Financial Data and Key Metrics Changes - In Q1 2025, the company's revenue was $879 million, representing a decline of 7.7% year-over-year. Organic sales decreased by 4.4%, impacted by a negative 4% BiTE effect [23][24]. - Adjusted EBITDA margins expanded by 220 basis points, benefiting from lower operating expenses and transformational savings [25]. - Adjusted EPS for the quarter was $0.43, up 3.7% from the prior year, primarily due to higher adjusted EBITDA margins and a lower share count [25]. Business Line Data and Key Metrics Changes - Essential Dental Solutions segment saw organic sales increase by 0.4%, driven by growth in Europe and the rest of the world, despite lower volumes in the U.S. [26]. - Orthodontic and Implant Solutions segment experienced a significant organic sales decline of 17.7%, largely due to a negative BiTE impact and a loss of a DSO customer in the U.S. [27]. - Connected Technology Solutions segment had a slight organic sales decline of 0.5%, primarily due to CADCAM declines in the U.S., although imaging performance grew across all regions [28]. Market Data and Key Metrics Changes - U.S. organic sales declined by 14.9%, primarily due to a negative 9.8% impact from BiTE, while imaging growth was noted [30]. - Europe saw organic sales increase by 1.1%, driven by strong performance in Germany, which posted growth for the second consecutive quarter [33]. - The Rest of World segment experienced organic sales growth of 3.1%, with notable growth in imaging and WellSpec in China [34]. Company Strategy and Development Direction - The company is focused on driving reliable and sustainable performance, emphasizing customer-centric product innovation and operational efficiency [7][10]. - The strategy includes enhancing the digital ecosystem through the DS Core platform, which has gained traction with over 42,000 unique users [14]. - The company aims to improve customer engagement and experience through revamped websites and a new e-commerce platform [19][20]. Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by global trade situations and tariffs but expressed confidence in the company's ability to navigate these risks [6]. - The outlook for 2025 remains unchanged for organic sales and adjusted EPS, with reported sales revised to reflect foreign currency changes [12][35]. - Management noted stable patient volume and procedure utilization, despite some concerns among U.S. dentists regarding economic conditions [11]. Other Important Information - The company is actively managing its balance sheet and has taken steps to strengthen its position, including entering into a bridge loan agreement [25]. - The company has completed the closure of 10 manufacturing and distribution sites as part of its supply chain optimization efforts [23]. Q&A Session Summary Question: Can you expand on the tariff impact? - Management indicated that tariffs have been factored into guidance, estimating a $0.10 impact, with an annualized exposure of about $50 million [47][48]. Question: Update on the CFO search? - Progress is being made with several candidates in the late phases of the process [50]. Question: Insights on the orthodontics side? - Management noted the need to reengage with the orthodontist community and improve user experience with SureSmile [56]. Question: Context behind EBIT margin? - The improvement in Q1 EBIT margin is seen as a reasonable run rate for the rest of the year, with a focus on judicious SG&A management [62]. Question: Cash flow and CapEx expectations? - CapEx is expected to improve as ERP projects roll off, leading to better free cash flow [107].

Financial Performance - Dentsply Sirona reported a net income of $19 million for the three months ended March 31, 2025, compared to $17 million for the same period in 2024, reflecting a growth of approximately 11.76%[13] - Total comprehensive income for the first quarter of 2025 was $90 million, significantly up from a loss of $13 million in Q1 2024[13] - Net income for Q1 2025 was $19 million, an increase from $17 million in Q1 2024, representing a growth of approximately 11.76%[18] - Total net sales for Q1 2025 were $879 million, down from $953 million in Q1 2024, reflecting a decrease of about 7.77%[26] - Net loss attributable to Dentsply Sirona was $20 million, with diluted earnings per share of $0.10, an increase from $0.09 in the previous year[166] Cash and Liquidity - Cash and cash equivalents increased to $398 million as of March 31, 2025, up from $272 million at the end of 2024, representing a growth of 46.4%[15] - Cash provided by operating activities was $7 million, a decrease of $18 million compared to $25 million in the same period of 2024[172] - Cash used in investing activities decreased to $17 million from $43 million in the prior year, primarily due to lower capital expenditures of $15 million[174] - The Company had $584 million of borrowings available under lines of credit as of March 31, 2025, including a $700 million multi-currency credit facility expiring in May 2028[178] Assets and Liabilities - Total assets rose to $6,050 million at the end of Q1 2025, compared to $5,753 million at the end of 2024, indicating an increase of 5.2%[15] - Total liabilities increased to $4,040 million as of March 31, 2025, compared to $3,810 million at the end of 2024, marking a rise of 6.03%[15] - The company’s equity attributable to Dentsply Sirona was $2,010 million at the end of Q1 2025, up from $1,942 million at the end of 2024, reflecting a growth of 3.5%[15] - Total current liabilities increased to $1,793 million from $1,589 million, reflecting a rise of 12.8%[15] Sales and Revenue Segments - Equipment & Instruments sales increased to $134 million in Q1 2025 from $125 million in Q1 2024, a growth of 7.20%[26] - Connected Technology Solutions sales decreased to $235 million in Q1 2025 from $247 million in Q1 2024, a decline of 4.86%[26] - Orthodontics sales fell to $59 million in Q1 2025 from $98 million in Q1 2024, a significant decrease of 40.82%[26] - Organic sales decreased by 4.4% due to lower volumes in the Orthodontic and Implant Solutions segment, particularly from the suspension of the Byte aligner system and lower implant volumes[129] Expenses and Cost Management - Selling, general, and administrative expenses (SG&A) decreased by $57 million or 13.6% to $358 million, primarily due to lower headcount costs related to Byte products[150][152] - Research and development (R&D) expenses decreased by $6 million or 14.8% to $36 million, with ongoing investments in digital workflow solutions and product development[150][153] - The company expects to incur between $35 million and $50 million in non-recurring restructuring charges under the 2024 Plan, which aims for annual cost savings of $80 million to $100 million[185] Legal and Regulatory Matters - The company reached a settlement in principal for $84 million related to a class action lawsuit, expecting to receive an offsetting insurance receivable of approximately $78 million[79] - The company is involved in multiple ongoing securities litigations, including a consolidated case with lead plaintiffs appointed on February 21, 2025[88] - The IRS is examining the company's federal income tax returns for 2015 and 2016, proposing an adjustment that could result in additional federal income taxes on a $451 million distribution[97] Market and Economic Conditions - The company anticipates continued macroeconomic challenges, particularly in Germany, which represented 11% of sales for the three months ended March 31, 2025[115] - The U.S. government has implemented a baseline 10% tariff on foreign goods, which may impact the company's supply chain and costs[116] - The company is focusing on strategic procurement initiatives and cost-containment measures to mitigate inflationary pressures and competitive challenges[117] Future Outlook - The company expects to recognize most of the remaining deferred revenue in net sales within the next twelve months, indicating a positive outlook for future revenue recognition[28] - The Company is currently evaluating the impact of ASU No. 2024-03 on its consolidated financial statements, which requires disaggregated disclosure of income statement expenses effective after December 15, 2026[22] - The Company is assessing the implications of ASU No. 2024-04 regarding the accounting for the settlement of a debt instrument as an induced conversion, effective after December 15, 2025[23]

Company Performance - Dentsply International reported quarterly earnings of $0.43 per share, exceeding the Zacks Consensus Estimate of $0.29 per share, and showing a slight increase from $0.42 per share a year ago, resulting in an earnings surprise of 48.28% [1] - The company posted revenues of $879 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 3.22%, although this represents a decline from year-ago revenues of $953 million [2] - Over the last four quarters, Dentsply has surpassed consensus EPS estimates two times and topped consensus revenue estimates two times [2] Stock Outlook - Dentsply shares have declined approximately 27.9% since the beginning of the year, contrasting with the S&P 500's decline of 4.3% [3] - The current consensus EPS estimate for the upcoming quarter is $0.45 on revenues of $911.58 million, and for the current fiscal year, it is $1.79 on revenues of $3.56 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 ranked in the top 34% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% of industries [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]

Dentsply Sirona Reports First Quarter 2025 Results Charlotte, N.C., May 8, 2025 - DENTSPLY SIRONA Inc. ("Dentsply Sirona" or the "Company") (Nasdaq: XRAY) today announced its financial results for the first quarter of 2025. First quarter net sales of $879 million decreased (7.7%) (organic sales decreased (4.4%)) compared to the first quarter of 2024. Foreign currency changes negatively impacted first quarter 2025 net sales by approximately ($30) million. Net income was $20 million, or $0.10 per share, compa ...

Financial Performance - Q1 2025 reported sales decreased by (7.7%) to $879 million compared to $953 million in Q1 2024 [17, 18] - Q1 2025 organic sales decreased by (4.4%) driven by an expected (4.0%) Byte impact [7] - Q1 2025 adjusted EBITDA margin expanded by 220 bps to 19.0% compared to 16.8% in Q1 2024 [7, 19] - Q1 2025 adjusted EPS increased by 3.7% to $0.43 compared to $0.42 in Q1 2024 [21, 22] - Q1 2025 operating cash flow decreased by (72%) to $7 million compared to $25 million in Q1 2024 [23, 24] Segment Performance - Essential Dental Solutions (EDS) reported a sales decrease of (2.7%), but organic sales increased by 0.4% to $353 million [26] - Orthodontic and Implant Solutions (OIS) reported a sales decrease of (20.0%), with organic sales down (17.7%) to $217 million, including a ~$40 million Byte impact [26] - Connected Technology Solutions (CTS) reported a sales decrease of (4.7%), with organic sales down (0.5%) to $235 million [26] - Wellspect Healthcare reported a sales increase of 3.4%, with organic sales up 8.0% to $74 million [26] Regional Performance - U S net sales decreased, with organic sales down (14.9%) due to a Byte impact of approximately ($40M) [28, 29] - Europe net sales decreased, with organic sales up 1.1% [28] - Rest of World net sales decreased, with organic sales up 3.1% [28] 2025 Outlook - The company maintains its FY25 outlook for organic sales at (4.0%) to (2.0%) [7, 30] - The company increases its FY25 outlook for reported sales to $3.60 billion - $3.70 billion due to F/X changes [7, 30] - The company maintains its FY25 outlook for adjusted EPS at $1.80 - $2.00 [7, 30]

Net sales of $879 million decreased (7.7%), organic sales decreased (4.4%) including a (4.0%) Byte sales impactGAAP gross margin of 53.0%, GAAP net income of $20 million or $0.10 per shareAdjusted gross margin of 56.3%, adjusted EBITDA margin of 19.0%, adjusted EPS of $0.43Maintaining FY25 outlook for organic sales and adjusted EPS; increasing reported sales due to F/X changes CHARLOTTE, N.C., May 08, 2025 (GLOBE NEWSWIRE) -- DENTSPLY SIRONA Inc. ("Dentsply Sirona" or the "Company") (Nasdaq: XRAY) today ann ...

Core Viewpoint - Dentsply International (XRAY) is expected to report a significant decline in quarterly earnings and revenues, with earnings per share projected at $0.29, a 31% decrease year-over-year, and revenues forecasted at $851.55 million, reflecting a 10.7% decline compared to the previous year [1] Earnings Estimates - The consensus EPS estimate has been revised downward by 1.5% over the past 30 days, indicating a collective reassessment by analysts [2] - Changes in earnings estimates are crucial for predicting investor reactions, as empirical research shows a strong correlation between earnings estimate revisions and short-term stock performance [3] Key Metrics Projections - Analysts project 'Net sales- Connected Technology Solutions' to reach $233.14 million, a year-over-year decrease of 5.6% [5] - 'Net sales- Wellspect Healthcare' is expected to be $74.82 million, indicating a 5.4% increase from the same quarter last year [5] - 'Net sales- Essential Dental Solutions' is forecasted at $352.85 million, reflecting a 3.1% decline year-over-year [5] - 'Net sales- Orthodontic and Implant Solutions' is estimated to be $193.98 million, a significant decrease of 28.4% from the previous year [6] - 'Revenues- Rest of World' is projected at $190.83 million, down 13.7% year-over-year [6] - 'Revenues- Europe' is expected to be $356.44 million, indicating a 5.2% decline from the year-ago quarter [6] Stock Performance - Over the past month, Dentsply shares have returned +5.6%, underperforming the Zacks S&P 500 composite, which has seen a +10.6% change [7] - Currently, Dentsply carries a Zacks Rank 4 (Sell), suggesting potential underperformance in the near future [7]

Core Viewpoint - DENTSPLY SIRONA Inc. is set to release its first-quarter 2025 results on May 8, with expectations of revenue at $851.6 million and earnings at 29 cents per share, following a trend of earnings misses in previous quarters [1][8]. Group 1: Financial Performance and Estimates - The Zacks Consensus Estimate for revenues in Q1 2025 is $851.6 million, while the earnings consensus is 29 cents per share [1]. - The company has experienced an average earnings surprise of -9.34% over the past four quarters, indicating challenges in meeting market expectations [1]. Group 2: Impact of Byte Business Wind-Down - The ongoing wind-down of the Byte business is a significant factor, having caused a $62 million year-over-year decline in sales in Q4 2024 and a non-cash goodwill impairment of $370 million [2]. - The strategic shift away from the direct-to-consumer aligner segment towards clinician-directed models like SureSmile is expected to influence revenue dynamics as the company aims to fully exit Byte by mid-2025 [2]. Group 3: Regional Sales Performance - The U.S. region reported a 29.9% decline in year-over-year sales in Q4 2024, attributed to Byte's exit, CAD/CAM segment underperformance, and unfavorable distributor ordering patterns [3]. - Investors are anticipated to monitor signs of stabilization or rebound in U.S. demand, particularly in procedural categories such as implants and endodontics [3]. Group 4: Growth in Key Segments - Despite overall revenue pressure, SureSmile and imaging categories showed resilience, with SureSmile growing over 20% in Europe and imaging increasing nearly 13% globally in Q4 2024 [4]. - The company is expected to maintain momentum in these higher-margin, tech-enabled product lines in Q1 2025 [4]. Group 5: Product Launches and Innovations - DENTSPLY SIRONA launched PrimeScan 2, an upgraded intraoral scanner, aimed at enhancing clinical experience and workflow integration [5]. - The European launch of the MIS LYNX implant system received positive feedback, and the rollout of the DS Core digital cloud platform is expected to support procedural growth in restorative and implant dentistry [6].

Group 1 - Pro-Dex, Inc. (PDEX) shares increased by 5.1% to $66.92 in the last trading session, continuing an upward trend since March, with a total gain of 28.9% over the past four weeks [1] - The company is expected to report quarterly earnings of $0.47 per share, reflecting a year-over-year increase of 147.4%, with revenues projected at $17.7 million, up 23.9% from the previous year [2] - The consensus EPS estimate for Pro-Dex has remained unchanged over the last 30 days, indicating that stock price movements may not sustain without trends in earnings estimate revisions [3] Group 2 - Pro-Dex operates within the Zacks Medical - Dental Supplies industry, where Dentsply International (XRAY) also belongs, with XRAY closing 3.2% higher at $13.71, but showing a -14.9% return over the past month [3] - Dentsply's consensus EPS estimate has decreased by 1% over the past month to $0.30, representing a decline of 28.6% compared to the previous year [4]

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].