Enovis (ENOV) investor relations material

Executive summary

• Achieved 5% organic growth in Q2 2026, with reported sales of $583 million, driven by strong commercial execution, product innovation, and new product launches in both Recon and P&R segments.

• Recon segment saw 8% organic growth in hips and knees, with international Recon up 6% organically and double-digit growth in shoulders; P&R segment grew 3% organically despite a reported decline.

• Free cash flow reached $31 million in Q2, a $27 million year-over-year improvement, turning positive for the first half.

• Net loss for the quarter was $1 million, with adjusted EBITDA of $104 million (17.9% margin) and adjusted EPS of $0.90, up 14% year-over-year.

• Management reaffirmed 2026 guidance, emphasizing operational excellence, innovation, and foundational changes in management and incentives.

Financial highlights

• Q2 2026 net sales were $583 million, up 3% reported and 5% organic year-over-year; gross profit margin improved to 61.7% from 59.4% year-over-year.

• Adjusted EBITDA margin was 17.9%, up from 16.2% year-over-year; adjusted EPS was $0.90, up from $0.72.

• Free cash flow conversion is on track for 25%+ in 2026, with cash flow from operating activities for the first six months at $99 million.

• Adjusted net income from continuing operations was $52.2 million, up from $41.3 million year-over-year.

• Net loss margin improved to (0.2)% from (6.5)% year-over-year.

Outlook and guidance

• Full-year 2026 revenue guidance reaffirmed at $2.31–2.37 billion, with 4–6% organic growth expected and a 0.5–1.5% FX tailwind.

• Adjusted EBITDA guidance set at $425–435 million; adjusted EPS expected between $3.52 and $3.73.

• Free cash flow conversion expected to be 25% or higher for the year.

• Anticipates a seasonally softer Q3 due to Western Europe market conditions and Middle East conflict disruptions.

• Dr. Comfort divestiture to be a 1.8% headwind to reported revenue growth; $10 million negative impact expected from Middle East and higher inflation.