Envista(US:NVST)2025-10-29 20:57Financial Performance - Q3 2025 sales reached $670 million, representing a core sales growth of 9.4% compared to Q3 2024[4] - Adjusted EBITDA for Q3 2025 was $97 million, reflecting a 77% year-on-year increase, with an adjusted EBITDA margin of 14.5% (+540 bps year-on-year)[4] - The company reported a GAAP net loss of $30 million for Q3 2025, attributed to a tax charge from restructuring intercompany loans[4] - Adjusted diluted earnings per share (EPS) for Q3 2025 was $0.32, a 167% increase year-on-year[4] - Operating cash flow for Q3 2025 was $79 million, while free cash flow was $68 million, compared to $71 million and $63 million in Q3 2024, respectively[5] - Net income for the nine months ended September 26, 2025, was $14.1 million, a significant recovery from a net loss of $1,119.8 million in the same period last year[19] - Adjusted net income for the nine months ended September 26, 2025, was $138.9 million, compared to $85.4 million for the same period last year, indicating a growth of 62.6%[21] - Adjusted diluted EPS guidance for 2025 is now set at $1.10 to $1.15, an increase from the prior guidance of $1.05 to $1.15[7] Cash Flow and Share Repurchase - The company repurchased 2.1 million shares for approximately $41 million during the quarter, with $108 million remaining under its stock repurchase program[6] - Free cash flow for the nine months ended September 26, 2025, was $139.2 million, down from $178.9 million in the prior year, a decrease of 22.2%[21] - Free Cash Flow (FCF) for the three months ended September 26, 2025, was $67.9 million, compared to $63.3 million for the same period in 2024, representing a 10.0% increase[31] Sales and Growth - For full year 2025, the company updated its core sales growth guidance to approximately 4%, up from the previous range of 3% to 4%[7] - All major businesses delivered positive growth, supported by several new product launches[4] - Specialty Products & Technologies segment sales for the three months ended September 26, 2025, were $431.5 million, up from $381.7 million in the same period last year, an increase of 13.1%[23] - Total sales growth for the three months ended September 26, 2025, was 11.5%, with core sales growth contributing 9.4%[30] Assets and Liabilities - Total assets increased to $5,642.5 million as of September 26, 2025, up from $5,350.5 million at December 31, 2024, reflecting a growth of approximately 5.5%[17] - Total liabilities decreased to $2,554.3 million as of September 26, 2025, from $2,516.0 million at December 31, 2024, a reduction of approximately 1.5%[17] Operating Performance - Gross profit for the three months ended September 26, 2025, was $370.2 million, compared to $317.3 million for the same period last year, representing a year-over-year increase of 16.7%[21] - Adjusted Operating Profit for the three months ended September 26, 2025, was $85.6 million, up from $43.8 million for the same period in 2024, representing a 95.7% increase[25] - Adjusted Net Income for the three months ended September 26, 2025, was $53.7 million, compared to $21.1 million for the same period in 2024, reflecting a 153.1% increase[26] - The operating margin for the total segment improved to 8.6% for the three months ended September 26, 2025, compared to 3.5% in the same period last year[23] Non-GAAP Measures and Adjustments - Adjusted EBITDA is used as a supplemental measure for assessing operating performance, excluding interest, taxes, depreciation, amortization, and unusual losses or gains[35] - Free Cash Flow (FCF) is utilized to evaluate the company's ability to generate cash for investments and growth, although it does not account for debt service requirements[36] - The company excludes amortization of acquisition-related intangible assets to facilitate consistent comparisons of operating results over time[37] - Core sales exclude the effects of acquisitions, divested product lines, discontinued products, and currency translation to provide a clearer view of ongoing operations[37] - Adjusted Net Income and Adjusted Diluted Earnings Per Share are calculated after excluding items that may obscure underlying business trends[37] - Management uses non-GAAP measures to evaluate operating and financial performance, highlighting the limitations of Free Cash Flow[36] - The company aims to provide investors with insights into long-term profitability trends compared to peers and historical performance[35]