Enovis : 1Q26 results presentation FINAL

Published: 2026-05-07 06:23:49 ET ENOV

Published on 05/07/2026 at 06:23 am EDT

May 7, 2026

enccvis.

Creating Better Together"

• +3% organic growth, +6% growth adjusted for selling days

• +6% organic growth in Recon, +8% days adjusted

• +1% organic growth in PCR, +3% days adjusted

Reconstructive Q1 Sales

Growth: +11% Y/Y, +6% organic

Q1 '26

Sales

$317M

Other

Hip s Knee

Extremities

• +10% organic growth in Extremities

• +4% organic growth in Hip/Knee

• +10% organic growth in Extremities

• +6% organic growth in Hip/Knee, driven by Nebula/Orthodrive impactor and revision knees

• +10% organic growth in Extremities, including HSD

growth in Shoulder

PGR Q1 Sales

Growth: +0% Y/Y, +1% organic

Recovery Sciences

Q1 '26

Sales

$272M

Bracing

WW organic growth of 1%

Global Bracing 1%

Expanded Adjusted Gross Margin by +100bps inclusive of tariff impact

Driven by product mix and divestiture of Dr. Comfort

Encouraging tailwinds on the horizon

Positive Medicare Coverage HCPCs code for Cold Therapy

Broader coverage criteria for OA bracing

Results include a ~240 basis point headwind

from fewer selling days

millions

Net Sales

Q1 2025

$55G

Q1 2026

$58G

Adj. Gross Profit Margin(1)

$333 59.6%

$366 62.1%

Adj. EBITDA

Margin(1)

$87

15.6%

$104

17.6%

Adj. EPS(1)

$0.C5

$0.8G

• +3% organic growth, +6% adjusted for selling days

Adjusted gross margin expansion of +250bps (+40bps underlying) driven by product mix and EGX efficiency improvements

Continued investments in RCD spend to support key innovation projects

(1) Effective Q1 2026, Enovis revised its definition of Adjusted EBITDA to no longer adjust for inventory step-up charges. For consistency of presentation, Adjusted EBITDA for Q1 2025 has been revised to no longer adjust for $12.1 million in inventory step-up charges in connection with acquired businesses for the period, resulting in a corresponding reduction in previously reported Q1 2025 Adjusted

EBITDA (from $99.2 million to $87.1 million), Adjusted EBITDA margin and (from 17.7% to 15.6%), Adjusted Gross Profit Margin (61.7% to 59.6%) and Adjusted EPS (from $0.81 to $0.65). See appendix 6

for tabular presentation of the impact of this change.

*See appendix for non-GAAP reconciliations.

Liquidity as of Q1 2026

$1.3B in long-term debt

$33M in cash

$906M unused revolver capacity

Strategic Priorities

Increase free cash flow

Continue to reduce leverage to below 3.0x

Support organic growth through CAPEX and RCD investments

Selectively advance value-creating bolt-

on and divestment candidates

Cash Flow

Free cash flow improved $16M vs Q125

On track for +25% free cash flow conversion

in 2026

Biggest drivers of Y/Y improvement in 2026

Operating leverage and asset efficiency

Reduced one-time charges related to EU MDR, restructuring, and strategic transaction charges

* Weighted average cost of debt net of investment hedges. Average

February

May

Comments

Revenue

$2.31-$2.37B

Global markets grow in line with historical

$2.31-$2.37B averages

aEBITDA

$425-$435M

~4.0-6.0% organic growth

$425-$435M • 0.5-1.5% FX tailwind at current rates

HSD Recon growth, LSD PCR

Depreciation

$118-$122M

$118-$122M • Dr. Comfort divestiture a 1.8% headwind to reported revenue growth (-$41M)

Interest Expense

~$30-$32M

~$30-$32M • Assumes ~$15M of net tariff expenses

Adjusted Tax Rate

~23%

based on current environment

~23%

aEPS assumes shares of ~59M

aEPS

$3.52-$3.73

Free Cash Flow Conversion

25%+

Reaffirming 202C Guidance

Expect ~50% of revenues in first half vs second half

Recon

Revenue

Strong US productivity and procedural volumes to close out Q1. Continued share gains OUS against a softer

market backdrop - expect stable end markets for the full year

Key product launches progressing and strong new account conversion pipeline

PsR

Key OUS markets seeing heightened revenue volatility month-to-month, full year plans on track

Important reimbursement tailwinds won't impact until mid-year 2026

Middle East

Revenues from the Middle East represent ~$1-2M per month

Confident in market position but uncertain about the timing and/or recovery of any revenue disruptions

aEBITDA

Total Enovis

Assumption for tariff headwinds remain unchanged at $15M

Working to offset near-term impacts of higher freight and oil costs

Expect higher operating leverage and earnings per share growth in the second half of the year

Encouraging start to 2026 against an increasingly dynamic operating and geopolitical environment

Above market growth in both segments fueled by

recent launches and commercial execution

Multi-year roadmap of new product launches supports continued growth trajectory

2026 guidance reaffirmed

enov•is

Creating Better Together"

Three Months Ended April 3, 2026

US US

INTL

Enovis Recon P&R Extremeties Hip/Knee Recon

Reported Growth

11%

10%

13%

FX Benefit

-4%

-5%

-3%

-10%

Acq/Divest

2% 0% 4%

0% 0% 0%

Organic Growth

10%

Days Impact

2% 2% 2%

Organic, Days Adjusted

13%

Total Enovis

2025

Old/Prior Presentation

Adjusting for Inventory Step-Up

2025

New/Current Presentation

Adjusted Gross Profit

344.9

341.5

331.0

353.6

1,370.9

(12.1)

(6.0)

(18.1)

332.8

335.5

331.0

353.6

1,352.8

Adjusted Gross Profit Margin

61.7%

60.5%

60.3%

61.4%

61.0%

-2.2%

-1.1%

0.0%

-0.8%

59.6%

59.4%

60.3%

61.4%

60.2%

Adjusted EBITDA

99.2

97.1

94.8

111.8

402.9

(12.1)

(6.0)

(18.1)

87.1

91.1

94.8

111.8

384.8

Adjusted EBITDA Margin

17.7%

17.2%

17.3%

19.4%

17.9%

-2.2%

-1.1%

0.0%

-0.8%

15.6%

16.1%

17.3%

19.4%

17.1%

Recon

2025

Old/Prior Presentation

Adjusting for Inventory Step-Up

2025

New/Current Presentation

Adjusted Gross Profit

201.1

182.2

175.1

198.4

756.8

(12.1)

(6.0)

(18.1)

189.0

176.2

175.1

198.4

738.7

Adjusted Gross Profit Margin

70.2%

66.5%

67.9%

67.7%

68.1%

-4.2%

-2.2%

0.0%

-1.6%

66.0%

64.3%

67.9%

67.7%

66.5%

Adjusted EBITDA

68.3

50.3

52.5

68.8

239.9

(12.1)

(6.0)

(18.1)

56.2

44.3

52.5

68.8

221.8

Adjusted EBITDA Margin

23.9%

18.4%

20.4%

23.5%

21.6%

-4.2%

-2.2%

0.0%

-1.6%

19.6%

16.2%

20.4%

23.5%

20.0%

Net Sales

Prevention and

Recovery Reconstructive Total Enovis

$ Change % $ Change % $ Change %

For the three months ended April 4, 2025

$ 272.6

$ 286.3

$ 558.8

Components of Change:

Existing Businesses(1)

2.6

1.0 %

15.8

5.5 %

18.4

3.3 %

Acquisitions(2)

1.3

0.5 %

- %

1.3

0.2 %

Divestitures(3)

(12.7)

(4.7)%

- %

(12.7)

(2.3)%

Foreign Currency Translation(4)

8.2

3.0 %

15.2

5.3 %

23.4

4.2 %

(0.6)

(0.2)%

31.0

10.8 %

30.4

5.4 %

For the three months ended April 3, 2026

$ 272.0

$ 317.2

$ 589.2

(1) Excludes the impact of foreign exchange rate fluctuations and acquisitions/divestitures, thus providing a measure of change due to factors such as price, product mix and volume.

(2) Represents the incremental sales as a result of acquisitions of businesses for twelve months from the acquisition date. Excludes (i) acquisitions of former distribution partners as such transactions primarily represent a shift from a third-party distribution model to a direct sales model, and (ii) acquisitions of intellectual property as such transactions involve the purchase of technologies that have not been commercialized.

(3) Represents the decrease in sales as a result of divestitures of businesses for twelve months from the divestiture date.

(4) Represents the difference between prior year sales valued at the actual prior year foreign exchange rates and prior year

sales valued at current year foreign exchange rates.

April 3, 2026

April 4, 2025

Adjusted Net Income and Adjusted Net Income Per Share

Net Loss (GAAP)

$ (8.5)

$ (55.7)

Net loss margin (GAAP)

(1.4)%

(10.0)%

Net income attributable to noncontrolling interest from continuing operations - net of

taxes

(0.3)

Loss from discontinued operations, net of taxes

0.1

Net loss from continuing operations attributable to Enovis Corporation(1) (GAAP)

$ (8.7)

$ (55.8)

Restructuring charges - pretax(2)

2.7

3.9

MDR and other costs - pretax(3)

1.2

3.2

Amortization of acquired intangibles - pretax

41.9

41.8

PPE step-up depreciation - pretax(4)

0.7

0.6

Strategic transaction costs - pretax(5)

11.0

12.1

Stock-based compensation

8.7

7.4

Purchase of royalty interest(6)

35.8

Other (income) expense, net(7)

(1.0)

1.4

Tax adjustment(8)

(5.0)

(13.0)

Adjusted net income from continuing operations (non-GAAP)(9)

51.6

37.3

Adjusted net income margin from continuing operations(9)

8.8 %

6.7 %

Weighted-average shares outstanding - diluted (GAAP)

$ 57,313

$ 56,792

Net loss per share - diluted from continuing operations (GAAP)

$ (0.15)

$ (0.98)

Adjusted weighted-average shares outstanding - diluted (non-GAAP)

$ 57,996

$ 57,374

Adjusted net income per share - diluted from continuing operations (non-GAAP)(9)

$ 0.89

$ 0.65

Three Months Ended

(1) Net loss from continuing operations attributable to Enovis Corporation for the respective periods is calculated using Net loss from continuing operations less the continuing operations component of the income attributable to noncontrolling interest, net of taxes.

(2) Restructuring charges includes immaterial expenses classified as Cost of sales on the Company's Condensed Consolidated Statements of Operations for the three months ended April 4, 2025. There were no similar charges for the three months ended April 3, 2026.

(3) MDR and other costs includes (i) $0.8 million for the three months ended April 3, 2026 and $2.5 million for the three months ended April 4, 2025 in non-recurring costs specific to updating our quality system, product labeling, asset write-offs and product remanufacturing to comply with the medical device reporting regulations and other requirements of the new medical device regulations in the European Union for devices which were introduced to the market prior to the regulation and (ii) $0.4 million for the three months ended April 3, 2026 and $0.7 million for the three months ended April 4, 2025 of expenses to resolve certain infrequent, non-recurring regulatory or other legal matters. These costs are classified as Selling, general and administrative expense on our Condensed Consolidated Statements of Operations.

(4) Includes $0.7 million in PPE step-up depreciation in connection with acquired businesses for the three months ended April 3, 2026 and $0.6 million for the three months ended April 4, 2025.

(5) Strategic transaction costs includes: (i) $7.4 million for the three months ended April 3, 2026 and $8.7 million for the three months ended April 4, 2025, respectively, related to non-recurring integration costs associated with the Lima Acquisition, which includes payroll and retention costs for roles to be eliminated or that are dedicated to integration activities, professional and consulting fees specifically incurred to consummate the acquisition and advise and facilitate on post-acquisition integration matters including legal entity consolidation, costs associated with rebranding and marketing acquired business under Enovis name, such as marketing materials, trade show redesign costs and product labeling, and integration related costs associated with sales agent and distributor network rationalization, including contract termination and retention expenses, supply chain and portfolio integration, and quality management system consolidation, (ii) $3.4 million for the three months ended April 3, 2026 and $2.9 million for the three months ended April 4, 2025 of non-recurring (non-Lima) acquisition integration costs and other non-recurring project costs for global ERP rationalization and shared service center start-up, and (iii) $0.2 million for the three months ended April 3, 2026 and $0.5 million for the three months ended April 4, 2025 related to the Separation of our former fabrication technology business. These costs are classified as Selling, general and administrative expense on our Condensed Consolidated Statements of Operations.

(6) Purchase of royalty interest represents the one-time, up-front expense incurred by the Company to acquire the economic rights to future royalties under product development agreements in connection with the termination of such agreements as part of a strategic shift to a new product development model. The Company believes that excluding the impact of such expense enhances comparability between periods, provides investors with a clear and meaningful view of our underlying business trends and aligns with how management evaluates the ongoing business performance.

(7) Other (income) expense, net includes the fair value gain adjustment for non-designated cross currency swaps in 2026. Includes the final fair value loss adjustment for the Contingent Acquisition Shares issued in the first quarter of 2025.

(8) The effective tax rates used to calculate adjusted net income and adjusted net income per share were 21.3% for the three months ended April 3, 2026 and 23.1% for the three months ended April 4, 2025.

(9) For the three months ended April 3, 2026, we revised our definition of Adjusted Net Income and Adjusted Net Income Per Diluted Share to no longer adjust for inventory step-up charges. Adjusted Net Income in prior periods has been revised to reflect this change for consistency of presentation along with its impact on the effective tax rate which has been revised from 23.4%, as presented in our Form 8-K for the period ended April 4, 2025, to 23.1%. Accordingly, Adjusted Net Income for the three months ended April 4, 2025 has been revised from $45.6 million, or $0.50 per diluted share, as presented in our Form 8-K for the period ended April 4, 2025, to $37.3 million, or $0.65 per diluted share, reflecting the removal of a $12.1 million adjustment for inventory step-up in connection with acquired businesses, resulting in a corresponding reduction to Adjusted net income margin from continuing operations for the three months ended April 4, 2025 from 8.3%, as presented in our Form 8-K for the period ended April 4, 2025, to 6.7%.

Three Months Ended

April 3, 2026 April 4, 2025

Net loss (GAAP) $ (8.5) $ (55.7)

(Dollars in millions)

(1) Restructuring charges includes immaterial expenses classified as Cost of sales on the Company's Condensed Consolidated Statements of Operations for the three months ended April 4, 2025. There were no similar charges for the three months ended April 3, 2026.

(2) MDR and other costs includes (i) $0.8 million for the three months ended April 3, 2026 and $2.5 million for the three months ended April 4, 2025, respectively, in non-recurring costs specific to updating our quality system, product labeling, asset write-offs and product remanufacturing to comply with the medical device reporting regulations and other requirements of the new medical device regulations in the European Union for devices which were introduced to the market prior to the regulation and (ii) $0.4 million for the three months ended April 3, 2026 and $0.7 million for the three months ended April 4, 2025 of expenses to resolve certain infrequent, non-recurring regulatory or other legal matters. These costs are classified as Selling, general and administrative expense on our Condensed Consolidated Statements of Operations.

(3) Strategic transaction costs includes: (i) $7.4 million for the three months ended April 3, 2026 and $8.7 million for the three months ended April 4, 2025 related to non-recurring integration costs associated with the Lima Acquisition, which includes payroll and retention costs for roles to be eliminated or that are dedicated to integration activities, professional and consulting fees specifically incurred to consummate the acquisition and advise and facilitate on post-acquisition integration matters including legal entity

Net loss margin (GAAP) (1.4)% (10.0)%

Loss from discontinued operations, net of taxes - 0.1

Income tax expense (benefit) 9.0 (1.8)

Other (income) expense, net (3.3) 1.4

Operating income (loss) (GAAP) $ 6.5 $ (46.8)

Restructuring charges(1) 2.7 3.9

Interest expense, net 9.2 9.2 Adjusted to add:

Strategic transaction costs(3) 11.0 12.1

MDR and other costs(2) 1.2 3.2

Depreciation and other amortization 31.4 29.6

Stock-based compensation 8.7 7.4

Amortization of acquired intangibles 41.9 41.8

Purchase of royalty interest(4)

35.8

Adjusted EBITDA (non-GAAP)(5)

$ 103.6

$ 87.1

Adjusted EBITDA margin (non-GAAP)(5)

17.6 %

15.6 %

consolidation, costs associated with rebranding and marketing acquired business under Enovis name, such as marketing materials, trade show redesign costs and product labeling, and integration related costs associated with sales agent and distributor network rationalization, including contract termination and retention expenses, supply chain and portfolio integration, and quality management system consolidation, (ii) $3.4 million for the three months ended April 3, 2026 and $2.9 million for the three months ended April 4, 2025 of non-recurring (non-Lima) acquisition integration costs and other non-recurring project costs for global ERP rationalization and shared service center start-up, and (iii)

$0.2 million for the three months ended April 3, 2026 and $0.5 million for the three months ended April 4, 2025 related to the Separation of our former fabrication technology business. These costs are classified as Selling, general and administrative expense on our Condensed Consolidated Statements of Operations.

(4) Purchase of royalty interest represents the one-time, up-front expense incurred by the Company to acquire the economic rights to future royalties under product development agreements in connection with the termination of such agreements as part of a strategic shift to a new product development model. The Company believes that excluding the impact of such expense enhances comparability between periods, provides investors with a clear and meaningful view of our underlying business trends and aligns with how management evaluates the ongoing business performance.

(5) For the three months ended April 3, 2026, we revised our definition of Adjusted EBITDA to no longer adjust for inventory step-up charges. Adjusted EBITDA in prior periods has been revised to reflect this change for consistency of presentation. Accordingly, Adjusted EBITDA for the three months ended April 4, 2025 has been revised from $99.2 million, as presented in our Form 10-Q for the period ended April 4, 2025, to $87.1 million, reflecting the removal of a $12.1 million adjustment for inventory step-up in connection with acquired businesses, resulting in a corresponding reduction to Adjusted EBITDA margin for the three months ended April 4, 2025 from 17.7%, as presented in our Form

Three Months Ended

April 03, 2026

April 04, 2025

Net sales

589.2

558.8

Gross profit

365.5

332.2

Gross profit margin (GAAP)

62.0 %

59.5 %

Gross profit (GAAP)

365.5

332.2

PPE step-up depreciation

0.6

0.5

Adjusted gross profit (Non-GAAP)(1)

366.1

332.8

Adjusted gross profit margin (Non-GAAP)(1)

62.1 %

59.6 %

(1) For the three months ended April 3, 2026, we revised our definition of Adjusted EBITDA to no longer adjust for inventory step-up charges. Adjusted gross profit in prior periods has been revised to reflect this change for consistency of presentation. Accordingly, Adjusted gross profit for the three months ended April 4, 2025 has been revised from $344.9 million, as presented in our Form 8-K for the period ended April 4, 2025, to $332.8 million, reflecting the removal of a $12.1 million adjustment for inventory step-up in connection with acquired businesses, resulting in a corresponding reduction to Adjusted gross profit margin for the three months ended April 4, 2025 from 61.7%, as presented in our Form 8-K for the period ended April 4, 2025, to 59.6%.

Dollars in millions

(Unaudited)

Enovis Continuing Operations

Acquisition-Related Non-Cash Adjustmentsa

Restructuring & Other Adjustmentsb

Other Adjustmentsc

Adjusted

Income Tax Adjustment

Net sales

$ 589.2

- $

- $ 589.2

Cost of goods sold

223.7

(0.6)

- 223.1

Gross profit

365.5

0.6

- 366.1

Gross margin

62.0 %

62.1 %

Selling, general and administrative

expense

282.8

(0.1)

(1.2)

(19.8)

261.7

Research and development expense

31.5

Amortization of acquired intangibles

41.9

(41.9)

Restructuring and other charges

2.7

(2.7)

Goodwill impairment charge

Operating (loss) income

6.6

42.6

3.9

19.8

72.9

Interest expense, net

9.2

Other income, net

(3.3)

1.0

(2.3)

(Loss) income before taxes

0.7

42.6

2.9

19.8

66.0

Income tax (benefit) expense

9.0

5.0

14.0

Less: NCI income, net of taxes

0.3

Discontinued Operations

Net (loss) income attributable to Enovis

$ (8.6)

$ 42.6

$ 2.9

$ 19.8

$ (5.0)

$ 51.6

Dollars in millions

(Unaudited)

Enovis Continuing Operations

Acquisition-Related Non-Cash Adjustmentsa

Restructuring & Other Adjustmentsb

Other Adjustmentsc

Adjusted

Income Tax Adjustment

Net sales

$ 558.8

- $

- $ 558.8

Cost of goods sold

226.6

(0.5)

- 226.0

Gross profit

332.2

0.5

- 332.8

Gross margin

59.5 %

59.6 %

Selling, general and administrative

expense

269.0

(0.1)

(3.2)

(19.5)

246.1

Purchase of royalty interest

35.8

(35.8)

Research and development expense

28.5

Amortization of acquired intangibles

41.8

(41.8)

Restructuring and other charges

3.9

(3.9)

Operating (loss) income

(46.8)

42.5

7.1

55.3

58.1

Interest expense, net

9.2

Other income, net

1.4

(1.4)

(Loss) income before taxes

(57.3)

42.5

8.5

55.3

48.9

Income tax (benefit) expense

(1.8)

13.0

11.2

Less: NCI income, net of taxes

0.3

Discontinued Operations

0.1

(0.1)

Net (loss) income attributable to Enovis

$ (56.0)

$ 42.5

$ 8.5

$ 55.3

$ (13.0)

$ 37.3

Disclaimer

Enovis Corporation published this content on May 07, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 07, 2026 at 10:21 UTC.