Enovis (NYSE:ENOV) reported fourth-quarter and full-year 2025 results that management said reflected “strong performance” across its global organization, while also acknowledging execution shortcomings late in the year and outlining a 2026 outlook that targets continued organic growth, margin expansion, and a step-up in free cash flow conversion.
2025 results: solid organic growth and improved cash generation
For the fourth quarter, Enovis posted sales of $576 million, up 3% on a reported basis and up 2% organically. CEO Damien McDonald noted that the quarter included four fewer selling days than the prior-year period, which he said represented a 400-basis-point headwind to organic growth. In the quarter, Reconstruction (Recon) grew 3%, while Prevention & Recovery (PNR) was flat.
On profitability, Berry said adjusted gross margin rose to 61%, up 170 basis points, driven by favorable mix, ongoing productivity, and realized manufacturing and supply chain synergies. He added that tariffs were a partial offset, with the company paying roughly $15 million in tariffs during the year, which it “absorbed, mitigated, and offset” in part. Adjusted EBITDA margin was 17.9%, flat year over year, which Berry attributed to higher R&D investment—particularly in Recon enabling technology—and an inability to fully mitigate tariff impacts.
Enovis also returned to positive free cash flow, with McDonald citing $20 million of free cash flow in 2025, which he said keeps the company on its path toward longer-term conversion targets.
Recon: extremities strength, new hip and knee products, and ARVIS plans
McDonald highlighted above-market performance in Recon, including 6% organic growth in U.S. Recon for 2025, led by double-digit growth in extremities. He said the company’s augmented reverse glenoid system (ARG) continued to gain traction and helped drive double-digit growth in shoulders, and he described a “robust pipeline” intended to support a multi-year cadence of innovation in extremities.
In hips and knees, management said the business grew 6% in implants in 2025 after adjusting for prior-year sales of enabling technology. McDonald pointed to product launches including the Nebula Stem and the OrthoDrive Impactor. He said more than 60% of Nebula sales in 2025 were to competitive users, and Enovis expects to more than double the installed base of OrthoDrive in 2026.
Internationally, Enovis said Recon grew 10% organically in 2025, including high single-digit growth in hips and knees and double-digit growth in extremities. Management said the company is executing cross-selling synergies across anatomies and believes it is positioned for sustained above-market growth in 2026 and beyond.
On innovation, McDonald said Enovis achieved 50% more 510(k) clearances in 2025 than its best prior year and expects a robust pipeline of new product introductions over the next 24 months. The company plans to showcase innovations, including ARVIS, at the AAOS conference in New Orleans. Management said ARVIS will be deployed with flexible commercial options—purchase, lease, per procedure, or implant commitment—with a focus on driving implant utilization rather than prioritizing capital equipment sales.
During Q&A, management said the enhanced ARVIS rollout is expected to begin at AAOS, with domestic rollout in the first half of 2026 and international rollout in the second half. Berry added that ARVIS is “very capital light,” which he said supports a more aggressive approach to drive penetration.
PNR: growth acceleration, portfolio shaping, and reimbursement tailwinds
In PNR, management reported 4% organic growth for 2025, which McDonald characterized as an acceleration in a market the company believes is growing closer to 2%. He said global bracing grew 3%, driven by revenue cycle management, upper extremity, and spine bracing. Bone Stim delivered double-digit growth and was called out as a source of strength.
McDonald also referenced portfolio shaping actions, including the sale of Dr. Comfort in the fourth quarter. He said that following that divestiture, 50% of PNR revenues are growing higher than mid-single digits. In response to analyst questions, management discussed continuing to shape the portfolio through SKU and product rationalization to improve both growth and gross margin profile, while also emphasizing improved commercial execution and geographic expansion opportunities.
Execution commentary, impairment charge, and balance sheet actions
Management acknowledged a softer-than-expected fourth-quarter outcome. When asked about whether cadence issues extended beyond selling-day impacts, McDonald said, “we just didn’t execute,” describing the shortfall as tied to how selling days fell around Christmas and noting the issue was “segment, geography and product agnostic.”
Berry said the company recorded a non-cash technical impairment of goodwill of $501 million in the quarter after evaluating the company’s stock price and market capitalization relative to the carrying value of operating units. He emphasized that the impairment does not affect liquidity, cash flows, debt covenants, or future operations.
On capital structure, Berry said leverage dropped to 3.1x and that in the fourth quarter the company refinanced its term loan A, upsized its revolver, and maintained low interest rates on its debt. Management reiterated that debt reduction remains the top capital allocation priority, with McDonald saying it would be “unlikely” the company does anything inorganic unless it is a “generational opportunity.”
2026 outlook: mid-single-digit organic growth and higher cash conversion
For 2026, Enovis guided to revenue of $2.31 billion to $2.37 billion, including 4% to 6% organic growth. The outlook includes high single-digit growth in Recon and low single-digit growth in PNR, as well as a 0.5% to 1.5% currency tailwind. Berry also noted a $41 million revenue headwind from the October 2025 divestiture of Dr. Comfort.
Adjusted EBITDA is expected to be $425 million to $435 million, which management said implies 50 basis points of margin improvement versus 2025. Enovis guided to depreciation of $118 million to $122 million, interest and other expense of $30 million to $32 million, and an adjusted tax rate of approximately 23%. With an expected share count of roughly 59 million, the company forecast adjusted EPS of $3.52 to $3.73.
On cash generation, Berry said Enovis expects free cash flow conversion to be 25%+ of adjusted net income in 2026, while supporting what he described as the “final year of substantial investments” to integrate Lima and fuel growth. In Q&A, management attributed the expected conversion improvement to stepping down integration-related costs and a reduction in European Medical Device Regulation remediation costs, while continuing productivity efforts through its EGX business system.
About Enovis (NYSE:ENOV)
Enovis is a global medical technology company focused on advancing the field of musculoskeletal health. Formed through the separation of the MedTech business from Colfax Corporation in 2021, Enovis brings together a portfolio of specialized products and services designed to address conditions affecting the foot and ankle, hand and wrist, sports medicine, joint repair, biologics and rehabilitation.
The company’s flagship offerings include minimally invasive implants and instrumentation for foot and ankle surgery under the Treace Medical Concepts brand, focal joint resurfacing implants through Arthrosurface, and synthetic bone graft substitutes marketed as NovaBone.
