Financial Performance - Enovis reported a net sales increase to $565 million in Q2 2025, compared to $525 million in Q2 2024[20] - Adjusted Earnings Per Share (EPS) increased by 27% in Q2 2025[8] - The adjusted gross profit margin improved from 59.6% in Q2 2024 to 60.5% in Q2 2025[20] - Adjusted EBITDA for Q2 2025 was $97 million, compared to $90 million in Q2 2024, maintaining a margin of 17.2%[20] - For the first half of 2025, net sales reached $1.123 billion, up from $1.041 billion in the first half of 2024[20] - Adjusted EPS for the first half of 2025 was $1.60, compared to $1.13 in the first half of 2024[20] Segment Performance - Reconstructive segment sales grew by 11% year-over-year, with 8% organic growth, reaching $274 million in Q2 2025[10] - Prevention & Recovery (P&R) segment sales grew by 5% year-over-year, with 3% organic growth, reaching $291 million in Q2 2025[15] - Extremities within the Reconstructive segment experienced 10% growth[14] Outlook - Enovis raised its full-year 2025 revenue outlook to $2.245-$2.275 billion[22] - The company anticipates organic growth of approximately 6.25-6.75% year-over-year[25]

Core Insights - Enovis (ENOV) reported quarterly earnings of $0.79 per share, exceeding the Zacks Consensus Estimate of $0.74 per share, and up from $0.62 per share a year ago, representing an earnings surprise of +6.76% [1] - The company achieved revenues of $564.55 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 1.83% and increasing from $525.16 million year-over-year [2] - Enovis has consistently surpassed consensus EPS and revenue estimates over the last four quarters [2] Earnings Performance - The earnings surprise for the previous quarter was +9.46%, with actual earnings of $0.81 per share against an expectation of $0.74 [1] - The current consensus EPS estimate for the upcoming quarter is $0.66, with expected revenues of $535.09 million, and for the current fiscal year, the EPS estimate is $3.04 on revenues of $2.24 billion [7] Stock Performance and Outlook - Enovis shares have declined approximately 41.3% year-to-date, contrasting with the S&P 500's gain of 7.9% [3] - The company's Zacks Rank is currently 3 (Hold), indicating expected performance in line with the market in the near future [6] Industry Context - The Medical Info Systems industry, to which Enovis belongs, is currently ranked in the top 37% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Enovis Q2 2025 Earnings Release [Second Quarter 2025 Performance Summary](index=1&type=section&id=Second%20Quarter%202025%20Performance%20Summary) Enovis reported strong Q2 2025 with **$565 million net sales** (7% reported, 5% organic) and **$97 million adjusted EBITDA** Q2 2025 Key Financial Metrics | Metric | Value | Growth (YoY, Reported) | Growth (YoY, Organic) | | :--- | :--- | :--- | :--- | | Net Sales | $565 million | 7% | 5% | | Recon Sales | - | 11% | 8% | | P&R Sales | - | 5% | 3% | | Net Loss | $37 million | - | - | | Adjusted EBITDA | $97 million | - | - | | Adjusted EBITDA Margin | 17.2% | - | - | | Net Loss per Share (GAAP) | $0.64 | - | - | | Adjusted EPS (diluted) | $0.79 | - | - | - CEO Damien McDonald expressed confidence in the company's foundation and momentum to drive **durable, profitable growth**, emphasizing operational discipline and scalable execution[5](index=5&type=chunk) [Full Year 2025 Financial Outlook](index=2&type=section&id=Full%20Year%202025%20Financial%20Outlook) Enovis raised FY2025 guidance, projecting higher revenue, adjusted EBITDA, and EPS, reflecting confidence Updated FY 2025 Guidance | Metric | New 2025 Guidance | Prior 2025 Guidance | | :--- | :--- | :--- | | Revenue (in billions) | $2.245 - $2.275 | $2.220 - $2.250 | | Adjusted EBITDA (in millions) | $392 - $402 | $385 - $395 | | Adjusted EPS ($) | $3.05 - $3.20 | $2.95 - $3.10 | [Consolidated Financial Statements](index=4&type=section&id=Consolidated%20Financial%20Statements) Consolidated financial statements detail Enovis's performance and position across operations, balance sheet, and cash flows [Statements of Operations](index=4&type=section&id=Statements%20of%20Operations) Q2 2025 operations show **$564.5 million net sales** and improved gross margin, despite a **$36.5 million net loss** Q2 Statement of Operations Highlights (in thousands) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Net Sales | $564,545 | $525,160 | | Gross Profit | $334,697 | $288,883 | | Gross Profit Margin | 59.3% | 55.0% | | Operating Loss | $(16,796) | $(44,219) | | Net Loss from Continuing Operations | $(36,455) | $(18,444) | | Net Loss per Share (Continuing Ops) | $(0.64) | $(0.34) | [Balance Sheets](index=9&type=section&id=Balance%20Sheets) As of July 4, 2025, Enovis's total assets grew to **$5.02 billion**, with liabilities rising to **$2.44 billion** Balance Sheet Summary (in thousands) | Account | July 4, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Total Current Assets | $1,280,351 | $1,146,446 | | Total Assets | $5,021,398 | $4,718,777 | | Total Current Liabilities | $568,184 | $528,998 | | Total Liabilities | $2,440,438 | $2,154,448 | | Total Equity | $2,580,960 | $2,564,329 | [Statements of Cash Flows](index=10&type=section&id=Statements%20of%20Cash%20Flows) H1 2025 operating cash flow was **$46.2 million**, a significant improvement, with **$110.3 million** used in investing Six Months Ended Cash Flow Summary (in thousands) | Activity | Six Months 2025 | Six Months 2024 | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | $46,173 | $(28,383) | | Net cash used in investing activities | $(110,320) | $(839,168) | | Net cash provided by financing activities | $57,422 | $867,049 | | **Decrease in Cash and cash equivalents** | **$(4,093)** | **$(1,408)** | [Segment Performance and Sales Analysis](index=11&type=section&id=Segment%20Performance%20and%20Sales%20Analysis) Q2 2025 net sales grew **7.5% to $564.5 million**, with **Reconstructive** up **10.8%** and **5.2% organic growth** Q2 2025 Net Sales Change by Segment (vs Q2 2024) | Segment | Q2 2025 Sales (in millions) | Total Change % | Organic Growth % (Existing Businesses) | Foreign Currency Impact % | | :--- | :--- | :--- | :--- | :--- | | Prevention and Recovery | $290.6 | 4.6% | 2.6% | 1.4% | | Reconstructive | $274.0 | 10.8% | 8.1% | 2.7% | | **Total Enovis** | **$564.5** | **7.5%** | **5.2%** | **2.0%** | [Reconciliation of GAAP to Non-GAAP Measures](index=3&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Measures) GAAP to non-GAAP reconciliation adjusts **net loss** to **adjusted net income** and **operating loss** to **adjusted EBITDA** for clarity Q2 2025 GAAP Net Loss to Adjusted Net Income Reconciliation (in millions) | Description | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | **Net Loss (GAAP)** | **$(36.5)** | **$(18.5)** | | Amortization of acquired intangibles | $43.0 | $40.9 | | Strategic transaction costs | $13.5 | $22.7 | | Purchase of royalty interest | $10.0 | - | | Stock-based compensation | $8.7 | $7.6 | | Other adjustments | $(0.4) | $(33.8) | | Tax adjustment | $(3.2) | $(19.6) | | **Adjusted net income (non-GAAP)** | **$45.7** | **$34.4** | Q2 2025 GAAP Operating Loss to Adjusted EBITDA Reconciliation (in millions) | Description | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | **Operating loss (GAAP)** | **$(16.8)** | **$(44.1)** | | Depreciation and other amortization | $28.6 | $30.1 | | Amortization of acquired intangibles | $43.0 | $40.9 | | Strategic transaction costs | $13.5 | $22.7 | | Purchase of royalty interest | $10.0 | - | | Stock-based compensation | $8.7 | $7.6 | | Other adjustments | $10.2 | $33.0 | | **Adjusted EBITDA (non-GAAP)** | **$97.2** | **$90.2** | - Adjusted gross profit margin (Non-GAAP) for Q2 2025 was **60.5%**, compared to the GAAP gross profit margin of **59.3%**[27](index=27&type=chunk) [Disclosures and Company Information](index=2&type=section&id=Disclosures%20and%20Company%20Information) This section provides essential investor information: conference call, forward-looking statements, and non-GAAP measure explanations - The company will host an investor conference call and live webcast to discuss the **Q2 2025 results**[2](index=2&type=chunk)[8](index=8&type=chunk) - The press release contains **forward-looking statements** concerning plans, outlook, and expectations, subject to risks and uncertainties[11](index=11&type=chunk) - Enovis explains its use of **non-GAAP financial measures** (e.g., Adjusted EBITDA, Adjusted net income) to provide a clearer view of underlying business trends[13](index=13&type=chunk)[17](index=17&type=chunk)

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]