Enovis (ENOV) Q1 2026 earnings summary

Executive summary

• Net sales for Q1 2026 reached $589 million, up 5% reported and 3% organic year-over-year, with strong execution and innovation-led strategy driving above-market growth in both business segments.

• Adjusted gross margin expanded to 62.1%, up 250–260 basis points year-over-year, aided by favorable mix, productivity, and lower inventory step-up charges.

• Adjusted EBITDA was $104 million (17.6% margin), up from $87 million, and adjusted EPS increased to $0.89 from $0.65 year-over-year.

• Recon segment led growth with 11% reported and 6% organic sales increase; Prevention & Recovery was flat reported and up 1% organic.

• Management reaffirmed 2026 guidance, highlighting robust innovation, commercial execution, and resilience amid macroeconomic and geopolitical headwinds.

Financial highlights

• Net sales: $589 million, up from $559 million year-over-year; gross profit: $365.5 million (62.0% margin), up from $332.2 million (59.4% margin).

• Adjusted EBITDA: $104 million (17.6% margin), up from $87 million (15.6% margin); adjusted net income: $51.6 million (8.8% margin).

• Adjusted EPS was $0.89, representing 10% underlying growth versus prior year.

• Net loss for the quarter was $8.5 million, a significant improvement from a $55.7 million loss in Q1 2025.

• Free cash flow improved by $16 million year-over-year in Q1; conversion expected to exceed 25% for 2026.

Outlook and guidance

• Full-year 2026 revenue guidance reaffirmed at $2.31–2.37 billion, with 4–6% organic growth expected.

• Adjusted EBITDA guidance: $425–$435 million; adjusted EPS: $3.52–$3.73.

• Free cash flow conversion expected at 25%+ for the year; margin cadence expected to improve in the back half.

• Guidance incorporates headwinds from Middle East revenue exposure, supply chain inflation, and ~$15 million in tariffs.

• Dr. Comfort divestiture to reduce reported revenue growth by 1.8%.