Dentsply Sirona Reports Third Quarter 2025 Results

Core Insights - Dentsply Sirona reported a net sales decrease of 5.0% to $904 million in Q3 2025, with a net loss of $427 million, an improvement from a loss of $494 million in Q3 2024 [2][3][7] - The company introduced a Return-to-Growth action plan aimed at improving performance and achieving sustained, profitable growth over the next 24 months [3][4] Financial Performance - Q3 2025 net sales of $904 million decreased by 5.0% year-over-year, with a constant currency decrease of 8.0% [2][9] - Adjusted earnings per diluted share were $0.37, down from $0.50 in Q3 2024, while adjusted EBITDA margin improved to 18.4% from 17.9% [2][11][45] - The company recorded a non-cash goodwill impairment charge of $263 million in Q3 2025, compared to $504 million in Q3 2024 [15][41] Return-to-Growth Action Plan - The action plan focuses on four key pillars: enhancing customer experience, reigniting U.S. business growth, empowering employees, and evolving operations for innovation [4][10] - Leadership changes have been made to support the action plan, including the appointment of a new Chief Commercial Officer and a Chief Transformation Officer [5][10] Revised Outlook - Dentsply Sirona revised its 2025 outlook, projecting net sales between $3.6 billion and $3.7 billion, with adjusted EPS expected to be approximately $1.60 [5][6] - The company anticipates a year-over-year sales decline of 5% to 4% in constant currency for 2025 [5] Segment and Geographic Performance - In Q3 2025, the Orthodontic and Implant Solutions segment saw a significant sales decline of 15.0%, while Wellspect Healthcare experienced a growth of 15.6% [12][13] - Geographic performance showed a 22.2% decline in the U.S., contrasted with a 9.9% increase in Europe [13][39] Cash Flow and Liquidity - Operating cash flow for Q3 2025 was $79 million, down from $141 million in Q3 2024, primarily due to unfavorable working capital changes [14] - The company had $363 million in cash and cash equivalents as of September 30, 2025 [14][21]