Dentsply Sirona Reports Second Quarter 2025 Results

Core Insights - Dentsply Sirona announced a leadership transition with Dan Scavilla appointed as CEO effective August 1, 2025, and Matt Garth as CFO effective May 30, 2025 [1] - The company reported a net sales decrease of 4.9% year-over-year for Q2 2025, totaling $936 million, with a net loss of $45 million compared to a loss of $4 million in Q2 2024 [2][4] - Adjusted earnings per diluted share increased to $0.52 from $0.49 in the same quarter last year, indicating a 6.6% growth [5][10] Financial Performance - Q2 2025 net sales were $936 million, down from $984 million in Q2 2024, reflecting a 4.9% decline [4] - The gross profit for Q2 2025 was $490 million, resulting in a gross margin of 52.4%, slightly up from 51.9% in Q2 2024 [4] - The company recorded a non-cash charge for goodwill and intangible asset impairment of $214 million in Q2 2025, compared to no impairment charges in Q2 2024 [2][11] Segment Performance - The Connected Technology Solutions segment saw a net sales decline of 3.8%, while Essential Dental Solutions experienced a growth of 2.9% [6] - Orthodontic and Implant Solutions faced a significant decline of 18.1% in net sales [6] - Wellspect Healthcare reported a modest increase of 1.2% in net sales [6] Geographic Performance - In the United States, net sales decreased by 18.3%, while Europe saw an increase of 4.3% [7] - The Rest of World segment reported a slight increase of 0.5% in net sales [7] Cash Flow and Liquidity - Operating cash flow for Q2 2025 was $48 million, a decrease from $208 million in Q2 2024, primarily due to unfavorable working capital [8] - The company paid $32 million in dividends during Q2 2025, totaling $64 million returned to stockholders in the first half of 2025 [8] - Dentsply Sirona issued $550 million in junior subordinated notes to repay outstanding amounts under its bridge loan facility [8] 2025 Outlook - The company maintains its 2025 outlook for net sales between $3.60 billion and $3.70 billion, reflecting a decrease of 4.0% to 2.0% on a constant currency basis [12] - Adjusted EPS is projected to be in the range of $1.80 to $2.00 for the year [12]