- Annual Sales Growth: Enovis achieved $2.2 billion in sales for 2025, reflecting 7% reported growth (6% organic), driven by 8% growth in the Recon segment and 4% in Prevention and Recovery.
- Gross Margin Expansion: Adjusted gross margins rose to 61% (170 bps improvement), fueled by favorable product mix, productivity gains, and synergy realization from the Lima acquisition.
- Free Cash Flow Recovery: The company returned to positive free cash flow of $20 million in 2025, with leverage reducing to 3.1x, and expects 25%+ free cash flow conversion relative to adjusted net income in 2026.
- 2026 Revenue Guidance: Enovis projects $2.31–$2.37 billion in revenue for 2026, with mid-single-digit organic growth (4–6%) and 50 bps margin improvement from mix shifts and cost efficiencies.
- Product Pipeline Momentum: 50% of the P&R portfolio is growing mid-single digits or higher, with double-digit growth in BoneStim and LiteCure, and a robust 24-month pipeline for new product launches.
Segment Performance
Enovis' Recon segment grew 8% for the year, outgrowing the market, while the Prevention and Recovery (P&R) segment grew at a mid-single-digit rate of 4%. The company's extremities business had a strong performance, with the foot and ankle market showing softness but Enovis outgrowing the market. The company has a multiyear pipeline of opportunities in extremities, with a focus on expanding into the sports medicine side of arthroplasty applications.
Guidance and Outlook
For 2026, Enovis expects revenues in the range of $2.31 billion to $2.37 billion, including mid-single-digit organic revenue growth of 4% to 6% year-over-year. The company expects free cash flow conversion as a percentage of adjusted net income to be 25% plus in 2026 and targets 70% to 80% free cash flow conversion over time. Analysts estimate next year's revenue growth at 5.4%, indicating a relatively stable outlook.
Valuation and Metrics
Enovis' current valuation metrics show a P/E Ratio of -1.22, a P/B Ratio of 0.97, and an EV/EBITDA of -1.84. The company's return on equity (ROE) is -54.42%, and its return on invested capital (ROIC) is -36.12%. The negative ratios are largely due to the company's historical performance and may not reflect its current trajectory. With a focus on debt reduction and disciplined capital allocation, Enovis aims to drive durable, profitable growth through innovation and a differentiated portfolio.
Key Drivers and Initiatives
The company's One Enovis initiative aims to exploit synergies between Recon and P&R segments, both on the revenue and cost sides. Enovis has a rich pipeline of new product introductions, with 50% of its P&R portfolio growing mid-single digits or greater. The Optimus launch is expected to contribute to hip growth, with a long runway for growth driven by the Nebula and OrthoDrive products. The company's focus on commercial execution, geographic expansion, portfolio shaping, and evaluating its portfolio as a whole is expected to drive growth and margin expansion.