Core Insights - Envista (NVST) reported revenue of $682.1 million for the quarter ended June 2025, marking a year-over-year increase of 7.7% and an EPS of $0.26 compared to $0.11 a year ago, exceeding Zacks Consensus Estimates [1] - The revenue surprise was +6.34% over the consensus estimate of $641.45 million, while the EPS surprise was +8.33% against the consensus estimate of $0.24 [1] Financial Performance - Envista's shares have returned -1% over the past month, while the Zacks S&P 500 composite increased by +2.7% [3] - The stock currently holds a Zacks Rank 2 (Buy), suggesting potential outperformance in the near term [3] Geographic Sales Breakdown - North America: $347.9 million, +7% year-over-year, exceeding the estimate of $328.41 million [4] - Western Europe: $154.1 million, +12.1% year-over-year, surpassing the estimate of $139.68 million [4] - Emerging Markets: $150.4 million, +6.1% year-over-year, above the estimate of $136.77 million [4] - Other Developed Markets: $29.7 million, +3.5% year-over-year, slightly above the estimate of $29.05 million [4] Specialty Products & Technologies Sales - Specialty Products & Technologies in North America: $181.9 million, +4.2% year-over-year, exceeding the estimate of $176.35 million [4] - Specialty Products & Technologies in Emerging Markets: $116.9 million, +9.2% year-over-year, surpassing the estimate of $102.19 million [4] - Specialty Products & Technologies total sales: $445.1 million, +7.2% year-over-year, above the estimate of $418 million [4] Equipment & Consumables Sales - Equipment & Consumables in North America: $166 million, +10.3% year-over-year, exceeding the estimate of $152.06 million [4] - Equipment & Consumables in Western Europe: $29.7 million, +18.3% year-over-year, surpassing the estimate of $25.02 million [4] - Total Equipment & Consumables sales: $237 million, +8.7% year-over-year, above the estimate of $221.21 million [4]

Group 1: Earnings Performance - Envista reported quarterly earnings of $0.26 per share, exceeding the Zacks Consensus Estimate of $0.24 per share, and up from $0.11 per share a year ago, representing an earnings surprise of +8.33% [1] - The company has surpassed consensus EPS estimates for four consecutive quarters [2] - Envista's revenues for the quarter ended June 2025 were $682.1 million, surpassing the Zacks Consensus Estimate by 6.34%, and up from $633.1 million year-over-year [2] Group 2: Stock Performance and Outlook - Envista shares have increased approximately 3.5% since the beginning of the year, compared to the S&P 500's gain of 8.2% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters [4] - The current consensus EPS estimate for the next quarter is $0.25 on revenues of $621.65 million, and for the current fiscal year, it is $1.04 on revenues of $2.55 billion [7] Group 3: Industry Context - The Medical - Products industry, to which Envista belongs, is currently ranked in the bottom 26% of over 250 Zacks industries, indicating potential challenges for stock performance [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact Envista's stock performance [5][6]

Financial Data and Key Metrics Changes - Q2 2025 revenue was $682 million, with core sales increasing by 5.6% year-over-year, aided by customer buying ahead of expected price increases [8][16] - Adjusted EBITDA margin was 12.4%, up 240 basis points from the previous year, supported by G&A productivity improvements [9][16] - Adjusted EPS for Q2 was $0.26, an increase of $0.15 compared to the same quarter last year [16][18] - Free cash flow for Q2 was $76 million, down from the previous year due to higher working capital [26] Business Line Data and Key Metrics Changes - Equipment and consumables revenue grew approximately 7%, while specialty products increased just shy of 5% [9][22] - Specialty Products and Technology segment saw core revenue growth of 7.2%, with adjusted operating margin improving to 13.5% [22] - Equipment and Consumables segment reported a 7.3% increase in core sales, with diagnostics showing mid-single-digit growth in North America [24] Market Data and Key Metrics Changes - Double-digit growth was observed in Latin America, Indo-Pacific, and Middle East and Africa regions [14] - The dental market remains stable, with no significant improvement or deterioration expected in the second half of 2025 [28][32] Company Strategy and Development Direction - The company is focused on a value creation plan that includes accessing untapped growth in core markets, new product innovation, and strategic acquisitions [11][12] - Plans to expand manufacturing in China to support local demand, with a new site in Suzhou [14][15] - Continued investment in R&D, with a 14% increase in the first half of 2025, leading to several new product launches [13] Management's Comments on Operating Environment and Future Outlook - Management noted that macroeconomic conditions have improved slightly, with low unemployment and rising consumer confidence [36][39] - The company anticipates a stable dental market and expects to offset tariff impacts through supply chain actions and cost reductions [29][30] - Future guidance was updated to reflect core revenue growth of 3% to 4% and adjusted EPS of $1.5 to $1.15 [10][27] Other Important Information - The company repurchased $82 million worth of shares in Q2, continuing a $250 million two-year repurchase authorization [27] - The adjusted tax rate for the year is now forecasted at 33%, improved due to strong U.S. profits [30] Q&A Session Summary Question: Was the strength seen across the portfolio surprising? - Management noted that Q2 macro conditions were incrementally better than Q1, with strong growth in orthodontics and consumables [36][38] Question: What drove the outsized growth in brackets and wires? - Increased investment in sales and marketing and a potential shift from clear aligners to brackets and wires contributed to growth [42] Question: How is the China market performing ahead of VBP? - The brackets and wires business in China was down 20-30% year-over-year in the first half, but robust growth is expected in Q4 post-VBP [51] Question: What is the outlook for Spark's profitability? - The company expects Spark to turn EBIT positive in the second half of 2025, with consistent unit cost reductions [59] Question: How are dental practices responding to price increases? - Price increases have been modest and well-received, with a delay in equipment purchases noted across the market [90][91] Question: What is the impact of tariffs on margins? - Tariff costs in Q2 diluted margins by approximately 60 basis points, with expectations of $15 million to $20 million in tariff costs in the second half [80]

Q2 2025 Performance - Core sales growth reached 5.6%[16], with adjusted EBITDA margin at 12.4%[16] and adjusted EPS at $0.26, a 136% year-on-year increase[16] - Specialty Products & Technologies (SP&T) experienced a core sales growth of 4.7%[16], while Equipment & Consumables (E&C) saw a core sales growth of 7.3%[16] - Free cash flow was $76 million[28] H1 2025 Performance - Core sales growth was 2.9%[16], with adjusted EBITDA margin at 12.6%[16] and adjusted EPS at $0.50, a 35% year-on-year increase[16] FY2025 Updated Guidance - Core sales growth guidance raised from 1-3% to 3-4%[16] - EPS guidance increased from $0.95 - $1.05 to $1.05 - $1.15[16] - Adjusted EBITDA margin guidance maintained at approximately 14%[16] Revenue and Growth Analysis - Q2 2025 revenue was $682.1 million, an increase of $49.0 million compared to $633.1 million in Q2 2024[25] - Reported revenue growth was 7.7%, with core growth contributing 5.6%[29] Adjusted EBITDA Analysis - Adjusted EBITDA for Q2 2025 was $84.3 million, compared to $63.0 million in Q2 2024, representing a 34% increase[27, 25] - Adjusted EBITDA margin increased by 240 bps to 12.4%[27, 25]

[Second Quarter 2025 Earnings Overview](index=1&type=section&id=Second%20Quarter%202025%20Earnings%20Overview) [CEO Commentary](index=1&type=section&id=CEO%20Commentary) Envista's CEO Paul Keel reported accelerated growth across all businesses and key geographies in Q2, with increased investment in growth, operations, and personnel, leading to significantly improved year-over-year profitability and an upward revision of the full-year 2025 outlook - Envista achieved **accelerated growth across all businesses and key geographies** in the second quarter[2](index=2&type=chunk) - The company increased investments in growth, operations, and personnel, significantly enhancing **year-over-year profitability**[2](index=2&type=chunk) - Based on strong first-half performance, the company **raised its full-year 2025 guidance**[2](index=2&type=chunk) [Key Financial Highlights (Q2 & H1 2025)](index=1&type=section&id=Key%20Financial%20Highlights%20(Q2%20%26%20H1%202025)) Envista achieved significant financial improvements in Q2 and H1 2025, with net income and adjusted EPS turning profitable from prior year losses, and substantial growth in adjusted EBITDA and adjusted EPS Q2 and H1 2025 Financial Highlights | Metric | Three Months Ended June 27, 2025 | Three Months Ended June 28, 2024 | Six Months Ended June 27, 2025 | Six Months Ended June 28, 2024 | | :--------------------------- | :--------------------- | :--------------------- | :--------------------- | :--------------------- | | **Net Income** | $26 million | $(1,152) million | $44 million | $(1,128) million | | **Adjusted Net Income** | $44 million | $19 million | $85 million | $64 million | | **Adjusted EBITDA** | $84 million | $63 million | $163 million | $150 million | | **Diluted EPS** | $0.16 | $(6.69) | $0.26 | $(6.56) | | **Adjusted Diluted EPS** | $0.26 | $0.11 | $0.50 | $0.37 | - Second quarter 2025 sales reached **$682 million**, with **core sales growth of 5.6%** year-over-year[5](index=5&type=chunk) - Second quarter 2025 adjusted EBITDA was **$84 million**, a **34% increase** year-over-year, with an adjusted EBITDA margin of **12.4%**, up **240 basis points**[5](index=5&type=chunk) - First half 2025 sales totaled **$1.299 billion**, with **core sales growth of 2.9%** year-over-year[5](index=5&type=chunk) [Cash Flow and Share Repurchases](index=1&type=section&id=Cash%20Flow%20and%20Share%20Repurchases) In the first half of 2025, Envista's operating and free cash flow decreased year-over-year, yet the company actively executed a significant share repurchase program H1 2025 Cash Flow Comparison (in millions USD) | Metric | H1 2025 | H1 2024 | | :----------------- | :----------- | :----------- | | **Operating Cash Flow** | $89 million | $133 million | | **Free Cash Flow** | $71 million | $116 million | - During the quarter ended June 27, 2025, the company repurchased **4.8 million shares** for approximately **$82 million**[4](index=4&type=chunk) - As of quarter-end, **$150 million** remained available under the company's share repurchase program[4](index=4&type=chunk) [Business and Operational Highlights](index=1&type=section&id=Business%20and%20Operational%20Highlights) Envista achieved positive growth across all major businesses and geographies in Q2, with continued operational efficiency improvements through the Envista Business System (EBS) and significant progress in employee engagement and development - **Positive growth** was achieved across all major businesses and geographies, including Nobel Biocare in North America[5](index=5&type=chunk) - The Envista Business System (EBS) continued to deliver broad contributions, including sustained **Spark margin improvement**[5](index=5&type=chunk) - Employee engagement and development continued to improve[5](index=5&type=chunk) [Full Year 2025 Outlook](index=2&type=section&id=Full%20Year%202025%20Outlook) Envista raised its full-year 2025 guidance, with increased expectations for core sales growth and adjusted diluted EPS, reflecting confidence in future performance Full Year 2025 Guidance Update | Metric | Current 2025 Guidance | Prior 2025 Guidance | | :----------------------- | :------------- | :------------- | | **Core Sales Growth** | 3% to 4% | 1% to 3% | | **Adjusted EBITDA Margin** | Approximately 14% | Approximately 14% | | **Adjusted Diluted EPS** | $1.05 to $1.15 | $0.95 to $1.05 | [Company Profile & Investor Information](index=2&type=section&id=Company%20Profile%20%26%20Investor%20Information) [About Envista](index=2&type=section&id=About%20Envista) Envista is a global dental products company with over 30 trusted brands, dedicated to improving patient lives through industry-leading dental consumables, solutions, technologies, and services, offering a comprehensive portfolio across dental implants, orthodontics, and digital imaging - Envista is a global dental products company with **over 30 trusted dental brands**, including Nobel Biocare, Ormco, DEXIS, and Kerr[9](index=9&type=chunk) - The company helps customers provide optimal patient care through **industry-leading dental consumables, solutions, technologies, and services**[9](index=9&type=chunk) - Its comprehensive product portfolio spans **dental implants, orthodontics, and digital imaging technologies**, addressing diverse clinical needs for diagnosis, treatment, prevention, and aesthetics[9](index=9&type=chunk) [Investor Conference Call Details](index=2&type=section&id=Investor%20Conference%20Call%20Details) Envista will host an investor conference call on July 31, 2025, at 2:00 p.m. PT to discuss quarterly results and provide the 2025 outlook, with a webcast available on the company's website, including replay and presentation materials - Envista will host an investor conference call on **July 31, 2025, at 2:00 p.m. PT** to discuss quarterly results and the 2025 outlook[7](index=7&type=chunk) - The conference call and accompanying slide presentation will be **webcast live** under the 'Events & Presentations' subheading in the 'Investors' section of Envista's website[7](index=7&type=chunk) - A replay of the webcast and presentation materials will be available in the same section following the call[7](index=7&type=chunk)[8](index=8&type=chunk) [Condensed Consolidated Financial Statements](index=4&type=section&id=Condensed%20Consolidated%20Financial%20Statements) [Statements of Operations](index=4&type=section&id=Statements%20of%20Operations) Envista achieved sales growth and significant operating profit improvement in Q2 and H1 2025, reversing substantial losses from the prior year, primarily due to the absence of goodwill and intangible asset impairment charges Condensed Consolidated Statements of Operations (Selected, in millions USD) | Metric (in millions USD) | Three Months Ended June 27, 2025 | Three Months Ended June 28, 2024 | Six Months Ended June 27, 2025 | Six Months Ended June 28, 2024 | | :----------------------- | :--------------------- | :--------------------- | :--------------------- | :--------------------- | | **Sales** | $682.1 | $633.1 | $1,299.0 | $1,256.7 | | **Gross Profit** | $369.9 | $326.6 | $705.9 | $682.9 | | **Operating Profit (Loss)** | $46.3 | $(1,153.3) | $85.3 | $(1,105.2) | | **Net Income (Loss)** | $26.4 | $(1,151.6) | $44.4 | $(1,128.0) | | **Diluted Earnings (Loss) Per Share** | $0.16 | $(6.69) | $0.26 | $(6.56) | - Second quarter 2025 sales **increased by 7.7%** year-over-year, with a **3.4% increase** for the first half[13](index=13&type=chunk) - Second quarter 2025 operating profit was **$46.3 million**, compared to an operating loss of **$1,153.3 million** in the prior year, primarily due to a **$1,153.8 million** goodwill and intangible asset impairment charge in the prior period[13](index=13&type=chunk) [Balance Sheets](index=5&type=section&id=Balance%20Sheets) As of June 27, 2025, Envista's total assets and stockholders' equity increased, cash and cash equivalents rose, short-term debt was eliminated, and long-term debt saw an increase Condensed Consolidated Balance Sheets (Selected, in millions USD) | Metric (in millions USD) | June 27, 2025 | December 31, 2024 | | :----------------------- | :------------- | :------------- | | **Total Assets** | $5,664.4 | $5,350.5 | | **Cash and Cash Equivalents** | $1,110.6 | $1,069.1 | | **Total Liabilities** | $2,525.4 | $2,415.7 | | **Short-Term Debt** | $0 | $116.0 | | **Long-Term Debt** | $1,445.1 | $1,278.3 | | **Total Stockholders' Equity** | $3,139.0 | $2,934.8 | - As of June 27, 2025, total assets **increased by $313.9 million** compared to December 31, 2024[16](index=16&type=chunk) - As of June 27, 2025, cash and cash equivalents **increased by $41.5 million** to **$1,110.6 million**[16](index=16&type=chunk) [Statements of Cash Flows](index=6&type=section&id=Statements%20of%20Cash%20Flows) In the first half of 2025, Envista experienced decreased cash flow from operating activities, increased cash outflow from investing activities, and a significant rise in cash outflow from financing activities, primarily due to share repurchases and convertible note repayments Condensed Consolidated Statements of Cash Flows (Selected, in millions USD) | Metric (in millions USD) | Six Months Ended June 27, 2025 | Six Months Ended June 28, 2024 | | :----------------------- | :--------------------- | :--------------------- | | **Net Cash Provided by Operating Activities** | $89.0 | $133.4 | | **Net Cash Used in Investing Activities** | $(25.9) | $(16.6) | | **Net Cash Used in Financing Activities** | $(104.0) | $(2.3) | | **Net Change in Cash and Cash Equivalents** | $41.5 | $96.2 | - Cash outflow from financing activities **significantly increased**, primarily due to payments for treasury stock (**$100.3 million**) and repayment of 2025 convertible notes (**$116.3 million**)[17](index=17&type=chunk) - Changes in exchange rates had a **positive impact of $82.4 million** on cash and cash equivalents, compared to a negative **$18.3 million** in the prior year period[17](index=17&type=chunk) [Segment Performance](index=8&type=section&id=Segment%20Performance) [Sales and Operating Profit by Segment](index=8&type=section&id=Sales%20and%20Operating%20Profit%20by%20Segment) Envista's two main segments, Specialty Products & Technologies and Equipment & Consumables, achieved sales growth and significant operating profit improvement in Q2 and H1 2025, with a substantial increase in operating profit margin for Specialty Products & Technologies Segment Sales (in millions USD) | Segment | Three Months Ended June 27, 2025 | Three Months Ended June 28, 2024 | Six Months Ended June 27, 2025 | Six Months Ended June 28, 2024 | | :--------------------- | :--------------------- | :--------------------- | :--------------------- | :--------------------- | | **Specialty Products & Technologies** | $445.1 | $415.1 | $845.4 | $823.8 | | **Equipment & Consumables** | $237.0 | $218.0 | $453.6 | $432.9 | | **Total** | $682.1 | $633.1 | $1,299.0 | $1,256.7 | Segment Operating Profit (Loss) (in millions USD) | Segment | Three Months Ended June 27, 2025 | Three Months Ended June 28, 2024 | Six Months Ended June 27, 2025 | Six Months Ended June 28, 2024 | | :--------------------- | :--------------------- | :--------------------- | :--------------------- | :--------------------- | | **Specialty Products & Technologies** | $45.3 | $6.0 | $82.9 | $50.2 | | **Equipment & Consumables** | $36.1 | $26.5 | $68.0 | $62.1 | | **Other** | $(35.1) | $(1,185.8) | $(65.6) | $(1,217.5) | | **Total** | $46.3 | $(1,153.3) | $85.3 | $(1,105.2) | Segment Operating Profit Margin | Segment | Three Months Ended June 27, 2025 | Three Months Ended June 28, 2024 | Six Months Ended June 27, 2025 | Six Months Ended June 28, 2024 | | :--------------------- | :--------------------- | :--------------------- | :--------------------- | :--------------------- | | **Specialty Products & Technologies** | 10.2% | 1.4% | 9.8% | 6.1% | | **Equipment & Consumables** | 15.2% | 12.2% | 15.0% | 14.3% | [Non-GAAP Financial Measures and Reconciliations](index=7&type=section&id=Non-GAAP%20Financial%20Measures%20and%20Reconciliations) [Summary of GAAP and Non-GAAP Metrics](index=7&type=section&id=Summary%20of%20GAAP%20and%20Non-GAAP%20Metrics) Envista provides a summary of GAAP and non-GAAP financial metrics, with non-GAAP measures like adjusted gross profit, operating profit, net income, diluted EPS, EBITDA, and free cash flow, aiming to offer a clearer view of long-term profitability trends and operational performance Summary of GAAP and Non-GAAP Financial Metrics (in millions USD, except per share amounts) | Metric | Three Months Ended June 27, 2025 | Three Months Ended June 28, 2024 | Six Months Ended June 27, 2025 | Six Months Ended June 28, 2024 | | :--------------------------- | :--------------------- | :--------------------- | :--------------------- | :--------------------- | | **GAAP Net Income (Loss)** | $26.4 | $(1,151.6) | $44.4 | $(1,128.0) | | **Adjusted Net Income** | $43.7 | $18.5 | $85.2 | $64.3 | | **GAAP Diluted Earnings (Loss) Per Share** | $0.16 | $(6.69) | $0.26 | $(6.56) | | **Adjusted Diluted EPS** | $0.26 | $0.11 | $0.50 | $0.37 | | **GAAP Operating Cash Flow** | $88.7 | $93.1 | $89.0 | $133.4 | | **Free Cash Flow** | $76.4 | $86.3 | $71.3 | $115.6 | | **Adjusted EBITDA** | $84.3 | $63.0 | $163.3 | $150.2 | [Adjusted Gross Profit and Margin Reconciliation](index=9&type=section&id=Adjusted%20Gross%20Profit%20and%20Margin%20Reconciliation) Envista calculates adjusted gross profit and margin by excluding restructuring costs, asset impairments, and fair value adjustments for acquisition-related inventory, providing a more comparable view of core business profitability Adjusted Gross Profit and Margin Reconciliation (in millions USD) | Metric | Three Months Ended June 27, 2025 | Three Months Ended June 28, 2024 | Six Months Ended June 27, 2025 | Six Months Ended June 28, 2024 | | :----------------------------------- | :--------------------- | :--------------------- | :--------------------- | :--------------------- | | **Gross Profit** | $369.9 | $326.6 | $705.9 | $682.9 | | **Restructuring Costs and Asset Impairments** | $0.3 | $16.3 | $2.2 | $18.0 | | **Acquisition-Related Inventory Fair Value Adjustments** | $1.0 | — | $1.4 | — | | **Adjusted Gross Profit** | $371.2 | $342.9 | $709.5 | $700.9 | | **Gross Margin** | 54.2% | 51.6% | 54.3% | 54.3% | | **Adjusted Gross Margin** | 54.4% | 54.2% | 54.6% | 55.8% | [Adjusted Operating Profit Reconciliation](index=9&type=section&id=Adjusted%20Operating%20Profit%20Reconciliation) The company calculates adjusted operating profit by excluding non-recurring items such as amortization, goodwill impairment, restructuring costs, litigation, and acquisition-related expenses, to better reflect core business operational efficiency and profitability Adjusted Operating Profit Reconciliation (in millions USD) | Metric | Three Months Ended June 27, 2025 | Three Months Ended June 28, 2024 | Six Months Ended June 27, 2025 | Six Months Ended June 28, 2024 | | :----------------------------------- | :--------------------- | :--------------------- | :--------------------- | :--------------------- | | **Operating Profit (Loss)** | $46.3 | $(1,153.3) | $85.3 | $(1,105.2) | | **Acquisition-Related and Other Intangible Asset Amortization** | $19.0 | $22.4 | $37.8 | $45.0 | | **Goodwill and Intangible Asset Impairment** | — | $1,153.8 | — | $1,153.8 | | **Restructuring Costs and Asset Impairments** | $4.7 | $23.8 | $16.1 | $30.7 | | **Acquisition-Related Inventory Fair Value Adjustments** | $1.0 | — | $1.4 | — | | **Litigation Settlements** | — | $4.7 | $0.8 | $4.7 | | **Acquisition-Related Costs** | $0.1 | — | $0.3 | — | | **Adjusted Operating Profit** | $71.1 | $51.4 | $141.7 | $129.0 | | **Adjusted Operating Profit as a % of Sales** | 10.4% | 8.1% | 10.9% | 10.3% | [Adjusted Net Income Reconciliation](index=10&type=section&id=Adjusted%20Net%20Income%20Reconciliation) Envista derives adjusted net income by making multiple adjustments to net income, including excluding intangible asset amortization, goodwill impairment, restructuring costs, litigation, acquisition-related expenses, and their tax impacts, to provide a more accurate measure of profitability Adjusted Net Income Reconciliation (in millions USD) | Metric | Three Months Ended June 27, 2025 | Three Months Ended June 28, 2024 | Six Months Ended June 27, 2025 | Six Months Ended June 28, 2024 | | :----------------------------------- | :--------------------- | :--------------------- | :--------------------- | :--------------------- | | **Net Income (Loss)** | $26.4 | $(1,151.6) | $44.4 | $(1,128.0) | | **Acquisition-Related and Other Intangible Asset Amortization** | $19.0 | $22.4 | $37.8 | $45.0 | | **Goodwill and Intangible Asset Impairment** | — | $1,153.8 | — | $1,153.8 | | **Restructuring Costs and Asset Impairments** | $4.7 | $23.8 | $16.1 | $30.7 | | **Acquisition-Related Inventory Fair Value Adjustments** | $1.0 | — | $1.4 | — | | **Litigation Settlements** | — | $4.7 | $0.8 | $4.7 | | **Net Loss on Equity Investments** | — | $1.1 | — | $1.1 | | **Acquisition-Related Costs** | $0.1 | — | $0.3 | — | | **Tax Impact of Above Adjustments** | $(6.2) | $(36.0) | $(15.0) | $(43.6) | | **Discrete Tax Adjustments and Other Tax-Related Adjustments** | $(1.3) | $0.3 | $(0.6) | $0.6 | | **Adjusted Net Income** | $43.7 | $18.5 | $85.2 | $64.3 | [Adjusted Diluted Earnings Per Share Reconciliation](index=10&type=section&id=Adjusted%20Diluted%20Earnings%20Per%20Share%20Reconciliation) Envista provides adjusted diluted EPS by making multiple non-GAAP adjustments to diluted EPS, including excluding intangible asset amortization, goodwill impairment, restructuring costs, litigation, acquisition-related expenses, and their tax impacts, for a more accurate per-share profitability measure Adjusted Diluted Earnings Per Share Reconciliation | Metric | Three Months Ended June 27, 2025 | Three Months Ended June 28, 2024 | Six Months Ended June 27, 2025 | Six Months Ended June 28, 2024 | | :----------------------------------- | :--------------------- | :--------------------- | :--------------------- | :--------------------- | | **Diluted Earnings (Loss) Per Share** | $0.16 | $(6.69) | $0.26 | $(6.56) | | **Acquisition-Related and Other Intangible Asset Amortization** | $0.11 | $0.13 | $0.22 | $0.26 | | **Goodwill and Intangible Asset Impairment** | — | $6.68 | — | $6.67 | | **Restructuring Costs and Asset Impairments** | $0.03 | $0.14 | $0.09 | $0.18 | | **Acquisition-Related Inventory Fair Value Adjustments** | $0.01 | — | $0.01 | — | | **Litigation Settlements** | — | $0.03 | $0.01 | $0.03 | | **Net Loss on Equity Investments** | — | $0.01 | — | $0.01 | | **Acquisition-Related Costs** | — | — | — | — | | **Tax Impact of Above Adjustments** | $(0.04) | $(0.21) | $(0.09) | $(0.25) | | **Discrete Tax Adjustments and Other Tax-Related Adjustments** | $(0.01) | — | — | — | | **Shares Adjustment for Net (Loss) to Adjusted Net Income** | — | $0.02 | — | $0.03 | | **Adjusted Diluted Earnings Per Share** | $0.26 | $0.11 | $0.50 | $0.37 | [Adjusted EBITDA Reconciliation](index=11&type=section&id=Adjusted%20EBITDA%20Reconciliation) Envista calculates adjusted EBITDA by adjusting net income (loss) for interest, taxes, depreciation, amortization, and other non-recurring items, providing a metric to measure the company's core operational performance Adjusted EBITDA Reconciliation (in millions USD) | Metric | Three Months Ended June 27, 2025 | Three Months Ended June 28, 2024 | Six Months Ended June 27, 2025 | Six Months Ended June 28, 2024 | | :----------------------------------- | :--------------------- | :--------------------- | :--------------------- | :--------------------- | | **Net Income (Loss)** | $26.4 | $(1,151.6) | $44.4 | $(1,128.0) | | **Net Interest Expense** | $8.0 | $11.7 | $17.3 | $24.6 | | **Income Tax Expense (Benefit)** | $14.3 | $(14.5) | $25.3 | $(2.8) | | **Depreciation** | $10.8 | $11.6 | $19.9 | $21.1 | | **Acquisition-Related and Other Intangible Asset Amortization** | $19.0 | $22.4 | $37.8 | $45.0 | | **Goodwill and Intangible Asset Impairment** | — | $1,153.8 | — | $1,153.8 | | **Restructuring Costs and Asset Impairments** | $4.7 | $23.8 | $16.1 | $30.7 | | **Acquisition-Related Inventory Fair Value Adjustments** | $1.0 | — | $1.4 | — | | **Litigation Settlements** | — | $4.7 | $0.8 | $4.7 | | **Net Loss on Equity Investments** | — | $1.1 | — | $1.1 | | **Acquisition-Related Costs** | $0.1 | — | $0.3 | — | | **Adjusted EBITDA** | $84.3 | $63.0 | $163.3 | $150.2 | | **Adjusted EBITDA as a % of Sales** | 12.4% | 10.0% | 12.6% | 12.0% | [Core Sales Growth Analysis](index=12&type=section&id=Core%20Sales%20Growth%20Analysis) Envista's core sales growth excludes the impact of acquisitions, divestitures, and currency fluctuations, providing a clearer view of underlying business growth trends, with positive core sales growth achieved across the company and its segments in Q2 and H1 2025 Core Sales Growth Rate | Metric | Three Months Ended June 27, 2025 vs. Prior Year Period | Six Months Ended June 27, 2025 vs. Prior Year Period | | :--------------------------- | :----------------------------------- | :----------------------------------- | | **Consolidated Total Sales Growth** | 7.7% | 3.4% | | **Less: Impact of Acquisitions** | (0.2)% | (0.1)% | | **Less: Impact of Currency Exchange Rates** | (1.9)% | (0.4)% | | **Core Sales Growth** | 5.6% | 2.9% | | **Specialty Products & Technologies Core Sales Growth** | 4.7% | 2.0% | | **Equipment & Consumables Core Sales Growth** | 7.3% | 4.5% | - Core sales represent GAAP revenues excluding sales from acquired businesses, discontinued products, and the impact of currency exchange rate fluctuations[28](index=28&type=chunk) [Free Cash Flow Reconciliation](index=13&type=section&id=Free%20Cash%20Flow%20Reconciliation) Envista calculates free cash flow by subtracting capital expenditures and adding proceeds from property, plant, and equipment disposals from net cash provided by operating activities, measuring the company's ability to generate cash for investment and business growth without external financing Free Cash Flow Reconciliation (in millions USD) | Metric | Three Months Ended June 27, 2025 | Three Months Ended June 28, 2024 | Six Months Ended June 27, 2025 | Six Months Ended June 28, 2024 | | :----------------------------------- | :--------------------- | :--------------------- | :--------------------- | :--------------------- | | **Net Cash Provided by Operating Activities** | $88.7 | $93.1 | $89.0 | $133.4 | | **Less: Additions to Property, Plant and Equipment** | $(12.3) | $(6.8) | $(18.2) | $(17.8) | | **Add: Proceeds from Disposals of Property, Plant and Equipment** | — | — | $0.5 | — | | **Free Cash Flow** | $76.4 | $86.3 | $71.3 | $115.6 | [Notes to Non-GAAP Financial Measures](index=14&type=section&id=Notes%20to%20Non-GAAP%20Financial%20Measures) Envista details the calculation, rationale, and reconciliation of its non-GAAP financial measures to the most directly comparable GAAP metrics, aiming to help investors understand long-term profitability trends, identify underlying growth, and assess operational performance, while acknowledging their limitations - Non-GAAP measures, such as adjusted gross profit, operating profit, net income, diluted EPS, and EBITDA, are intended to help investors understand **long-term profitability trends** of Envista's business and compare them to historical periods and peers[31](index=31&type=chunk) - Core sales are used to identify **underlying growth trends** of the business and compare revenue performance to historical periods and peers[31](index=31&type=chunk) - Free cash flow measures the company's ability to **generate cash to invest in and grow its business** without reliance on external financing, but its limitations include not considering debt repayment requirements and other non-discretionary expenditures[33](index=33&type=chunk) [Legal Disclosures & Contact](index=2&type=section&id=Legal%20Disclosures%20%26%20Contact) [Statement Regarding Non-GAAP Measures](index=2&type=section&id=Statement%20Regarding%20Non-GAAP%20Measures) Envista states that all 'adjusted' amounts, including core sales growth and free cash flow, are non-GAAP items, providing their calculation, rationale, and reconciliation to the most directly comparable GAAP metrics, emphasizing their supplementary role rather than replacement of GAAP measures - All 'adjusted' amounts, including core sales growth and free cash flow, are **non-GAAP items**[10](index=10&type=chunk) - The company does not provide forward-looking estimates on a GAAP basis as certain information is unavailable and cannot be reasonably estimated[6](index=6&type=chunk) - Management believes these non-GAAP measures provide **additional perspectives** to view Envista's performance, helping investors understand **long-term profitability trends**, identify **underlying growth trends**, and assess **operational performance**[31](index=31&type=chunk) [Forward-Looking Statements](index=3&type=section&id=Forward-Looking%20Statements) This press release contains 'forward-looking' statements under federal securities laws, involving various important factors that could cause actual results, developments, and business decisions to differ materially, including economic conditions, market, operational, and legal compliance risks, competition, acquisition integration, intellectual property protection, and other macroeconomic and industry-specific risks - Certain statements in this press release constitute **'forward-looking' statements** within the meaning of federal securities laws[11](index=11&type=chunk) - Actual results, developments, and business decisions may **differ materially** from forward-looking statements due to various important factors, and investors should not place undue reliance on these statements[11](index=11&type=chunk) - These factors include U.S. and global economic conditions, inflation, rising interest rates, international economic, political, legal, and business factors, market cyclicality, product manufacturing risks, supply chain reliance, IT system security breaches, competition, new product development capabilities, key personnel retention, legal and regulatory compliance, acquisition integration risks, intellectual property protection, and litigation[11](index=11&type=chunk) [Contact Information](index=3&type=section&id=Contact%20Information) Investors with inquiries may contact Jim Gustafson, Vice President of Investor Relations at Envista Holdings Corporation - Investor Relations Contact: **Jim Gustafson**, Vice President, Investor Relations[12](index=12&type=chunk) - Contact Email: **IR@envistaco.com**[12](index=12&type=chunk)

Core Viewpoint - Envista (NVST) has received an upgrade to a Zacks Rank 1 (Strong Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system is based on changes in earnings estimates, which have a strong correlation with near-term stock price movements [4][6]. - An increase in earnings estimates typically leads to institutional investors adjusting their valuations, resulting in stock price movements [4]. Company Performance and Outlook - The recent upgrade for Envista suggests an improvement in its underlying business, which could lead to higher stock prices as investors respond positively [5][10]. - For the fiscal year ending December 2025, Envista is expected to earn $1.04 per share, with a 6% increase in the Zacks Consensus Estimate over the past three months [8]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [7]. - Envista's upgrade places it in the top 5% of Zacks-covered stocks, indicating a strong potential for market-beating returns in the near term [10].

Core Viewpoint - Envista Holdings Corporation (NVST) has reached a significant support level and is considered a potential investment opportunity due to a recent "golden cross" technical pattern, indicating a bullish breakout [1]. Technical Analysis - NVST's 50-day simple moving average has recently crossed above its 200-day moving average, forming a "golden cross," which is a bullish signal in technical analysis [1]. - A successful golden cross event consists of three stages: the stock price bottoms out, the shorter moving average crosses above the longer moving average, and the stock maintains upward momentum [2]. Performance Metrics - Over the past four weeks, NVST has gained 5.2%, and it currently holds a 1 (Strong Buy) rating on the Zacks Rank, suggesting potential for further breakout [3]. - Earnings expectations for NVST are positive, with one upward revision in estimates over the past 60 days, indicating confidence in the stock's bullish trend [3]. Investment Outlook - Given the key technical level and positive earnings estimate revisions, NVST is positioned for potential gains in the near future [5].

Company Overview - Envista (NVST) is expected to report a year-over-year increase in earnings, with a consensus estimate of $0.24 per share, reflecting a change of +118.2% [3] - Revenues are anticipated to be $641.45 million, which is a 1.3% increase from the previous year [3] Earnings Expectations - The earnings report is scheduled for July 31, and the stock may rise if actual results exceed expectations, while a miss could lead to a decline [2] - The consensus EPS estimate has remained unchanged over the last 30 days, indicating stability in analyst expectations [4] Earnings Surprise Prediction - The Most Accurate Estimate for Envista is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -2.65%, suggesting a bearish outlook from analysts [12] - Despite the negative Earnings ESP, Envista holds a Zacks Rank of 2, complicating predictions of an earnings beat [12] Historical Performance - In the last reported quarter, Envista exceeded the expected earnings of $0.20 per share, achieving $0.24, which was a surprise of +20.00% [13] - Over the past four quarters, Envista has beaten consensus EPS estimates three times [14] Industry Context - InMode (INMD), another player in the Zacks Medical - Products industry, is expected to post earnings of $0.43 per share, indicating a year-over-year change of +26.5% [18] - InMode's revenues are projected to be $95.5 million, up 10.5% from the previous year [18] - The consensus EPS estimate for InMode has been revised down by 9.8% over the last 30 days, and it currently has an Earnings ESP of 0% with a Zacks Rank of 5 [19]

Core Viewpoint - Investors in the Medical - Products sector should consider Envista (NVST) and Abbott (ABT) for potential value opportunities, with NVST currently presenting a more attractive option based on various valuation metrics and earnings outlook [1][3][7]. Valuation Metrics - NVST has a forward P/E ratio of 18.81, while ABT has a higher forward P/E of 24.16, indicating that NVST may be undervalued compared to ABT [5]. - The PEG ratio for NVST is 1.23, suggesting a better valuation relative to its expected earnings growth compared to ABT's PEG ratio of 2.36 [5]. - NVST's P/B ratio stands at 1.09, significantly lower than ABT's P/B ratio of 4.41, further indicating NVST's relative undervaluation [6]. Earnings Estimate Revisions - NVST has experienced stronger estimate revision activity, which is a positive indicator for its earnings outlook compared to ABT [3][7]. - The Zacks Rank system rates NVST as 2 (Buy) and ABT as 3 (Hold), reflecting a more favorable earnings estimate revision trend for NVST [3]. Value Grades - NVST has been assigned a Value grade of B, while ABT has a Value grade of C, highlighting NVST's superior valuation metrics [6].

Core Viewpoint - Envista Holdings Corporation will report its financial results for the second quarter of 2025 on July 31, 2025, with a conference call scheduled for 2:00 PM PT to discuss these results [1]. Company Overview - Envista is a global family of over 30 trusted dental brands, including Nobel Biocare, Ormco, DEXIS, and Kerr, focused on improving lives through dental care [4]. - The company offers a comprehensive portfolio that includes dental implants, orthodontics, and digital imaging technologies, addressing a wide range of clinical needs for dental professionals [4]. - Envista is recognized as one of the largest global dental products companies, holding significant market positions in attractive segments of the dental products industry [4]. Conference Call Details - The conference call will be accessible via a dial-in number, with a U.S. number of 1-800-836-8184 and an international number of +1 646-357-8785, starting a few minutes before the call [2]. - A replay of the webcast will be available shortly after the presentation concludes, and related materials will be posted on the "Investors" section of Envista's website [3].