Enovis Q2 Sales Exceed Expectations, Raises 2025 Revenue Forecast

Enovis reported Q2 net sales of $564.54mln, beating analyst expectations, with a 7% YoY growth. The reconstructive segment saw an 11% YoY sales increase, driven by new product introductions. The company expects 2025 revenue between $2.245bln and $2.275bln, with adjusted EBITDA forecast at $392-402mln. Enovis updated its full-year adjusted EPS guidance to $3.05-$3.20.

Enovis Corporation (NYSE:ENOV) reported its second-quarter 2025 results, showing robust financial performance and a significant increase in revenue, which exceeded analyst expectations. The medical technology company reported net sales of $565 million, representing a 7% year-over-year (YoY) growth, with strong performance across its business segments. The company's stock traded up 1.86% in premarket trading at $26.24, indicating a positive investor response to the results.

The Reconstructive segment, a key driver of growth, saw an impressive 11% YoY sales increase, driven by new product introductions such as ARG in Shoulder, Nebula, and Surgical Impactor in Hip. The Prevention & Recovery (P&R) segment also demonstrated stable growth at 5% YoY. Despite these positive sales figures, Enovis reported a net loss of $36.5 million, primarily due to acquisition-related non-cash adjustments and other adjustments.

Enovis' adjusted gross profit margin expanded to 60.5% from 59.6% in the prior year, and adjusted EBITDA reached $97 million, maintaining a margin of 17.2%. Adjusted earnings per share jumped 27% to $0.79 compared to $0.62 in Q2 2024. The company's first-half performance showed even stronger improvement, with adjusted EBITDA margin expanding 80 basis points to 17.5% and adjusted EPS growing 42% to $1.60.

The company has raised its full-year 2025 guidance, expecting revenue of $2.245-$2.275 billion, adjusted EBITDA of $392-$402 million, and adjusted EPS of $3.05-$3.20. The revised outlook is based on expectations of approximately 6.25-6.75% organic growth for the year, with high single-digit growth in the Reconstructive segment and low single-digit growth in Prevention & Recovery. Management noted that the impact of tariffs has been reduced since their prior guidance, suggesting effective mitigation strategies.

Enovis highlighted several key product launches that are expected to drive future growth. In the Reconstructive segment, the company is seeing strong commercial ramp of its ARG shoulder product, which contributed to 10% growth in Extremities. New hip and knee products are expected to accelerate growth in the second half of the year. In the Prevention & Recovery segment, the company is expanding its addressable market with products like the ManaFuse BoneStim, while its expanded line of spine braces is growing at double-digit rates.

Despite Enovis’s improving financial performance and raised guidance, investor sentiment remains cautious. The disconnect between operational performance and stock price may reflect broader market concerns about the medical device sector, ongoing global trade tensions, or skepticism about the company’s ability to maintain growth momentum in a challenging economic environment. The company’s GAAP results, which continue to show net losses despite strong adjusted metrics, may also be contributing to investor caution.

References:
[1] https://www.investing.com/news/company-news/enovis-q2-2025-slides-revenue-and-eps-growth-accelerate-guidance-raised-93CH-4175818
[2] https://www.stocktitan.net/news/ENOV/enovis-announces-second-quarter-2025-mtkyrv7agicf.html