DENTSPLY SIRONA(US:XRAY)2025-11-06 14:17Financial Performance - Dentsply Sirona reported a net loss of $428 million for the three months ended September 30, 2025, compared to a net loss of $495 million for the same period in 2024, reflecting a 13.5% improvement year-over-year[13]. - Total comprehensive loss for the nine months ended September 30, 2025, was $394 million, a decrease from $482 million in the same period of 2024, indicating an 18.3% reduction in losses[13]. - Net loss for the nine months ended September 30, 2025, was $453 million, compared to a loss of $482 million for the same period in 2024[19]. - The total comprehensive loss for the three months ended September 30, 2025, was $459 million, slightly higher than the $456 million reported in the same period of 2024[13]. - Comprehensive loss attributable to Dentsply Sirona was $458 million for the three months ended September 30, 2025, compared to $455 million in the prior year[13]. - For the nine months ended September 30, 2025, the net loss was $453 million, an improvement from a net loss of $482 million in the same period of 2024[13]. - The total comprehensive loss for the nine months ended September 30, 2025, was $395 million, compared to $484 million in the same period of 2024[13]. - The company continues to focus on improving its financial performance despite ongoing losses in both net and comprehensive categories[13]. Cash and Liquidity - Cash and cash equivalents increased to $363 million as of September 30, 2025, up from $272 million at the end of 2024, representing a 33.5% increase[15]. - Cash provided by operating activities for the nine months ended September 30, 2025, was $134 million, down from $374 million in 2024[19]. - The company reported a net increase in cash and cash equivalents of $91 million for the nine months ended September 30, 2025[19]. - Total cash and cash equivalents at the end of the period was $363 million, compared to $296 million at the end of September 2024[19]. - The company had $736 million available under lines of credit as of September 30, 2025[190]. Sales and Revenue - Total net sales for the three months ended September 30, 2025, were $904 million, a decrease of 4.9% compared to $951 million in the same period of 2024[29]. - For the nine months ended September 30, 2025, total net sales were $2,719 million, down 5.9% from $2,888 million in 2024[29]. - The Orthodontic and Implant Solutions segment saw a significant decline, with net sales dropping by $36 million (15.0%) to $205 million for the three months ended September 30, 2025, primarily due to lower volumes of clear aligners following the suspension of Byte sales[143][145]. - The United States region experienced a notable decline in net sales, down $83 million (22.2%) to $291 million for the three months ended September 30, 2025, primarily due to lower volumes of Byte products and CAD/CAM equipment[147][148]. - The Essential Dental Solutions segment saw a decrease in net sales by $12 million (3.4%) to $357 million for the three months ended September 30, 2025, mainly due to lower sales of preventive and restorative products[141][142]. - Net sales in Europe increased by $35 million (9.9%) to $382 million for the three months ended September 30, 2025, primarily due to higher volumes of treatment centers and imaging equipment[150][151]. Expenses and Costs - SG&A expenses decreased by $35 million (8.8%) to $355 million for the three months ended September 30, 2025, and by $149 million (12.3%) to $1,055 million for the nine months ended September 30, 2025, primarily due to lower marketing expenses and headcount costs[158]. - R&D expenses decreased by $3 million (9.2%) to $37 million for the three months ended September 30, 2025, and by $13 million (10.9%) to $110 million for the nine months ended September 30, 2025, as the company continues to prioritize investments in digital workflow solutions and product development[160]. - The company incurred restructuring and other costs of $18 million for the nine months ended September 30, 2025, compared to $45 million in the same period of 2024, a decrease of 60%[50]. - Restructuring costs decreased to $5 million for the three months ended September 30, 2025, from $23 million in the same period of 2024, and to $18 million for the nine months ended September 30, 2025, from $45 million in 2024[163]. Assets and Liabilities - Total assets decreased to $5,653 million as of September 30, 2025, down from $5,753 million at December 31, 2024, a decline of 1.7%[15]. - Long-term debt increased to $2,017 million from $1,586 million, representing a 27.2% increase[15]. - The accumulated deficit grew to $1,385 million as of September 30, 2025, compared to $835 million at the end of 2024, indicating a 65.8% increase[15]. - Dentsply Sirona's total equity decreased to $1,478 million from $1,943 million, a decline of 23.8%[15]. - The company's total net debt to total capitalization ratio increased to 57.9% as of September 30, 2025, compared to 48.9% at December 31, 2024[190]. Impairments and Charges - Goodwill asset impairment for the nine months ended September 30, 2025, was $409 million, compared to $504 million in 2024[19]. - The Company recorded pre-tax goodwill impairment charges of $262 million for the three months ended September 30, 2025, and $409 million for the nine months ended September 30, 2025, primarily related to the Implant & Prosthetic Solutions reporting unit[161][162]. - An additional pre-tax goodwill impairment charge of $253 million was recorded for the same reporting unit as of September 30, 2025, driven by lower-than-expected volumes[87]. Legal and Regulatory Matters - The Company is involved in multiple securities litigations, including a consolidated class action in the SDNY Court, with claims alleging violations of U.S. securities laws from June 9, 2021, to May 9, 2022[92]. - The Company continues to incur significant legal fees related to these pending cases and may face substantial damages if any lawsuits are decided adversely[107][108]. - The IRS is examining the Company's U.S. federal income tax returns for 2015 and 2016, proposing an adjustment that could result in additional federal income taxes on a distribution of $451 million related to a stock redemption[109]. - The SEC concluded its investigation of the Company and does not intend to recommend any enforcement action against it as of October 14, 2025[93]. Market Conditions and Challenges - The Company has experienced higher prices for certain raw materials, negatively impacting margins, and is facing challenges due to macroeconomic conditions affecting consumer confidence and discretionary spending[124][125]. - The Company delivered a one-year notice of non-renewal for its distribution agreements with Patterson Companies, which could materially affect its business if new agreements are not secured[132]. - The Company's operations in Israel, which contributed approximately 3% of consolidated net sales, remain unaffected by geopolitical conflicts, although sales to Turkey have been impacted by import restrictions[129][130].