Enovis (ENOV) Q4 2025 earnings summary

Executive summary

• Achieved 7% reported and 6% organic sales growth for full year 2025, with strong performance in Reconstructive and steady Prevention & Recovery segments, driven by commercial execution and new product launches.

• Fourth quarter net sales grew 3% reported and 2% organic year-over-year, despite a 400 bps headwind from fewer selling days.

• Returned to positive free cash flow, exceeding cash goals with over 10% free cash flow conversion in 2025 and generating more than $30 million in Q4.

• Transitioned from integration to execution, emphasizing a unified operating mindset and portfolio reshaping.

• Reported significant non-cash goodwill impairment charges, including $1.05 billion in 2025, with no impact on liquidity or operations.

Financial highlights

• Full year 2025 net sales reached $2.25 billion, up from $2.11 billion in 2024, with Q4 net sales at $576 million.

• Adjusted gross margin improved to 61% (+170 bps year-over-year); adjusted EBITDA margin held steady at 17.9%.

• Adjusted EPS for 2025 was $3.30, up from $2.84 in 2024.

• Free cash flow conversion improved to 10% in 2025; leverage reduced to 3.1x by year-end.

• Full year net loss from continuing operations was $1.18 billion, including $1.05 billion in goodwill impairment.

Outlook and guidance

• 2026 revenue expected at $2.31–$2.37 billion, with 4–6% organic growth and positive FX tailwinds.

• Adjusted EBITDA forecasted at $425–$435 million, with 50 bps margin improvement.

• Adjusted EPS guidance of $3.52–$3.73; free cash flow conversion targeted at 25%+.

• Dr. Comfort divestiture expected to be a 1.8% headwind to reported revenue growth in 2026.

• Continued step-up in cash flow conversion expected, with long-term target of 70–80%.