Enovis (ENOV) Q1 2026 earnings summary

Executive summary

• Q1 2026 net sales reached $589 million, up 5% reported and 3% organic year-over-year, driven by strong execution, innovation, and new product launches in both business segments.

• Adjusted gross margin expanded to 62.1%, up 250–260 bps year-over-year, with improved product mix and operational efficiency despite tariff headwinds.

• Adjusted EBITDA was $104 million (17.6% margin), up from $87 million, and adjusted EPS rose to $0.89, a 10% year-over-year increase.

• Net loss narrowed significantly to $8.5 million from $55.7 million, with adjusted net income at $51.6 million (8.8% margin).

• Leadership and operating model changes, along with strategic product launches, supported above-market growth and improved management rigor.

Financial highlights

• Net sales for Q1 2026 were $589.2 million, up from $558.8 million year-over-year.

• Adjusted gross profit was $366 million (62.1% margin), up from $333 million (59.6% margin) in Q1 2025.

• Adjusted EBITDA reached $104 million (17.6% margin), compared to $87 million (15.6% margin) in Q1 2025.

• Adjusted net income was $51.6 million, with adjusted net income margin at 8.8%.

• Free cash flow improved by $16 million year-over-year.

Outlook and guidance

• Full-year 2026 revenue guidance reaffirmed at $2.31–$2.37 billion, with 4–6% organic growth expected.

• Adjusted EBITDA guidance maintained at $425–$435 million; adjusted EPS expected in the range of $3.52–$3.73.

• Free cash flow conversion expected to exceed 25% for 2026.

• Guidance incorporates headwinds from Middle East revenue exposure, supply chain inflation, and tariff impacts of ~$15 million.

• Margin cadence and EPS growth anticipated to improve in the second half of 2026.