Enovis Key Takeaways from Our 2Q26 Call with Management

研报英文原文证据摘录

J P M O R G A N

North America Equity Research

06 August 2026

Enovis

Key Takeaways from Our 2Q26 Call with Management

Neutral

ENOV, ENOV US

Price (05 Aug 26):$30.18

Medical Supplies & Devices

Enovis’ 2Q print was another mixed quarter for ortho, with a challenging set

up and macro backdrop that limits visibility into 2H upside. The quarter came

in softer than expected (~4% organic ex-selling vs. JPMe ~5%) and, importantly,

underscores what increasingly looks like a real slowdown in ortho, with

management now effectively signaling a more 4Q-weighted back half. That said,

Enovis framed the deceleration differently than peers, pointing to transitory macro

disruptions in Western Europe (e.g., strikes, fires, heat) and noting a higher

exposure in the region vs. competitors. Guidance for organic sales growth was

appropriately reiterated off an inline print, but the mix and phasing skew more 4Qdependent than we anticipated, leaning more on Prevention & Recovery than

Ortho. While we see credible levers for improvement as newer products (e.g.,

ARVIS) scale and macro headwinds potentially fade, we remain more cautious

given the constrained visibility to upside and prior false starts.

While guidance was reiterated for 4-6% organic growth, this now points

to a larger step up in 4Q given heightened seasonality and macro

disruption, particularly in Western Europe and the Middle East. While

disruption in Western Europe (from fires, strikes, and heat waves) should

hopefully be transient, this range doesn’t assume lost volumes are fully

recaptured this year. By segment, this points to a slightly better outlook for

P&R than we had been anticipating, which should accelerate in the back half

on new products and reimbursement tailwinds, offset by a softer outlook in

orthopedics due to these macro disruptions. On an organic days adjusted basis,

P&R should grow ~3% in 3Q, similar to what we’ve seen year to date, followed

by a step up to the mid-single digits in 4Q, to drive total P&R growth in the

low-single digits for 2026. Recon should grow~5-6% in 3Q followed by a

similar step up to the mid- to high-single digits in 4Q, resulting in full year

growth in the high-single digits.…