Enovis (ENOV) Q2 2026 earnings summary

Executive summary

• Achieved 5% organic growth in Q2 2026, with reported sales of $583 million, driven by strong commercial execution, product innovation, and favorable foreign currency impacts, partially offset by the Dr. Comfort divestiture.

• Reconstructive segment led with 8% reported and 6% organic growth, while Prevention & Recovery declined 1% reported but grew 3% organic; international Recon saw double-digit growth in shoulders.

• New product launches, including Nebula, ARG, and ARVIS, drove customer conversions and market share gains, with ARVIS receiving positive early feedback and plans for international rollout.

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

• Focused on operational excellence, financial discipline, and fostering a unified company culture to support sustainable growth amid dynamic macroeconomic and geopolitical conditions.

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 increased to $0.90 from $0.72.

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

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

• Interest expense was $8 million (down from $9 million prior year); leverage reduced to 3.1x, with ongoing focus on debt reduction.

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.

• Expects free cash flow conversion above 25% for 2026, with further improvements as integration costs decline.

• Anticipates a seasonally softer Q3 due to Western Europe market conditions and Middle East conflict; sales acceleration expected in Q4 as new products scale.

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