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].

Core Points - Enovis Corporation announced the appointment of Damien McDonald as CEO, effective May 12, 2025, succeeding Matt Trerotola who will retire [1][3] - The company expects first quarter revenues to be between $555 million and $563 million, with adjusted EBITDA projected to be between $97 million and $100 million [1][6] Leadership Transition - Sharon Wienbar, Lead Independent Director, expressed enthusiasm for McDonald's appointment, highlighting his strong track record in the medical technology sector [2] - McDonald has over 35 years of experience in the medical device industry, previously serving as CEO of LivaNova, where he improved growth, profitability, and shareholder value [2][3] - Following Trerotola's retirement, Wienbar will assume the role of independent Chair of the Board [3] Company Overview - Enovis Corporation is focused on developing clinically differentiated medical technology solutions aimed at improving patient outcomes [4] - The company emphasizes a culture of continuous improvement and innovation, with a diverse range of products and services in orthopedics and beyond [4]

Core Insights - Enovis is showcasing its expanding portfolio of foot and ankle solutions at the ACFAS Annual Scientific Conference, emphasizing its commitment to education and innovative partnerships in the field [2][3]. Product Highlights - The company will feature the Tarsoplasty Percutaneous Lapidus Correction System, which offers a minimally invasive option for Lapidus bunionectomy, enhancing the patient's perioperative experience [3]. - Enovis will present new research on the Arsenal Foot™ Plating System, focusing on how screw angulation and plate design affect surgical outcomes [3]. Events and Engagements - Enovis is hosting two key events during the conference: "Phoenix Rising: Foot & Ankle Edition" on March 28 and a Flatfoot/MIS Techniques Workshop on March 26 [4]. - Attendees are encouraged to visit booth 1820 for hands-on engagement with Enovis products and to follow the company's social media for live updates [5]. Company Overview - Enovis Corporation is a medical technology growth company focused on developing clinically differentiated solutions that improve patient outcomes and transform workflows [6].