All right. Good afternoon, everyone. Thank you so much for joining us. My name's Danielle Antalffy. I'm the U.S. MedTech analyst here at UBS. Very lucky to have with us the Enovis team, Damien McDonald, CEO, Ben Berry, CFO, and of course, Kyle Rose, Head of Investor Relations. Maybe a good place to start, just what is Enovis? Damien, I'd love to hear you're getting settled into your role. What brought you to Enovis? What attracted you about the story? What are you most excited about? First of all, thanks for having us today. I really appreciate UBS hosting us. And you, Danielle, thank you. I'll try not to get into a monologue about why I'm so excited about this company, but it's a few things. Firstly, Enovis, if you don't know the company, we're a challenger brand in the orthopedic space to the Big Four. I think really what differentiates us is two things. Firstly, if you think about the portfolio, we're an innovative portfolio, but we cross over the whole spectrum of the patient continuum from prevention through implant into recovery. I think that's exciting because the whole patient revenue cycle is covered, the whole patient trust cycle is covered. We have worked really hard when we, the team before me, because I have only been here about six months, worked really hard to build a really balanced portfolio where 50% U.S., 50% international, where 50% PNR, 50% recon, and recon where 50% extremities, 50% large implant. I think the portfolio is really exciting. That is the first thing. I think the other thing that differentiates us is our agility. As I talk to customers, one of the things that has really resonated with me is our proximity to the customers, our ability to make decisions, their ability to influence our pipeline is really close. I think they have really much enjoyed moving into a space that is that agile. I think also what it has become is a talent magnet for commercial people, for innovators to join our company. I think those two things, the portfolio and the agility. What excited me about it? Coming from the outside in, I really love the orthopedic space. I think it's got a long tailwind behind it. I mean, we could unpack that. There's a lot in that. I love the fact that we had an innovative pipeline, not just through acquisition, but inside our organic group. I think that what's exciting is that we have this ability to really touch patients. Some people know that I came from Danaher. I also love that the EGX thing looks like a lot of the business system that I grew up in at Danaher. All of those things combined made it a very exciting place to come. Where do you see the most room for, I don't want to say room for improvement, but where you think your skill set will have the most impact in shaping Enovis from here? Partnership with Ben and the rest of the leadership team, I think there's a few things. Firstly, this doubling down on commercial execution. We've done a great job, as I said, acquiring a great portfolio. What I really want to make sure we focus on is commercial execution, innovation execution. I outlined this in my first earnings call. I think the second thing is this operational excellence, this mentality of how continuous improvement really adds value to the company. It can differentiate us. I'm convinced it'll differentiate us in the med tech space. Third, again, working with Ben a lot on this financial discipline, we've got to double down on cash flow generation, debt reduction so that we can have permission again to go and use M&A as a weapon. Yeah. Absolutely. One of the questions I do get from folks is you have built out Enovis through M&A and sort of how to think about the capital allocation strategy from here. Are you taking a breather now and wait for some debt pay down, et cetera, just investing organically more now? Maybe talk a little bit about the capital allocation. Yeah. I mean, if you look at our history, we were really deliberate in terms of building the mix that Damien laid out with regards to half the business being recon, half the business PNR, and a lot of the M&A that we did to build out the recon business because the total addressable market is quite large for us to continue to grow in. When we did the Lima transaction at the beginning of last year, that was the last piece to really fully globalize us and to build out a portfolio that gave us the capability to really lean into organic growth. We've been doing really well with regards to integrating that asset. It's been performing really well ahead of our expectations to date. We're a little bit over a year and a half in, so getting close to two years in on that integration, continuing to grow double digits outside the U.S., getting after the synergies that we laid out. Overall, it's been a muscle of ours in terms of leveraging M&A to build out a portfolio to help mix the business to more profitable, capital-efficient growth over time. We will continue to be focused on that down the road. In the near term, it's really important for us to just finish integrating and, as Damien mentioned, make sure that we're getting up the cash curve, driving leverage down, and then unlocking the ability to do more strategic M&A into the future. Are there specific white spaces that you're interested in at this point that you'd be willing to talk about, or is it going to be more like acquisitions of channels, geographies? Yeah, I'd like to say all of the above. I mean, if you look at where we're focused right now, we're doing a little bit of channel acquisition. Never let a good bit of disruption go to waste in the market. People have said that they're getting out of certain jurisdictions. That's been useful to us. Some of the other things that are going on in the market have been great in terms of talent attraction. I think one of the really important things about the orthopedic space is that after the Big Four and us, there's a really long tail. The people who are innovating, and I would call it in singles and doubles, not everything has to be a home run. You've got little bits of the portfolio or people change a technique, and you can really capitalize on that. Bringing it inside our portfolio, we think, is pretty powerful. I would say what we're looking at is a whole combination of things, again, all subject to first, we need to pay down debt. Yep. I would just add to that. I mean, we're not looking outside of ortho in terms of adjacencies or other types of things. It's more focused around where do we have leverage today and where can we build that out? You're not going to become a cardiology company? That's right. I'm not. Okay. Let's talk about the product pipeline a little bit here. Arvis is obviously top of mind for everyone. Maybe talk about what's going on there, when this can roll into a full product launch, and most importantly, I think, how we think about the ramp and contribution to top-line growth because you're already putting up high single-digit recon growth. That's without some of these products, so. I think you've got to think about Arvis as being a tailwind for our business, particularly around knees and shoulder. As we go into the new year, look, we had a really great response at ASES for shoulder and Orcus for hip and knee. The number of people who were at the booth really diving into where we're going with Arvis was pretty exciting. I think for us, what's important here is that this allows us to do several things for patients, but particularly for clinicians. First, that it's really going to be very ROI-driven. We're not going to have a model that is a single, like, "Let's buy a single unit." We like the idea of being flexible. It meets the needs of customers. It might choose to be an outright purchase. It might choose to be financing. It might choose to be an implant-related contract. All of that has to be customer-centric. That is the first thing. The second thing is it is zero footprint. You can literally move it between any of your sites of care. We know a lot of clinicians work in multiple sites, and you cannot just take your robot with you. We think that is pretty exciting. The last thing is it really allows this spatial navigation where you literally are not taking your eye off the patient for the procedure. I think those three things are reading through. As we go into the new year, first half is when we will start releasing it more broadly. We want to get the training right. It, as I said, should be a tailwind for those two segments. How heavy is the training lift here? It's a pretty quick lab. What we do is we like to support the clinician in the theater for the first sort of five procedures. It's pretty intuitive, especially if you've done any gaming. Right. Okay. Right. Fortnite. All right. So I was at AOS back in March. So Damien, I guess that was before you joined. Before I joined, yeah. Walk through the booth. There's a number of new products. Maybe some of the other less, I don't want to say less exciting, but less top of mind. Singles and doubles. Yeah. Maybe some in hips, knees, PNR. Yeah. So I mean, we launched the augmented glenoid and shoulder, the ARG product, and that's really been performing well for us. We believe that'll continue to create good momentum for us even as we go into next year. We think about 30% of procedures can be using that device. We're only into the low double digits so far in terms of penetration. It was a product that we had some conversion sitting on the sidelines until we fully got that product out into the market. Overall, ARG is going extremely well. We're growing double digits through nine months in shoulder and see good momentum here as we go forward. Another big one for us was the hip system, launching the Nebula stem and the OrthoDrive impactor device. Those were gaps in the portfolio. About 50% of our knee customers weren't using our hip because we had some portfolio gaps. That is another area for us to continue to drive deeper into market penetration and share capture with regards to that device. Both of those have launched and are going extremely well, building momentum and continue to have some of that that will play out into 2026 and beyond as well. As you look at your recon or maybe even higher level, let's talk about the orthopedic market. One of the questions 2023, 2024 was how much of this volume growth is backlog work down. I mean, I'm curious to hear your view on where the orthopedics market is. Let's just talk volume, take price. I want to keep the price conversation separate versus pre-COVID levels because I'll tell you, I feel like it's actually growing faster, but curious about what you guys would say. I think it played itself through the U.S. market relatively quickly in terms of the pent-up demand and working through that. I think we've really worked through a lot of the backlog in the U.S. market when we think about post-COVID trends. The international markets are where I think it's created a little bit more of a tailwind. I thought our view was it would start to slow down this year. It hasn't really. If you look at international published numbers of all the competitors that are public, you would say the international markets are still running a little bit hot. That will likely slow down over time. When? I don't think it's anybody's guess at this point. I think another question investors have is there is very much a focus on the shoulder that is arguably the more exciting part, higher growth part of the recon business. How do you guys compete? How do you leverage your position in shoulder to compete in hips and knees and maybe talk about the interplay between the businesses? I think, again, often people who are doing shoulders are different from the hip and knee. There's not an enormous amount of overlap. Once you get into clinics, the peer-to-peer voice is pretty important. Trust in that partnership does spread. I think the fact that we've built out this balanced portfolio now, we've got a much deeper footprint at major clinics, is allowing us to cross over using, again, the thing that you talked about, our outsized position in shoulder. It's allowing us to now have a bigger voice around hip and knee. Look, we're only like low single-digit hip and knee market share. It's a really important voice to have travel across the corridor. I did ask about volume. What about price? What's the price dynamic right now in the orthopedics market? I'll start on the PNR side. We've been a leader there. If you think about post-COVID inflation, we were gaining about one to two points of price in PNR as we were offsetting some of those inflationary impacts. That's softened a little bit, but now that tariffs have started to become a headwind, we've had to reintroduce that muscle of price increases there. I'd think about the PNR market more flat, more neutral to slightly up when it comes to pricing. On the recon side, traditionally, it's been down a couple of points year on year. I'd say we see that trend being it's gotten a little bit better over the last couple of years, but one that we think probably reverts back to norm in the future. I'd say a couple of points down on price on the broader recon side. Do you have to compete on price in hips, knees, or are you at parity? No. We are very competitive with our pricing in terms of our implant systems. We are an innovator. One of the things to build on Damien's answer there too is it was really important for us to be an innovator when it comes to implant design and really attracting the right kind of KOLs to be partners with us as we really think about driving market capture and market share. As we do that, we make sure that we have competitive systems and that we can go toe-to-toe with the large players out there. That's a good segue into one of the other perceived headwinds or concerns, I guess I would say, as some of your competitors are launching robots for shoulders. Maybe talk about the landscape you see as it evolves with robotic solutions for shoulder launching and how important it is or isn't to have a robotic solution. Yeah. Look, I think what we've seen in knee, much less in hip, but what we've seen in knee is that enabling technologies are important and have a place. It is not always evident that large-format robots are the answer for the assistance stage. For planning and navigation, you can see there are applications in knee that have been really important. A lot of people use assistance for the knee. I think in shoulder, it is still evolving. In terms of the enabling tech, I think for planning and navigation, it is going to be important. It is still not evident that a large-format robot is the right answer for the assistance step and indeed does not need to be an assistance step. It is way more complex anatomy. It is way more complex procedure. We think that the pathway we are on with Arvis is a really good solution as it all evolves. Again, we're very customer-centric. So we're working with clinicians to say, "How should we think about the future?" But we think Arvis is a great way in. Yeah. Actually, one thing we've heard, I'm curious what you would say to this, but we've heard that the implant itself matters so much more for shoulder, for example, than a knee implant. They're kind of all the same. We've heard a lot about that. We've heard a lot about that and also being able to personalize it, which is why our ProMade product is so important in this space as well. The idea that you can have customized implants in this space, I think, is also pretty critical. I'd argue we have a pretty competitive knee design out in the market that's differentiated. I also agree with you on the shoulder. Yeah. As far as innovation on the implants go, where is the focus? For example, cementless, maybe talk about some of the areas where you guys are investing some of those R&D dollars on the implant side of things. We've worked, again, pretty hard to have a balance of how we're focusing on shoulder and the larger joints. We're working very much on not just things like cementless, but the materials. We're a leader in ceramics. We're doing a lot of work on that. We're a leader in poly. We're doing a lot of work on that. I would say it's not just about an implant. It's about the materials. It's about how procedures are done. How can we improve workflow? I think the team are doing a really good job and, again, very balanced portfolio. Okay. Okay. We have not really talked much about the PNR business. The first question I have is, why does the PNR business make sense as part of the portfolio? Yeah. This is where I think this continuum is so important. An early dinner we were at with a customer really highlighted this to me when he said, "Look, I trusted you with the recovery of my patient with your bracing. Why didn't I trust you with the implant?" That brought me into your story. We have a very big footprint with our brands, the DonJoy brand, the Aircast brand, across a whole lot of different anatomies. That voice gives us a reason to be partnering with the clinician and trusting their therapy with their patients. I think it gives us an ability to talk about how more broadly we can be in the implant market, which, again, very low market shares relative to the entire space. Yeah. It is a lower-growth business. My understanding, high cash flow generation funds the innovation on the recon. That is, again, pretty important. It's no secret. Recons are a very capital-intensive business. You've got a lot of forward equipment placement. So how do you generate cash in that environment? Having something like the PNR business is highly useful. I think it's also been a pretty big success story of really leveraging the business system and EGX in terms of taking a business that was pre-Colfax acquisition of DJO, wasn't really performing very well from a growth perspective, had some challenges on the gross margin line as well. Over a pretty short period of time, we've rejuvenated that portfolio to where now it's growing consistently north of 3%. We continue to improve margins. We just divested a portion of that business that will help give it even more boost from a shaping and a mixed perspective. Overall, PNR serves a great purpose, not only for the benefits of we're the market leader and we have customer access because of that, but then within it as well, we're driving it to make it more growth accretive, more margin accretive, and maintain that cash profile that can help us invest in the higher-growth recon business. Overall, PNR serves a pretty important purpose for us. There's one other thing too that I think is not really well understood. It has a very interesting and well-developed revenue cycle management business, which I think has a lot of application as we think about ASCs and how they develop. You've got a lot of capital-constrained, cash-constrained small businesses. It's hard to attract talent into them. We think we can help them in terms of how they generate cash, how they run their business. I think the craft that we have of this revenue cycle management has applications for strategically where the market's going. Oh, interesting. Okay. My next question was site of care. The shift to the ASC and how you guys compete differently in the ASC maybe versus the hospital setting. One thing is it offers, I'd say, a little bit easier contracting environment than some of the larger hospital systems. Overall, from how we can come to compete, leveraging some of the relationships that we have, given we are in a lot of ASCs already on the PNR side of the business, is an area of advantage for us. The other thing is we have really great products and really good products for outpatient candidates. Making sure good patient outcomes. We've streamlined some of the instrumentation that goes into ASCs. We have some tools to make sure that we identify the right kind of patient that's going to be successful in those types of settings. Overall, that has played well for us. We're about, I'd say, 25% close to that on our primary knees in the ASC, about 20% of our hips. We're in the low teens, I'd say, on shoulder now. We think we're a little bit ahead of market in terms of our shift to the ASC. We think that that volume growth in ASCs will help us to continue to take share in the market going forward. Okay. Gotcha. Maybe let's talk then about the financials here. Focus on free cash flow generation. Maybe talk about some of the headwinds in the first half of the year and how you can get conviction in the back half of the year that you start throwing off more cash flow. Yeah. I mean, we've taken a little bit of, I'd say, a deliberate step back in cash flow as we were integrating a pretty complex transaction in Lima over the last couple of years. We have started to get to the point to where a lot of those heavy investments upfront are starting to diminish going forward. That plus we've been investing a lot in things like European medical device regulation, which really steps off next year. If you looked at what we did in the Q3 period, we generated about $30 million of cash, about 70% free cash flow conversion. The capability to generate cash is there for us. We will continue to take steps towards that goal of 70%-80% free cash flow conversion over time. As the integration costs start to step down, as EU MDR starts to step down, as we continue to drive implementation of our business system, all that creates good momentum in terms of getting up that cash flow curve. We demonstrated that in Q3. Okay. And then similar question, but this time looking at adjusted EBITDA, there's a lot, I think, a lot more leverage in the business than investors might appreciate. Maybe talk about what some of the drivers are. I mean, just even as you integrate Lima alone, it feels like there's a lot of momentum behind margins. I agree with you. The Lima synergies are still coming through. There's opportunity on the gross margin side as we leverage the manufacturing footprint that we got with Lima, trying to take high-cost production in areas to move it into lower-cost facilities. All of that is in flight right now. Overall, we see opportunity there. When I look at our EBITDA margins, I would say that we have the opportunity not only with the natural mix of our business, with recon growing faster, which comes with higher gross and EBITDA margins. That just naturally is going to drop us down accretive EBITDA margin expansion. You have further synergies coming down the road. You have scale and leverage that you can continue to grow costs less than revenue. Overall, from an EBITDA margin expansion, the business is mixed in a way that should give us benefit year on year. In years like this where you're dealing with something like tariff that pops up out of the blue, you have to continue to drive productivity and figure out ways to get after that to where it does not become a long-term problem. As we look forward, we see a lot of opportunity to expand our EBITDA margins year over year, driven by those things, mixed productivity and synergy. I think this is where EGX really comes to play for us. The business system mentality, continuous improvement. We're seeing those sorts of things read through as we put more focus on it. The last quarter, the PNR business put up 110 basis points of gross margin improvement. A lot of that came through the application of EGX at the manufacturing facilities. I still think we've got a lot of runway in making that embedded. Look, we bought a lot of companies over the last four years. They came into the family. I would say the application of EGX is not yet ubiquitous. Doing that, constantly focusing on that is, I think, another opportunity for us. This is in the context of you talked about price headwinds, actually, right? That's right. Okay. All right. As we think about the business mix between recon and PNR, and even within recon shoulder versus larger joints, how do you think about in three years' time what the mix of business is the right mix for Enovis? I have to say, I think this balance is good. The 50/50. Poly work, right? Yep. Poly work, right? Yep. In terms of revenue, that's really powerful because it's showing that we're not held hostage to one thing. I mean, often you see in companies, well, one metric was often one anatomy, and you get dinged for it. I think the balance is important. I think in terms of the longevity of the company, having PNR growing solidly and spitting off a lot of cash is important for us to be able to continue to invest in multiple anatomies. Again, as Ben said, that just naturally will lift our profit margins and lift our growth. I think we have a real opportunity to use tools across the whole portfolio to make both grow. Okay. Okay. As you think about where to innovate from here, or maybe I'll ask the question this way. I appreciate what you said about M&A. You want to pay down debt first. Are there other exciting areas within Ortho? Higher growth areas that you do see white space in your own portfolio that you could take advantage of over the next few years? Sure. I think, look, we have a natural place in shoulder, but we're not particularly strong in sports medicine. We sort of touch it from both sides with the shoulder implant and with the PNR, but I think there's a lot of opportunity for us to explore that space. I mean, one area to highlight would be one of the products that we launched earlier this year, which is Manifuse, which is within PNR, a bone growth stimulation device. It gives us a complementary device to what we already had there, which unlocks a new part of the market that we feel we can drive both penetration and market share capture. You have a business that comes with pretty strong margins, growing well. It is something that unlocks a new part of the market for us to not only expand with a new product, but then to pull through other devices that we already have. There are more things like that that are out there for us to bolt on with relatively small capital outlays. We'll continue to look to those opportunities because, again, the focus is on how do we shape and mix the company towards higher growth, higher gross margins, create that compounding value equation so we can do more of the same going forward. There are a lot of those opportunities that are out there when you look at ortho. Specifically within shoulder, because that is where you guys seem to be most differentiated, or at least that is the perception. What are the current end market dynamics there? What do you think the market is growing? Are you still taking share in shoulder? Has anything changed? We touched on robotics, but just in general, I feel like you hear some of your big competitors talk about a revamped focus on shoulder because it is such a high-growth market within orthopedics. Yeah. Again, if you look at the on-balance where you think orthopedics are 4%-5%, shoulder's definitively growing faster than that. I think there's a lot of changes in the population dynamic and people playing sports and different sports. People. Shoulders and ankles, right? We think that that's a secular tailwind for us. We have a lot of really great products in that space. We're biased towards that innovation there because of our proximity to a lot of customers. There is still a lot of opportunity for us. Again, I think it's important. You don't have to hit home runs in these things. You just have to have singles and doubles that continue to build out the portfolio so that you can partner with clinicians on more and more patients. I would just add, one of the things that was really important for us to step into outside the U.S. markets was the ability to really drive shoulder and shoulder penetration. I'd say U.S. market, with what we did with reverse shoulder and really changed the game in terms of how those shoulders of Irons came into the market, that allowed us to climb up into the number three share player in shoulder. That conversion outside the U.S. is still in the early days. There is going to be a lot of growth outside the U.S. that's in shoulder. The other thing that's really been additive to us is the Lima portfolio of products within shoulder. Not only the portfolio of products in current state, but just launching a new product called Prima, having the ProMade concept that can be driven for customization, thinking about future innovation designs and personalization, all of that. We think there's a lot of opportunity still for innovation in shoulder on top of the enabling tech that Damien talked about. It will be a focus area for us. We're a leader there. Still, we'll continue to drive a lot of effort to maintain that growth. The personalization, can you talk about that a little bit more and sort of what the focus is there and how far are we into that and how that's being adopted? We already have a well-established business. Again, Lima did a tremendous job in this space and particularly partnering with clinicians around customization and patients who are really clinically compromised. The work the team is doing now is to speed up that process and that cycle. There is work in the next development pipeline around AI in terms of process improvement so that the idea from scan to implant is much quicker. We think as we get better at this, this becomes a really important driver. Again, patient proximity, clinician proximity, it is going to be a real enabler for us. As I said, the Lima team had done a great job both in Sicily where we print the implant, but also in San Daniele where the engineering team is. It is a really great ecosystem. Do you think you guys are ahead of the game on the personalization side of things? Look, I think we're in a really good place. I think, again, the fact that we're small and nimble enables us to be really responsive. We've certainly inherited with Lima a great footprint. I'm looking forward to doubling down with this team around our commercial excellence. How do we really make this a competitive advantage? In the last minute and a half here, I guess my question to you would be, where do you think the disconnects are for investors, sell-side analysts? What are we missing or what are folks missing when it comes to the Enovis story? I personally think that Ben talked about we took a step back in cash generation to be able to invest in the Lima acquisition. The last two years in terms of cash has not been tremendous. I think you're seeing a focus now on cash generation. I think as that starts to read through into the debt reduction, you'll be able to build models that I think are more reflective of where the value is. We've already brought the leverage down from 3.5 to 3.2. Again, as all of that flywheel starts to get going over the next year, I really hope that the valuation catches up with the promise. Yeah. Do you have a target for your leverage ratio? We're running to get under three as fast as possible. I think that's the near-term focus. It's all going to depend on how active we are with M&A, but we never want to be in a high leverage situation for any long period of time. We're going to focus right now to drive it under three, and then we'll go from there. All right. With that, we're almost out of time. Thank you so much, guys, for joining. Thanks for having us. Really appreciate it. Thanks very much, everyone.