Enovis Corporation Q1 FY2026 earnings call

Damian was encouraged by the start to 2026, with solid execution and progress in innovation. Changes to operating model and leadership teams were implemented. Recon had 8% organic growth in US, 10% in extremities, ARG system drove double-digit growth in shoulders, Nebula continued in hip area. P&R had 1% organic growth, 3% days-adjusted growth, global bracing grew, Bonestim had high single-digit growth.

First quarter organic revenue growth was 3%, with 6% organic growth in recon and 1% in prevention and recovery. Reported sales were $589 million, up 5% year-over-year. Days-adjusted organic growth was 6% at the company level, 8% in recon, 3% in P&R. Adjusted gross margins were 62%, adjusted EBITDA margin was 17.6%, adjusted earnings per share were 89 cents, and free cash flow improved $16 million year over year.

Reaffirming 2026 guidance. Expect revenues split evenly between first and second half. Commercial execution critical. Recon new products bright spot, P&R growth stable above market. International volumes had volatility in first quarter but expected to recover. Middle East revenue exposure ~$1-$2 million/month, expect to absorb headwinds and supply chain inflation with no change to original guidance.

Risks include dynamic macroeconomic and geopolitical environment, market volatility, supply chain inflation, tariff impacts, international market volatility in first quarter.

Q: Good start to the year here. You know, U.S. Recon was really a nice standout in the quarter...

A: Great question. And I have to say, first of all, I'm really proud of how the team are executing...

Q: Hi, Damien. Good morning and thank you for taking my question. I just want to dive a little bit on the Q1 performance...

A: Hey, Vijay, you know, the markets are dynamic. The supply chain is dynamic right now. You know, we have momentum building across the anatomies with the launches that we have with the cross-compatibility that we've done now on the shoulder with putting all of these assets together with the M&A that we've done over the last several years. So we're encouraged by the start. We see opportunity, as Damian mentioned, through commercial execution to continue to build muscle here. It's going to take a little bit of time, but we're excited marrying the innovation pipeline that we have with the opportunities that are in front of us with regards to still having low market share. So Overall, we're confident in the direction that this business is heading and look forward to see how it continues to perform throughout the course of the year.