Enovis (ENOV) Wells Fargo 21st Annual Healthcare Conference summary

Market overview and growth outlook

• U.S. ortho market has returned to pre-COVID seasonality, with summer slowdowns and recent strong performance.

• European markets are slowing, but share gains and above-market growth continue.

• No significant impact from ACA or government budget shifts observed; strikes and policy decisions in Europe noted but not materially affecting results.

• Recon expected to grow mid to high single digits, P&R mid single digits; long-term growth supported by aging population and procedural demand.

Acquisition and technology integration

• Acquisition of eCential aims to strengthen position in shoulder robotics and accelerate knee market entry.

• Integrated system will combine AI-powered planning/navigation with robotic assistance, targeting both hospitals and ASCs.

• U.S. knee robot launch planned for 2028; integration milestones to be outlined after deal closes, expected in Q4.

• Regulatory pathway considered well-understood due to eCential's proven technology and team.

Financial targets and capital allocation

• Top-line growth guidance for Recon and P&R maintained; acquisition seen as a growth unlock and free cash flow driver.

• EBITDA margin to decline by 100 bps next year due to investment, with underlying improvement of 50 bps; margin expansion resumes in 2028.

• Free cash flow conversion targeted at 50% next year, progressing to 70%+ by 2029; $100M cash generation expected next year.

• Debt ratio to temporarily rise to 3.5x, then return to 3.1x; cash and revolver to fund acquisition.