Enovis Corp (ENOV) 2025 Q2 法說會逐字稿

Good day, and welcome to Enovis second-quarter 2025 earnings conference call. (Operator Instructions). Please note this event is being recorded.

大家好，歡迎參加 Enovis 2025 年第二季財報電話會議。（操作員指令）。請注意，此事件正在被記錄。

I would now like to turn the conference over to Kyle Rose, VP, Investor Relations. Please go ahead.

現在，我想將會議交給投資人關係副總裁 Kyle Rose。請繼續。

Good morning, everyone. Thank you for joining us today for our second quarter 2025 results conference call. I'm Kyle Rose, Enovis' Vice President of Investor Relations. Joining me on the call this morning are Damien McDonald, Chief Executive Officer; and Ben Berry, Chief Financial Officer. Our earnings release was issued earlier this morning and is available in the Investors section of our website, enovis.com.

大家早安。感謝您今天參加我們的 2025 年第二季業績電話會議。我是 Enovis 投資人關係副總裁 Kyle Rose。今天早上與我一起參加電話會議的還有執行長 Damien McDonald 和財務長 Ben Berry。我們的收益報告已於今天早上發布，可在我們網站 enovis.com 的「投資者」部分查閱。

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 of this call 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.

我們將在今天的電話會議中使用幻燈片演示，您也可以在我們的網站上找到。本次通話的音訊和幻燈片簡報將於今天稍後存檔在網站上。在本次電話會議中，我們將就未來事件和結果的信念和估計做出一些前瞻性陳述。這些前瞻性陳述受風險和不確定性的影響，包括今天的收益報告中和我們向美國證券交易委員會提交的文件中的安全港語言中規定的風險和不確定性。

Actual results might differ materially from any forward-looking statements that we make today. These 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.

實際結果可能與我們今天所做的任何前瞻性陳述有重大差異。這些前瞻性陳述僅代表今天的觀點，除非法律要求，否則我們不承擔任何義務或打算更新它們。有關今天電話會議中提到的任何非 GAAP 財務指標的更多詳細信息，可以在我們的收益新聞稿和今天幻燈片演示的附錄中找到與這些指標相關的隨附對帳資訊。

With that, let me turn it over to Damien.

說完這些，讓我把它交給達米安。

Thank you, Karl. Good morning, everyone, and thank you for joining us today for our second quarter earnings call. and my first as CEO of Enovis. Before we walk you through the quarter, I want to take a moment to speak directly to our investors and shareholders. I recognize the trust you place in this company and in me as its new leader.

謝謝你，卡爾。大家早安，感謝大家今天參加我們的第二季財報電話會議。這也是我擔任 Enovis 執行長的第一次電話會議。在我們向您介紹本季之前，我想花點時間直接與我們的投資者和股東交談。我體認到你們對這家公司以及對我這個新領導者的信任。

Your confidence and support are what make our growth possible. I stepped into this role with a deep sense of responsibility to our patients, to our health care partners, to our employees and to you. I look forward to engaging with you and earning your confidence with our results. I've been at Enovis for just over 90 days, and I would like to share with you my observations on the company and the opportunities ahead of us as well as begin to outline our near-term priorities.

您的信任和支持使我們的成長成為可能。我懷著對我們的患者、對我們的醫療夥伴、對我們的員工以及對您深深的責任感擔任這一職務。我期待與您合作並透過我們的成果贏得您的信任。我在 Enovis 工作剛剛 90 多天，我想與大家分享我對公司和我們未來機會的觀察，並開始概述我們的近期優先事項。

I started in my role shortly after the third anniversary of the spin-off that created Enovis, a medical technology company with an unmatched portfolio spanning surgical solutions, bracing and rehabilitation. All technologies that align with our orthopedic continuum of care needed by patients and their providers.

我在 Enovis 公司分拆成立三週年後不久開始擔任這一職務，Enovis 是一家醫療技術公司，擁有涵蓋外科手術解決方案、支撐和復健領域的無與倫比的產品組合。所有與我們的骨科連續護理一致的技術都是患者及其提供者所需要的。

In those three years, we bought more than 10 companies into our portfolio. Our transformation has been notable, scaling from $1.4 billion to $2.2 billion in revenues from 56% to 60% in gross margins, and from 14% to close to 18% in adjusted EBITDA margins. This growth has been deliberate and driven by organic expansion, portfolio shaping and targeted acquisitions that align with our strategy to globalize our business towards faster-growing, higher-margin end markets.

在這三年裡，我們收購了 10 多家公司並將其納入我們的投資組合。我們的轉型非常顯著，營收從 14 億美元成長到 22 億美元，毛利率從 56% 成長到 60%，調整後 EBITDA 利潤率從 14% 成長到接近 18%。這種成長是經過深思熟慮的，由有機擴張、投資組合塑造和有針對性的收購推動，這些都符合我們將業務全球化，面向成長更快、利潤更高的終端市場的策略。

It's clear that we've got a strong foundation and an unmatched diverse portfolio of solutions. But to realize our full potential, we must maximize the power of what we have built. There are opportunities to improve the durability and consistency of our organic growth, margin expansion and cash flow generation. Each of these improvement opportunities will be supported by disciplined capital allocation.

顯然，我們擁有堅實的基礎和無與倫比的多樣化解決方案組合。但為了充分發揮我們的潛力，我們必須最大限度地發揮我們已經建立的力量。我們有機會提高有機成長、利潤率擴張和現金流產生的持久性和一致性。每一個改進機會都將得到嚴格的資本配置的支持。

In my first three months, I've been out in the field and actively listening and engaging with our global stakeholders who are key to our success. This included visiting customers, hospitals and medical centers and meeting key physician partners. It was encouraging to hear how highly they regard our portfolio of products and their views on the opportunity we have to gain share.

在任職後的頭三個月裡，我一直在實地積極傾聽並參與我們全球利害關係人的活動中，他們是我們成功的關鍵。這包括拜訪客戶、醫院和醫療中心以及與主要的醫生合作夥伴會面。聽到他們對我們的產品組合的高度評價以及對我們獲得市場份額的機會的看法，我們感到很受鼓舞。

I've also been busy internally connecting with our senior leaders and spending meaningful time with our teams around the world. It's been incredibly energizing to witness firsthand our passion for restoring motion and improving patients' lives. Having toured all our major manufacturing sites and corporate offices, I'm now concluding comprehensive reviews of each of our business segments, functional teams and sales regions to inform a multiyear road map centered on profitable, capital-efficient growth in order to improve patient outcomes, become a talent magnet and deliver outsized shareholder returns.

我還忙於與我們的高層領導進行內部聯繫，並與世界各地的團隊共度有意義的時光。親眼見證我們對恢復運動和改善患者生活的熱情，令人感到非常振奮。在參觀了我們所有主要的製造基地和公司辦公室後，我現在要對每個業務部門、職能團隊和銷售區域進行全面審查，以製定以盈利、資本高效增長為中心的多年路線圖，從而改善患者的治療效果，成為人才聚集地，並為股東帶來超額回報。

In the near term, I intend to focus the organization on three key priorities: commercial execution and innovation, operational excellence and financial discipline. In terms of commercial execution, Enovis operates in attractive, sizable markets and competes against some of the strongest and most financially capable technologies in med tech.

短期內，我打算將組織重點放在三個關鍵優先事項：商業執行和創新、卓越營運和財務紀律。在商業執行方面，Enovis 在具有吸引力且規模龐大的市場中運營，並與醫療技術領域一些最強大、最具財力的技術公司競爭。

We have and we will need to always bring our A-game to every customer-facing activity. I know that there have been instances where complex integrations and rapid product launches have stretched our teams. The opportunity lies in further embedding and expanding disciplined commercial practices across the enterprise.

我們已經並將需要始終在每項面向客戶的活動中發揮最佳水準。我知道有些情況下複雜的整合和快速的產品發布會給我們的團隊帶來壓力。機會在於在整個企業內進一步嵌入和擴展規範的商業實踐。

With respect to innovation, we must use size to our advantage and reinforce our ability to be nimble by quickly identifying and addressing key market trends and making focused investments in those areas, with the highest differentiation and market potential. An immediate priority for our team will be accelerating our product pipeline with a particular focus on enabling technologies that improve clinical outcomes and surgical efficiency.

在創新方面，我們必須利用規模優勢，增強我們的靈活性，快速識別和應對關鍵市場趨勢，並在差異化和市場潛力最大的領域進行重點投資。我們團隊的當務之急是加速我們的產品線，特別著重於改善臨床結果和手術效率的技術。

Regarding operational excellence, a large part of my experience in this area centers on focused business system philosophies to deliver exceptional long-term financial outcomes. High teens EBITDA margins are not sufficient to achieve our company's goals and ambitions. To that end, we are developing detailed plans to optimize resources, augment gross and operating margin, improve cash flow and leverage -- address leverage directly, while continuing investments in customer-facing and R&D activities that promise differentiation and profitability.

關於卓越運營，我在這方面的大部分經驗都集中在專注的業務系統理念上，以實現卓越的長期財務成果。高十幾歲的 EBITDA 利潤率不足以實現我們公司的目標和抱負。為此，我們正在製定詳細計劃，以優化資源、提高毛利率和營業利潤率、改善現金流和槓桿率——直接解決槓桿問題，同時繼續投資於面向客戶和研發的活動，以實現差異化和盈利能力。

Additionally, while EGX is central to our operating philosophy, its implementation remains in varying stages of maturity, largely following the successful acquisitions over the last five years. I believe the accelerated application of this business system will improve capital allocation and operating efficiencies. And I am confident we will see tangible improvements in cash generation, leverage and productivity in the near term.

此外，雖然 EGX 是我們營運理念的核心，但其實施仍處於不同的成熟階段，主要是在過去五年成功收購後。相信該業務系統的加速應用將會提高資金配置和營運效率。我相信，我們將在短期內看到現金創造、槓桿率和生產力的顯著改善。

And third, with multiple operating companies under our umbrella, it is important to further embed organization-wide financial discipline to expand margins, improve working capital and CapEx efficiency and significantly reduce integration-related costs. As our foundation gets stronger, we will create the flexibility for broader capital allocation decisions in the future.

第三，由於我們旗下有多家營運公司，因此進一步鞏固整個組織的財務紀律以擴大利潤率、提高營運資金和資本支出效率並大幅降低與整合相關的成本非常重要。隨著我們的基礎變得更加強大，我們將為未來更廣泛的資本配置決策創造靈活性。

Finally, under my leadership, Enovis will build on our strong culture of thoughtful speed, transparent accountability and collaborative empowerment. Our employees remain central to achieving our mission, and we are actively investing in their development, fostering an open high-performance environment and encouraging cross-team collaboration to get better every day.

最後，在我的領導下，Enovis 將鞏固我們深思熟慮的速度、透明的問責制和協作授權的強大文化。我們的員工仍然是實現我們使命的核心，我們積極投資於他們的發展，創造一個開放的高績效環境，並鼓勵跨團隊合作，以每天取得進步。

Now let's turn to our second quarter results. In the second quarter, we delivered reported growth of 7% and 5% on an organic constant currency basis. We delivered strong earnings growth and positive cash in the quarter while managing tariff headwinds. Our teams have made good progress on new product launches, and we have clear line of sight into a multiyear cadence of meaningful NPI.

現在讓我們來看看第二季的業績。在第二季度，我們實現了 7% 的有機成長，以固定匯率計算成長了 5%。我們在本季度實現了強勁的獲利成長和正現金流，同時應對了關稅方面的不利因素。我們的團隊在新產品發布方面取得了良好的進展，並且我們對多年有意義的 NPI 節奏有著清晰的認識。

In Recon, we delivered organic growth of 8%, including US growth of 6% and international growth of 10%. Growth in US Extremities was 10%, driven by strong double-digit growth of shoulders led by the launch of our augmented reverse glenoid system. US hip and knee growth was flat, reflecting the impact of fewer selling days and headwinds in capital sales as customers deferred orders in anticipation of our next-generation hardware launch.

在 Recon，我們實現了 8% 的有機成長，其中美國成長 6% 和國際成長 10%。美國四肢產品成長了 10%，這得益於我們推出增強型反向關節盂系統帶動的肩部產品強勁的兩位數成長。美國髖關節和膝關節產品的成長持平，反映了銷售天數減少和資本銷售逆風的影響，因為客戶為了等待我們下一代硬體的推出而推遲了訂單。

Underlying implant growth in hip and knee was mid-single digit, and we expect acceleration in the second half of the year as new products ramp. Early commercial feedback on the Nebula system and the OrthoDrive surgical impactor has been encouraging with a positive reception from surgeons and sales teams.

髖關節和膝關節植入物的潛在成長率為中等個位數，隨著新產品的推出，我們預計下半年植入物成長率將加速。Nebula 系統和 OrthoDrive 手術衝擊器的早期商業回饋令人鼓舞，並獲得了外科醫生和銷售團隊的正面評價。

Our launch activities to date have been controlled as we scale inventory and ramp surgeon training. Outside the US, we benefited from our recent geographical expansion and continue to take share in a resilient market. Our Optimys Stem and RM Cup continue to drive competitive share gains in international hip. Similarly, our SMR and Prima shoulder portfolios continue to be a highlight as we integrate and capitalize on cross-selling opportunities.

迄今為止，隨著我們擴大庫存並加強外科醫生培訓，我們的啟動活動一直受到控制。在美國以外，我們受益於最近的地理擴張，並繼續在有彈性的市場中佔據份額。我們的 Optimys Stem 和 RM Cup 繼續推動國際髖關節市場的競爭性份額成長。同樣，隨著我們整合並利用交叉銷售機會，我們的 SMR 和 Prima 肩部產品組合繼續成為亮點。

A consistent theme in my conversations with our commercial teams and surgeons is the growing conviction that enabling technologies are key to having a comprehensive portfolio. Our entry and key platform in this space is Arvis, an augmented reality platform that delivers real-time intraoperative intelligence, guidance and navigation.

在我與我們的商業團隊和外科醫生的對話中，一個一致的主題是，我們越來越相信，使能技術是擁有全面產品組合的關鍵。我們在這個領域的入門和關鍵平台是 Arvis，這是一個提供即時術中情報、指導和導航的擴增實境平台。

Arvis stands out in the market because it is simple, portable and scalable, enhancing surgical precision without adding complexity to the workflow. It fits seamlessly into both inpatient and outpatient settings regardless of the reimbursement model, delivering real value where it matters most.

Arvis 因其簡單、便攜、可擴展等特點而在市場上脫穎而出，它能夠提高手術精度，而不會增加工作流程的複雜性。無論採用何種報銷模式，它都能無縫融入住院和門診環境，在最重要的地方提供真正的價值。

Our next-generation platform builds on this foundation with a lighter, more complex headset, improved visualization, faster registration and enhanced tracking. These upgrades also enable future expansion into real-time soft tissue balancing for knee procedures and differentiated shoulder applications. All important steps towards building a broader, more versatile multi-anatomy ecosystem.

我們的下一代平台在此基礎上構建，具有更輕、更複雜的耳機、改進的可視化、更快的註冊和增強的追蹤功能。這些升級還可以擴展到未來膝關節手術和差異化肩部應用的即時軟組織平衡。所有這些都是朝著建立更廣泛、更多功能的多解剖生態系統邁出的重要一步。

The addition of these features has extended our commercial timeline. We're now about six months behind where we expected to be, but the excitement we're seeing with surgeons gives us confidence that the enhancement will be a meaningful addition to our global portfolio. In P&R, 3% organic growth reflects a stable market environment and disciplined execution.

這些功能的加入延長了我們的商業時間表。現在，我們比預期晚了大約六個月，但我們看到外科醫生的興奮之情，這讓我們相信，這種增強將對我們的全球產品組合產生有意義的補充。在P&R方面，3%的有機成長反映了穩定的市場環境和嚴格的執行。

Overall, this business is performing in line with our strategic plan and will benefit from the ManaFuse LIPUS technology launch and several key new bracing products in the coming quarters. Adjusted EBITDA margins in P&R improved 130 basis points year-over-year as we continue to use EGX tools to drive consistent productivity improvements and proactively shape the portfolio for profitable capital-efficient growth.

總體而言，這項業務的表現符合我們的策略計劃，並將受益於 ManaFuse LIPUS 技術的推出以及未來幾季的幾款關鍵新支撐產品。由於我們繼續使用 EGX 工具來推動持續的生產力改進，並積極塑造投資組合以實現盈利的資本高效增長，P&R 的調整後 EBITDA 利潤率同比提高了 130 個基點。

I've been in the medical industry for more than 30 years, and I'm passionate about its power to improve people's lives and longevity. I'm grateful I've been given this opportunity to bring my experience to Enovis and lead the company into its next chapter of growth. Since joining, my initial optimism about the potential has only grown stronger, and I am confident in the near-term strategic objectives and commitments we've made to investors, including our updated guidance that Ben will outline shortly.

我從事醫療行業 30 多年，對醫療改善人們生活和延長壽命的能力充滿熱情。我很感激有這個機會將我的經驗帶到 Enovis，並帶領公司進入下一個發展篇章。自加入以來，我對潛力的最初樂觀態度只會越來越強烈，我對我們向投資者做出的近期策略目標和承諾充滿信心，包括本將很快概述的最新指導。

As I mentioned, my immediate priority is reinforcing organic growth and margin expansion while also unlocking capital efficiencies across the business. I look forward to sharing a detailed multiyear road map in the future. And now I'll turn it over to Ben to take you through the P&L details. Ben?

正如我所提到的，我的當務之急是加強有機成長和利潤率擴張，同時提高整個業務的資本效率。我期待未來分享詳細的多年路線圖。現在我將把時間交給 Ben，讓他向您介紹損益表的詳細資訊。本？

Thanks, Damien, hello, everyone. We are pleased to report second quarter sales of $565 million, up 7% versus prior year and 5% on an organic basis. The quarter included approximately 200 basis points of positive currency tailwinds, offset by roughly 200 basis point headwind from selling days.

謝謝，達米安，大家好。我們很高興地報告第二季的銷售額為 5.65 億美元，比上年增長 7%，有機增長 5%。本季包括約 200 個基點的正向貨幣順風，但被銷售日約 200 個基點的逆風所抵銷。

Overall, our Recon business saw organic growth of 8%, led by high single-digit growth in Global Extremities and mid-single-digit growth in Global Hips and Knees. Our growth in P&R continues to be stable at 3% in the quarter. For the first half of the year, organic growth was 8% at the Enovis level, 10% in Recon and 5% in P&R.

總體而言，我們的 Recon 業務實現了 8% 的有機成長，其中全球四肢業務實現了高個位數成長，全球髖關節和膝關節業務實現了中等個位數成長。本季我們的 P&R 成長率持續穩定在 3%。今年上半年，Enovis 的有機成長率為 8%，Recon 的有機成長率為 10%，P&R 的有機成長率為 5%。

We are encouraged with the momentum building in both segments and believe the diversity in the portfolio produces durability of growth as we continue to navigate ever-evolving end markets. Adjusted gross margins improved 90 basis points in the quarter and 200 basis points year-to-date.

我們對這兩個領域的發展勢頭感到鼓舞，並相信隨著我們繼續探索不斷發展的終端市場，產品組合的多樣性將帶來持久的成長。調整後的毛利率在本季提高了 90 個基點，年初至今提高了 200 個基點。

This expansion is driven by favorable segment and product mix, and in-flight productivity programs in manufacturing and supply chain. Second quarter adjusted EBITDA was flat versus prior year at 17.2%, primarily a result of the phasing of expenses and increased investments in R&D. Year-to-date, we have expanded our adjusted EBITDA margins by 75 basis points.

此次擴張是由有利的細分市場和產品組合以及製造和供應鏈中的飛行生產力計劃所推動的。第二季調整後的 EBITDA 與上年持平，為 17.2%，這主要得益於費用的分階段削減和研發投資的增加。年初至今，我們的調整後 EBITDA 利潤率已擴大 75 個基點。

Second quarter effective tax rate was 23%. Interest expense was $9 million for the quarter versus $17 million in 2024. Overall, we delivered adjusted earnings per share of $0.79, an increase of 27% versus prior year. First half EPS -- adjusted EPS grew 42%, driven by margin expansion and reduced interest expenses. We are pleased with the financial progress we've made so far in 2025 and are excited about the value creation opportunities in front of us as we continue to execute.

第二季有效稅率為23%。本季利息支出為 900 萬美元，而 2024 年為 1700 萬美元。總體而言，我們的調整後每股收益為 0.79 美元，較上年增長 27%。上半年每股盈餘－調整後每股盈餘成長 42%，受利潤率擴大和利息支出減少的推動。我們對 2025 年迄今的財務進展感到滿意，並對繼續執行過程中面臨的價值創造機會感到興奮。

With this in mind, we are raising our guidance. We are increasing our revenue range by $25 million to $2.245 billion to $2.275 billion. This is driven by an improved currency outlook, particularly strength in the euro and organic growth execution. We expect foreign currency to be a slight tailwind in 2025. This compares to our prior expectation of flat versus 2024.

考慮到這一點，我們正在提高我們的指導。我們將營收範圍提高 2,500 萬美元，達到 22.45 億美元至 22.75 億美元。這是由貨幣前景改善，特別是歐元走強和有機成長執行所推動的。我們預計 2025 年外幣將帶來輕微的順風。相比之下，我們之前預計 2024 年將持平。

For organic growth, we are raising our constant currency growth guidance to 6.25% to 6.75%, an increase of 25 basis points versus the prior range. We continue to expect high single-digit growth in Recon and low single-digit growth in P&R. We are also raising our guidance for margins and earnings.

對於有機成長，我們將固定匯率成長預期上調至 6.25% 至 6.75%，較先前的範圍增加 25 個基點。我們繼續預計 Recon 將實現高個位數成長，而 P&R 將實現低個位數成長。我們也提高了利潤率和收益預期。

On margins, we are raising our adjusted EBITDA range to $392 million to $402 million. This is a $7 million increase versus our prior guidance and reflective of our updated view on tariffs, which improved versus our prior guidance due to the 90-day pause on the elevated tariff rate in China. The tariff situation remains very fluid. We paid $6 million in tariffs in Q2, mostly related to P&R.

在利潤率方面，我們將調整後的 EBITDA 範圍提高至 3.92 億美元至 4.02 億美元。這比我們之前的指引增加了 700 萬美元，反映了我們對關稅的最新看法，由於中國暫停上調關稅稅率 90 天，這一看法比我們之前的指引有所改善。關稅情況仍然非常不穩定。我們在第二季支付了 600 萬美元的關稅，主要與 P&R 有關。

As the new costs have worked their way through inventory, as we've previously outlined, we will begin feeling the impact in the P&L starting in Q3 as we expect our mitigation efforts to accelerate through the balance of the year. No adjustments have been made to our outlook for depreciation, interest, tax rate or share count. Considering these changes, we are increasing our adjusted earnings per share range by $0.10 to $3.05 to $3.20.

正如我們之前所概述的，隨著新成本逐漸進入庫存，我們將從第三季開始感受到對損益表的影響，因為我們預計我們的緩解措施將在今年餘下時間內加速。我們對折舊、利息、稅率或股份數量的展望沒有做出任何調整。考慮到這些變化，我們將調整後的每股盈餘範圍上調 0.10 美元至 3.05 美元至 3.20 美元。

Lastly, we reiterate our expectation for positive free cash flow in 2025 and are focused on using generated cash to pay down debt and reduce leverage as we exit the year. To summarize, the first six months of 2025 demonstrated the strength of our platform and the intentional diversification we have built into our business.

最後，我們重申對 2025 年自由現金流為正的預期，並致力於在年底前利用產生的現金償還債務並降低槓桿率。總而言之，2025 年的前六個月展示了我們平台的實力以及我們在業務中構建的有意多元化。

We are pleased with our improving business mix and are excited about the new product innovations that should continue to ramp over the second half of 2025. The underlying fundamentals of the business remain strong and robust, and we are poised to manage the business responsibly through this dynamic environment and maintain progress towards our strategic goals and financial commitments. Kyle?

我們對不斷改善的業務組合感到滿意，並對 2025 年下半年將繼續蓬勃發展的新產品創新感到興奮。業務的基本面依然強勁，我們準備在這種動態環境中負責任地管理業務，並繼續朝著我們的策略目標和財務承諾邁進。凱爾？

Thanks, Ben. (Event Instructions).

謝謝，本。（活動說明）。

With that, operator, please open the call to questions.

接線員，請開始提問。

(Operator Instructions)

（操作員指示）

Vijay Kumar, Evercore ISI.

維傑·庫馬爾（Vijay Kumar），Evercore ISI。

Hey, thanks for taking my question, Damien, congrats and welcome to, I guess, your first earnings call. Maybe my first question for you on -- you noted this delay in Arvis launch. Hip and knees were flattish, US hip and knee. So when we think about the back half acceleration here on Recon, what are you assuming for Arvis -- and if Arvis is now pushed out by 6 months, are there any other new products that would drive the back half step up?

嘿，感謝您回答我的問題，達米安，恭喜您，歡迎參加您的第一次財報電話會議。也許我要問您的第一個問題是——您注意到了 Arvis 發布延遲的問題。臀部和膝蓋較平坦，美國臀部和膝蓋。因此，當我們考慮 Recon 後半段的加速時，您對 Arvis 有何假設？如果 Arvis 現在推遲 6 個月，是否有其他新產品可以推動後半段的加速？

Hey, good morning, Vijay. How are you? And thanks for the question. There are a couple of things that I think are important for Recon in the back half. We've got -- the Nebula hip is just really coming into the market. We've been in limited market release. And as I said in my prepared remarks, the response has been tremendous, and we're really looking forward to that being more available in later Q3 and Q4.

嘿，早安，維傑。你好嗎？感謝您的提問。我認為對於 Recon 後半部分來說，有幾件事很重要。我們已經知道——Nebula hip 剛剛進入市場。我們一直在有限度地發行產品。正如我在準備好的發言中所說，反應非常熱烈，我們非常期待在第三季和第四季後期能夠有更多這樣的反響。

Similarly, I would say the ARG for shoulder is a really great opportunity for us in the US. Again, great response. And as I've spent a lot of time in Europe, too, with the international team, they're really coming into their own with the cross-selling in the extremities.

同樣，我想說，ARG 肩部訓練對我們在美國來說是一個非常好的機會。再次，得到了很好的回應。而且，由於我和國際團隊在歐洲待了很長時間，他們在極端情況下的交叉銷售方面確實發揮了自己的作用。

The Prima/SMR cross-selling opportunity is really driving great share gain in shoulders. So I see a lot of opportunity with the emerging portfolio, and as I also said in my prepared remarks, doubling down on how we execute on the commercial operations and particularly in the US, I think, is an opportunity for us.

Prima/SMR 交叉銷售機會確實推動了肩部市場份額的巨大成長。因此，我看到新興投資組合中有很多機會，正如我在準備好的演講中所說的那樣，加倍重視我們如何執行商業運營，特別是在美國，我認為，對我們來說是一個機會。

Understood. And maybe, Ben, one for you. I want to ask on the guidance, but maybe more focused on adjusted EBITDA and free cash. I think a recent report raised some questions on adjusted EBITDA reconciliation. I think some of the points raised were the warranty agreements and whether that's a period expense that's being non-GAAP and inventory step-up costs.

明白了。也許，本，有一個適合你。我想問一下指導意見，但也許更關注調整後的 EBITDA 和自由現金。我認為最近的一份報告對調整後的 EBITDA 對帳提出了一些問題。我認為提出的一些觀點是保固協議以及這是否是非 GAAP 的期間費用和庫存增值成本。

So I'm curious on your comfort around the adjusted EBITDA metrics that you report. And I think a lot of these debates would end if free cash flows normalize, right? So I know you said free cash positive for fiscal '25. When do we get back to 70% to 80% of net income and free cash conversion for the company?

所以我很好奇您對所報告的調整後 EBITDA 指標的滿意度。我認為，如果自由現金流正常化，很多爭論就會結束，對嗎？所以我知道您說 25 財年的免費現金是正數。我們什麼時候才能恢復公司70%到80%的淨收入和自由現金轉換？

Thank you.

謝謝。

Yes. Thanks for the question, Vijay. Let me just reiterate our commitment to maintaining high standards of transparency, accounting controls, reporting and compliance with all the rules and regulations. I mean, we're confident that we've represented the company in the right way and continue to make the right calls with regards to how we're representing the business.

是的。謝謝你的提問，維傑。我只想重申我們致力於保持高標準的透明度、會計控制、報告和遵守所有規則和規定。我的意思是，我們有信心我們已經以正確的方式代表了公司，並將繼續就如何代表業務做出正確的決定。

So overall, if you think about where we are in our cycle, we are in a period here where we've been heavily integrating Lima over the past two years. And with that, we've been spending a lot of efforts to make sure that we're getting the right momentum of that company coming into Enovis. And we've shown some of that with the growth that we've been able to continue to demonstrate as we've been integrating it.

所以總的來說，如果你想想我們所處的周期，我們正處於一個時期，過去兩年我們一直在大力整合利馬。為此，我們付出了很多努力，以確保該公司進入 Enovis 時能獲得正確的動力。並且，隨著我們不斷整合，我們已經能夠繼續展現出成長動能。

When it comes to the royalty piece, I mean, we talked a little bit about this on the Q1 call. This was a shift in our model to essentially remove some bias in terms of the innovation cycle with some of our key surgeon partners. So it was onetime in nature. It was noncash. It's over a seven- to nine-year period.

說到版稅部分，我的意思是，我們在第一季電話會議上討論過這個問題。這是我們模式的轉變，旨在從根本上消除我們與一些主要外科醫生合作夥伴在創新週期方面的一些偏見。所以從本質上來說，它是一次性的。它是非現金的。整個過程持續了七到九年。

So there's no clear, I'd say, benefit that rolls through the P&L here. If anything, it's relatively neutralized with regards to the shift in the model that we've just executed. But your point is the right one with regards to the focus on free cash flow. I think you saw progress that we've made in free cash flow in the second quarter, particularly with the pressure that we felt on tariffs. I think you heard in my prepared remarks that we took $6 million of payments of tariffs in the second quarter, but still posted positive free cash flow.

因此，我認為這裡的損益表中沒有明顯的收益。如果有的話，相對於我們剛剛執行的模型轉變來說，它相對來說是中性的。但關於關注自由現金流，你的觀點是正確的。我認為您看到了我們在第二季度自由現金流方面取得的進展，特別是在我們感受到關稅壓力的情況下。我想你們在我的準備好的發言中聽到了，我們在第二季度收到了 600 萬美元的關稅，但仍然實現了正的自由現金流。

So you're seeing some of those adjusted costs neutralize a little bit as we're completing more of the integration, and we're reducing the burden there due to that. So we feel very strong about our ability to continue to incrementally make progress on cash flow throughout the course of this year.

因此，隨著我們完成更多的整合，您會看到一些調整後的成本有所中和，因此我們正在減輕負擔。因此，我們對自己在今年全年持續逐步改善現金流的能力充滿信心。

And then as we step into next year, we're very much entitled to see step-ups, particularly as the European medical device regulation spend significantly diminishes and the Lima integration costs significantly step down. So that entitlement right there puts us on the pathway towards the 70% to 80% conversion and very clear line of sight for us to continue to step up towards those levels over the coming years.

然後，隨著我們進入明年，我們非常有權看到步伐的加快，特別是隨著歐洲醫療器材監管支出大幅減少以及利馬一體化成本大幅下降。因此，這項權利使我們走上了實現 70% 至 80% 轉換率的道路，並且讓我們在未來幾年內繼續朝著這些水平邁進的視線非常清晰。

That's helpful. Thank you.

這很有幫助。謝謝。

Vik Chopra, Wells Fargo.

喬普拉（Vik Chopra），富國銀行。

Hey, good morning. And thank you for taking the questions. Congrats on a nice quarter. Damien, welcome. Two questions for me, maybe one, a more high level one, for Damien. Maybe just talk about some of the lessons learned from your previous company that you think you can apply at Enovis. And then I had a follow-up, please.

嘿，早安。感謝您回答這些問題。恭喜本季取得良好業績。達米安，歡迎光臨。我有兩個問題，其中一個是更高層次的問題，是問達米安的問題。也許只是談論您從之前的公司學到的一些您認為可以在 Enovis 應用的經驗教訓。然後我有一個後續問題，請。

Well, I think there's some tremendous things. So thanks for the question, Vik. In terms of growth, I think we've got huge opportunities of applying discipline to the way we think about customer segmentation and targeting, account acquisition and account penetration and really driving innovation.

嗯，我認為有一些了不起的事情。謝謝你的提問，維克。在成長方面，我認為我們擁有巨大的機會，可以運用紀律來思考客戶細分和定位、帳戶獲取和帳戶滲透，並真正推動創新。

So I think bringing some of the things that I learned in my previous role around pipeline development and execution is really key. I think also the fact that the DNA of Enovis has EGX in it is really a great opportunity for us. I've had a lot of experience with that business system mentality.

因此，我認為將我在之前的職位上學到的一些東西應用到管道開發和執行中是關鍵。我還認為，Enovis 的 DNA 中含有 EGX 這一事實對我們來說確實是一個很好的機會。我對這種商業系統思維有豐富的經驗。

And what I'm excited about is the fact that we have it and people use it, but the real opportunity is expanding that across the entire business. And making it applicable to not just the ops groups, but the carpet land, as sometimes it's referred. So we've got great opportunity to really use that, again, to focus on capital efficiency and generating more cash and really thinking about how we get leverage down.

令我興奮的是，我們擁有它並且人們使用它，但真正的機會是將其擴展到整個業務。並且使其不僅適用於作戰小組，也適用於地毯土地（有時也稱為地毯土地）。因此，我們有很好的機會真正利用這一點，再次專注於資本效率並產生更多現金，並真正思考如何降低槓桿率。

Great. Thank you for that answer. A follow-up question is, how should we think about your M&A strategy post-Lima? And maybe just talk about how you're thinking about balancing debt paydown with doing tuck-in deals in 2025?

偉大的。謝謝你的回答。後續問題是，我們該如何看待利馬會議之後的併購策略？也許您可以談談您如何考慮在 2025 年平衡債務償還和附加交易？

Yes. So let's be very clear, and I think I alluded to this in my opening comments. The capital allocation priority right now is debt reduction. And Ben and I have spent a lot of time talking about this and also with the Board. So our intention is to be very focused on debt reduction.

是的。所以讓我們明確一點，我想我在開場白中已經提到了這一點。目前的資本配置重點是減少債務。本和我花了很多時間討論這個問題，也與董事會進行了討論。因此，我們的目標是集中精力減少債務。

Look, when our foundation is stronger, we'd look at either opportunistic share buybacks or focused M&A. But in the near term, you should think about our capital allocation priority is debt reduction.

你看，當我們的基礎更強大時，我們會考慮機會性股票回購或有針對性的併購。但在短期內，你應該考慮我們的資本配置重點是減少債務。

Mrs. Chopra, are you done with the question?

喬普拉女士，您的問題問完了嗎？

Yes, thank you very much.

是的，非常感謝。

Thank you.

謝謝。

Thanks Vik. Cheers.

謝謝維克。乾杯。

Young Li, Jefferies.

Young Li，傑富瑞。

Very great. Thanks for taking our questions. Welcome, Damien, and looking forward to working with you. We'll probably hear a lot more about this as you spend more time with the business, but I wanted to hear a little bit more about your early impressions of the business and key near-term focuses and priorities.

非常棒。感謝您回答我們的問題。歡迎，達米安，期待與您合作。隨著您在業務上投入更多時間，我們可能會聽到更多關於這方面的信息，但我想多聽聽您對業務的初步印像以及近期的主要重點和優先事項。

I'm sure we'll hear more about your long-term views later. And in particular, I wanted to hear a little bit more about your comment on focusing on enabling technologies to drive faster growth. Where does robotics fit in that framework? And also, your thoughts on the portfolio management in general?

我相信我們稍後會聽到更多關於您的長期觀點。特別是，我想聽聽您關於專注於使技術能夠推動更快成長的評論。機器人技術在該框架中處於什麼位置？另外，您對投資組合管理的整體看法是什麼？

Thanks, Young. A lot to unpack in that question. Let me start with -- look, I watched Colfax, and later Enovis, for many years. And as the conversations with the Board evolved, I was really intrigued by the portfolio of products that have been assembled, but also the development pipeline that was emerging. And the opportunity to work with the team to create value through disciplined execution was really compelling.

謝謝，楊。這個問題有很多需要解釋的地方。首先，我觀察了 Colfax 和後來的 Enovis 許多年。隨著與董事會的對話不斷深入，我對已組裝的產品組合以及正在出現的開發管道產生了濃厚的興趣。與團隊合作透過嚴格的執行創造價值的機會確實很吸引人。

And so the near-term priorities are, as I mentioned, this doubling down on our organic growth with a focus on commercial execution and innovation, really working with the team on operational excellence, and looking at capital efficiency, margin expansion and then the financial discipline, and Ben and I have had a lot of discussions around CapEx, cost management, shared service utilization.

因此，正如我所提到的，近期的優先事項是加倍我們的有機增長，重點關注商業執行和創新，真正與團隊合作實現卓越運營，關注資本效率、利潤率擴張和財務紀律，本和我就資本支出、成本管理、共享服務利用進行了大量討論。

So we're going to really focus on those three priorities in the near term. With respect to enabling tech and robotics, look, we've clearly heard the message that enabling tech is a key part of having a complete global portfolio. And our first solution is focusing on the steps of planning and navigation. If you think about it as planning, navigation and assistance.

因此，我們近期將真正關注這三個優先事項。關於使能技術和機器人技術，我們清楚地聽到這樣的訊息：使能技術是擁有完整的全球產品組合的關鍵部分。我們的第一個解決方案專注於規劃和導航的步驟。如果您將其視為規劃、導航和協助。

We're still continuing to examine whether large-format robots are cost-effective solutions and improve patient outcomes, and whether entry into the market at this point is really valid. And we've got resources dedicated to exploring all the viable pathways, and I'm actively engaged with that team in the short time I've been here.

我們仍在繼續研究大型機器人是否是一種經濟有效的解決方案，是否能改善患者的治療效果，以及此時進入市場是否真的有效。我們擁有專門用於探索所有可行途徑的資源，我在這裡的短暫時間內一直積極與該團隊合作。

Avis for us, really, I think it gives us an opportunity to extend into that space. We wanted to launch our next-gen with a hardware and a software update at the same time. We were doing some really great research and voice of customer, and in that development, really understood a lot more about the software and wanted to ensure that those were incorporated into the next-gen release, hence, the delay.

對我們來說，Avis 確實為我們提供了拓展該領域的機會。我們希望同時推出具有硬體和軟體更新的下一代產品。我們進行了一些非常棒的研究並聽取了客戶的意見，在開發過程中，我們對軟體有了更多的了解，並希望確保將這些內容納入下一代版本中，因此導致了延遲。

And right now, we're working with the team to really explore how to maximize the potential of that and really drive more implant growth. I think the key aspect of this is there's the capital, but really what we're trying to get at is implant growth. And that's a key focus area for me in terms of that commercial execution and innovation discussion that I said.

目前，我們正在與團隊合作，真正探索如何最大限度地發揮其潛力並真正推動更多植入物的成長。我認為其中的關鍵在於資金，但我們真正想要實現的是植入物的生長。就我所說的商業執行和創新討論而言，這是我關注的重點領域。

All right. Very helpful. I guess on the extremities business, the 10% growth, it sounds like shoulders did better than foot and ankle. Maybe if you can provide us a little bit more color on the growth and performance of each of the segments and the key products and initiatives to drive faster growth.

好的。非常有幫助。我想，就四肢業務而言，10% 的成長率聽起來像是肩部業務比足部和腳踝業務表現更好。也許您可以為我們提供更多關於每個部門的成長和表現以及推動更快成長的關鍵產品和舉措的詳細資訊。

Why don't I do shoulders and you do foot and ankle. So the shoulder thing, I think, is two things. Firstly, in the US with the release of ARG, the Altivate Reverse Glenoid, we've been, again, in limited commercial release there. It's progressing really well.

為什麼我不做肩膀而你做腳和腳踝呢？所以我認為肩部問題涉及兩方面。首先，在美國，隨著 ARG（Altivate Reverse Glenoid）的發布，我們再次在那裡進行了有限的商業發行。進展非常順利。

Our opportunity is later in Q3 and Q4 to really expand that. Internationally, speaking with the team and spending time with them, the cross-selling is really the great opportunity there. We had a Prima system that is more about simple procedures and the SMR system that really comes out of like a fracture mentality.

我們的機會是在第三季和第四季後期真正擴大這一點。在國際上，與團隊交談並花時間與他們相處，交叉銷售確實是一個很好的機會。我們有一個 Prima 系統，它更多地涉及簡單的程序，而 SMR 系統則真正源自於一種斷裂心態。

And the ability of the team now to firstly be trained and competent and capable to talk about those two different philosophies and then take either Prima customers and introduce SMR or SMR customers who were doing complex cases and bring Prima to their portfolio has really been what's driving the international growth. So I see it as really, again, back to this focus on commercial execution, and I think that team is doing a tremendous job.

現在，團隊首先要接受培訓，具備勝任和談論這兩種不同理念的能力，然後接受 Prima 客戶並介紹 SMR，或者接受處理複雜案例的 SMR 客戶並將 Prima 納入其投資組合，這才是推動國際成長的真正動力。因此，我認為這真的再次回到了對商業執行的關注，我認為該團隊做得非常出色。

Yes. And on foot and ankle, Young, I think we're still very bullish on the capabilities of the product lines that we've put together there and what the end market potential is. And we would expect that, that business continues to contribute to our growth algorithm as we think about the strength in extremities.

是的。楊，關於腳和腳踝，我認為我們仍然非常看好我們在那裡組裝的產品線的能力以及最終市場的潛力。而且我們預計，當我們考慮極端情況的力量時，該業務將繼續為我們的成長演算法做出貢獻。

Second quarter for foot and ankle was a little bit softer from a market volume standpoint. As we look at it, it was more volume procedural driven than it was anything that we think was disruptions in our business. But we're launching some new products, getting new inventory out in the field, which we'll expect some acceleration in the second half.

從市場銷售角度來看，第二季足部和踝部市場略顯疲軟。我們認為，這更多的是由數量程序驅動的，而不是任何我們認為會擾亂我們業務的事情。但我們正在推出一些新產品，並在現場推出新庫存，我們預計下半年將會加速。

So overall, we still feel comfortable that we'll be well within our guidance with regards to what we've set expectations around and see some acceleration in foot and ankle in the back half.

因此，總的來說，我們仍然感到很舒服，我們將很好地遵循我們設定的預期，並看到後半部分的腳和腳踝加速。

Alright, great. Thank you very much.

好的，太好了。非常感謝。

Mike Matson, Needham.

麥克馬森，尼德姆。

Hi guys, this is Joseph on for Mike. Welcome, Damien. Nice to meet you over the phone. Apologies if you guys noted this in the prepared remarks, but the guidance increase in revenue, was that due to currency? Or was this more outperformance of Core Enovis?

大家好，我是約瑟夫，代表麥克。歡迎光臨，達米安。很高興透過電話認識你。如果你們在準備好的發言中提到了這一點，請原諒，但指導收入的增加是由於貨幣嗎？還是這是 Core Enovis 的更優異表現？

And then the acquisition revenue in P&R, I don't know if you guys had announced that. It looks small. I was just curious where that was coming from.

然後是 P&R 中的收購收入，我不知道你們是否已經宣布了這一點。它看起來很小。我只是好奇那是從哪裡來的。

Yeah, hi, Joseph, on the guidance piece, it's a combination of currency and organic performance. So we shifted up the range, $25 million with a combination of that coming from slightly better currency than what we expected as we went into the last call and then taking our organic growth range up 25 basis points. So it's a little bit of a combination there.

是的，你好，約瑟夫，就指導部分而言，它是貨幣和有機表現的結合。因此，我們將範圍上調至 2500 萬美元，這一數字源於貨幣狀況比我們上次通話時預期的略好，並且將我們的有機增長範圍上調了 25 個基點。所以這有點像是組合。

If you think about what that acquisition was on the P&R side, very, very small, little bolt-on thing that we did to reinforce our leadership position outside the US. So relatively immaterial in terms of the size of that thing, but it was an acquisition that was completed in the quarter.

如果您想想 P&R 方面的收購，您會發現這只是一項非常小的附加措施，旨在鞏固我們在美國以外的領導地位。因此，就規模而言，這相對不重要，但這是一項在本季完成的收購。

Okay. Great. That's helpful. And then just on gross margin, it was great to see all the expansion there just on a GAAP and non-GAAP basis. But -- just curious on the flow-through.

好的。偉大的。這很有幫助。然後就毛利率而言，很高興看到所有擴張都是基於 GAAP 和非 GAAP 的。但是——只是對流程感到好奇。

I guess we're expecting more of it to flow through EBITDA margin there. I mean it looks like you're flat year-over-year. So just curious what are the levers in there that we didn't see more flow through?

我想我們預計更多的資金將流入那裡的 EBITDA 利潤率。我的意思是看起來你的業績與去年同期相比沒有太大變化。所以只是好奇我們沒有看到更多流量流過的槓桿是什麼？

Yes. Again, I think we're pleased with the performance that we've seen against the expectations that we set, especially through the first half. Second quarter, yes, I think you're seeing some positive mix elements that are continuing to work in our favor with regards to gross margins. And from an expense side, in my prepared remarks, I talked a little bit about some of the phasing and investments in R&D on the operating expense side.

是的。我再說一次，我認為我們對目前的表現感到滿意，因為我們的表現符合我們設定的預期，尤其是上半年的表現。第二季度，是的，我認為您看到了一些積極的組合因素，這些因素在毛利率方面繼續對我們有利。從費用方面來看，在我準備好的發言中，我稍微談到了營運費用的一些研發分階段和投資。

So overall, again, I think we're well in line with what our expectations were that we set for the year, especially through the first half, and we are still bullish in terms of our ability to continue to expand our margins with the evolving business mix that we have as a company.

因此，總體而言，我認為我們的業績完全符合我們對今年，特別是上半年所設定的預期，而且我們仍然看好我們能夠透過公司不斷發展的業務組合來繼續擴大利潤率。

Okay, perfect. Thanks to you both and congrats on the quarter.

好的，完美。感謝你們二位，並祝賀本季取得佳績。

Thanks. Cheers.

謝謝。乾杯。

Caitlin Cronin, Canaccord Genuity.

凱特琳‧克羅寧 (Caitlin Cronin)，Canaccord Genuity。

Hi, thanks so much for taking the questions and Damien, welcome. Just to start on the Arvis shoulder launch. Just any updates on how that's going? And then how important will kind of the next-gen updates to Arvis be to this ongoing shoulder launch?

嗨，非常感謝您回答問題，歡迎 Damien。剛開始 Arvis 肩部發射。有關於事情進展的任何最新消息嗎？那麼，Arvis 的下一代更新對於正在進行的肩部發射有多重要？

Well, thanks. I appreciate the question, and look forward to working with you. I think Arvis, I was just with a large group of shoulder surgeons in Madrid a few weeks ago. I would say the reaction to Arvis in shoulder has been tremendous. I think if you think about large-format robot versus a tool that's very portable and scalable in shoulder.

嗯，謝謝。我很感謝你的提問，並期待與你合作。我想阿維斯，幾週前我剛和一大群肩部外科醫生一起在馬德里。我想說，大家對阿維斯肩膀的反應非常強烈。我認為，如果您考慮一下大型機器人與便攜式且可肩扛的工具。

This is why we think Arvis is going to be exciting. I think what people were particularly excited about was the next-gen Arvis. We were showcasing that and giving people a chance to use that in a lab. And the lighter headset, I think, is meaningful. The visualization acuity is meaningful.

這就是我們認為 Arvis 將會令人興奮的原因。我認為人們特別興奮的是下一代 Arvis。我們正在展示這一點並讓人們有機會在實驗室中使用它。而且我認為更輕的耳機是有意義的。可視化敏銳度是有意義的。

The software -- as I mentioned, the software development and the feedback we got from KOLs as we developed it has been meaningful. I'm really excited about what Avis can do for shoulder and continue to help us expand our market share gains in that portfolio.

正如我所提到的，軟體開發以及我們在開發過程中從 KOL 獲得的回饋非常有意義。我對 Avis 能為路肩帶來的變化感到非常興奮，並將繼續幫助我們擴大該產品組合中的市場份額。

That's great. And then you also, I think, noted EUMDR costs expected to step down next year. Just maybe remind us what products you expect to be approved in the EU and then when you expect those to contribute to growth over there?

那太棒了。然後，我認為您還注意到 EUMDR 成本預計明年會下降。或許請提醒我們，您預計哪些產品會在歐盟獲得批准，以及您預計這些產品何時會促進歐盟的成長？

Yes. Thanks, Damien. Yes, if you recall, the EU MDR costs are really the remediation of tech files to be able to continue selling products on the market in Europe. So we've completed the vast majority of that remediation. So this would be the last meaningful year of spend with regards to that remediation.

是的。謝謝，達米安。是的，如果您還記得的話，歐盟 MDR 成本實際上是為了能夠繼續在歐洲市場上銷售產品而對技術文件進行的補救。因此，我們已經完成了絕大部分的補救工作。因此，這將是與補救措施有關的最後一個有意義的支出年。

Got it. Okay, that makes sense. Thanks so much.

知道了。好的，這很有道理。非常感謝。

Thank you.

謝謝。

Danielle Antalffy, UBS.

瑞銀的丹妮爾·安塔爾菲 (Danielle Antalffy)。

Hey, good morning, guys. Thanks so much for taking the question, Damien, excited to work with you. Just two questions here. One on the shoulder market dynamics. And I'm just curious, it's gotten to be a little bit more of a competitive market. I appreciate you guys are one of the market leaders here, or the market leader here.

嘿，大家早安。非常感謝您提出這個問題，達米安，很高興與您合作。這裡只有兩個問題。一肩扛起市場動態。我只是好奇，這個市場競爭變得更激烈了。我很欣賞你們是這裡的市場領導者之一，或者說是這裡的市場領導者。

I guess, Damien, as you look at the competitive environment, how do you see Enovis -- or what is your strategy to keep Enovis as the market share leader? And then just a quick follow-up on P&R, but that's my first question.

我想，達米安，當你觀察競爭環境時，你如何看待 Enovis——或者說，你有什麼策略來保持 Enovis 的市場份額領先地位？然後只是對 P&R 進行快速跟進，但這是我的第一個問題。

Hey, Danielle, look, great to work with you. I'm -- look, first of all, I'm excited that you've elevated us to market leadership. And that's what we're aspiring to. And I think we've got the momentum to get us there. I think this is going to be a multifactorial commercial execution play here. So let's talk about -- first thing is the relationships we have. I think we've built tremendous relationships.

嘿，丹妮爾，很高興和你一起工作。我——首先，我很高興您將我們提升到市場領導地位。這正是我們所追求的。我認為我們已經擁有實現這一目標的動力。我認為這將是一個多因素的商業執行遊戲。那麼讓我們來談談——首先是我們之間的關係。我認為我們已經建立了良好的關係。

The key opinion leader panel I just spent time with in Madrid, probably 15 of the best shoulder surgeons in the world, and just how excited they are about our portfolio and how committed they are to the medical education of the next generation of surgeons, I think, is tremendous. So it all starts, in my opinion, with relationships and the patient in mind. And so I think the first thing is that.

我剛剛在馬德里與一個關鍵意見領袖小組進行了會面，他們可能是世界上最好的 15 位肩部外科醫生，他們對我們的產品組合感到非常興奮，並且致力於下一代外科醫生的醫學教育，我認為，這是非常了不起的。因此，我認為，一切都始於人際關係和病人的想法。所以我認為第一件事就是這樣。

Second, I think about the commercial execution and how we help make our products more available and more applicable to existing customers. And we're doing a good job, again, particularly in Europe, I see the opportunities there being executed well. And as I mentioned in an earlier question, the cross-selling of the Prima and SMR portfolio is tremendous.

其次，我考慮商業執行以及我們如何幫助我們的產品更容易現有客戶使用和適用。而且我們做得很好，特別是在歐洲，我看到那裡的機會得到了很好的利用。正如我在先前的問題中提到的，Prima 和 SMR 產品組合的交叉銷售非常出色。

We've got people who are using and trust our systems, just getting them to use it in either complex cases or simple cases, depending on which way they're traveling from the portfolio choice is incredible. And then lastly, we're releasing new products. ARG is just a great product. And the reaction we've been having, particularly in the US, has been tremendous.

我們擁有使用並信任我們系統的人，只需讓他們根據他們在投資組合選擇中採取的方式在複雜或簡單的案例中使用它，這真是太棒了。最後，我們將發布新產品。ARG 是一款很棒的產品。我們得到的反應非常強烈，特別是在美國。

So I see this as a layered approach to being competitive. And then lastly, as we mentioned, the Arvis next-gen is really going to, I think, be key to shoulder and the assistance and part of this is, I think, less important with a robot arm. What's important is the planning and navigation.

所以我認為這是一種分層競爭的方法。最後，正如我們所提到的，我認為下一代 Arvis 確實將成為肩部和輔助的關鍵，而對於機械手臂來說，這一點就不那麼重要了。重要的是規劃和導航。

Yes. I'll just pile in there a little bit, too, Danielle, with regards to how important the Lima acquisition was to unlock our ability to really lean into shoulder growth. Not only from the robustness of portfolio and innovation capabilities that we got with the acquisition, but then the market access that it unlocks with regards to our ability to leverage this broader portfolio around the world.

是的。丹妮爾，我也會稍微補充一點，關於收購利馬對於我們真正實現肩部成長的能力有多麼重要。這不僅得益於我們透過收購所獲得的穩健的產品組合和創新能力，還得益於它所釋放的市場准入，使我們能夠在全球範圍內利用這一更廣泛的產品組合。

So we're really excited about what's happening in shoulder. The ARG was coming at a critical time, and we think that there's some really good momentum that's being created here in terms of our shoulder performance around the world.

因此，我們對肩部發生的事情感到非常興奮。ARG 是在關鍵時刻到來的，我們認為，就我們在世界各地的肩部表現而言，這裡正在形成一些非常好的勢頭。

Got you. Okay. That makes a lot of sense. And Damien, we hear the same thing regarding the implant mattering a lot more than a robot. Just a question on P&R.

明白了。好的。這很有道理。達米安，我們也聽到了同樣的說法，即植入物比機器人重要得多。這只是關於 P&R 的一個問題。

That's been a business that's undertaking a bit of a turnaround. I'm just curious about where you would characterize sort of where we are in that turnaround and how to think about -- I appreciate you're not going to give guidance for 2026, but sort of where that business can go? Thanks so much.

這是一個正在經歷轉變的業務。我只是好奇，您會如何描述我們在這個轉變中所處的位置以及如何思考——我知道您不會給出 2026 年的指導，但這項業務可以走向何方？非常感謝。

I'll talk a little bit about what I've seen, and why don't you jump in with the future. I really have a lot of faith in the ability of this team to continue to execute well. We know the markets are lower growth markets, but I think this team execute really well in multiple spaces, and they're very focused on financial discipline and really continuing to do that.

我會稍微談論一下我所看到的事情，為什麼不加入未來呢？我確實非常相信這支球隊能夠繼續保持良好的表現。我們知道這些市場是低成長市場，但我認為這支團隊在多個領域表現非常出色，他們非常注重財務紀律，並且確實會繼續這樣做。

And you saw that in the margin expansion. But even right now, there's a President's Kaizen going on in Dallas with the team to really look at how they get more capital efficient. And so I like this team in terms of its focus and execution. But I also like the fact that we're continuing to invest in bringing new products to market like the ManaFuse launch, which I think is going to be meaningful.

您可以從利潤率的擴大中看到這一點。但即使是現在，總統的改善計劃也在達拉斯與團隊一起進行，以真正研究如何提高資本效率。因此，我喜歡這支球隊的專注力和執行力。但我也喜歡我們繼續投資將新產品推向市場，例如推出 ManaFuse，我認為這將很有意義。

And that's a tremendous product and has a huge unmet need. So a combination of great discipline and continuing to invest in new product launches, I think, is a great opportunity for us.

這是一個非常棒的產品，並且有著巨大的未滿足需求。因此，我認為，嚴明紀律和持續投資新產品發布相結合，對我們來說是一個很好的機會。

Yes. I think what you've seen from us there, Danielle, on P&R is it's been much more consistent. I mean if you look past at the last eight to 12 quarters, I think it's in that low single-digit growth, around that 3% to 4% range, and we were even a little bit north of that here in the first half of the year. So if you think about where we are in P&R, it's really a story around how do we continue to shape and improve it. So we've been looking at how do we continue to do that.

是的。丹妮爾，我想你從我們這裡看到的 P&R 表現已經更加一致了。我的意思是，如果回顧過去的 8 到 12 個季度，我認為它處於低個位數增長，大約在 3% 到 4% 的範圍內，而今年上半年我們的增長率甚至略高於這個水平。因此，如果你想想我們在 P&R 領域所處的位置，這實際上是一個關於我們如何繼續塑造和改進它的故事。因此我們一直在研究如何繼續做到這一點。

Damien mentioned one with some new products that we're launching, but we're really trying to up the frequency of new product launches, and you're starting to see some of that play through with some of the choices that we've made from a shaping standpoint as well.

達米恩提到了我們正在推出的一些新產品，但我們確實在努力提高新產品的發布頻率，而且您也開始看到，從塑造的角度來看，我們所做的一些選擇也發揮了一定的作用。

So overall, we feel like this business is continuing to perform in that level that it has consistently. I think our expectations will be that it will continue to do that. We're continuing to look at how do we make it even better. But right now, I wouldn't propose to give any updated guidance other than to say I think we see it continuing to be consistent in terms of growth.

因此，總體而言，我們覺得這項業務將繼續保持其一貫的水平。我認為我們的期望是它將繼續這樣做。我們正在繼續研究如何讓它變得更好。但目前，我不會建議給予任何更新的指導，只是說我認為我們看到它在成長方面將繼續保持一致。

Dane Reinhardt, Baird.

丹恩·萊因哈特，貝爾德。

Hey, good morning, guys and welcome, Damien. I guess first question just on end markets here. I think your US hip and knee, even normalized mid-single-digit growth was a bit lighter than -- I think you were closer to kind of high single-digit growth last quarter. So just any updates on how end markets are kind of evolving as we go through the summer months here.

嘿，大家早安，歡迎光臨，達米安。我想第一個問題只是關於終端市場。我認為，即使美國髖關節和膝關節的正常化中個位數增長也比上個季度略低 - 我認為您上個季度的成長率更接近高個位數成長。因此，隨著我們度過夏季，終端市場如何發展，我們會提供一些更新資訊。

Obviously, I think one of your bigger competitors pointed to a slowdown in June. So just curious what you're seeing maybe both in the US and internationally and how that's progressed through July so far?

顯然，我認為你們的一個較大競爭對手指出了六月經濟放緩的情況。所以我很好奇您在美國和國際上看到了什麼，以及截至 7 月的進展如何？

Yes. Thanks, Dane. I mean I think what we're seeing really is the post-COVID norm really. I mean you have ebbs and flows in terms of the market. So like we had said, we got off to a nice solid start in the first part of the second quarter. I think we did see some of that with regards to vacation schedules, especially as we ended our quarter on the 4th of July. So I think there's some of that.

是的。謝謝，丹恩。我的意思是，我認為我們所看到的實際上是後疫情時代的常態。我的意思是，市場有起有落。所以就像我們所說的那樣，我們在第二季的前半段取得了良好的開端。我認為我們確實在假期安排方面看到了一些這樣的情況，特別是在 7 月 4 日我們結束本季的時候。所以我認為有一部分是這樣的。

But again, if you look at our performance, I think Damien outlined it within hip and knee. One, we're still in that controlled launch phase of the Stem and Impactor. We had the headwind of capital with regards to delays with getting Arvis out. And then you had some days pressure in the US as well with Good Friday and 4th of July that were impacting the US market a little bit more heavily in the quarter.

但是，如果你再看看我們的表現，我認為達米恩在臀部和膝蓋內概述了這一點。首先，我們仍處於 Stem 和 Impactor 的受控發射階段。由於 Arvis 的推出延遲，我們遇到了資金方面的阻力。然後，美國也面臨一些壓力，例如耶穌受難日和 7 月 4 日，這些日子對本季美國市場的影響更大一些。

So overall, I mean, it's not where we want to be from a growth in the hip and knee standpoint. But as we think about the underlying performance of it, implants are still performing pretty well, and we think that the new products coming and some of the commercial execution efforts, that Damien also outlined, will help us to accelerate in the second half.

所以總的來說，從髖關節和膝關節的生長角度來看，這並不是我們想要的。但當我們考慮它的基本性能時，植入物仍然表現得相當好，我們認為即將推出的新產品和達米恩概述的一些商業執行努力將幫助我們在下半年加速發展。

Thank you. And then on tariffs, I know last quarter, I think you kind of highlighted a $20 million impact. Any sense of what that is now? I know you mentioned it's a little bit lower. And then just remind us again how that kind of flows through into next year.

謝謝。然後關於關稅，我知道上個季度，我認為你強調了 2000 萬美元的影響。現在知道那是什麼了嗎？我知道您提到它有點低。然後再提醒我們這種情況將如何延續到明年。

And then I'll just add one kind of quicker one, hopefully or -- hopefully for Damien. You mentioned kind of trying to be more nimble and a little bit maybe higher spend on R&D. Just does that change at all kind of the LRP for 50 basis points of margin expansion going forward?

然後，我只想添加一種更快的方法，希望或 - 希望對 Damien 有用。您提到嘗試變得更加靈活，並且可能在研發上投入更多資金。那麼，對於未來 50 個基點的利潤率擴張，LRP 是否會有所改變？

Do you want to do tariffs first?

您要先做關稅嗎？

Yes. So I'll take the tariffs. So yes, I mean, I think what we saw, Dane, is that the tariff rate for China paused the 90-day given that was 75% of our total exposure was a helpful thing for us. Now the question mark is a lot of these trade deals still aren't completed. So there's still a lot of uncertainty with regards to what gets actually agreed to here as we go through the balance of the year.

是的。所以我會接受關稅。所以是的，我的意思是，我認為我們看到的是，丹恩，針對中國的關稅稅率暫停了 90 天，因為這占我們總風險敞口的 75%，這對我們來說是一件有益的事情。現在的問題是，許多貿易協定仍未完成。因此，當我們度過今年餘下的時間時，對於實際達成哪些協議仍然存在許多不確定性。

So we improved our EBITDA guidance for the year. That's primarily, I would say, because we're seeing some favorability there, but we're still being a bit conservative because of the uncertainties that still exist. And as you think about how that plays through, I mean, we're taking a little bit of that through now, as I mentioned, with the cash flow impacts in the second quarter, it works its way through inventory to where we start to feel the effects here. in the third quarter in the P&L.

因此我們提高了今年的 EBITDA 預測。我想說，這主要是因為我們看到了一些有利因素，但由於仍然存在不確定性，我們仍然有些保守。當你思考這是如何發揮作用的時候，我的意思是，我們現在正在考慮這一點，正如我提到的，隨著第二季度現金流的影響，它會透過庫存發揮作用，直到我們開始感受到影響。在第三季的損益表中。

We've started to work the mitigation actions. Most of those really scale in the fourth quarter to drive offsets. And what we had committed to everyone when we outlined the tariff exposure plan was that we will make sure that next year's impacts are less than what we feel this year. So overall, still a pretty dynamic situation. We're monitoring it. I'd say we're cautiously optimistic that it can get better. We've given a little bit back now, but hopefully, we'll be able to continue to see improvements here as these deals get executed.

我們已經開始採取緩解措施。其中大多數在第四季度確實擴大規模以推動抵銷。當我們概述關稅風險計劃時，我們向所有人承諾，我們將確保明年的影響小於今年的影響。所以總體而言，情況仍然相當活躍。我們正在監視它。我想說，我們謹慎樂觀地認為情況會好轉。我們現在已經做出了一些讓步，但希望隨著這些交易的執行，我們能夠繼續看到改善。

So with respect to R&D, you saw a slight uptick in the quarter. I would characterize it like this. As I said, we're reviewing all the programs, and that's not just on the SG&A side. It's also on the R&D side. I'd consider this more about a shift in resource allocation than an expansion in spend.

因此，就研發而言，您會看到本季出現小幅上升。我會這樣描述它。正如我所說，我們正在審查所有項目，而不僅僅是銷售、一般和行政費用方面。它也屬於研發方面。我認為這更多的是資源配置的轉變，而不是支出的擴大。

We -- our OpEx is healthy to say the least. And as I mentioned, we're looking to really understand our capital efficiency and the way we spend. So I wouldn't say that we're looking to increase spend. What I'm looking for is a change in allocation through this review of all the programs, looking at our effectiveness and focus. Not all programs are created equal.

我們的營運支出至少可以說是健康的。正如我所提到的，我們希望真正了解我們的資本效率和支出方式。所以我不會說我們正在尋求增加支出。我希望透過審查所有項目、考察我們的有效性和重點來改變分配方式。並非所有程序都是平等的。

And there are some that I think have more near-term impact and ability to execute, some that are critical for our longer term. And then there are always projects that I think maybe should be reexamined. And so, again, don't look at this as a signal that we're increasing overall OpEx. I think about this as a shift in resource allocation.

我認為有些政策在短期內影響更大、執行力更強，而有些政策則對我們的長期發展至關重要。總有一些項目我認為也許應該重新審視。所以，再說一次，不要將此視為我們正在增加整體營運支出的訊號。我認為這是資源配置的轉變。

Mr. Reinhard, are you done with the question?

萊因哈德先生，您的問題問完了嗎？

Yes, thank you very much guys.

是的，非常感謝你們。

(Operator Instructions)

（操作員指示）

Brandon Vasquez, William Blair.

布蘭登·巴斯克斯、威廉·布萊爾。

Hi everyone, this is Russell on for Brandon. Thanks for taking the questions. My first one is a bit of a nuance. In the slide deck, it mentioned that Recon was impacted by Arvis. Is that just because Arvis itself had lowered sales or Arvis resulted in impact to sales?

大家好，我是拉塞爾，代替布蘭登。感謝您回答這些問題。我的第一個有點微妙。在幻燈片中，提到 Recon 受到了 Arvis 的影響。那是因為Arvis本身的銷售量下降了還是Arvis對銷售造成了影響？

Yes. It's kind of twofold there, Russell. One is as we were starting to gain some momentum of Arvis last year, we were selling the devices as capital and having multiple business models, but we were selling the product last year, and you saw some uptick in that product line as we executed through last year. That, coupled with the delayed launch of the next-gen version and people waiting on the sidelines, created that impact year-over-year.

是的。這有雙重意義，拉塞爾。一是，去年我們開始獲得 Arvis 的一些發展勢頭，我們將設備作為資本進行銷售，並擁有多種商業模式，但去年我們也在銷售產品，並且隨著我們去年的執行，您會看到該產品線有所上升。再加上下一代版本的延遲發布以及人們的觀望，導致其影響逐年增加。

Got it. That's helpful. Thanks. And then more broadly, Recon saw growth in line with your long-term guide. What gives you confidence in sustaining those levels of growth and your levers to drive further growth? And have you seen any changes in the competitive field in Recon lately that's impacting Recon at all?

知道了。這很有幫助。謝謝。更廣泛地說，Recon 的成長符合您的長期指導。什麼讓您有信心維持這些成長水準以及推動進一步成長的槓桿？最近，您是否發現 Recon 競爭領域發生了一些對 Recon 產生影響的變化？

Again, I'll come back to what I think is really important. First of all, doubling down on our organic growth opportunities now that we have this expanded portfolio. And I really like the way that the Lima team have come in to the broader portfolio and using that -- not only the team and the market access that Ben mentioned earlier, but also the product portfolio, I think, is key.

再次，我會回到我認為真正重要的事情。首先，現在我們有了擴大的產品組合，我們就加倍努力抓住有機成長機會。我真的很喜歡利馬團隊加入更廣泛的產品組合中並加以利用的方式——不僅是本之前提到的團隊和市場准入，而且產品組合，我認為，也是關鍵。

I think related to that, the new product cadence that we have, hip with Nebula, the ARG with shoulder. I'm excited about where we're going with our knee portfolio. EMPOWR 2.0 to put a label on it, I think, is going to be an exciting expansion for us ultimately as we look at the knee portfolio globally and having a system that has a global application and working in both primary and revision.

我認為與此相關的是，我們擁有新產品的節奏，與 Nebula 一起，ARG 與 Shoulder 一起。我對我們的膝蓋產品組合的未來發展感到非常興奮。我認為，將 EMPOWR 2.0 貼上標籤，最終對我們來說將是一個令人興奮的擴展，因為我們將在全球範圍內審視膝關節產品組合，並擁有一個具有全球應用且在初級和修訂中都能發揮作用的系統。

So on multiple levels, I think we've got an opportunity to continue our trajectory. It's going to take discipline. It's going to take focus. These things don't happen overnight, but I'm confident that we can continue to do a good job in terms of outlining the growth that we talked about.

因此，從多個層面來看，我認為我們都有機會繼續我們的發展軌跡。這需要紀律。這需要集中註意力。這些事情不會一夜之間發生，但我相信我們能夠繼續很好地實現我們所談論的成長目標。

Got it, thank you.

知道了，謝謝。

Thank you. This concludes our question-and-answer session. I would like to turn the conference back over to Damien McDonald for any closing remarks.

謝謝。我們的問答環節到此結束。我想將會議交還給 Damien McDonald 並請他作最後發言。

Well, thank you. Let me just say I appreciate the welcome from all of you, and you have my commitment to be open, engaged and visible. And if you need access, please make sure you reach out. I know we're on a start of a new journey together, and it's an important part of how we're going to build trust and a relationship.

好的，謝謝你。我只想說，我感謝大家的歡迎，我保證你們會以開放、正面和公開的態度來對待你們。如果您需要存取權限，請務必聯絡我們。我知道我們正共同踏上新的旅程，這是我們建立信任和關係的重要組成部分。

On behalf of the Enovis team and the Board of Directors, I'd like to thank you all for joining this morning, and we look forward to sharing our third quarter results with you in November.

我謹代表 Enovis 團隊和董事會感謝大家今天上午的參加，我們期待在 11 月與大家分享我們的第三季業績。

Thank you. The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

謝謝。會議現已結束。感謝您參加今天的演講。您現在可以斷開連線。