Enovis (ENOV) Q1 2025 earnings summary

Executive summary

• Q1 2025 net sales grew 8% year-over-year to $559 million, with 11% comparable growth and strong momentum in both Reconstructive and Prevention & Recovery (P&R) segments, supported by new product launches and additional selling days.

• Adjusted EBITDA rose 19% to $99 million (17.7% margin), up 160 basis points year-over-year, driven by favorable product mix and operational efficiencies.

• Net loss from continuing operations narrowed to $55.6 million, or $0.98 per share, as higher gross profit and lower other expenses offset increased SG&A and R&D costs.

• CEO transition announced: Damien McDonald appointed effective May 12, 2025, succeeding Matt Trerotola.

• Proactive management of global trade and tariff risks, with mitigation actions underway to reduce exposure.

Financial highlights

• Q1 adjusted gross margin rose to 61.7% (up 300 basis points year-over-year), driven by favorable mix and productivity initiatives.

• Adjusted EPS was $0.81, up from $0.50 year-over-year.

• Interest expense dropped to $9 million from $20 million in Q1 2024.

• Effective tax rate was 23%, up 70 basis points from last year.

• Cash and cash equivalents stood at $38.5 million at quarter-end.

Outlook and guidance

• 2025 organic constant currency revenue growth reiterated at 6%-6.5% year-over-year; revenue guidance raised to $2.22–$2.25 billion due to currency improvements.

• Adjusted EBITDA guidance lowered to $385–$395 million (prior $405–$415 million), reflecting a $20 million tariff impact.

• Adjusted EPS guidance updated to $2.95–$3.10, down from $3.10–$3.25.

• Positive free cash flow expected for 2025; adjusted tax rate ~23%.

• Liquidity considered adequate to fund operations and strategic investments over the next twelve months.