Enovis Corporation

Hello, everyone, and welcome to the E-Nervous Corporation Q1 2025 results call. My name is Ezra, and I will be your coordinator today. If you would like to ask a question, please press star followed by one on your telephone keypad now. If you change your mind, please press star followed by two. I will now hand you over to your host, Kyle Rose, Vice President of Investor Relations, to begin. Please go ahead.

Thank you, Ezra. Good morning, everyone, and thank you for joining us today for our first quarter 2025 results conference call. I'm Kyle Rose, Vice President of Investor Relations. Joining me on the call today are Matt Traritola, Chair and Chief Executive Officer, and Ben Barry, Chief Financial Officer. Our earnings release was issued earlier this morning and is available in the investor section of our website in novus.com. We will be using a slide presentation in today's call, which can also be found on our website. Both the audio and the slide presentation will be archived on the website later today. During this call, we'll be making some forward-looking statements about our beliefs and estimates regarding future events and results. These forward-looking statements are subject to risks and uncertainties, including those set forth in the Safe Harbor language in today's earnings release and in our filings with the SEC. Actual results might differ materially from any forward-looking statements that we make today. The forward-looking statements speak only as of today, and we do not assume any obligation or intend to update them, except as required by law. For further details regarding any non-GAAP financial measures referenced during the call today, the accompanying reconciliation information relating to those measures can be found in our earnings press release and in the appendix of today's slide presentation. With that, let me turn it over to Matt, who will begin on slide three.

Thanks, Kyle. Hello, everyone, and thanks for joining us this morning. Let's start on slide three and talk about some of the quarter's highlights. We had a strong start to the year and I'm excited about the future of Inovus. In the first quarter, we delivered reporting growth of 8% and 11% on a comparable basis. When we look through the extra days and currency to the effective growth rate, it's right in line with our high single digit strategic goals. Our teams have made tremendous progress using new products to drive share gain, And we have a clear line of sight to a multi-year cadence of meaningful NPI. We expanded our adjusted EBITDA margins by 160 basis points, reflecting the mixed impact of recon, stable pricing trends, and EGX-driven productivity improvements. In recon, on slide four, we delivered comparable growth of 13%, which includes some tailwinds from additional selling days. U.S. recon grew 11%. including 12% growth in U.S. extremities and 10% growth in hips and knees. We're once again consistently growing well above market rates in the U.S. as our teams are energized, focused on growth, and have great innovation supporting their surge in conversion efforts. Outside the U.S., we grew 14% in a resilient market, showing the power of the global position that we've built. We exited the first quarter with strong momentum and excitement from recent and upcoming new product launches, including the augmented reverse glenoid system in shoulders, the Nebula stem and surgical impactor in hip, and the next generation of Arvis hardware and software. In P&R, on slide five, our 8% comparable growth reflects a stable market environment, disciplined execution, and the benefit of additional selling days. Overall, this business is performing in line with our strategic plan and will benefit from the Manifuse LIPAS technology launch in recovery sciences and several key new bracing products in the coming quarters. Adjusted EBITDA margins in PNR improved 50 basis points year over year as we continue to use EGX tools to drive consistent productivity improvements and proactively shape the portfolio for profitable growth. Most of our tariff exposure is in P&R, and the team are doing a fantastic job driving initiatives to minimize the net impact. Ben will share a bit more on this. I wish we didn't have to deal with this, but our EGX tools and post-COVID inflation experience have us well prepared to get through this without stalling our growth or changing the longer-term upward arc of our margins. Before I pass it to Ben, I'd like to make a few personal comments. This is my 40th earnings call as the CEO of Colfax and now Inovus. Across that period, our teams around the world have relentlessly worked to build a great company that creates better, better futures for our customers, great opportunities for our employees and substantial value for our shareholders. I'm incredibly thankful to our team and proud of what we've achieved. And I truly appreciate the 10 year dialogue that I've had with many of you about our plans, progress and opportunities ahead. We have a strong foundation, an incredibly talented team, great operational and strategic momentum, and I'm passing the baton to a fantastic leader who I'm confident will lead the company to compounding value creation in the years to come. I'm committed to making sure that this transition is smooth, even with the dynamic tariff backdrop. Now I'll let Ben take you through the P&L details. Ben?