Q4 2025 Results Paul Keel, CEO February 5, 2026 Forward looking statements/Non-GAAP financial measures FORWARD-LOOKING STATEMENTS Certain statements in this presentation are "forward-looking statements" within the meaning of the U.S. federal securities laws, including statements regarding future financial performance, and the objectives and expectations of management. Terminology such as "believe," "anticipate," "should," "could," "intend," "will," "plan," "expect," "estimate," "project," "target," "may," " ...

Financial Data and Key Metrics Changes - Q2 2025 revenue was $682 million, with core sales increasing by 5.6% year-over-year, aided by customer buying ahead of expected price increases [8][16] - Adjusted EBITDA margin was 12.4%, up 240 basis points from the previous year, supported by G&A productivity improvements [9][16] - Adjusted EPS for Q2 was $0.26, an increase of $0.15 compared to the same quarter last year [16][18] - Free cash flow for Q2 was $76 million, down from the previous year due to higher working capital [26] Business Line Data and Key Metrics Changes - Equipment and consumables revenue grew approximately 7%, while specialty products increased just shy of 5% [9][22] - Specialty Products and Technology segment saw core revenue growth of 7.2%, with adjusted operating margin improving to 13.5% [22] - Equipment and Consumables segment reported a 7.3% increase in core sales, with diagnostics showing mid-single-digit growth in North America [24] Market Data and Key Metrics Changes - Double-digit growth was observed in Latin America, Indo-Pacific, and Middle East and Africa regions [14] - The dental market remains stable, with no significant improvement or deterioration expected in the second half of 2025 [28][32] Company Strategy and Development Direction - The company is focused on a value creation plan that includes accessing untapped growth in core markets, new product innovation, and strategic acquisitions [11][12] - Plans to expand manufacturing in China to support local demand, with a new site in Suzhou [14][15] - Continued investment in R&D, with a 14% increase in the first half of 2025, leading to several new product launches [13] Management's Comments on Operating Environment and Future Outlook - Management noted that macroeconomic conditions have improved slightly, with low unemployment and rising consumer confidence [36][39] - The company anticipates a stable dental market and expects to offset tariff impacts through supply chain actions and cost reductions [29][30] - Future guidance was updated to reflect core revenue growth of 3% to 4% and adjusted EPS of $1.5 to $1.15 [10][27] Other Important Information - The company repurchased $82 million worth of shares in Q2, continuing a $250 million two-year repurchase authorization [27] - The adjusted tax rate for the year is now forecasted at 33%, improved due to strong U.S. profits [30] Q&A Session Summary Question: Was the strength seen across the portfolio surprising? - Management noted that Q2 macro conditions were incrementally better than Q1, with strong growth in orthodontics and consumables [36][38] Question: What drove the outsized growth in brackets and wires? - Increased investment in sales and marketing and a potential shift from clear aligners to brackets and wires contributed to growth [42] Question: How is the China market performing ahead of VBP? - The brackets and wires business in China was down 20-30% year-over-year in the first half, but robust growth is expected in Q4 post-VBP [51] Question: What is the outlook for Spark's profitability? - The company expects Spark to turn EBIT positive in the second half of 2025, with consistent unit cost reductions [59] Question: How are dental practices responding to price increases? - Price increases have been modest and well-received, with a delay in equipment purchases noted across the market [90][91] Question: What is the impact of tariffs on margins? - Tariff costs in Q2 diluted margins by approximately 60 basis points, with expectations of $15 million to $20 million in tariff costs in the second half [80]

Q2 2025 Performance - Core sales growth reached 5.6%[16], with adjusted EBITDA margin at 12.4%[16] and adjusted EPS at $0.26, a 136% year-on-year increase[16] - Specialty Products & Technologies (SP&T) experienced a core sales growth of 4.7%[16], while Equipment & Consumables (E&C) saw a core sales growth of 7.3%[16] - Free cash flow was $76 million[28] H1 2025 Performance - Core sales growth was 2.9%[16], with adjusted EBITDA margin at 12.6%[16] and adjusted EPS at $0.50, a 35% year-on-year increase[16] FY2025 Updated Guidance - Core sales growth guidance raised from 1-3% to 3-4%[16] - EPS guidance increased from $0.95 - $1.05 to $1.05 - $1.15[16] - Adjusted EBITDA margin guidance maintained at approximately 14%[16] Revenue and Growth Analysis - Q2 2025 revenue was $682.1 million, an increase of $49.0 million compared to $633.1 million in Q2 2024[25] - Reported revenue growth was 7.7%, with core growth contributing 5.6%[29] Adjusted EBITDA Analysis - Adjusted EBITDA for Q2 2025 was $84.3 million, compared to $63.0 million in Q2 2024, representing a 34% increase[27, 25] - Adjusted EBITDA margin increased by 240 bps to 12.4%[27, 25]