DENTSPLY SIRONA (NasdaqGS:XRAY) Q4 2025 Earnings call February 26, 2026 04:30 PM ET Company ParticipantsDan Clark - VP of Equity ResearchDan Scavilla - President and CEOElizabeth Anderson - Senior Managing DirectorGlen Santangelo - Managing DirectorJon Block - Managing DirectorMichael Petusky - Managing Director and Senior Research AnlaystMike Pomeroy - Interim CFOWade Moody - Senior Manager of Investor RelationsConference Call ParticipantsAllen Lutz - Senior Equity Research AnalystBrandon Vazquez - Researc ...

Core Insights - Align Technology, Inc. is a leader in the dental and orthodontics sector, known for its innovative Invisalign system, which competes strongly against other manufacturers like Dentsply Sirona and 3M [1] - Stifel Nicolaus has set a price target of $210 for ALGN, indicating a potential price increase of approximately 30.19% from its current price of $161.30 [1][4] Investment Activities - Recent investment activities reflect market confidence in Align Technology's growth prospects, with AE Wealth Management LLC acquiring 5,190 shares valued at around $650,000 [2] - Other firms, such as Steigerwald Gordon and Koch Inc., acquired a new stake valued at about $26,000, while Rothschild Investment LLC increased its holdings by 140.3%, now owning 149 shares worth $28,000 [3] - True Wealth Design LLC significantly raised its holdings by 7,650%, now owning 155 shares, indicating growing confidence in Align Technology's market position [3] Stock Performance - ALGN's current stock price is $161.30, marking a 2.71% increase or $4.25, with fluctuations between $156.25 and $170.08 today [4] - Over the past year, ALGN reached a high of $232.20 and a low of $122, with a market capitalization of approximately $11.57 billion [4] - The trading volume for ALGN on the NASDAQ exchange is 2,930,969 shares [4]

J.P. Morgan Healthcare Conference Dan Scavilla President and Chief Executive Officer January 13, 2026 Forward-Looking Statements and Associated Risks This presentation contains statements that do not directly and exclusively relate to historical facts which constitute forward-looking statements, including, statements and projections concerning, among other things, the Company's return-to-growth action plan described in this presentation and statements and projections regarding the Company's use of technolog ...

Summary of Henry Schein FY Conference Call - December 02, 2025 Company Overview - **Company**: Henry Schein (NasdaqGS: HSIC) - **Industry**: Dental and Medical Distribution Key Points Leadership and Company Performance - Stanley Bergman, the Chairman and CEO, reflected on the company's journey over the past five years, highlighting the impact of COVID-19 on the dental and medical businesses, including a significant increase in PPE sales during the pandemic [4][5][6] - The company faced a cyber incident in October 2023 but managed to recover without paying ransom, which allowed them to stabilize operations [5][6] - The "Bold plus One" initiative has successfully diversified income towards high-growth, high-margin products, now accounting for about 50% of the company's profits, up from approximately 30% [7] Succession Planning - The board is conducting a thorough search for a new CEO, with both internal and external candidates being considered [9][10] KKR Investment - KKR increased its stake in Henry Schein from 12% to 15%, with the potential to reach 20%. The partnership has been beneficial, with KKR adding experienced board members [11][12][14] Market Conditions - The dental market is currently characterized as "stable plus," with patient traffic remaining steady and some growth observed in specialty areas [16][17] - The company reported strong growth in Q3, the highest in many quarters, as they focused on customer recovery post-cyber incident [18][19] Pricing and Tariffs - Tariffs are expected to remain, but their impact on pricing has been manageable. The company has seen some price inflation but believes the market is stable [21][22][23] - Henry Schein offers a broad portfolio of branded and private label products, which helps mitigate tariff impacts [24][26] Future Guidance and Growth - The company aims for high single to low double-digit earnings growth in the future, with a focus on market share gains and value creation initiatives expected to yield over $200 million in operating income improvements by 2026 [27][29][30] - The restructuring plan initiated in 2024 is expected to complement value creation initiatives, leading to additional savings [31] Specialty Franchises and EBIT Goals - The goal is to achieve over 50% of EBIT from higher-margin specialty categories, with current figures around 45% [32][34] Relationships with Manufacturers and DSOs - Relationships with manufacturers are stable, and the company continues to maintain good partnerships with Dental Service Organizations (DSOs) [36][38] - Henry Schein emphasizes its comprehensive solutions, which include not just products but also services that enhance operational efficiency for dental practices [39][45] Equipment Market Outlook - The dental equipment market is expected to grow, driven by new practices opening and existing practices seeking efficiency through digital solutions [48][49] - Despite potential price declines in mature technologies, volume growth is anticipated to compensate for this [50] Excitement for 2026 - The focus for 2026 will be on providing clinical solutions that enhance practice efficiency and improve patient care, with an emphasis on integrating various technologies [51][52] Additional Insights - The company is positioned as a key player in the dental market, leveraging its extensive network and solutions to maintain a competitive edge [37][45]

Core Insights - Dentsply International reported $904 million in revenue for Q3 2025, a year-over-year decline of 4.9%, with an EPS of $0.37 compared to $0.50 a year ago, indicating a significant drop in earnings [1] - The revenue exceeded the Zacks Consensus Estimate of $901.59 million by 0.27%, while the EPS fell short of the consensus estimate of $0.45 by 17.78% [1] Revenue Breakdown - Revenue in the United States was $291 million, below the estimated $333.9 million, reflecting a year-over-year decline of 22.2% [4] - Revenue from the Rest of the World reached $231 million, slightly above the estimated $211.1 million, marking a year-over-year increase of 0.4% [4] - European revenue was $382 million, surpassing the average estimate of $360.92 million, with a year-over-year growth of 10.1% [4] Net Sales Performance - Connected Technology Solutions reported net sales of $259 million, slightly above the estimate of $253.17 million, but down 3.7% year over year [4] - Wellspect Healthcare achieved net sales of $83 million, exceeding the estimate of $76.63 million, with a year-over-year increase of 15.3% [4] - Essential Dental Solutions had net sales of $357 million, below the estimate of $367.93 million, reflecting a year-over-year decline of 3.3% [4] - Orthodontic and Implant Solutions reported net sales of $205 million, slightly above the estimate of $202.59 million, with a year-over-year decrease of 14.9% [4] Adjusted Operating Income - Adjusted Operating Income for Connected Technology Solutions was $10 million, significantly below the estimate of $19.2 million [4] - Wellspect Healthcare's Adjusted Operating Income was $28 million, above the average estimate of $24 million [4] - Orthodontic and Implant Solutions reported Adjusted Operating Income of $22 million, exceeding the estimate of $15.66 million [4] - Essential Dental Solutions had Adjusted Operating Income of $116 million, below the estimate of $127.61 million [4] Stock Performance - Dentsply's shares returned +1.9% over the past month, outperforming the Zacks S&P 500 composite's +1.3% change [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

Financial Data and Key Metrics Changes - In Q3 2025, the company reported sales of $670 million, with core sales increasing by 9.4% year-over-year, aided by foreign exchange contributing approximately 200 basis points [12][16] - Adjusted EBITDA margin was 14.5%, up 540 basis points from the prior year, driven by improved gross margins and strong G&A productivity [13][22] - Adjusted EPS for the quarter was $0.32, more than double the Q3 2024 result, with year-to-date adjusted EPS reaching $0.82, a 67% increase over the same period last year [6][13] Business Line Data and Key Metrics Changes - Specialty products and technology revenue grew 13% year-on-year, with core sales up 10.6%, while the orthodontics business, particularly Spark, saw high teens growth before deferral benefits [17][18] - The equipment and consumables segment experienced core sales growth of 7.3%, with double-digit growth in consumables [19] - Diagnostics core sales growth was modestly positive for the second consecutive quarter, supported by new product launches [66] Market Data and Key Metrics Changes - The company maintained a strong position in the orthodontic market, with Spark aligners achieving profitability and significant growth, outperforming the overall aligner market [30][11] - In North America, the company reported above-market growth in implants, with a strong performance in both premium and challenger segments [42] - The dental market remains stable, although macroeconomic uncertainties continue to impact discretionary procedures [23] Company Strategy and Development Direction - The company is focused on growth, operations, and people, with significant investments in R&D and marketing to support new product launches and market share gains [7][10] - The company aims to achieve fleet average margins for Spark aligners, leveraging economies of scale and a comprehensive product portfolio [27][28] - Continued expansion in key markets, including China, is a priority, with ongoing monitoring of regulatory changes impacting the implant market [36][49] Management's Comments on Operating Environment and Future Outlook - Management noted that underlying patient demand remains stable but below long-term levels, with macroeconomic uncertainty affecting some segments [23] - The company is optimistic about future growth, expecting continued margin and market share gains, particularly in the Spark business [11][30] - Management anticipates that the tariff landscape will remain fluid but is on track to offset tariff costs for the full year [39] Other Important Information - The company has repurchased over $140 million worth of shares year-to-date as part of a $250 million two-year repurchase authorization [21] - A new multipurpose diagnostic center is being developed in Finland, enhancing the company's innovation capabilities in dental imaging [9] Q&A Session Summary Question: What is the trajectory of margins for the Spark business now that it is profitable? - Management expects Spark margins to eventually reach fleet average, supported by cost improvements and commercial efficiencies [27][28] Question: Can you elaborate on the market share of the Spark business? - Spark has consistently outgrown the global aligner category, achieving high teens growth in Q3, significantly outperforming the overall market [29][30] Question: What are the expectations regarding the VBP impact in China? - Management expects a destocking phase followed by a new price level and restocking impact, but anticipates VBP 2 to be smaller than VBP 1 [49] Question: How is the company positioned in the implant market? - The company has seen four consecutive quarters of positive growth in implants, with strong new product launches contributing to this momentum [42] Question: What is the outlook for the diagnostics business? - The diagnostics segment has shown positive growth for two consecutive quarters, aided by new product launches and improving market conditions [66]

Financial Data and Key Metrics Changes - The company's Q2 results were slightly below expectations, leading to initial stock pressure, but the stock price has since recovered to pre-release levels, indicating improved investor understanding of the company's guidance [3][4] - The company expects a significant increase in EPS in Q3 compared to Q2, driven by improvements in equipment sales and growth in the technology segment, which saw over 30% operating income growth year-over-year in Q2 [9][10] Business Line Data and Key Metrics Changes - The dental market in the U.S. has been relatively flat, with low single-digit growth, influenced by factors such as retirements and disruptions caused by the pandemic [11][12] - The company anticipates stronger Q4 revenues compared to Q3, particularly in equipment sales, due to tax incentive buying and a recovery in customer ordering patterns [6][8] Market Data and Key Metrics Changes - The company has observed a double-digit increase in renovation or expansion activities from customers, particularly among Dental Service Organizations (DSOs), indicating a stronger appetite for equipment investment compared to private practices [43][44] - The company is facilitating financing for approximately 50% of larger equipment sales, helping customers secure competitive rates [45] Company Strategy and Development Direction - The company is focusing on value creation projects aimed at optimizing gross profits and G&A costs, with expectations to provide updates on these initiatives in the upcoming Q3 earnings release [22][24] - The company is also exploring M&A opportunities, particularly in the medical and technology sectors, to enhance its offerings and expand its market presence [32][35] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about potential growth in the dental market with the expectation of declining interest rates, which could accelerate the opening of new dental practices [13][15] - The company is preparing for 2026 by assessing market growth rates and trends in core dental and medical segments, as well as the impact of tariffs on pricing and negotiations [20][21] Other Important Information - The company is in the assessment phase for its value creation projects, aiming for both short-term benefits and long-term sustainable value [25][29] - The CEO search is ongoing, with the board leading the effort to find a suitable successor [41][42] Q&A Session Summary Question: What investor feedback have you received post Q2? - Investors were initially concerned about the Q2 results but have since recovered confidence as they understand the company's guidance better [3][4] Question: How do you see the rest of the year playing out from a revenue perspective? - Q4 is expected to outperform Q3, particularly in equipment sales, driven by tax incentives and improved customer ordering patterns [6][8] Question: What are the potential headwinds and tailwinds for 2025? - The dental market has been flat, but potential interest rate declines could stimulate growth in new dental practices [11][13] Question: Can you elaborate on the value creation projects? - The company is currently assessing opportunities for optimizing gross profits and G&A costs, with updates expected in the Q3 earnings release [22][24] Question: What is the status of the CEO search? - The board is actively searching for a new CEO, acknowledging the challenge of finding a successor to Stanley Bergman [41][42]

Financial Data and Key Metrics Changes - The company's Q2 results were slightly below expectations, leading to initial stock pressure, but the stock price has since recovered to pre-release levels, indicating improved investor understanding of the company's guidance for the year [3][4] - EPS guidance suggests significant increases in Q3 and Q4 compared to Q2, driven by improvements in equipment sales and technology business performance, with over 30% operating income growth in the technology segment [9][10] Business Line Data and Key Metrics Changes - Equipment sales faced pressure in the first half of the year due to macroeconomic uncertainties, but there is confidence in equipment growth in the second half, supported by a healthy backlog and customer ordering patterns [6][8] - The technology segment showed strong momentum, with targeted investments leading to significant operating income growth [9] Market Data and Key Metrics Changes - The U.S. dental market has been relatively flat, with low single-digit growth, influenced by factors such as retirements and patient churn during the pandemic [11][12] - There is optimism for future growth in the dental market as interest rates potentially decline, which could accelerate the opening of new dental practices and increase demand for equipment [13][15] Company Strategy and Development Direction - The company is focusing on value creation projects aimed at optimizing gross profits and G&A costs, with expectations to provide updates on these initiatives in the upcoming Q3 earnings release [22][25] - M&A activity is primarily focused on the medical side, with successful integration of home solutions businesses and potential acquisitions in technology to enhance service offerings [35][38] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the need to understand market growth opportunities and the impact of tariffs on pricing and negotiations [21][22] - There is a belief that the dental market will see increased investment as economic conditions improve, particularly with declining interest rates [14][15] Other Important Information - The company is in the assessment phase for value creation projects, with expectations for both short-term and long-term benefits [26] - The new e-commerce platform has received positive feedback, enhancing customer experience and potentially increasing order sizes and margins [49][51] Q&A Session Summary Question: What are investors focused on post Q2? - Investors are focused on understanding initiatives to accelerate earnings and the company's guidance for the remainder of the year [3][4] Question: How do you see the rest of the year playing out from a revenue perspective? - Q4 is expected to be stronger than Q3 due to seasonal equipment buying and improved customer ordering patterns [6][8] Question: What are the potential headwinds and tailwinds for 2025? - The dental market has been flat, but potential interest rate declines could lead to growth in new practices and equipment demand [11][13] Question: Can you elaborate on the value creation projects? - The company is currently assessing opportunities for optimizing gross profits and G&A costs, with updates expected in the Q3 earnings release [22][25] Question: What is the status of the CEO search? - The board is leading the search for a new CEO, emphasizing the importance of finding an effective leader [43][44] Question: Are you seeing differences in capital demand between DSO and non-DSO customers? - DSOs show more appetite for equipment investment compared to private practices, influenced by their access to capital [45] Question: What feedback did you receive from the e-commerce platform launch in Europe? - Customers appreciated the smooth transition and improved functionality of the new platform, enhancing their overall experience [52][53]

Financial Data and Key Metrics Changes - Global sales for Q2 were $936 million, a decrease of 5% as reported or a negative 7% on a constant currency basis, with adjusted EBITDA margin at 21%, increasing 360 basis points year-over-year [12][20] - Adjusted earnings per share were $0.52, growing 7% compared to the prior year, driven primarily by active cost reduction programs [12][20] - Cash flow from operations was $48 million for the quarter, a decline from $28 million in the prior year quarter [21] Business Line Data and Key Metrics Changes - EDS (Endo, Resto, and preventative products) sales increased 1.1% on a constant currency basis, with growth in the rest of the world, but lower volumes in Europe and the US [22] - OIS (Orthodontic and Implant Solutions) sales declined 19.4% in constant currency, with BiTE accounting for over half of the decline [22] - CTS (Connected Technology Solutions) sales fell 5.9% in constant currency, with double-digit growth in imaging in Europe offset by declines in CADCAM and imaging in the US [22] Market Data and Key Metrics Changes - US sales in Q2 were $293 million, down 18% in total or 11% excluding the BiTE impact, primarily driven by softness in connected technology solutions and orthodontic and implant solutions [14] - European sales were approximately $400 million, flat compared to Q2 of the prior year, with Germany showing growth driven by CTS and SureSmile, which was up over 27% [15] - Rest of world sales were $239 million, slightly up versus the prior year, with growth in essential dental solutions and SureSmile up double digits [15] Company Strategy and Development Direction - The company aims to enhance customer experience and support through simplified interactions and increased strategic investments [10] - Focus on innovation and speed to market, with a goal to shape the future of markets by partnering with practitioners [10] - The DS Core platform is a critical element of the strategy, with 50,000 unique users and increasing connected devices and lab orders processed [10] Management's Comments on Operating Environment and Future Outlook - Management noted that global patient volumes and procedures remained largely unchanged, with a focus on long-term strategies rather than short-term market fluctuations [32] - The company is maintaining its full-year 2025 outlook for sales, adjusted EBITDA margin, and adjusted EPS despite current challenges [26] - Management emphasized the importance of focusing on customer needs and improving execution to drive growth [95] Other Important Information - The company recorded a non-cash after-tax charge of approximately $214 million related to the impairment of goodwill and other intangible assets within the OIS and CCS segments [20] - The company completed a $550 million hybrid bond offering in Q2, enhancing financial flexibility [21] Q&A Session Summary Question: Overview of the broader dental market - Management indicated that patient volumes remain stable, but procedural utilization in elective areas like implants and ortho continues to be soft, with a focus on long-term strategies [31] Question: Distributor stock dynamics - Management noted no significant revenue impact from distributor stock changes, with healthy positions in imaging and CADCAM [34] Question: Motivation for joining Dentsply - The new CEO expressed interest in applying operational experience to enhance Dentsply's performance and accelerate growth [39] Question: Performance of implants - Management reported a decline in premium implants due to the transition from legacy brands, with expectations for growth driven by sales force changes and new consumer experiences [43] Question: Tariff assumptions - The annualized impact of tariffs has increased from $50 million to $80 million, with ongoing efforts to mitigate costs through supply chain efficiencies [48] Question: Adjustments on BiTE - A $4 million adjustment was noted for BiTE in Q2, with no further changes anticipated for the second half of the year [52] Question: Portfolio assessment - The CEO believes Dentsply is well-positioned in the market, with a focus on organic growth while remaining open to opportunistic acquisitions [58] Question: Market share dynamics in implants - Management acknowledged challenges in the value implant segment due to Middle East volatility but expects stronger performance in the second half of the year [90]

Financial Data and Key Metrics Changes - Global sales for the second quarter were $3.2 billion, reflecting a sales growth of 3.3% compared to the previous year, with constant currency sales growing by 2.7% [26][27] - GAAP operating margin decreased to 4.67%, down 42 basis points year-over-year, while non-GAAP operating margin was 6.96%, a decrease of 79 basis points [27] - GAAP net income for the second quarter was $86 million or $0.70 per diluted share, compared to $104 million or $0.80 per diluted share in the prior year [28] - Non-GAAP net income was $135 million or $1.10 per diluted share, down from $158 million or $1.23 per diluted share year-over-year [28] Business Line Data and Key Metrics Changes - U.S. Dental merchandise sales declined by 1.2% due to lower product pricing, while U.S. Dental equipment sales fell by 4.7% due to economic uncertainty [30] - U.S. Medical Distribution business sales grew by 6.3%, driven by increased patient traffic and strong performance in the Home Solutions business [31] - Global Specialty Products Group sales increased by 4.2%, with solid growth in the implant and biomaterial business, including double-digit growth in value implants [32][33] - Global Technology Group sales grew by 7.4%, driven by strong growth in practice management software and revenue cycle management solutions [33] Market Data and Key Metrics Changes - International Dental merchandise sales grew by 1.9%, impacted by the timing of Easter, while international Dental equipment sales grew by 12.1% [31] - Sales growth in Brazil was particularly strong, and international sales growth was also noted in Canada and Europe [14][15] Company Strategy and Development Direction - The company is maintaining its full-year guidance, expecting earnings to be weighted towards the second half of the year, aiming for high single-digit to low double-digit earnings growth [7][8] - The company is partnering with KKR's Capstone and engaging global management consulting firms to enhance distribution gross margins and increase efficiencies [7][9] - The Bold plus One strategy is being expanded to drive superior customer satisfaction and financial goals [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about returning to high single-digit to low double-digit earnings growth, supported by strong July sales and targeted sales initiatives [41][42] - The management noted that patient traffic in dental markets remains stable, with dentists investing in productivity-enhancing devices [50][51] - The company is focused on enhancing gross margins through pricing strategies and improving operational efficiencies [61][62] Other Important Information - The CEO announced plans to retire at the end of the year, transitioning to the role of Chairman of the Board, emphasizing the company's growth and development over the past 45 years [22][24] - The company has initiated restructuring efforts expected to yield annual run rate savings of over $100 million by the end of 2025 [35] Q&A Session Summary Question: Insights on July sales and patient traffic - Management reported positive trends in July sales, with stable patient traffic and a return to normal merchandise pricing [48][50] Question: Current state of consulting engagements - Management highlighted two key areas of focus with consulting firms: driving gross profit and restructuring for efficiency [58][60] Question: EPS cadence in the second half of the year - Management expects EPS growth to be more weighted towards the second half of the year, driven by targeted sales initiatives and backlog improvements [69][70] Question: Updates on orthodontics and aligner integration - Management noted that the orthodontics business is small but stabilizing, with efforts to improve profitability and product offerings [75][78] Question: Impact of targeted sales initiatives - Management indicated that targeted sales initiatives successfully addressed lost sales and improved customer engagement [90][92] Question: Competitive balance and RFPs from larger customers - Management acknowledged that RFPs are normal for larger customers, and the company remains a trusted supplier, working collaboratively to mitigate tariff impacts [96][99]