Key Takeaways ALGN is expanding Invisalign with new products and international regulatory approvals. ALGN's iTero Lumina scanner gains traction with added restorative features and software upgrades. Align Technology has zero debt and strong cash flow, but forex pressures continue to impact revenues.Align Technology’s (ALGN) successful efforts to broaden the Invisalign business are poised to bring significant growth in the upcoming quarters. Also, iTero is gaining from the rapidly evolving intraoral scanni ...

Core Viewpoint - DENTSPLY SIRONA (XRAY) is positioned for growth through its new digital-implant workflow and ongoing research and development focus, although it faces forex headwinds and demand softness in Europe [1][3]. Company Overview - DENTSPLY SIRONA has a market capitalization of $3.23 billion and is a global leader in dental consumables, laboratory products, specialty products, and medical devices, with an expected earnings improvement of 7.4% over the next five years [2]. Growth Factors - The introduction of the Azento solution is transforming digital implant workflows, enhancing planning, purchasing, and delivery for single-tooth replacements, now available in Canada and Europe, positioning the company in the $20 billion global tooth-replacement market [3][6]. - Demand for 3D imaging and treatment centers is increasing due to technological upgrades and supply-chain recovery, while the company's expansion in clear aligners further enhances its digital dentistry ecosystem [3]. - DENTSPLY SIRONA's growth strategy is heavily reliant on product innovation, supported by increased R&D spending, which reached $36 million in Q1 2025, aimed at delivering sustainable innovation [4][7]. Financial Performance - In Q1 2025, DENTSPLY SIRONA reported an adjusted operating profit of $72 million, a 46.9% increase from the previous year, with an adjusted operating margin expanding by 305 basis points to 8.2% [8]. - The Zacks Consensus Estimate for 2025 revenues is $3.65 billion, reflecting a 3.7% decrease from 2024, while the consensus for adjusted earnings per share is $1.90, indicating a 13.8% year-over-year improvement [10]. Challenges - There is a noted softness in demand for CAD/CAM products in Europe, particularly in Germany, which is impacting sales and is expected to continue affecting the company in the upcoming quarters [9].

Core Insights - ZimVie Inc. has launched its RealGUIDE Software Suite and Implant Concierge service in Japan, enhancing access to a digital dental implant ecosystem [1][2] - The Japanese dental implant market is significant, representing ZimVie's largest market in the APAC region [1] Product Offerings - RealGUIDE software provides comprehensive tools for precise implant planning, surgical guides, and restorative design, aimed at improving patient care and operational efficiencies [2] - The software is the first complete cloud-based solution of its kind, consisting of multiple modules for thorough diagnosis and advanced design [2] - Implant Concierge is a virtual outsourcing service that simplifies implant treatment planning and guided surgery, designed for high-volume practices [3] Market Opportunity - The rising adoption of dental implants presents a substantial growth opportunity, necessitating more efficient and integrated treatment workflows [4] - Digital dentistry is becoming the new standard in implantology, with ZimVie experiencing strong traction in other markets [4]

Financial Data and Key Metrics Changes - In Q1, the company reported revenue of $879 million, representing a decline of 7.7% year-over-year, with organic sales down 4.4% due to a negative 4% BiTE impact [23][24] - Adjusted EPS for the quarter was $0.43, up 3.7% from the prior year, driven by higher adjusted EBITDA margins and a lower share count [25] - Adjusted EBITDA margins expanded by 220 basis points, benefiting from lower operating expenses and transformational savings [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. [27] - Orthodontic and Implant Solutions segment experienced a significant organic sales decline of 17.7%, primarily due to the loss of a DSO customer in the U.S. and lower lab volumes globally [28] - Connected Technology Solutions segment reported a slight organic sales decline of 0.5%, largely due to CADCAM declines in the U.S., although imaging performance showed growth across all regions [29] Market Data and Key Metrics Changes - U.S. organic sales declined by 14.9%, primarily impacted by a negative 9.8% from BiTE, while imaging growth was noted [31] - Europe saw organic sales increase by 1.1%, driven by strong performance in Germany, particularly in equipment and instruments [34] - Rest of World organic sales grew by 3.1%, with growth in imaging and WellSpec in China, offset by CADCAM declines [35] Company Strategy and Development Direction - The company is focused on driving reliable and sustainable performance, emphasizing customer-centric product innovation and operational efficiency [8][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 through revamped websites and a new e-commerce platform [19][20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating global trade challenges and has developed plans to mitigate potential impacts from tariffs [7][12] - Despite a challenging macroeconomic environment, the company maintained its outlook for organic sales and adjusted EPS for 2025, while increasing reported sales expectations due to foreign currency translation changes [12][36] - Management noted stable patient volume and procedure utilization, although U.S. dentists expressed concerns about economic conditions affecting patient footfall [11] Other Important Information - The company is actively managing its balance sheet and has taken actions to strengthen its position, including entering into a bridge loan agreement [26] - 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 an annualized impact of approximately $50 million, with about $0.10 impact on EPS [49][50] Question: Update on CFO search? - Management reported good progress in the CFO search, with candidates in the late phases of the process [52] Question: Insights on orthodontics and SureSmile? - Management acknowledged the need to reengage with the orthodontist community and improve user experience for SureSmile [58] Question: Clarification on EBIT margin? - Management noted that Q1 EBIT margin improvements are indicative of future performance, with a focus on judicious SG&A management [62] Question: Cash flow and CapEx expectations? - Management expects CapEx to decrease as ERP projects roll off, leading to improved free cash flow [108]

DENTSPLY SIRONA (XRAY) Q1 2025 Earnings Call May 08, 2025 08:30 AM ET Speaker0 Please be advised that today's conference is being recorded. I would now like to hand the call over to Andrea Daley, Vice President of Investor Relations. Please go ahead. Speaker1 Thank you, operator, and good morning, everyone. Welcome to the Dentsply Thirona first quarter twenty twenty five earnings call. Joining me for today's call is Simon Campion, Chief Executive Officer and Rich Rosenzweig, Executive Vice President, Corpor ...

Core Insights - Solventum Corporation (SOLV) has partnered with SprintRay to introduce a revolutionary solution for digital dentistry, enabling high-quality, same-day dental restorations through advanced 3D printing technology [1][3] - This collaboration aims to enhance dental care by reducing turnaround time and improving the quality of restorations, providing dental professionals with reliable and cost-effective treatment options [2][4] Company Developments - The partnership introduces the first permanent, chairside 3D-printed crown, combining Solventum's expertise in advanced dental materials with SprintRay's 3D printing technology [3] - The initiative focuses on enhancing patient experience and clinical efficiency by minimizing chair time, reducing office visits, and lowering treatment costs [4][5] Industry Prospects - The global digital dentistry market was valued at $6 billion in 2024 and is projected to reach approximately $19.66 billion by 2034, with a CAGR of 12.6% from 2024 to 2034 [6] - Market growth is driven by the return on investment from digital dentistry equipment, efficiency of same-day procedures, and increasing demand for aesthetic treatments [7] Competitive Landscape - Align Technology, Inc. (ALGN) is enhancing its product offerings in orthodontics and dentistry, including new capabilities for its iTero Lumina intraoral scanner [8] - Dentsply Sirona (XRAY) is driving innovation with product developments like the Primescan 2 intraoral scanner and enhancements to the DS Core platform [10][11] - Envista Corporation (NVST) is advancing digital dentistry with new offerings from DEXIS, including a new CBCT platform and the DEXIS Ti2 Sensor [12][13]