Enovis at Baird Conference: Strategic Growth and Challenges

On Wednesday, 10 September 2025, Enovis Corporation (NYSE:ENOV) presented at the Baird Global Healthcare Conference 2025, outlining its strategic initiatives and financial outlook. While the company emphasized its commitment to organic growth and operational excellence, it acknowledged challenges such as tariff impacts and product delays. CEO Damien McDonald and CFO Ben Berry led discussions on how Enovis plans to navigate these issues while pursuing long-term value creation.

Key Takeaways

• Enovis is focused on organic growth, financial discipline, and leveraging its EGX business system.
• The company is addressing delays in its ARVIS® Augmented Reality System with flexible sales models.
• Tariff-related challenges are expected to impact EBITDA, but improvements are anticipated in 2026.
• The LEMA acquisition is on track, with significant cost savings projected for 2026.
• Enovis aims for a 6% revenue growth next year and plans to increase R&D spending strategically.

Financial Results

• Revenue Growth: Enovis is targeting a 6% revenue growth for the next year, aligning with current guidance.
• EBITDA: Guidance increased by $7 million due to an improved tariff situation.
• CapEx Spend: Currently above 7% of sales, expected to decrease as a percentage of sales by 2027.
• Cash Flow: Anticipates improvements through 2025, with a significant leap in 2026 due to reduced European Medical Device Regulation spending.
• Tariffs: Tariffs are expected to be a $5 million to $6 million headwind in the second half of the year, with potential improvements in 2026.
• LEMA Deal: Cost savings are on track, with $5 to $10 million expected this year and more in the following year.

Operational Updates

• ARVIS® System: Facing headwinds due to delays in the next-generation product introduction; flexible sales models are being planned.
• LEMA Integration: Progressing as planned, with production moving to lower-cost sites to achieve savings.
• R&D Spending: The company plans to increase R&D spending by reallocating resources from SG&A.
• Hip and Knee Implants: Strong performance in hip and knee segments, despite market variability.

Future Outlook

• Revenue Growth: Confident in achieving just over 6% revenue growth next year.
• Tariff Impact: If current tariffs persist, a $10 million headwind could decrease next year.
• Operating Margin: Expects 50 to 75 basis points of annualized margin expansion.
• Expansion: Continued ASC expansion is seen as a significant growth driver.

Q&A Highlights

• Hip and Knee Performance: Despite market softness, these segments remain strong for Enovis, with growth expected to be twice the market rate.
• Tariff Risk: Although reduced due to a delay in China tariffs, long-term outcomes remain uncertain.
• R&D Strategy: Focus on acquiring technologies early and intensively developing them.

In conclusion, Enovis Corporation remains optimistic about its strategic direction and financial prospects, despite facing several industry challenges. For further details, readers are encouraged to refer to the full transcript below.

Full transcript - Baird Global Healthcare Conference 2025:

Jeff Johnson, Senior Medical Technology Analyst, Baird: Good afternoon. I think we’re going to get started. My name is Jeff Johnson. I’m the Senior Medical Technology Analyst at Baird, and our next presentation this afternoon is from Enovis Corporation, a leader in the $4 billion prevention and recovery markets, and a growing player in the $40 billion global orthopedic implant market. With us today from Enovis, we’re happy to have new CEO, Damien McDonald, and Chief Financial Officer, Ben Berry. Damien, I’ll turn it over to you if you have a few slides you want to get through or a few comments you want to make, and then we’ll go into Q&A.

Damien McDonald, CEO, Enovis Corporation: Sure. Thanks, Jeff, for having us. Really appreciate it. Ben and I are looking forward to speaking with you all. Just to give you a quick overview of Enovis, we’re an emerging company. I say emerging because our story is really only about four years old, but we’ve really built a great portfolio across the whole orthopedics space. I think the emerging story is really about mobility. To do that, we’ve got a recon business that’s growing above market with great gross margins and a really tremendous portfolio, balanced by a prevention and recovery business that just really has a tremendous portfolio too, but also generates a lot of cash. The two of them have really got a great global footprint. Our acquisition spree over the last four years has built out this portfolio.

Now we’re into a place where we’re going to really focus on organic growth, getting the balance sheet into a really strong position that gives us some flexibility going forward and allows us to continue to use our EGX, our business system, to grow and integrate. With that in mind, our focus very much, and I articulated this in my first earnings call with Ben a couple of months back, which was really about making sure the recon business grows, given that we’ve got this new footprint, having done the LEMA acquisition, and then continue to shape the P&R portfolio with unique technologies, but also unique capabilities like our revenue cycle management. To do that, we’re going to focus on a few things: commercial execution and the innovation pipeline. We can double-click on any of that through our discussion.

We really want to make sure that operating excellence through our Enovis growth excellence model, it’s a business system mentality, is really robust. I would say all of the acquisitions we’ve done have really integrated the companies at the top of the house. Now we’ve got to build out the connective tissue, and EGX is going to do that with us. Lastly, really focus and double down on financial discipline. Let’s get the free cash flow generator going. Let’s get the debt down. That gives us the energy to go back into the markets and do M&A. Why do I think this is an exciting opportunity for us? If you look at our portfolio, we really act across the whole continuum of care. I like this because if you look at the macro trends, longevity is very much talked about. Longevity is, you know, living longer, better.

The three drivers of that are gut health, brain health, and mobility. I really think we’re uniquely positioned to lean into this whole mobility arc. That is why I’m excited about this. I’ve been here about 120 days, but we’ve got a lot to do and a lot to offer. I think some really tremendous growth opportunities are in front of us. With that, why don’t I turn this back to...

Jeff Johnson, Senior Medical Technology Analyst, Baird: That’s a great overview. Let me start digging in on maybe a few of those topics. As you said, you’ve been here, I think, just over four months now, or right at four months. I could ask you the softball of what’s been your biggest surprise or something, but if you’re going to give me a positive surprise, what’s been a negative surprise to you? Let me hear one of each.

Damien McDonald, CEO, Enovis Corporation: The positive. You always hope when you’re a new leader that the team’s engaged and really excited about the future of the company. It’s always a challenge when the company’s been through so much transition, spinning out ESAB, buying so many things. You wonder, are the people really going to be excited? I will tell you uniquely, as I’ve traveled around and met so many of our associates and team members around the world, just how excited they are about the company and the future. I think that’s tremendous. That’s the qualitative. The quantitative just happened. We did our engagement survey that we had to do annually. This year again, we put on another point on that number, and it’s already in a benchmark territory. I think qualitatively and quantitatively, you know, the fact that our associates are so excited about the future is really positive.

The downside, 120 days, I would say this macro strategic ambiguity is really, I think, one of the big headwinds, not just for us. We’re not Robinson Crusoe, but I think that’s been a surprise, heading into this period of how much uncertainty people have across the world.

Jeff Johnson, Senior Medical Technology Analyst, Baird: Are you seeing, and I didn’t know where you were going to go with your answer there on the negative side, there was a little bit of chatter around maybe June knee surgeries being a little softer from a few of your competitors that seemed to bounce back in July. Are you still seeing some of that back and forth, a little bit of the hot and cold kind of demand trends, or where are we at, I guess, broader just patient demand for hip and knee procedures?

Damien McDonald, CEO, Enovis Corporation: Yeah, actually, hip and knee continued to actually be really strong for us. You know, you abstract from days in the quarter and abstract from some capital sales. Yeah, hip and knee sales will continue to be very strong. I think it’s more of a macro issue around where are tariffs going? People don’t know. What’s going on with major markets like France? People don’t know. I think it’s those sorts of things.

Jeff Johnson, Senior Medical Technology Analyst, Baird: Okay. When you say hips and knees have been good, does that impact, you know, foot and ankle can be a little more discretionary at times, things like that? Just the general health of your business, anything changed from your second quarter to what we should be thinking about now, today, in the back half of this year versus maybe what you would have messaged a month or two ago?

Damien McDonald, CEO, Enovis Corporation: I think what we’re seeing is we’re coming out of the summer in Europe, so things are starting to heat back up in the market there. I would say the response to our new product introductions in the U.S. have been very positive. We’re seeing a very resilient second half.

Jeff Johnson, Senior Medical Technology Analyst, Baird: Yeah. Okay. Okay. I never covered LivaNova, but I think you were there, what, seven years as CEO?

Damien McDonald, CEO, Enovis Corporation: Yeah, just about.

Jeff Johnson, Senior Medical Technology Analyst, Baird: Is that right? Just about. As I think back to the LivaNova story, though, and have looked back at that, your time there, a number of acquisitions that seem to be focused more almost on pipeline projects and building out future growth potential, things like that. When I think about how the Enovis story has evolved over the last several years, it’s been going out and maybe expanding the geographic reach, but not necessarily putting, I guess we could call Arvis® more of a pipeline project. What are the differences between how you used to think about when you were running LivaNova to Enovis being maybe a different kind of company? Does that at all impact your buy versus build thoughts here on Enovis and just, you know, what are your core capabilities on the acquisition side that you think you can bring to the table?

Damien McDonald, CEO, Enovis Corporation: I would say more about lessons learned. What are the lessons learned? I would say that if you’re going to be an M&A house, and we’ve, I think, demonstrated that we’ve been pretty effective at M&A, what you have to do is make sure that the processes that underlie the way those things are integrated and then the value realized have to be really strong. What I perhaps didn’t appreciate was just how much work there was to build that backbone at LivaNova. Coming into Enovis, so much more of that backbone exists, which is just a tremendous place to jump off.

What we’ve got the opportunity to do now, and this is why I talk about EGX being so important, is in the connective tissue build-out and making sure that that’s really robust so that when we do start doing more M&A again, once the balance sheet’s in a different place, we have that strong backbone. I think my big lesson learned is make sure there’s a strong backbone.

Jeff Johnson, Senior Medical Technology Analyst, Baird: Yeah. All right. Fair enough. Maybe we’ll talk about some of the implications of capital allocation and that with Ben in a few minutes on that. You know, when I think back over the last few years, you guys have been building out the ARVIS® Augmented Reality System, I guess it was the way to think about it, kind of headset business. You know, what’s your view of ARVIS now as you’ve come in and looked at this fresh? Do you expect AR to play a bigger role in orthopedics? Is AR enough to not have a robot, but be able to keep you kind of competitive on the enabling technology side?

Damien McDonald, CEO, Enovis Corporation: Yeah, I have to say I love the Arvis® Augmented Reality System platform and where it’s evolving to. I think if you think about robots, I think that that’s a sort of limited view of the world. What I think we should be talking about more is enabling technology and enabling technology across the planning, the navigation, and the assistance. I think in knees, large format robots in knees clearly have made their place in the world. What’s not apparent is are large format robots sufficient in all surgical venues and all jurisdictions? I like the idea of the fact that an offering that’s capital light really has value in a lot of other alternate surgical venues and alternate geographies. Our pathway has really been about building out that capability. I think we’re in a really good place.

The 2.0 is going to be a tremendous upgrade both in terms of hardware and software. I like the fact that it’s going to be very applicable and versatile for the ASC expansion, which we continue to see as a big macro growth driver. Also, now that we skew, you know, more than 50% international revenue, you know, being able to take Arvis® internationally. I was at a shoulder surgery symposium. We had 150 surgeons in Madrid a few months back, just how excited they are for something like an AR support for shoulder surgery, which has way more complexity in many instances than a knee surgery. I think we’ve got multiple therapeutic applications, multiple geographies, and multiple sites of care where I think Arvis® is going to be a tremendous player.

Jeff Johnson, Senior Medical Technology Analyst, Baird: Okay. Ben, maybe help us understand, I think last quarter Arvis, because you had sold a good number of Arvis units in the second quarter of 2024, was a four or five point headwind to your U.S. hip and knee growth. How do we think about the timing and the ramp of 2.0? Do we need to factor in those kind of headwinds over the next several quarters or how to think about that?

Ben Berry, Chief Financial Officer, Enovis Corporation: Yeah, we had started to seed the market with both our teaching institutions and our key opinion leaders starting Q2 of last year. We’re getting about $2 million, a little over $2 million a quarter from Q2 through Q4 of last year of capital sales. We planned to introduce earlier this year the next gen of ARVIS® Augmented Reality System as we were doing teaching and med ed events to start to build up the demand there. Given the delay in the next product introduction, I think that’ll continue to be a headwind for us as we finish the year. As we get into 2026, we’ll start to get up the curve in terms of driving penetration of ARVIS. One of the things that we’ll look at is how do we drive that penetration through flexible models. It won’t be just a capital sale approach.

It’ll be how do we lock up either implant volume or how do we think about per usage fees. I think the work we’ve been doing right now is to build up the demand and start to think about how do we get that product launched as it’s ready for prime time. Right now, it’ll be a headwind as we close out the year.

Jeff Johnson, Senior Medical Technology Analyst, Baird: Yeah. As you change that selling strategy to more of the bundling, that’s what we’re seeing too. I appreciate your comments about robotics as maybe taking a narrow view of the world, but that’s how a lot of your competitors sell robots as well, right? Bundle it in. They don’t necessarily charge upfront for the robot. I think an applicable proxy there. My point is you started with Arvis® $2 million a quarter, second quarter through fourth quarter last year. Has it dropped closer to zero the last couple of quarters and we get around zero the next couple of quarters? Next year, if you do a new model, at least you’re not comping against any kind of headwinds. Is that...

Ben Berry, Chief Financial Officer, Enovis Corporation: That’s the planning assumption.

Jeff Johnson, Senior Medical Technology Analyst, Baird: Okay. Okay. Damien, maybe just to get your opinion on the R&D level of Enovis. When I look across some of your big multi-billion dollar competitors, they spend about 5% to 6% of revenue on R&D. That’s about where you guys are. I’m assuming it’s probably higher on your orthopedic side than it is on your P&R side. Is that the right level of R&D to be at? When I think back, I’ve covered Wright Medical over the years, Exactech, some smaller orthopedics. They were kind of up maybe 7% to 8% of revenue being invested in R&D. Maybe you’re kind of close to that in your recon business. How should we think about your R&D level now with you in charge?

Damien McDonald, CEO, Enovis Corporation: I would say two things. One is on a relative basis, I think we’re a bit low. I’d like to see that number tick up. Back to my backbone comment, I want to make sure that we’ve got really good processes around toll gates, around ideation. I’ve seen it in parts of the organization. I want to make sure that we’ve got a really strong backbone. As a sort of a guiding principle, I’d like to see it tick up, but not at the expense of EBITDA. I think we’ve got a resource allocation decision to make and how we divert some of the funding that we use in SG&A and put that into R&D. I would also argue that if you look at our M&A strategy, it’s, I’m sort of a big, small R, big D guy.

I like the idea of identifying technologies early, but then being able to D the heck out of it. I would argue that a lot of our M&A, particularly in places like our foot and ankle portfolio, really is an equivalent of R&D.

Jeff Johnson, Senior Medical Technology Analyst, Baird: Yeah, that’s right.

Damien McDonald, CEO, Enovis Corporation: We’re probably punching in a much higher level if you could factor in our M&A activity in terms of R&D. I’d like the relative number to pick up, but I also want to get back to being able to do M&A in a way that’s meaningful in terms of building our pipeline.

Jeff Johnson, Senior Medical Technology Analyst, Baird: Okay. Just as you talk about a reallocation from SG&A to R&D, would any of that be customer-focused or customer-facing, commercial-facing SG&A reallocation, or can you do that through back office?

Damien McDonald, CEO, Enovis Corporation: I think this is more like a G&A play.

Jeff Johnson, Senior Medical Technology Analyst, Baird: Okay. All right. Ben, maybe a couple of others here, just, you know, cash flow has been a big focus of investors here recently. When I think of kind of the CapEx spend, obviously with LEMA and Matthew Trerotola’s added over the last couple of years, your CapEx has gone up to a couple hundred million dollars a year. Before the last couple of years, it was closer to $100 million. What’s the right level of CapEx spend for Enovis here over the next several years?

Ben Berry, Chief Financial Officer, Enovis Corporation: Yeah, I think we’ve normalized a bit now that we’ve brought all the acquisitions in. If you look at the new baseline with LEMA included, we’re hovering in that, you know, a little north of 7% of sales from a CapEx percentage. I’d say we’re inefficient right now in terms of our CapEx, given the fact that we are investing a lot in integrating LEMA, getting after cross-selling synergies, and launching a lot of new products, all the while investing in operational capabilities, expanding sites, and then getting after synergies that come with LEMA in terms of transferring production to lower cost locations. You put all that together and we are more inefficient than we’d like to be going forward when it comes to CapEx spend.

Now, it’s a fact that our recon business is more capital intensive, and as the business mixes more towards recon, that will put pressure on us from a CapEx percentage basis. We see efficiency that we can get after over time and some projects that we have to reduce input costs of the CapEx to drive further productivity over time. We see that getting probably stay a little bit elevated as we get into next year, and then from 2027 on, start to drop down a little bit as a percentage of sales. Overall, I think you’re seeing a bit of a normalization happening as all the acquisitions have come into the portfolio.

Jeff Johnson, Senior Medical Technology Analyst, Baird: Okay. Do we continue to see cash flow get better from here though? First quarter or second quarter had a small but nice uptick. Is that how we should think about it?

Ben Berry, Chief Financial Officer, Enovis Corporation: Through the course of 2025, I think you’ll see us continue to drive improvements in terms of cash generation. Now, seasonally, Q1 is always our lowest cash flow quarter. It won’t always be up and to the right in terms of cash flow from a quarterly perspective. As we step into next year, there are a few things that really step down that will help us really take a leap in terms of our cash flow conversion as we enter 2026. That’s the European Medical Device Regulation spend. We’ve done all the remediation there. That goes from about $16 million a year to almost zero next year. Next year is year three of the integration of LEMA. We’re getting through a lot of the execution of that integration as well. You’ll see the adjustments step down quite considerably as we get into next year as well.

On top of that, some working capital efficiency should come into the system. You put all those together and you’ll see a nice step forward in terms of cash flow for us as a company in 2026.

Jeff Johnson, Senior Medical Technology Analyst, Baird: All right. Maybe let’s focus a little bit on your recon business, your orthopedic business. U.S. hip and knee business has been, you know, maybe flattish, a little bit of growth, but a little bit flattish if we adjust for some selling days, we adjust for some of the Arvis® stuff. It’s been, you know, maybe a little bit below what we got used to for a while from you guys. How do we think about the reacceleration in that business? When does it come? Is it all new product driven? Yeah, just help us understand kind of the U.S. hip and knee outlook.

Damien McDonald, CEO, Enovis Corporation: I think there’s a few things you talked about, the puts and takes. I think where we landed Q2, abstracting from those other headwinds, actually we’re pretty happy with the implant number. Now, is it the double digits that we’ve sort of got used to in the U.S.? No, but I would say being, you know, 2X the market is a pretty solid place to be and quite sustainable. I think you layer in our continued execution internationally. We’re doing all sorts of things post-LEMA now to cross-sell like the shoulder portfolio. For example, we have a Prima shoulder offering and the SMR shoulder offering. Both of those now in one portfolio with two different philosophies and two different patient targets really give us an ability to cross-sell in the portfolio. There are multiple instances of that in both the international and the U.S. market.

Layer on top of that, we’re bringing in new products. I like the opportunity we have with the, you know, ARG in the shoulder launch, with Nebula in the hip launch, and the impactor that couples with that to make the procedure easier. I think all of these things are really solid drivers of continued growth.

Jeff Johnson, Senior Medical Technology Analyst, Baird: Okay. When you talk about 2X market, I think you’re referencing your U.S. hip and knee business there.

Damien McDonald, CEO, Enovis Corporation: Yes.

Jeff Johnson, Senior Medical Technology Analyst, Baird: We tend to think of that market being maybe a 3% to 5%, 4% to 5% market. You feel comfortable if we had made some adjustments, we can kind of consistently be in that upper single digit U.S. hip and knee market growth or U.S. hip and knee growth for you.

Damien McDonald, CEO, Enovis Corporation: That’s our place.

Jeff Johnson, Senior Medical Technology Analyst, Baird: Okay. All right. Good. Let’s see. Maybe a couple on tariffs here. I think on the Q1 call, you talked about $40 million in gross, $20 million in net tariff risk this year. Most of that coming in the second half. I think those are lower now, but I don’t think you quantified the 2025 net tariff risk on your second quarter call. Just how do we think about what I should have in my model in the second half of the year on tariff and how does that roll into 2026?

Ben Berry, Chief Financial Officer, Enovis Corporation: Yeah, after the second quarter, we elevated our EBITDA guidance by $7 million. I’d say that’s mostly attributable to the tariff situation getting better, primarily around the China push out by 90 days. Now, since we gave that update, it’s been pushed out another 90 days for China. The situation’s getting better, not worse for 2025 in particular. The questions still remain, like, what is it going to settle out to? I think that’s the part that’s a bit unpredictable. We don’t really know how that’s going to play out. As we entered this whole situation and gave the guidance of the $20 million, we had clear action plans to mitigate it. We’ve started to execute against those, select pricing increases in parts of P&R, looking at transferring production from China to lower cost locations, looking at getting after exemptions and other productivity.

We’ve continued to execute against all of that. As I see the situation evolve today, I’d say 2025 looks to be more mitigated than what we even gave on our second quarter call. We’re still trying to figure out how that plays out in terms of some of these deals getting settled and essentially agreed to. If China comes back and it gets re-elevated, then that could put at risk our ability to make 2026 better than 2025 because 2025 is getting considerably better. Right now, it’s still very much unknown. Hopefully, the China piece will settle because that’s our biggest exposure. The rest of exemptions will stay in place.

Jeff Johnson, Senior Medical Technology Analyst, Baird: Okay. If the China rate stays where it is today, forgetting about timing, you’re right now in the second half of this year sitting closer to $3 million to $5 million in tariff headwind if I’m doing the math because you were at $20 million and then we take $7 million off and another $7 million off.

Ben Berry, Chief Financial Officer, Enovis Corporation: Yeah, it could be around that.

Jeff Johnson, Senior Medical Technology Analyst, Baird: Or five to six, I guess.

Ben Berry, Chief Financial Officer, Enovis Corporation: If I call it five to six, you would say that’s where we’re sitting, maybe call it, you know, call it 10. That should get better, not worse, if it stays as is today.

Jeff Johnson, Senior Medical Technology Analyst, Baird: If it stays as is, then that $10 million would still go down next year, relative to this year.

Ben Berry, Chief Financial Officer, Enovis Corporation: Correct.

Jeff Johnson, Senior Medical Technology Analyst, Baird: Okay. That’s helpful. All right. Thank you. What else here? Tariff, tariff, I think we’ve covered all that. Recon pricing trends, you know, it seems like they’ve gotten less bad in the last couple of years. Where do you kind of see recon pricing trends shaking out right now? Where do you think they go over the next couple of years?

Ben Berry, Chief Financial Officer, Enovis Corporation: I think it’s one of those situations where for us on a like-for-like basis, it’s down a little bit, I’d say, from if I’m looking just across recon. If you look at the mix of bringing new innovation into the market, launching ARG, bringing some of the things that we have internationally into the market, on an absolute basis, it’s relatively flat for us. If you include some of the mixed elements, but overall, on a like-for-like basis, I’d say it’s a little bit down.

Jeff Johnson, Senior Medical Technology Analyst, Baird: Okay. That’s fair. When I go back to the LEMA deal, I think you did that deal, what, at the start of 2024?

Ben Berry, Chief Financial Officer, Enovis Corporation: Beginning of 2024.

Jeff Johnson, Senior Medical Technology Analyst, Baird: Beginning of 2024, you talked about $40 million in cost savings that were going to kind of be barbelled first year and third year. Second year wasn’t going to be as much. We’re kind of getting towards the end of that second year. Can we start to think about incremental cost savings or have those been absorbed in the model, you know, by tariffs and other kind of factors?

Ben Berry, Chief Financial Officer, Enovis Corporation: I think it’s still a clear line of sight to continue to execute to what we laid out. I think if you look at how this has progressed, we got, you know, we said north of $15 million in year one. This year we had baked in $5 to $10 million, and then the rest coming next year as we get after the operational transfer to lower cost manufacturing sites. Overall, we’re still on track to do that. Tariff’s been a bit of a wild card. We’re going to continue to invest in R&D, which might be some offsets to the full drop-through of that. Overall, I think the LEMA synergy execution is tracking just as planned and very much on track.

Jeff Johnson, Senior Medical Technology Analyst, Baird: All right. We talk about these tariff issues. We talk about some of the timing stuff on LEMA there. I think you’ve talked about 50 to 75 basis points a year of operating margin. Should I just cut through all that math and thinking about all those moving parts, and just are you comfortable still kind of at that 50 to 75 basis points annualized kind of margin expansion opportunity?

Ben Berry, Chief Financial Officer, Enovis Corporation: Yeah, very much so. I mean, I would put the disclaimer on you never know what will happen with some of these trade deals. If they spike, that’s going to be another thing for us to have to deal with.

Jeff Johnson, Senior Medical Technology Analyst, Baird: With what you know today.

Ben Berry, Chief Financial Officer, Enovis Corporation: Based on what we know today, that’s a fair representation.

Jeff Johnson, Senior Medical Technology Analyst, Baird: Okay. I can’t imagine you’re going to guide 2026 here today, but street’s sitting just over 6% revenue growth. I think that’s pretty much in line with what you’re guiding to this year as well. Anything strike you as being out of whack? We need to sharpen pencils, rethink anything on next year, good or bad?

Damien McDonald, CEO, Enovis Corporation: No, I think we’ve got some tailwinds from the launches this year and the continued expansion of that. I think as we double down on our core execution, we can lean into that growth that we’ve been talking about. I really like the opportunity we have with the pipeline that’s not yet emerged. All good.

Jeff Johnson, Senior Medical Technology Analyst, Baird: Okay. I’m out of questions. I guess I’d ask you one more on the P&R side. You know, I get this from investors at times. It’s a lower growth part of the business. You brought it up earlier that it is a good cash generator, though. Do you see inherently the need to keep these two businesses connected long term as you’ve taken a look at things?

Damien McDonald, CEO, Enovis Corporation: Yeah, I look, I’ll come back. Funny enough, the slide’s still up there. I think the reason for the businesses being together is supporting this whole pathway for a patient over a whole journey. I think the way that the world is evolving with sites of care, having a more intimate relationship and being able to have a surgeon or a clinician trust a partner with the patient journey over their whole mobility arc is a really important place to be. We’ve got skills and capabilities that really enable us to support so many different places and sites of care, like the revenue cycle management, like the different technologies we have in products like Manifuse. The recon bit gets a lot of attention, but I think P&R brings a lot to the table.

Jeff Johnson, Senior Medical Technology Analyst, Baird: All right. Fair enough. I think unless there are questions from the audience, we will leave it at that. Good.

Damien McDonald, CEO, Enovis Corporation: With that, I’d say thanks for hosting us and thank you to Baird. I really appreciate getting back in your line of sight.

Jeff Johnson, Senior Medical Technology Analyst, Baird: Yeah, no, it’s great. It’s great to see you again. It’s great to hear your take on the company and the industry. Yeah, thanks for making the trip.

Damien McDonald, CEO, Enovis Corporation: Cheers. Thank you.

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