Enovis, a healthcare technology company specializing in orthopedic solutions, emphasized its robotics-driven growth strategy during the Wells Fargo 21st Annual Healthcare Conference in September 2026. CEO Damien McDonald and CFO Ben Berry highlighted plans to accelerate robotic integration, including the planned acquisition of Amplitude Surgical, expected to close in Q4 2026, and a U.S. launch of a knee robot system by 2028. The company also outlined an integration roadmap for robotics, targeting early 2027 for full deployment across its portfolio.
Enovis reported strong organic growth in its Reconstruction (Recon) and Planning & Recovery (P&R) segments, with the former growing 8% in the first half of 2026 and guided for 6.4% growth in the second half. The P&R segment grew 3% organically, with about 50% of its portfolio expanding at mid-single-digit rates. Long-term normalized growth expectations for both segments sit in the mid-to-high single digits.
The company’s financial performance reflects a shift toward profitability, with free cash flow conversion improving from negative figures in prior years to +10% last year, +25% in 2026, and projected +50% in 2027, with absolute cash flow expected to reach approximately $100 million. Enovis aims to achieve free cash flow conversion of 70% to 80% by 2029.
Despite an expected 100 basis points decline in EBITDA margins next year due to investments in robotics, the company anticipates offsetting this with 50 basis points of operational improvements. Margin expansion is expected to resume in 2028 and beyond. Debt-to-EBITDA improved from 3.8x to 3.1x, though leverage is projected to temporarily rise to 3.5x in 2027 due to the acquisition, before returning to 3.1x. Revolver capacity stands at about $900 million.
Market conditions remain mixed, with U.S. orthopedic demand normalizing to pre-COVID seasonality, including a typical summer slowdown. Europe, however, faces slower growth due to strikes and government budget shifts toward defense spending. McDonald noted that Enovis has not been materially impacted by Affordable Care Act (ACA)-related clinic-to-surgery mix shifts or prior authorization delays, thanks to its customer base structure.
The company’s robotics strategy centers on addressing surgeon and patient needs, particularly in shoulder procedures. Current robotic form factors are deemed insufficient, prompting partnerships with Amplitude Surgical, which brings a proven engineering team from Grenoble, France, alongside technologies like the VELYS spine robot (developed for Johnson & Johnson) and the Amplitude Andy knee robot. The combined ARVIS and Amplitude system will integrate backward-compatible planning and navigation tools with robotic capabilities, designed for seamless use across hospitals and ambulatory surgery centers (ASCs). Training for ARVIS requires about 5 to 10 procedures with intensive handholding.
ARVIS placements are expected to double through the remainder of 2026 and into 2027, while the laser product cycle is projected to span six years. LimaCorporate integration work is heavy but expected to conclude by the end of 2026. An extra day in Q4 2026 adds about 120 basis points of tailwind to growth.
McDonald emphasized Enovis’s market share gains, stating, ‘We’ve been demonstrably taking share in those markets and growing above the market. Nothing’s changed for us.’ He also highlighted progress in free cash flow conversion, noting, ‘In the last 18 months, we’ve gone from negative free cash flow conversion to +10% last year, to +25% conversion this year, and +50% next year.’ Berry added, ‘We’ve got a long runway ahead of us. We’ve got great technologies, great customer relationships, and great brands, and we’d love you to become part of the story.’
