How is the ARG launch performing and what are the market trends? - The ARG launch is progressing well, contributing positively to extremities growth, with a healthy start to the year overall [28][30] Question: How does U.S. performance compare across segments? - U.S. bracing performed strongly, while recon met expectations, with a good start to the year overall [36][39] Question: What is the outlook for gross margins? - Management noted that gross margin improvements are sustainable, driven by positive business mix and new product contributions [40][41] Question: How is the company addressing cash flow and CapEx? - The company expects to see improvements in free cash flow throughout the year, with elevated CapEx levels due to growth investments [62][66] Question: What is the pricing environment like? - The pricing environment remains flat in PNR, with a slight downward trend in recon prices, but new products are helping to mitigate impacts [88] Question: How durable is the international growth? - International growth is strong, with effective cross-selling strategies contributing to above-market performance [90][92]

Financial Data and Key Metrics Changes - The company reported first quarter sales of $559 million, an increase of 8% year-over-year and 10% on a constant currency basis [11][12] - Adjusted EBITDA grew 19%, delivering a margin of 17.7%, up 160 basis points compared to the same quarter last year [13] - Adjusted earnings per share reached $0.81, a 62% increase from the prior year [14] Business Line Data and Key Metrics Changes - The recon business achieved comparable growth of 13%, with U.S. recon growing 11%, including 12% growth in U.S. extremities and 10% growth in hips and knees [6][7][12] - The PNR segment reported 8% comparable growth, with adjusted EBITDA margins improving by 50 basis points year-over-year [9][12] Market Data and Key Metrics Changes - International growth in the recon business was 14%, indicating strong performance in resilient markets [8] - The U.S. market showed a healthy start, with bracing growing at 10%, while recon growth was in line with expectations [34][35] Company Strategy and Development Direction - The company is focused on new product innovations and has a clear line of sight to a multiyear cadence of meaningful new product introductions [5][8] - The management emphasized the importance of mitigating tariff impacts and optimizing supply chains to maintain growth momentum [16][18] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in the underlying fundamentals of the business, anticipating solid momentum into the second quarter [19] - The company remains committed to driving profitable growth and margin expansion despite potential headwinds from tariffs [75] Other Important Information - The company is increasing its revenue guidance for 2025 by $30 million, now expecting revenues between $2.22 billion and $2.25 billion [15] - The management is monitoring the tariff situation closely and has plans to mitigate the impact [18] Q&A Session Summary Question: What mitigating actions have the most significant potential for durable supply availability? - Management highlighted the importance of quickly moving sourcing out of China to reduce tariff exposure [23] Question: How is the ARG launch performing and what are the general market trends? - The ARG launch is progressing well, contributing positively to extremities growth, with a healthy start to the year overall [28][30] Question: How does the U.S. performance compare to expectations? - The U.S. performance in bracing was strong, while recon growth was in line with expectations, with room for improvement in the coming quarters [34][38] Question: What is the outlook for gross margins? - Management indicated that the strong gross margins are sustainable, driven by positive business mix and new product contributions [39][40] Question: What is the expectation for free cash flow and leverage by year-end? - The company expects to maintain positive free cash flow and leverage in the range of 3% to 3.5% by year-end [50][66] Question: How recession-proof is the business? - Management believes the business is resilient, with consistent long-term growth even during recessionary periods [71][72] Question: Will tariff dynamics affect margin expansion goals? - While there may be short-term impacts, management remains committed to long-term margin expansion goals [74][75]

Group 1: Earnings Performance - Enovis reported quarterly earnings of $0.81 per share, exceeding the Zacks Consensus Estimate of $0.74 per share, and up from $0.50 per share a year ago, representing an earnings surprise of 9.46% [1] - The company posted revenues of $558.83 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 0.03%, and an increase from $516.27 million year-over-year [2] - Over the last four quarters, Enovis has surpassed consensus EPS estimates four times and topped consensus revenue estimates three times [2] Group 2: Stock Performance and Outlook - Enovis shares have declined approximately 22% since the beginning of the year, compared to a decline of 4.3% for the S&P 500 [3] - The company's earnings outlook will be crucial for future stock performance, with current consensus EPS estimates at $0.74 for the coming quarter and $3.19 for the current fiscal year [4][7] - The current Zacks Rank for Enovis is 3 (Hold), indicating expected performance in line with the market in the near future [6] Group 3: Industry Context - The Medical Info Systems industry, to which Enovis belongs, is currently in the top 32% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact investor decisions [5]

Financial Performance - Reported sales growth of +8% and comparable constant currency growth of +10%[8, 18] - Adjusted gross margin expanded by +300 basis points, driven by product mix and EGX efficiency improvements[18] - Adjusted EBITDA margin expanded by +160 basis points due to Recon mix and operating leverage[8, 18] - Q1 2025 net sales reached $559 million compared to $516 million in Q1 2024[16] - Adjusted EPS increased to $0.81 in Q1 2025 from $0.50 in Q1 2024[16] Segment Performance - Reconstructive segment sales grew by +11% year-over-year, with +13% comparable growth[10] - Prevention & Recovery (P&R) segment sales grew by +5% year-over-year, with +8% comparable growth[13] - International reconstructive segment experienced comparable growth of +14% xFx[11] Outlook and Tariffs - Full year 2025 revenue outlook revised to $2.22-$2.25 billion[19] - Full year 2025 adjusted EBITDA outlook revised to $385-$395 million[19] - Expects a $20 million EBITDA headwind due to tariffs, equally spread across Q3 and Q4[22, 27]

Financial Performance - Enovis reported first-quarter 2025 net sales of $559 million, an 8% increase on a reported basis and 9% on a comparable basis year-over-year[3]. - The net loss from continuing operations for the first quarter was $56 million, representing a loss margin of 10.0%[4]. - Adjusted EBITDA for the first quarter was $99 million, equating to 17.7% of sales, an increase of 160 basis points compared to the prior year[4]. - Reconstructive sales grew 11% year-over-year on a reported basis, while P&R sales increased by 5%[3]. - Enovis Corporation reported a net loss from continuing operations of $55.6 million for the three months ended April 4, 2025, compared to a loss of $71.8 million for the same period in 2024, representing a 22.5% improvement[26]. - Adjusted EBITDA for the same period was $99.2 million, with an adjusted EBITDA margin of 17.7%, up from $83.2 million and 16.1% in the prior year, indicating a 19.5% increase in adjusted EBITDA[26]. - Net sales increased to $558.8 million, a growth of 8.2% from $516.3 million in the previous year, driven by strong performance in both the Prevention & Recovery and Reconstructive segments[33]. Revenue Outlook - Enovis updated its 2025 revenue outlook to a range of $2.22-2.25 billion, up from previous expectations of $2.19-2.22 billion[7]. - Adjusted EBITDA for 2025 is forecasted to be $385-395 million, revised down from $405-415 million due to a $20 million tariff-related impact[7]. - Full-year adjusted earnings per share guidance was updated from $3.10-$3.25 to $2.95-$3.10[7]. Leadership Changes - The company appointed Damien McDonald as CEO, effective May 12, 2025[6]. Strategic Focus - Enovis emphasized a focus on disciplined execution and strategic investment to drive above-market growth[5]. - The company is committed to a multi-year cadence of high-impact product launches across its portfolio[5]. Asset and Liability Management - Total current assets rose to $1,218.2 million as of April 4, 2025, compared to $1,146.4 million at the end of 2024, reflecting a 6.3% increase[30]. - Enovis Corporation's total liabilities increased to $2,254.8 million as of April 4, 2025, from $2,154.4 million at the end of 2024, representing a 4.6% rise[30]. - Cash and cash equivalents decreased to $38.5 million from $48.2 million at the end of 2024, marking a decline of 19.5%[31]. Operational Efficiency - The company reported a net cash used in operating activities of $1.6 million for the three months ended April 4, 2025, a significant improvement from $36.2 million used in the same period last year[32]. - The gross profit margin (GAAP) improved to 59.4% for the three months ended April 4, 2025, compared to 57.7% in the prior year[28]. - The company completed strategic purchases of economic interest on future royalty payments for a total of $43.8 million, with a recognized charge of $35.8 million for the net present value of these purchases[26].

Financial Performance - Enovis reported first-quarter net sales of $559 million, reflecting an 8% increase on a reported basis and a 9% increase on a comparable basis year-over-year [2] - The Reconstructive segment saw net sales growth of 11% on both a reported and comparable basis, while the Prevention & Recovery segment grew by 5% on a reported basis and 7% on a comparable basis [2] - The company experienced a net loss from continuing operations of $56 million, equating to a loss of 10.0% of sales, with adjusted EBITDA of $99 million, representing a margin of 17.7% [3] Management Commentary - The CEO of Enovis stated that the company had a strong start to 2025, with revenues and margins exceeding expectations, attributing this performance to the strength of their business system and disciplined execution [4] Financial Outlook - Enovis updated its 2025 revenue expectations to a range of $2.22-2.25 billion, up from previous expectations of $2.19-2.22 billion, while adjusted EBITDA is now forecasted to be $385-395 million, down from $405-415 million due to tariff impacts [5] Product Segments - The first-quarter sales growth in the Prevention & Recovery segment was 5.2%, while the Reconstructive segment achieved a growth rate of 11.3% [39] - The U.S. Reconstructive sales grew by 11.4%, and international Reconstructive sales increased by 11.1% [39] Non-GAAP Financial Measures - Adjusted net income from continuing operations for the first quarter was reported at $46.5 million, with an adjusted net income margin of 8.3% [21] - The adjusted EBITDA margin increased by 160 basis points compared to the prior year, indicating improved operational efficiency [3][20]

Core Viewpoint - Enovis Corporation will host an investor conference call and live webcast to discuss its first quarter 2025 financial results on May 8, 2025, at 8:30 a.m. Eastern Time, with an earnings press release issued earlier that morning [1]. Group 1: Conference Call/Webcast Information - Investors can access the live webcast via a link on the Enovis website, and those participating in the call can dial (833) 335-0887 using Access Code: 482081 [2]. - A replay of the call will be available on the Enovis website later that day [2]. Group 2: About Enovis - Enovis Corporation is an innovation-driven medical technology growth company focused on developing clinically differentiated solutions that improve patient outcomes and transform workflows [3]. - The company offers a wide range of products, services, and integrated technologies aimed at supporting active lifestyles in orthopedics and beyond [3]. - Enovis shares are listed on the New York Stock Exchange under the symbol ENOV [3]. Group 3: Availability of Information - Enovis routinely announces material information to investors through SEC filings, press releases, public conference calls, webcasts, and its Investor Relations website [4]. - The company encourages investors and the media to review the information shared on its Investor Relations website [4].