Financial Data and Key Metrics Changes - Global sales for the third quarter were $3.3 billion, reflecting a sales growth of 5.2% compared to the third quarter of 2024, with constant currency sales growth of 4.0% [17][22] - GAAP operating margin for the third quarter was 4.88%, a decrease of six basis points year-over-year, while non-GAAP operating margin improved to 7.83%, an increase of 19 basis points [18][19] - Third quarter GAAP net income was $101 million, or $0.84 per diluted share, compared to $99 million, or $0.78 per diluted share in the prior year [20] - Non-GAAP net income for the third quarter was $167 million, or $1.38 per diluted share, compared to $155 million, or $1.22 per diluted share in the prior year [20] 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 experienced a total growth of 9.7%, driven by practice management software and revenue cycle management solutions [23][14] Market Data and Key Metrics Changes - U.S. medical distribution sales grew by 4.7%, driven by strong demand for medical products and pharmaceuticals, particularly in the dialysis business [10][22] - International dental merchandise sales grew by 6.0%, with notable growth in Brazil, Canada, Italy, Spain, and Australia [22] - International implant sales increased by high single digits, particularly in the Dutch region and Latin America [13] 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][25] - The company is rolling out a new global e-commerce platform, with a phased launch in North America expected to follow the successful launch in the U.K. and Ireland [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in returning to high single-digit to low double-digit earnings growth, supported by ongoing value creation initiatives targeting over $200 million in operating income improvements [7][24] - The cyber incident is now behind the company, and management is optimistic about sales momentum and market share gains [39][32] - The overall market is described as stable, with some inflationary pressures, but the company is gaining market share in key segments [51][49] Other Important Information - The company recorded restructuring expenses of $34 million during the third quarter, with expectations of achieving annual run-rate savings of over $100 million from the restructuring program [24] - The effective tax rate for the third quarter on a non-GAAP basis was 22.9%, reflecting a decrease from the prior year [20] Q&A Session Summary Question: Future earnings growth and restructuring benefits - Management indicated that the $200 million operating income improvement is a multi-year plan, with expectations for some operating improvements in 2026 [40][41] Question: Clarification on EPS guidance and market conditions - The midpoint in 2025 EPS guidance increased by $0.05, reflecting both the remeasurement gain and sales momentum [44][47] Question: Specialty products operating profit and margin dynamics - Specialty products' operating profit was impacted by a strong prior-year comparison and a shift in sales mix towards lower-margin value implants [66] Question: Growth trajectory for specialty products - Continued growth in premium implants and endodontic sales is necessary for EBIT dollar growth in the specialty business [71] Question: Market share gains and competitive landscape - Management noted confidence in gaining market share, particularly in the dental and medical segments, despite a stable market environment [49][85]