Enovis Sets Stage for Explosive Growth in 2025
Enovis, a high-value medtech growth company, recently reported its fourth quarter 2024 earnings, revealing a transformative year that has set the stage for explosive growth in 2025. The company's Chair and Chief Executive Officer, Matthew Trerotola, expressed excitement about the future of Enovis during the conference call, citing significant progress toward long-term strategic goals.
In the fourth quarter, Enovis reported a 23% revenue growth on a constant currency comparable basis, exceeding expectations. The company also made tremendous progress on the integration of Lima, exceeding all year one goals and exiting 2024 on a strong commercial and operational trajectory. Furthermore, Enovis expanded its adjusted EBITDA margins by 210 basis points, reflecting a mix impact of Recon, step-change impact from Lima, and EGX-driven productivity improvements.
The company's Recon segment delivered 59% reported global revenue growth, with double-digit growth in both the Hip Knee and Extremities segment. In the quarter, U.S. recon grew 7%, including 10% growth in U.S. Extremities and 8% in Hip Knees. International growth was also impressive at 13%. The company's strong momentum is attributed to recent new product launches across Recon, as well as a growing impact from cross-selling.
Enovis' Lima acquisition has been instrumental in building its Recon business, with the first year exceeding revenue and profit goals. The company remains confident in its three-year financial goals and has robust plans to deliver substantial long-term strategic value. The successful integration of Lima's team was evident during Enovis' annual sales kickoff in Prague, where attendees showcased positive growth energy and excitement.
In addition to Recon, Enovis' P&R segment reported 3% growth, reflecting a stable market environment and disciplined execution. EBITDA margins in this segment expanded by 130 basis points year-over-year, securing a full-year improvement of 40 basis points as the company leverages EGX tools to drive consistent priority gains and improved portfolio mix.
Enovis' strong commercial and operational trajectory, combined with its exit momentum from recent new product launches, positions the company for explosive growth in 2025. With a robust new product pipeline, aggressive cross-selling opportunities, and a growing impact from Lima's integration, Enovis is poised to deliver healthy acceleration in the coming year.
