Enovis
(NYSE: ENOV)
beat earnings expectations in its first quarter 2025 results, but its stock was down.
The company, one of the largest orthopedic device companies in the world, is wading through the impact of tariffs, resulting in a lowered forecast for 2025 adjusted EBITDA.
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For Q1 2025, Enovis reported sales of $559 million, up 8% compared to Q1 2024, and in line with expectations, according to StockStory. Earnings per share hit 81¢, a 7¢ beat on analyst expectations of 74¢.
Enovis reported sales growth in its reconstructive (11% year-over-year) and prevention and recovery (5% year-over-year) segments.
“We delivered a strong start to 2025, with first-quarter revenues and margins exceeding expectations,” said Enovis CEO Matt Trerotola in his last earnings call before his retirement. (Former LivaNova CEO Damien McDonald is expected to take over Enovis’s corner office on May 12.)
While the company had a strong first quarter, it is anticipating a $40 million tariff exposure this year. But Enovis has plans to reduce that exposure to $20 million. It is planning to speed up initiatives to diversify its sourcing and manufacturing beyond China. It is also looking to boost its supply chain productivity and negotiations with suppliers.
“Even if current levels continue, we expect to exit the year on a path to recover a portion of the 2025 impact in 2026. The tariff situation remains very fluid,” Enovis CFO Ben Berry said during the company’s earnings call.
In light of the anticipated $20 million tariff impact on profits, Enovis adjusted its 2025 financial outlook. In February, the company was anticipating $405 to $415 million in adjusted EBITDA. It is now forecasting $385 to $395 million. Expectations for full-year adjusted earnings per share also dipped. February’s outlook of $3.10 to $3.25 shifted to $2.95 to $3.10.
ENOV shares were down more than 5% to $32.38 apiece by the late morning today, while the S&P 500 was up more than 1%.
William Blair analysts Brandon Vazquez and Russell Yuen kept their Outperform rating on Enovis stock: “With shares at 10 times our 2026 EBITDA, we continue to believe this is an attractive risk-to-reward profile, especially with another quarter of proof points that recon growth can be a durable growth driver.”
Carrie Pallardy is a freelance writer and editor based in Chicago. She has more than a decade of experience writing and reporting in the healthcare space.
