Enovis (ENOV) 44th Annual J.P. Morgan Healthcare Conference summary

Business transformation and growth

• Achieved ~$2.24–2.25B in revenue with ~6% organic growth, driven by 20+ acquisitions since 2019, expanding global reach and product portfolio, especially in Recon and P&R segments.

• Portfolio is now balanced 50/50 between orthopedics implants and prevention & recovery, and between US and international markets, with international sales rising from 27% in 2019 to over 42% in 2025.

• Recent acquisition of LimaCorporate expanded global footprint and capabilities, especially in materials and talent.

• Focused on embedding a unified operating model and continuous improvement culture post-acquisitions, emphasizing innovation, commercial excellence, and operational efficiency.

• Positioned as an end-to-end mobility health MedTech company, leveraging digital workflow and connected medicine solutions.

Financial performance and outlook

• Updated 2025 guidance projects $2.24–2.25B in revenue, 6% organic growth, $400–405M adjusted EBITDA, and $3.25–$3.35 adjusted EPS, with margin improvement from ~14% to ~18% and a pathway to 20%.

• Free cash flow conversion targeted at 25%+ in 2026, aiming for 70%+ long-term as integration costs decline, with improvement from -43% in 2024 to over 25% in 2025.

• Leverage reduced from 4x to 3.2x post-Lima acquisition, with a goal to drop below 3x before resuming M&A.

• Margin expansion driven mainly by gross margin improvements, operating leverage, and cost synergies, with adjusted gross margin (non-GAAP) improved to 59.3% in 2024.

• Capital expenditures in 2025 will focus on instruments, capacity expansion, and productivity, supporting long-term growth.

Innovation and product development

• Record number of 510(k) submissions in the past year, with a robust innovation pipeline and over 30 new products planned in the next three years.

• New product launches in 2025, such as Nebula hip system and cross-compatible shoulder portfolio, set to drive 2026 growth.

• ARVIS 2.0 navigation system launching in March, targeting shoulder first, then knee and international markets.

• Emphasis on organic R&D, leveraging acquired talent and technology, with less reliance on M&A for innovation.

• Ongoing investments in R&D and medical education support continued innovation and market leadership.