Core Viewpoint - Dentsply Sirona will host an investor conference call on May 8, 2025, to discuss its first quarter financial results [1][2]. Group 1: Company Overview - Dentsply Sirona is the largest diversified manufacturer of professional dental products and technologies globally, with over a century of innovation [3]. - The company develops, manufactures, and markets a comprehensive range of dental and oral health products, as well as other consumable medical devices under a strong portfolio of world-class brands [3]. - Dentsply Sirona's innovative products aim to provide high-quality, effective, and connected solutions to enhance patient care and improve dental care safety [3]. Group 2: Investor Relations - The investor conference call will be available via a live webcast on the company's website [2]. - A replay of the conference call will also be accessible on the Investors section of the company's website after the event [2]. - For inquiries, investors can contact Andrea Daley, Vice President of Investor Relations, at +1-704-591-8631 or via email [4].

CHARLOTTE, N.C., March 17, 2025 (GLOBE NEWSWIRE) -- DENTSPLY SIRONA Inc. (“Dentsply Sirona” or the “Company”) (XRAY) today announced that David Ferguson has been appointed Senior Vice President, Global Business Unit Leader, effective March 14, 2025. In this role he will lead the global business unit teams managing the dental product portfolio, serve as a member of the Executive Management Team and report directly to Chief Executive Officer, Simon Campion. David Ferguson joins Dentsply Sirona with 25 years o ...

Core Points - Dentsply Sirona will participate in the Leerink Partners Global Healthcare Conference on March 11, 2025, at 3:00 pm ET [1] - A live audio webcast and replay will be available on the Dentsply Sirona website [2] Company Overview - Dentsply Sirona is the largest diversified manufacturer of professional dental products and technologies globally, with over a century of innovation [3] - The company develops, manufactures, and markets a comprehensive range of dental and oral health products, as well as consumable medical devices under a strong portfolio of brands [3] - Dentsply Sirona's innovative products aim to provide high-quality, effective, and connected solutions to enhance patient care and improve dental care safety [3] - The company is headquartered in Charlotte, North Carolina, and its shares are listed on Nasdaq under the symbol XRAY [3]

Core Insights - Dentsply International's international operations are crucial for understanding its financial strength and growth potential [1][2] - The company's reliance on international markets influences its earnings durability and growth capabilities [2][3] Revenue Performance - Dentsply's total revenue for the recent quarter was $905 million, a decline of 10.6% year-over-year [4] - Revenue from Europe was $408 million, accounting for 45.08% of total revenue, with a surprise increase of +10.82% compared to analyst expectations [5] - The Rest of World segment generated $238 million, constituting 26.30% of total revenue, with a surprise increase of +15.88% compared to projections [6] Future Revenue Predictions - Analysts expect Dentsply to report $876.89 million in total revenue for the current fiscal quarter, reflecting an 8% decline from the previous year [7] - For the full year, total revenue is projected at $3.56 billion, a decline of 6.2% from the prior year, with Europe and Rest of World expected to contribute $1.47 billion and $817.9 million, respectively [8] Conclusion - Dentsply's international revenue trends present both opportunities and risks, making it essential to monitor these patterns for forecasting the company's prospects [9][10]

Financial Performance - Dentsply Sirona's net sales for the year ended December 31, 2024, were reported across four segments: Connected Technology Solutions, Essential Dental Solutions, Orthodontic and Implant Solutions, and Wellspect Healthcare[21]. - No customer accounted for 10% or more of consolidated net sales for the year ended December 31, 2024, indicating a diversified customer base[35]. - The company generates a substantial portion of its revenue through a limited number of distributors, with the two largest distributors accounting for approximately 13% of annual revenue for the year ended December 31, 2024[102]. - The company delivered a one-year notice of non-renewal to Patterson Companies, Inc. regarding its distribution agreements for dental equipment in the U.S. and Canada[102]. - The company has approximately $1.7 billion in outstanding debt as of December 31, 2024, with an additional capacity to incur up to $700 million under the 2023 Credit Facility[130]. - The company experienced a material impact on its results of operations due to the voluntary suspension of the sale and marketing of its direct-to-consumer Byte aligner systems, which represented approximately 3% of annual revenue for the year ended December 31, 2024[165]. - The company recorded pre-tax goodwill impairment charges of $145 million and $359 million for Orthodontic Aligner Solutions and Implant & Prosthetic Solutions reporting units, respectively, for the quarter ended September 30, 2024[118]. - As of December 31, 2024, the company recorded a pre-tax goodwill impairment charge of $269 million for the Implant & Prosthetic Solutions reporting unit due to weaker sales trends and increased competition[120]. Research and Development - The Company maintains an R&D spending level of approximately 4% of annual net sales, focusing on innovation in digital workflow solutions and enhancing patient care[37]. - R&D investments focus on accelerating product innovation and improving manufacturing processes, with an emphasis on customer feedback and returns-based funding[41]. - The Company launched its cloud solution, DS Core, in 2022, integrating digital dentistry workflows and enabling access to case files and orders without software licenses[38]. - In 2023, the Company introduced the SureSmile Simulator, which creates 3D visualizations for clear aligner treatment, and expanded milling and printing materials for Primeprint and Primemill Solutions[39]. - The Company released Primescan 2 in 2024, featuring a cloud-native design that enhances mobility for dental professionals during patient treatment[40]. - The DS Core Enterprise platform was introduced in 2024, allowing dental service organizations (DSOs) to centralize management and monitoring of equipment[40]. - The company faces challenges in developing innovative products due to rapid technological disruption in the dental and continence care markets[94]. Market Presence and Strategy - Dentsply Sirona employs around 4,600 sales and technical staff to provide comprehensive marketing, sales, and technical support globally[32]. - The Company has a significant market presence in approximately 150 countries, with a strong foothold in Europe and the Asia-Pacific region[17]. - The Company focuses on integrating its dental product portfolios to unlock operational efficiencies and enhance its healthcare consumables product portfolio[20]. - The Company believes the dental industry will grow due to factors such as an aging population, increasing demand for aesthetic dentistry, and a shift towards single-visit dentistry[31]. - The Company expanded its implant business in 2024 with the MiS Lynx implant and new technologies for guided surgery and restorative solutions[40]. Regulatory and Compliance - The company is subject to comprehensive regulations, including the EU Medical Device Regulation (MDR), ensuring compliance for its medical devices[49]. - The company maintains compliance with various anti-bribery and anti-corruption laws, which govern its relationships with governmental entities and healthcare professionals[51]. - The ongoing German Tax Investigation could adversely affect the company's reputation, business, and financial condition, with significant time and resources already expended on this matter[164]. - The company must obtain necessary product approvals and marketing clearances from governmental authorities, including the FDA, which can be time-consuming and costly, potentially hindering product market entry[154]. - The EU MDR regulations require significant upgrades to quality systems and processes for medical device manufacturers, with deadlines extended until December 31, 2027, for higher-risk devices[158]. - The company is subject to various regulatory environments, including potential litigation and regulatory examinations related to financial reporting matters, which could harm its business and financial condition[153]. Workforce and Employee Relations - As of December 31, 2024, Dentsply Sirona employed approximately 14,000 employees globally, with around 3,000 in the United States[59]. - Dentsply Sirona's total rewards strategy includes competitive compensation and benefits programs aimed at attracting and retaining top talent[64]. - The company has nine established Employee Resource Groups (ERGs) with approximately 3,800 members globally as of December 31, 2024[67]. - The company has a dedicated Employee Health & Safety program aligned with international standards to ensure employee safety[70]. - The company anticipates a net reduction in its global workforce of approximately 2% to 4% as part of the 2024 restructuring plan[109]. Cybersecurity and Risk Management - The Company maintains a comprehensive cybersecurity risk management strategy, integrating risk assessment into its overall risk management systems[195]. - The Chief Information Officer oversees the company's cybersecurity approach, collaborating with various teams to manage digital risk effectively[197]. - The Company has authorized a share repurchase program of $1.2 billion remaining as of December 31, 2024, with an increase approved on November 7, 2023[214]. - The Company maintains cybersecurity insurance and regularly reviews its policy and coverage levels based on current risks[202]. - The Company has not experienced any material information security breach incidents in the last three years, but future risks remain[202]. - The Company conducts annual information security awareness training for employees and performs monthly internal phishing tests[201]. - The Company collaborates with external third parties for threat assessments and security enhancements, sharing best practices across industries[200]. - The Company has developed contingency plans for business continuity in case of vendor cyberattacks impacting their systems[200]. Environmental and Social Governance - The company is increasingly focused on environmental, social, and governance (ESG) considerations, which may lead to increased compliance costs and scrutiny[190]. - The company operates in approximately 150 countries, making it vulnerable to climate change and natural disasters that could disrupt production and distribution[189]. Financial Reporting and Internal Controls - The company has identified material weaknesses in internal control over financial reporting, which were remediated as of December 31, 2023, but future weaknesses could adversely affect financial reporting accuracy[148]. - Changes in distributor relationships and inventory levels may lead to fluctuations in projected future demand and financial results[104]. - The company recognizes the risk of legal actions, including product liability claims and regulatory investigations, which could materially harm its business and reputation[187]. - The company faces significant fluctuations in quarterly sales and earnings due to various factors, which may lead to failure in meeting investor expectations[180]. - The company has experienced higher prices and supply chain disruptions for certain raw materials, particularly electronic components, which may negatively affect its financial performance[182]. - The company has sought to offset elevated costs from raw material inflation with annual price increases but has been only partially successful[184].

Financial Data and Key Metrics Changes - In Q4 2024, the company reported revenue of $905 million, representing a decline of 10.6% year-over-year and an organic sales decline of 10.7% [34][46] - Adjusted EPS for the quarter was $0.26, down 41.3% from the prior year due to lower margins and a higher tax rate [37][50] - The company recorded noncash charges for impairment of goodwill and other intangibles of approximately $370 million, primarily due to weakened demand [31][32] Business Line Data and Key Metrics Changes - Essential Dental Solutions segment saw organic sales decline of 3.4%, while Orthodontic & Implant Solutions segment experienced a significant decline of 28.7% primarily due to Byte's impact [38][39] - Connected Technology Solutions (CTS) segment reported an organic sales decline of 8.2%, with double-digit declines in global CAD/CAM business [40][46] - Wellspect delivered organic sales growth of 6.7%, driven by new product launches across all regions [41] Market Data and Key Metrics Changes - U.S. sales declined 29.9%, largely driven by Byte and CAD/CAM impacts, while Europe saw organic sales increase of 1.8% [42][43] - Rest of World organic sales declined 2%, with EDS organic sales growing high single digits in China [44][45] Company Strategy and Development Direction - The company is exploring strategic alternatives for its Wellspect HealthCare business to unlock significant value for stakeholders [18][20] - A strategic decision was made to redeploy Byte resources to the SureSmile platform, focusing on enhancing direct-to-consumer demand and e-commerce [17][19] - The company aims to improve operational efficiencies and customer engagement through foundational initiatives and a virtual sales team [60][61] Management's Comments on Operating Environment and Future Outlook - Management expects organic sales to decline by 2% to 4% in 2025, including a negative impact from Byte [51][52] - The external environment is anticipated to remain largely unchanged, with continued focus on innovation and clinical education as key value drivers [16][22] - Management expressed confidence in the transformational initiatives underway, which are expected to contribute positively to EPS in the long term [64][66] Other Important Information - The company completed the largest phase of its ERP deployment in the U.S. on November 1, 2024, which is expected to improve customer experience and operational efficiencies [24][61] - The company returned $376 million in capital to shareholders through share repurchases and dividends in 2024 [50] Q&A Session Summary Question: Can you talk about some of the new product areas that you're working on in Wellspect? - Management indicated that Wellspect and dental businesses are largely separated, allowing for independent strategic exploration [76] Question: What gives you confidence in margin improvement throughout 2025? - Management stated that Q1 will be the lowest point of the year, with expectations for sequential improvement in margins as foundational initiatives ramp up [81][82] Question: Can you discuss the strategy for Byte and its implications on P&L? - Management confirmed that Byte's capabilities will be redeployed to enhance the SureSmile platform, with expectations of a substantial headwind to growth in 2025 [91][100] Question: What is the outlook for the U.S. implant team and its return to growth? - Management acknowledged disappointing growth in the U.S. implant team but emphasized ongoing efforts to enhance digital connectivity and customer education [104][108] Question: Can you provide an update on the German tax situation? - Management stated there is no meaningful update at this time, continuing to work with authorities [131][132]

Core Insights - DENTSPLY SIRONA Inc. reported disappointing fourth-quarter 2024 results, with adjusted EPS of 26 cents, missing the consensus estimate by 39.5% and reflecting a 40.9% year-over-year decline [1] - The company also reported a GAAP loss of $2.16 per share compared to a profit of 32 cents in the same quarter last year [1] Revenue Details - Total revenues for the fourth quarter were $905 million, falling short of the consensus estimate by 1.6% and down 10.6% year-over-year [2] - The decline in revenue was attributed to a 6% impact from Byte sales, with organic revenue also decreasing by 10.7% [2] Full-Year Results - For the full year 2024, total sales reached $3.79 billion, a decrease of 4.3% year-over-year [3] - Adjusted EPS for 2024 was $1.67, down 8.8% compared to 2023 [3] Business Segments - The company operates under four segments: Connected Technology Solutions, Essential Dental Solutions, Orthodontic and Implant Solutions, and Wellspect Healthcare [4][5] - Connected Technology Solutions reported revenues of $293 million, down 8.3% year-over-year [6] - Orthodontic and Implant Solutions saw sales of $185 million, a decline of 28.6% year-over-year, impacted by $62 million from Byte sales [7] - Essential Dental Solutions generated $346 million in sales, down 3.5% year-over-year, affected by order timing in the U.S. [8] - Wellspect Healthcare reported sales of $81 million, an increase of 8.6% year-over-year, driven by product innovation [9] Geographic Revenue Performance - U.S. revenues decreased 29.9% year-over-year organically to $259 million [10] - Revenues from the Rest of the World decreased 2% organically to $238 million [10] - European revenues improved 1.8% organically year-over-year to $408 million [10] Margin Analysis - Adjusted gross profit for the quarter was $477 million, down 14.5% year-over-year, with an adjusted gross margin of 52.7%, contracting 240 basis points [11] - Adjusted operating income was $96 million, down 32.9% from the previous year, with an adjusted operating margin of 10.6%, contracting 350 basis points [12] Financial Update - The company ended the fourth quarter with cash and cash equivalents of $272 million, down from $296 million at the end of the third quarter [13] - Cumulative net cash provided by operating activities totaled $461 million, compared to $377 million in the prior year [13] 2025 Guidance - DENTSPLY SIRONA revised its 2025 guidance, expecting net sales between $3.50 billion and $3.60 billion, reflecting a 4-2% decline on an organic basis [14] - The company anticipates adjusted EPS in the range of $1.80 to $2.00, with the consensus estimate at $1.90 [14] Market Reaction - The company’s shares rose 1.1% in pre-market trading despite the disappointing results, although the stock has declined 23.9% over the past six months [15]

Company Performance - Dentsply International reported quarterly earnings of $0.26 per share, missing the Zacks Consensus Estimate of $0.43 per share, and down from $0.44 per share a year ago, representing an earnings surprise of -39.53% [1] - The company posted revenues of $905 million for the quarter ended December 2024, missing the Zacks Consensus Estimate by 1.56%, and down from $1.01 billion year-over-year [2] - Over the last four quarters, Dentsply has surpassed consensus EPS estimates only once and has topped consensus revenue estimates just once [2] Stock Outlook - Dentsply shares have lost about 0.9% since the beginning of the year, while the S&P 500 has gained 1.3% [3] - The current consensus EPS estimate for the coming quarter is $0.41 on revenues of $919.43 million, and for the current fiscal year, it is $1.90 on revenues of $3.74 billion [7] - The estimate revisions trend for Dentsply is currently unfavorable, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [6] Industry Context - The Medical - Dental Supplies industry, to which Dentsply belongs, is currently in the bottom 43% of over 250 Zacks industries, suggesting that the outlook for the industry can materially impact stock performance [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Financial Performance - Full year 2024 net sales were $3,793 million, a decrease of 4.3% compared to 2023, with organic sales down 3.5% including a 1.2% impact from Byte sales[3]. - Full year 2024 net loss was $910 million, or $4.48 per share, compared to a net loss of $132 million, or $0.62 per share in 2023[3]. - Fourth quarter 2024 net sales were $905 million, a decrease of 10.6% year-over-year, with organic sales down 10.7% including a 6.1% impact from Byte sales[4]. - Fourth quarter 2024 adjusted earnings per diluted share were $0.26, down 41.3% from $0.44 in the fourth quarter of 2023[8]. - The company recorded non-cash impairment charges of $370 million in Q4 2024, primarily affecting the Orthodontic and Implant Solutions and Connected Technology Solutions segments[13]. - The company reported a net loss attributable to Dentsply Sirona of $430 million for Q4 2024, compared to a net income of $67 million in Q4 2023[23]. - For the year ended December 31, 2024, the company reported a GAAP net loss of $910 million, with a diluted EPS of $(4.48)[52]. - The company incurred goodwill and intangible asset impairments totaling $1,014 million for the year ended December 31, 2024, compared to $307 million in 2023[23]. Sales and Revenue Trends - The company anticipates 2025 net sales in the range of $3.50 billion to $3.60 billion, with organic sales expected to decline between 4.0% to 2.0%[15]. - For Q4 2024, total net sales decreased by 10.6% to $905 million compared to $1,012 million in Q4 2023, with U.S. sales down 29.8%[42]. - For the year ended December 31, 2024, total net sales were $3,793 million, a decline of 4.3% from $3,965 million in 2023, with U.S. sales down 6.2%[43]. - Organic sales for Q4 2024 decreased by 10.7% compared to Q4 2023, with U.S. organic sales down 29.9%[42]. - The company experienced a foreign exchange impact on net sales, with a total impact of (0.8%) for the year ended December 31, 2024[43]. Cost Management and Efficiency - Operating cash flow for full year 2024 was $461 million, an increase from $377 million in 2023, driven by improved inventory management[12]. - The company plans to focus on restructuring and cost management strategies to improve future performance[46]. - The company aims to enhance efficiency through restructuring initiatives, which may lead to fluctuating charges in future periods[30]. - Restructuring-related charges and other costs amounted to $123 million in 2023, increasing to $136 million in 2024[57]. Asset and Liability Management - Total assets decreased to $5,753 million as of December 31, 2024, from $7,370 million in 2023, indicating a significant reduction in asset base[24]. - Total liabilities decreased to $3,810 million in 2024 from $4,076 million in 2023, showing improved financial leverage[24]. - Net cash provided by operating activities was $461 million for the year ended December 31, 2024, an increase from $377 million in 2023[25]. Research and Development - Research and development expenses were $165 million for the year ended December 31, 2024, down from $184 million in 2023[23]. Future Projections - Adjusted EPS for 2025 is projected to be between $1.80 and $2.00[15]. - The company expects external market conditions to remain broadly unchanged in 2025, with a focus on transformational initiatives to drive EBITDA margin expansion[5].

Core Viewpoint - Dentsply Sirona reported a significant decline in net sales and increased net losses for both the fourth quarter and full year of 2024, primarily due to macroeconomic pressures and competitive dynamics, despite some improvements in specific business areas [4][10]. Financial Performance Summary - Full year 2024 net sales were $3,793 million, a decrease of 4.3% compared to 2023, with organic sales down 3.5% [2][10]. - The company experienced a net loss of $910 million, or $4.48 per share, compared to a net loss of $132 million, or $0.62 per share in 2023 [2][10]. - Fourth quarter net sales were $905 million, down 10.6% year-over-year, with organic sales decreasing 10.7% [3][10]. - The fourth quarter net loss was $430 million, or $2.16 per diluted share, compared to a net income of $67 million, or $0.32 per share in Q4 2023 [3][10]. Segment Performance - The Connected Technology Solutions segment saw a net sales decline of 8.3% in Q4 and 9.2% for the full year [7]. - Essential Dental Solutions experienced a 3.5% decline in Q4 and a 0.9% decline for the full year [7]. - Orthodontic and Implant Solutions faced a significant drop of 28.6% in Q4 and 6.5% for the full year [7]. - Wellspect Healthcare was a bright spot, with an 8.6% increase in Q4 and 5.9% for the full year [7]. Geographic Performance - In the United States, net sales decreased by 29.8% in Q4 and 6.2% for the full year [8]. - Europe showed resilience with a 2.8% increase in Q4, although it declined by 2.1% for the full year [8]. - The Rest of the World experienced a 3.4% decline in Q4 and a 5.1% decline for the full year [8]. Cash Flow and Liquidity - Operating cash flow for Q4 2024 was $87 million, down from $160 million in Q4 2023, while full year operating cash flow improved to $461 million from $377 million in the prior year [9]. - The company returned $376 million to shareholders through dividends and share repurchases in 2024 [9]. Impairments and Charges - Dentsply Sirona recorded non-cash charges for goodwill and intangible asset impairments of $370 million in Q4 2024, primarily affecting the Orthodontic and Implant Solutions and Connected Technology Solutions segments [11][20]. 2025 Outlook - For 2025, the company anticipates net sales in the range of $3.50 billion to $3.60 billion, with organic sales expected to decline between 4.0% to 2.0% [10][13]. - Adjusted EPS is projected to be between $1.80 and $2.00 [10][13].