Enovis Corporation

Ladies and gentlemen, thank you for standing by. Hello, and welcome to Innovis' first quarter 2025 earnings call. All lines have been placed on mute to prevent any background noise. Thank you. I would like to turn the conference over to Kyle Rose, Vice President of Investor Relations. Please go ahead.

Good morning, everyone, and thank you for joining us today for our first quarter 2026 earnings conference call. I'm Kyle Rose, Vice President of Investor Relations. Joining me on the call this morning are Damian McDonald, Chief Executive Officer, and Ben Barry, our Chief Financial Officer. Our earnings release was issued earlier this morning and is available in the investor section of our website, anovus.com. We also posted a slide presentation to accompany today's call 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 estimates 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 can be found in our earnings press release and in the appendix of today's slides presentation. With that, let me turn it over to Damian. Damian? Hey, thanks, Kyle.

Good morning, everyone. We're encouraged by our start to 2026, with the first quarter results reflecting solid execution and continued progress advancing our innovation-led strategy. Our priorities, commercial execution and innovation, operational excellence, and financial discipline continue to guide our actions. Since I joined 12 months ago, we have made meaningful changes to our operating model and senior leadership teams, implemented more rigor around daily management, and changed company incentive plans to align with our strategic objectives. We still have more work to do to fully capture the opportunities in front of us However, I'm energized by how the team has embraced these changes and the one and novice mindset. Turning to the first quarter results, I'm pleased with our continued share gains in both our business segments. Our innovation pipeline continues to advance while we benefit from the contributions of new product launches. In the first quarter, we delivered organic revenue growth of 3% with 6% organic growth in recon, and 1% organic growth in prevention and recovery. These results include the impact of fewer selling days in the quarter, which represented an approximate 240 basis point headwind to growth. On a day's adjusted basis, organic growth was 6% at the company level, with 8% growth in recon and 3% growth in P&R. In US recon, we grew 8% organically in the first quarter, led by 10% organic growth in extremities. Our augmented reverse glenoid system, ARG, continued to gain traction and was key to driving double-digit growth in shoulders. In hips and knees, we grew 6% organically and we continue to reinforce our portfolio to compete across hospital and ASC settings. Nebula continues to be a driver of growth in the majority of new instrumentation sets going to competitive users. We're still in the early rollout of Nebula, which unlocks a meaningful segment of the US hip market for our sales teams. Internationally, we grew 3% in recon on an organic basis, including double-digit growth in extremities. We continue to strengthen our global portfolio with cross-compatibility of implant systems and are positioned for sustained above-market growth rates in 2026 and beyond. Innovation remains key to our strategy. We have a robust pipeline of new product introductions planned for the next 24 months. We showcase many of these, including Arvis at the AAOS conference in New Orleans in March. We've started to deploy Arvis through a flexible business model with the primary goal of driving implant utilization. Arvis shoulder cases have started and are encouraged by the early feedback. Our commercial teams are using this launch as an opportunity to strategically target new customers. And we expect to see continued adoption in the shoulders as we move through 2026. I'm also excited to note we recently had our first OUS shoulder case in South Africa and we see demand for this technology continue to build. Now, moving to P&R, this segment grew 1% year-over-year on an organic basis and 3% on a days-adjusted basis. Global bracing grew 3% on a days-adjusted basis driven by revenue cycle management and upper extremity bracing. Bonestim was another source of strength for the quarter, delivering high single-digit growth. So a lot to be excited about across the whole business, and I'll turn it over to Ben to walk through the financial details.