Financial Data and Key Metrics Changes - Global sales for Q3 2025 were $3.3 billion, reflecting a sales growth of 5.2% compared to Q3 2024, with constant currency sales growth of 4.0% [17] - GAAP operating margin for Q3 2025 was 4.88%, a decrease of six basis points year-over-year, while non-GAAP operating margin was 7.83%, an increase of 19 basis points [18] - GAAP net income for Q3 2025 was $101 million, or $0.84 per diluted share, compared to $99 million, or $0.78 per diluted share in the prior year [19] - Non-GAAP net income for Q3 2025 was $167 million, or $1.38 per diluted share, compared to $155 million, or $1.22 per diluted share in Q3 2024 [19] Business Line Data and Key Metrics Changes - Global distribution and value-added services group sales grew by 4.8%, with U.S. dental merchandise sales increasing by 3.3% and U.S. dental equipment sales growing by 1.2% [22] - Global specialty products group sales grew by 5.9%, with strong performance in implants and biomaterials, particularly in the value segment [23] - Global technology group sales grew by 9.7%, driven by practice management software and revenue cycle management solutions [23] Market Data and Key Metrics Changes - U.S. medical distribution sales grew by 4.7%, despite lower demand for influenza vaccines and respiratory diagnostic products [22] - International dental merchandise sales grew by 6.0%, with strong performance in Brazil, Canada, Italy, Spain, and Australia [22] - International implant sales increased by high single digits, particularly in the Dutch region and Latin America [12] Company Strategy and Development Direction - The company is focused on executing the BOLD+1 strategy, aiming for over 50% of non-GAAP operating income to come from high-growth, high-margin businesses by the end of 2027 [8] - A $750 million increase in the share repurchase program was approved, with expectations to continue buybacks at a similar pace [8] - The company is rolling out a new global e-commerce platform, with a phased launch in North America expected [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in returning to long-term goals of high single-digit to low double-digit earnings growth, supported by ongoing value creation initiatives [6][24] - The cyber incident is now behind the company, and management is optimistic about sales momentum and market share gains [36] - The effective tax rate for Q3 2025 was 22.9%, with expectations to return to a range of 24-25% in Q4 [19] Other Important Information - The company recorded restructuring expenses of $34 million in Q3 2025, with expectations of achieving annual run-rate savings of over $100 million from the restructuring program [24] - The company generated strong operating cash flow of $174 million in Q3 2025, compared to $151 million in Q3 2024 [25] - The company celebrated its 30th anniversary since its IPO, highlighting significant growth over the years [28] Q&A Session Summary Question: Comments on future earnings growth and restructuring benefits - Management indicated that the $200 million operating income improvement from value creation initiatives is a multi-year plan, with some benefits expected in 2026 [36][38] Question: Clarification on EPS guidance and remeasurement gain - The midpoint of 2025 EPS guidance increased by $0.05, reflecting stable markets and sales momentum, with the remeasurement gain contributing $0.08 [39][40] Question: Market stability and share gains - Management noted that the market is generally stable, with some inflation, and that the company is gaining market share in distribution and specialty products [41][42] Question: Specialty products operating profit and margin dynamics - Management acknowledged that while specialty products' operating profit was up, the growth in value implants diluted margins compared to premium implants [49][50] Question: Phasing of the $200 million operating income improvement - Management stated that the $200 million is a net opportunity for operating income improvement, with some reinvestments expected [56][57]