Enovis Corporation Q4 FY2025 earnings call

• Damian highlighted strong performance across global organization, transformed portfolio, leaned into key priorities of commercial execution, operational excellence, and financial discipline, embraced one Inovus operating mindset. • Ben walked through financial details: 2025 sales $2.2 billion, 7% reported growth; adjusted gross margins 61%, adjusted EBITDA margin 17.9%; 2025 delivered higher sales and earnings than original guidance; continued to focus on disciplined capital allocation. • 2025 highlights: organic revenue growth 6%, recon 8%, P&R 4%; maintained adjusted EBITDA margins 18%, returned positive free cash flow $20 million; fourth quarter revenue 3% reported, 2% organic; U.S. recon grew 6% organic, ARG gained traction; international recon grew 10% organic; 50% more 510K clearances than best prior year; P&R organic growth 4%, global bracing grew 3%, Bonestim double-digit growth; sale of Dr. Comfort in fourth quarter.

Recon: Organic revenue growth of 8% in 2025, 3% in fourth quarter; U.S. recon grew 6% organic in 2025 with double-digit growth in extremities; international recon grew 10% organic. P&R: Organic growth of 4% in 2025, global bracing grew 3%, Bonestim delivered double-digit growth; 50% of P&R revenues are growing higher than mid-single digits. In 2026, recon expected to have high single-digit growth, P&R low single-digit growth.

• Expect 2026 revenues in range of 2.31 billion to 2.37 billion, mid-single-digit organic revenue growth 4 to 6% year-over-year, inclusive of high single-digit growth in recon and low single-digit growth in P&R, positive currency tailwinds 0.5% to 1.5%, $41 million headwind from divestiture of Dr. Comfort. • Adjusted EBITDA range $425 million to $435 million, 50 basis points margin improvement vs prior year. • Depreciation expected 118 to 122 million. • Interest and other expenses 30 to 32 million, adjusted tax rate ~23%. • Share count ~59 million, adjusted earnings per share range $3.52 to $3.73. • Free cash flow conversion as percentage of adjusted net income 25% plus in 2026.

Q: Great to see progress on free cash flow conversion in 2025, targeting 25% plus for 2026. Talk about specific operational improvements or working capital initiatives.

A: Leveraging business system, productivity projects, stepping down integration-related costs, driving efficiencies in working capital.

Q: Quick follow-up on ARVIS. View on how quickly ARVIS can grow in 2026, next-gen launch.

A: Rollout domestically in 1H, internationally in 2H 2026, flexible model to drive implant utilization.

Q: U.S. hip and knee business, adjustments on selling days, opportunity for Arvis.

A: Hip has runway, Arvis expected to lift U.S. group.

Q: Ben, on cash flow, 510k numbers, multi-pronged harvest cost.

A: Continue to drive incremental improvements in free cash flow conversion, ARVIS capital light.

Q: Q4 cadence issues, impacts on utilization, Q1 thinking.

A: Q4 no underlying change in markets, Q1 has two less days, weather dynamics expected to be recovered.

Q: Q4 miss on selling day, conservatism of 2026 guidance.

A: Guidance conservative, upside from hips, shoulder rollout.

Q: High-level on capital deployment, portfolio, organic vs inorganic.

A: Focus on commercial execution, capital allocation priority debt reduction, organic pipeline.

Q: PNR growth, sustainability.

A: Shaping portfolio, geographic expansion, new leader in Europe.

Q: Bone stem, laser product growth vs market.

A: Slightly ahead of market.

Q: Optimus launch, HIP growth.

A: Long runway with Nebula, Optimus to be brought to U.S. market.

Q: Strategic on one Inovus initiative, synergies.

A: Optimize investment, collaborate, shared services.

Q: Financial, 50 bips margin improvements.

A: Focus on gross margins, driving leverage of cost structure.

Q: Extremities, foot and ankle, market, pipeline.

A: Outgrew market, multi-year pipeline, focus on three-system compatibility.

Q: P&R portfolio shaping, divestitures.

A: Commercial execution, geographic expansion, portfolio rationalization, skew rationalization