Core Insights - Envista Holdings Corp. is experiencing growth driven by its Specialty Products & Technologies business, particularly the Spark manufacturing technology [1][3] - The company is expanding its global commercial organization, which positions it for future growth through deeper market penetration [1][5] - Envista is actively exploring strategic acquisitions to enhance its portfolio and enter new economic sectors [1][7] Financial Performance - Over the past year, Envista's stock has declined by 18.1%, while the industry fell by 0.6% and the S&P 500 rose by 5.5% [2] - The company has a market capitalization of $2.54 billion and an earnings yield of 6.8%, significantly higher than the industry's 0.1% yield [2] - In the last reported quarter, Envista achieved an earnings surprise of 4.4% [2] Business Segments - The Specialty Products & Technologies business is gaining momentum through the development and marketing of dental implant systems and orthodontic products, with Spark technology contributing to growth [3][4] - The orthodontic business faced challenges in the China market but saw growth in North America and Europe, particularly in the brackets and wire segment [4][6] - Emerging markets, especially Russia, showed strong performance in the consumable business [6] International Expansion - Envista is enhancing patient access to dental care by engaging over 250,000 dental professionals annually through training and education events [5] - The company has established strong global relationships with dental professionals and laboratories, which supports its international market expansion [5] Strategic Acquisitions - Envista is focused on increasing shareholder value through strategic acquisitions, such as the acquisition of Osteogenics Biomedical in 2024 [7][9] - DEXIS, part of Envista's Equipment and Consumables segment, has introduced new offerings that are expected to drive long-term growth [9][10] Challenges - The company is facing adverse macroeconomic conditions, including rising costs due to inflation and geopolitical tensions, which have impacted its operating profit [11] - Foreign exchange fluctuations are affecting Envista's sales and costs, as the company operates in multiple currencies [12] Future Outlook - The Zacks Consensus Estimate for Envista's 2025 earnings per share is $1, with revenues projected at $2.52 billion, indicating a 0.3% increase from the previous year [13]

Core Viewpoint - Envista Holdings Corporation will report its financial results for the first quarter of 2025 on May 1, 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 dedicated phone line, with a U.S. number of 800-225-9448 and an international number of +1 203-518-9708, starting a few minutes before the call [2]. - A replay of the conference call will be available shortly after its conclusion and will remain accessible for one year [2][3]. - Related materials, including the earnings press release and presentation slides, will be posted on the "Investors" section of Envista's website prior to the call [3].

Core Insights - The Dental Burs Market was valued at USD 640.1 million in 2024 and is projected to reach USD 881.6 million by 2030, with a CAGR of 5.50% [2][10] - The increasing prevalence of oral conditions globally is expected to drive market growth, particularly in developing countries due to enhanced accessibility to oral care [2][3] - The demand for dental procedures is rising, especially among the geriatric population, with a significant prevalence of untreated oral health conditions [4] Market Overview - The diamond burs segment held the largest market share in 2024, favored for its precision and efficiency in enamel polishing [8] - The implantology application segment is anticipated to grow at the fastest CAGR, driven by advancements in implants and higher success rates [8] - The dental clinic segment is expected to witness the fastest market growth due to cost-effectiveness and availability of advanced treatments [8] Regional Insights - North America dominated the market in 2024, attributed to the presence of major players and an increasing number of dental clinics [8] - The Asia Pacific region is projected to expand at the fastest CAGR, influenced by a growing geriatric population and rising prevalence of oral health conditions [8] Market Dynamics - The report provides comprehensive market analysis, including segment and regional revenue forecasts, competitive landscape, and future trends [5][10] - Key players in the market include Dentsply Sirona, Coltene, Shofu, and others, contributing to the competitive landscape [12][14]

Core Insights - Envista's shares have declined approximately 18.2% since the last earnings report, underperforming the S&P 500 [1] - The company reported a fourth-quarter adjusted EPS of 24 cents, a 17.2% decrease year-over-year, but exceeded the Zacks Consensus Estimate by 4.3% [2] - Full-year adjusted EPS was 73 cents, reflecting a 52.3% decrease from the previous year [3] Revenue Performance - Fourth-quarter revenues reached $652.9 million, a 1.1% increase year-over-year, surpassing the Zacks Consensus Estimate by the same percentage [4] - Full-year revenues totaled $2.51 billion, down 2.2% from the previous year [4] - Specialty Products & Technologies segment revenues were $410.9 million, down 1.2% year-over-year, while Equipment & Consumables segment revenues increased by 5.3% to $242 million [5] Operational Metrics - Gross profit for the quarter rose 10.8% year-over-year to $372.5 million, with a gross margin expansion of 498 basis points to 57.1% due to a 9.4% decline in cost of sales [6] - Selling, general and administrative expenses increased by 15.2% to $299.7 million, while research and development expenses rose 32.2% to $26.7 million [6] - Operating profit fell 17.4% year-over-year to $46.1 million, with an operating margin contraction of 158 basis points to 7.1% [6] Financial Position - At the end of Q4 2024, cash and cash equivalents stood at $1.07 billion, up from $940 million at the end of 2023 [7] - Long-term debt decreased to $1.28 billion from $1.40 billion year-over-year [7] - Year-to-date net cash provided by operating activities was $336.5 million, compared to $275.7 million a year ago [7] Future Guidance - For 2025, Envista anticipates core sales growth between 1% and 3% and adjusted EBITDA margins around 14% [8] - The Zacks Consensus Estimate for 2025 revenues is $2.56 billion, indicating a 2.1% increase from the previous year [9] - Adjusted EPS for 2025 is expected to be in the range of $0.95 to $1.05, with the Zacks Consensus Estimate at $1.10 [9] Estimate Trends - Recent estimates have shown a downward trend, with the consensus estimate shifting down by 16.52% [10] - Envista currently holds a Zacks Rank 3 (Hold), indicating expectations for an in-line return in the coming months [12] Industry Comparison - Envista operates within the Zacks Medical - Products industry, where competitor Abbott has seen a 5.4% gain over the past month [13] - Abbott reported revenues of $10.97 billion for the last quarter, reflecting a year-over-year increase of 7.2% [13]

Core Insights - Envista Holdings Corporation's Smile Project contributed $1.8 million in 2024 to enhance oral health accessibility for underserved communities, totaling over $4.2 million since its inception in 2021, impacting approximately 32,000 individuals globally [1][2] Group 1: Envista Smile Project - The Smile Project aims to improve oral health in disadvantaged communities by increasing access to oral care and education [2] - The project collaborates with dental professionals and Envista employee volunteers to provide products, treatment, and education [2] - In 2024, the project supplied free dental care to over 787 patients in the Dominican Republic and donated goods to clinics serving more than 5,600 patients [4] Group 2: Company Overview - Envista is a global family of over 30 dental brands, including Nobel Biocare and Ormco, focused on improving lives through dental care [3] - The company offers a comprehensive portfolio of dental products, including implants, orthodontics, and digital imaging technologies, addressing various clinical needs [3] - Envista is recognized as one of the largest global dental products companies, holding significant market positions in attractive segments of the dental industry [3]

Distribution and Sales - In 2024, approximately 42% of the company's products were distributed through third-party distributors[51]. - Henry Schein, Inc. accounted for about 10% of the company's sales in both 2024 and 2023, and 11% in 2022[52]. - Sales decreased by 2.2% for the year ended December 31, 2024, with core sales down 1.5% compared to 2023, impacted by foreign currency exchange rates reducing sales by 0.7%[264]. - Total sales for 2024 were $2,510.6 million, a decrease of 2.2% compared to $2,566.5 million in 2023[270]. - Total sales growth for the year ended December 31, 2024 decreased by 3.2% compared to 2023, with core sales growth down by 2.6%[291]. Employee Engagement and Diversity - In 2024, the company achieved a 94% participation rate in employee engagement surveys, with 72% of respondents feeling engaged at work[62]. - The company maintained 99% gender pay equity and 100% race/ethnicity pay equity in the U.S. as of February 2024[59]. - The company employs around 12,300 individuals, with approximately 3,000 in the U.S. and 9,300 outside the U.S.[57]. Research and Development - The company plans to continue significant investments in R&D to maintain its competitive position and enter new markets[55]. - The company is focusing on product development and innovation, particularly in the Implant-Based Tooth Replacement and Orthodontic Solutions businesses, to drive growth[251]. - Continued investment in the Spark clear aligner system has led to increased manufacturing capacity and market adoption, expected to provide growth opportunities[253]. Financial Performance - Gross profit margin decreased to 54.7% in 2024 from 56.1% in 2023, primarily due to unfavorable product mix and impairment of long-lived assets[273]. - SG&A expenses increased to $1,158.0 million in 2024, representing 46.1% of sales, up from 41.2% in 2023[274]. - Operating profit for the Specialty Products & Technologies segment was $89.9 million in 2024, down from $232.1 million in 2023, with an operating profit margin of 5.6%[284]. - Interest expense decreased to $46.4 million in 2024 from $63.4 million in 2023, attributed to higher returns on cash and lower variable rate borrowings[280]. - The effective tax rate for 2024 was (3.1)%, a significant change from (82.5)% in 2023, mainly due to larger nondeductible impairment charges[282]. Acquisitions and Investments - The company is evaluating potential investments and acquisitions to strategically fit or expand its portfolio into new business areas[94]. - The company acquired Osteogenics Biomedical Inc., Allotech LLC, and OBI Biologics, Inc. on July 5, 2022, enhancing its Specialty Products & Technologies segment[95]. - The acquisition of Carestream Dental's intraoral scanner business was completed on April 20, 2022, which is part of the Equipment & Consumables segment[96]. Regulatory Compliance - The company’s manufacturing operations are subject to extensive government regulations, including those from the FDA for medical devices[68]. - The company is subject to various healthcare laws, including the Federal Anti-Kickback Statute and HIPAA, which regulate fraud, abuse, and the privacy of health information[77][78]. - The company must comply with the General Data Protection Regulation (GDPR), which imposes fines of up to €20 million or 4% of total worldwide annual turnover for non-compliance[88]. - The Personal Information Protection Act (PIPL) in China carries maximum penalties of CNY 50 million or 5% of annual revenue for violations related to personal data processing[89]. Economic and Market Conditions - The company faces challenges from global economic conditions, including inflation and supply chain disruptions, which can affect dental procedure utilization rates[247]. - Third-party payors are increasingly reducing reimbursements for medical products, which could impact dentist usage and patient demand[82]. - Sales volume was negatively impacted by lower demand in Europe, China, and North America, partially offset by strong demand in Russia[272]. Cash Flow and Debt Management - Net cash provided by operating activities was $336.5 million in 2024, an increase from $275.7 million in 2023, attributed to improved working capital management[297]. - Net cash used in investing activities decreased to $54.6 million in 2024 from $62.4 million in 2023, mainly due to lower capital expenditures[299]. - Net cash used in financing activities was $103.7 million in 2024, compared to net cash provided of $118.9 million in 2023, primarily due to a $100.0 million repayment of the 2028 Term Loan[300]. - As of December 31, 2024, the company had $1,069.1 million in cash and cash equivalents, with $850.8 million held outside the United States[303]. - The company has the ability to incur an additional $750.0 million of indebtedness under its revolving credit facility as of December 31, 2024[302]. Impairments and Charges - Goodwill and intangible asset impairment for 2024 was $1,153.8 million, significantly higher than $258.3 million in 2023, driven by adverse macroeconomic factors[276]. - The company recorded a $960.5 million goodwill impairment charge due to the fair value of five out of eight reporting units not exceeding their carrying values[333]. - An impairment charge of $101.1 million was recorded for certain indefinite-lived trade names within the Specialty Products & Technologies segment as of June 28, 2024[334]. - An impairment of $92.2 million related to developed technology and customer relationships was recorded within the Equipment & Consumables segment as of June 28, 2024[338].

Envista Holdings Corporation (NVST) reported fourth-quarter 2024 adjusted earnings per share (EPS) of 24 cents, down 17.2% year over year. The bottom line surpassed the Zacks Consensus Estimate by 4.3%.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.The adjustments include non-cash charges related to the amortization of acquisition-related and other intangible assets, restructuring costs and asset impairments, among others.The company’s GAAP EPS was 1 cent compared with the year-ago q ...

Financial Data and Key Metrics Changes - In Q4 2024, the company reported sales of $653 million, with core sales increasing by 2% after adjusting for currency impacts [23][24] - Adjusted EBITDA margin for Q4 was 13.9%, a decrease of 170 basis points year-over-year, while adjusted gross margin improved to 57.2%, up nearly 500 basis points [25][26] - Free cash flow for the full year reached $303 million, a 35% increase compared to 2023 [11][40] Business Line Data and Key Metrics Changes - The Specialty Products & Technologies segment saw a slight decline of 40 basis points in core revenue, with orthodontics impacted by a 50% decline in China due to VBP preparations [33][34] - The Equipment & Consumables segment experienced a 6.4% increase in core sales, driven by a low prior year comparable for dental consumables [37][38] - Spark continued to show strong growth, achieving double-digit growth in 2024, excluding the net impact from revenue deferral [15][24] Market Data and Key Metrics Changes - The global dental market was flat to slightly up, with implants growing low single-digits, while diagnostics declined mid single-digits [19][20] - The orthodontics market faced challenges, particularly in China, where brackets and wires saw a significant decline [20][21] - The consumables sector remained flat to slightly positive, with stable channel inventories and high service levels [21] Company Strategy and Development Direction - The company is focusing on three areas: growth, operations, and people, with investments aimed at high-margin businesses like Nobel Biocare [13][14] - A restructuring initiative is expected to generate approximately $20 million in annualized savings, supporting the share repurchase program of up to $250 million over the next two years [12][48] - The company aims to maintain core growth of 1% to 3% and an adjusted EBITDA margin of around 14% for 2025, with a new EPS guidance of $0.95 to $1.05 per share [11][44] Management's Comments on Operating Environment and Future Outlook - Management noted that while the dental market remains stable, there is no strong evidence of an uptick in demand, with macroeconomic uncertainties persisting [50][51] - The company expects the diagnostics market to improve slightly in 2025, but guidance assumes flat conditions compared to 2024 [95][96] - Management expressed confidence in the growth trajectory of the implant business, supported by recent investments and leadership changes [72][74] Other Important Information - The company has refreshed its leadership team and made significant investments in employee engagement and talent development [18] - The company is actively working on new product launches, including advancements in diagnostic equipment and the Spark platform [110][111] Q&A Session Summary Question: Can you talk about potential upside and risks to the 2025 guidance? - Management highlighted Spark's growth, implant business momentum, and potential recovery in diagnostics as areas for upside, while macro uncertainties and currency fluctuations pose risks [60][69] Question: What are the expectations for the implant business moving forward? - Management expressed optimism about the implant business, noting positive growth in Q4 and ongoing investments in commercialization and innovation [72][74] Question: How does the company view the diagnostics market? - The diagnostics business is expected to improve slightly, with management anticipating flat to low single-digit growth in 2025, driven by exiting unprofitable geographies [95][96] Question: What is the company's strategy regarding tariffs and supply chain? - The company maintains a flexible supply chain strategy to mitigate tariff impacts, sourcing materials locally and manufacturing across multiple regions [136][138] Question: Can you provide insights on Spark's profitability and its impact on margins? - Spark is projected to become profitable in the second half of 2025, with each point of margin improvement contributing to overall company performance [90][91]

Envista Fourth Quarter 2024 – Earnings Presentation February 5, 2024 Forward Looking Statements Certain statements included or incorporated by reference in this presentation are "forward-looking statements" within the meaning of the U.S. federal securities laws. All statements other than historical factual information are forward-looking statements, including without limitation statements regarding: projections of revenue, expenses, profit, profit margins, tax rates, tax provisions, cash flows, pension and ...

For the quarter ended December 2024, Envista (NVST) reported revenue of $652.9 million, up 1.1% over the same period last year. EPS came in at $0.24, compared to $0.29 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $645.87 million, representing a surprise of +1.09%. The company delivered an EPS surprise of +4.35%, with the consensus EPS estimate being $0.23.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how th ...