Enovis(US:ENOV)2025-11-06 11:09Financial Performance - Enovis reported third-quarter net sales of $549 million, representing a 9% increase on a reported basis and a 7% increase on an organic basis compared to the same quarter in 2024[3]. - The company experienced a net loss of $571 million, equating to 104.0% of sales, primarily due to a non-cash goodwill impairment charge of $548 million[4]. - Adjusted EBITDA for the third quarter was $95 million, or 17.3% of sales, with adjusted net earnings per diluted share at $0.75[4][5]. - The gross profit margin for the third quarter was reported at 59.9%, an increase from 56.7% in the same quarter of 2024[20]. - Enovis Corporation reported a net loss of $570.9 million for the three months ended October 3, 2025, compared to a net loss of $31.3 million for the same period in 2024, reflecting a net loss margin of (104.0)%[22]. - Adjusted net income from continuing operations for the three months ended October 3, 2025, was $43.5 million, with an adjusted net income margin of 7.9%, compared to $41.0 million and 8.1% in the prior year[22]. - The company reported a net loss per share of $(9.99) for the three months ended October 3, 2025, compared to $(0.61) for the same period in 2024[22]. - Total net loss from continuing operations attributable to Enovis Corporation was $571.1 million for the three months ended October 3, 2025, compared to $33.8 million in the prior year[23]. - The company reported a net loss margin of (39.7)% for the nine months ended October 3, 2025, compared to (7.9)% for the same period in 2024[22]. - The company reported a net loss of $663.2 million for the nine months ended October 3, 2025, compared to a net loss of $121.6 million for the same period in 2024[31]. Sales Growth - Reconstructive sales grew 12% year-over-year on a reported basis and 9% organically, while Prevention & Recovery sales increased by 6% on a reported basis and 4% organically[3][6]. - Net sales for the three months ended October 3, 2025, were $548.9 million, an increase of 8.6% compared to $505.2 million for the same period in 2024[33]. - For the three months ended September 27, 2024, total net sales reached $505.2 million, reflecting an increase of 8.7% compared to the previous period[35]. - For the nine months ended October 3, 2025, total net sales increased to $1,672.3 million, showing a growth of 8.1%[35]. - Existing businesses contributed $33.0 million to the total sales growth, representing a 6.5% increase[35]. - The sales growth from existing businesses for the nine months was $113.1 million, which is a 7.3% increase[35]. - Foreign currency translation positively impacted sales by $14.1 million for the nine months, accounting for a 0.9% increase[35]. - Acquisitions contributed $2.8 million to the nine-month sales growth, representing a 0.2% increase[35]. - The impact of divestitures for the nine months was a decrease of $4.3 million, which is a 0.3% decline[35]. - The company experienced a foreign currency translation impact of $14.1 million for the nine months, contributing to overall sales growth[35]. Guidance and Strategic Focus - Enovis updated its 2025 revenue guidance to a range of $2.24-2.27 billion, reflecting a $15 million reduction due to the divestiture of the Dr. Comfort business unit[7]. - The adjusted EBITDA forecast for 2025 is now $395-405 million, up from the previous outlook of $392-402 million[7]. - Full-year adjusted earnings per share guidance was revised from $3.05-3.20 to $3.10-3.25[7]. - Enovis emphasized a focus on commercial execution, innovation, operational excellence, and financial discipline as strategic priorities for future growth[6]. Asset and Liability Changes - Total current assets increased to $1,280.1 million as of October 3, 2025, from $1,146.4 million as of December 31, 2024[29]. - Goodwill decreased to $1,218.7 million as of October 3, 2025, from $1,692.7 million as of December 31, 2024, indicating potential impairment[29]. - Cash and cash equivalents decreased to $33.6 million as of October 3, 2025, from $48.2 million at the beginning of the period[31]. - Total liabilities increased to $2,409.7 million as of October 3, 2025, compared to $2,154.4 million as of December 31, 2024[29]. - The company reported a total equity of $2,023.7 million as of October 3, 2025, down from $2,564.3 million as of December 31, 2024[29]. Impairment and Restructuring Charges - The company incurred a goodwill impairment charge of $548.4 million for the three months ended October 3, 2025, with total restructuring charges of $3.4 million during the same period[22][25]. - Strategic transaction costs related to the Lima Acquisition amounted to $9.2 million for the three months ended October 3, 2025, compared to $17.5 million for the same period in 2024[26]. - Enovis Corporation recognized $45.8 million for the net present value of royalty interest purchases, which will be paid over nine years, for the nine months ended October 3, 2025[26].