Enovis Corporation Reports Strong First Quarter Growth and Raises 2024 Outlook

Enovis Corporation

WILMINGTON, DE — Enovis Corporation (NYSE: ENOV), a key player in the global orthopedic market, today unveiled its financial achievements for the first quarter ended March 29, 2024, showing significant sales growth and an optimistic update to its 2024 financial forecast. The company also announced plans to hold an investor conference call and live webcast to elaborate on these results.

For the first quarter of 2024, Enovis reported net sales of $516 million, a notable increase of 27% compared to the same period last year. This growth was fueled by robust performance in the company’s P&R segment, substantial growth in its Recon segment, and the strategic addition of recent acquisitions, Lima and Novastep. Particularly striking was the 66% growth in Recon net sales on a reported basis, with a 7% increase in proforma sales growth.

However, the company faced challenges as it also reported a net loss from continuing operations of $72 million, translating to a 13.9% loss of sales on a reported basis. Despite this, adjusted EBITDA stood at $83 million or 16.1% of sales, marking a 220 basis point improvement from the previous year.

Matt Trerotola, CEO of Enovis, expressed optimism about the company’s trajectory, citing the acquisition of Lima as a pivotal move that bolsters its position and innovation capacity in the orthopedics sector. “Our acquisition of Lima is a transformative milestone… we remain in the early stages of a multi-year cadence of new product introductions,” Trerotola stated, emphasizing the strategic importance of this and other acquisitions.

During the first quarter, Enovis not only closed the acquisition of LimaCorporate S.p.A. but also made significant strides in product development and market engagement. The company launched several new products at the American Academy of Orthopaedic Surgeons Annual Meeting, including Arvis 2.0 and Lima Trabecular Titanium Cones.

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Looking ahead, Enovis has raised its financial outlook for 2024, now expecting full-year revenue to be approximately $2.06-2.16 billion, up from prior forecasts of $2.05-2.15 billion. Adjusted EBITDA is also projected to increase, with forecasts ranging from $368-383 million, compared to the earlier prediction of $365-380 million. Additionally, the company has revised its adjusted earnings per diluted share expectation from $2.50-$2.65 to $2.52-$2.67.

These developments signal Enovis’s resilience and strategic agility in navigating the complexities of the global orthopedic market. The company’s focus on acquisition-driven growth, coupled with its dedication to innovation and product diversification, positions it well for sustained success. Investors and industry watchers will likely keep a close eye on how Enovis leverages these strengths to achieve its ambitious goals in the competitive orthopedic sector.

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