Q4 2025 Enovis Corp Earnings Call Transcript
Key Points
- Enovis Corp (ENOV) reported strong organic revenue growth of 6% for 2025, with Recon growing at 8%, outperforming the market.
- The company achieved a return to positive free cash flow of $20 million in 2025, setting a path towards long-term free cash flow conversion targets.
- Enovis Corp (ENOV) maintained adjusted EBITDA margins at 18% despite global challenges, indicating strong operational resilience.
- The company launched new products like the Nebula Stem and OrthoDrive Impactor, with Nebula achieving over 60% sales to competitive users.
- Internationally, Recon grew 10% organically, with high single-digit growth in hips and knees and double-digit growth in extremities, showcasing strong global performance.
- The fourth quarter revenue growth was impacted by four fewer selling days, representing a 400 basis point headwind to organic growth.
- Enovis Corp (ENOV) recorded a non-cash technical impairment of goodwill of $501 million, reflecting stock price and market capitalization challenges.
- The company faced tariff impacts, absorbing approximately $15 million in tariffs, which affected adjusted EBITDA margins.
- Despite growth, the Prevention and Recovery (PNR) segment was flat in the fourth quarter, indicating potential challenges in this area.
- The rollout of ARVIS was delayed in 2025, impacting the expected growth trajectory and necessitating a ramp-up in 2026.
Good day, and welcome to the Enovis fourth-quarter 2025 earnings conference call. (Operator Instructions) Please note, this event is being recorded.
I would now like to turn the conference over to Kyle Rose, Vice President of Investor Relations. Please go ahead.
Good morning, everyone. Thank you for joining us today for our fourth-quarter 2025 results conference call. I'm Kyle Rose, Vice President of Investor Relations. Joining me on the call today are Damien McDonald, Chief Executive Officer, and Ben Berry, Chief Financial Officer.
Our earnings release was issued earlier this morning and is available in the investor section of our website, enovis.com. We also posted a slide presentation in relation to today's call, which can also be found on our website. Both the audio and slide presentation of this call will be archived on the website later today. During the call, we'll be making some forward-looking statements about our beliefs and estimates regarding future events and results.
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