Envista Holdings Corporation · NYSE:NVST
Envista — Q2 2025 Earnings Presentation
26 slides from Envista's earnings presentation, Jul 31, 2025
Slide 1: Q2 2025 Results
We partner with dental professionals to improve patients’ lives Q2 2025 Results July 31, 2025 01/01/2025 1
Slide 2: Forward looking statements/Non-GAAP financial measures
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 expec
Slide 3: Agenda
Agenda Paul Keel Opening Thoughts Strategic and Operational Update Eric Hammes Financial Results – Q2 2025 Updated FY 2025 Guidance Paul Keel Closing Thoughts Q&A 3
Slide 4: Opening Thoughts
Opening Thoughts Q2 & H1 performance Executing our value creation plan Raising 2025 Guidance • Q2 Performance • Growth • Raising FY25 core growth guidance − 5.6% core growth − E&C +7.3% core growth from 1-3% to 3-4% − 12.4% Adj. EBITDA margin − SP&T +4.7% core growth − $0.26 adjusted EPS, +136% • Ra
Slide 5: Envista’s Value Creation Plan
Envista’s Value Creation Plan 2025 Growth Core Growth 3 - 4% Adj. ~14% We partner EBITDA with dental Adj. EPS $1.05 - $1.15 professionals Operational to improve Excellence Medium-term1 patients’ lives Core Growth 2 - 4% Adj. EBITDA 4 - 7% Growth People Adj. EPS 7 - 10% Growth FCF Conversion ~100% 1
Slide 6: H1 Strategic and Operational Update
H1 Strategic and Operational Update Growth Operations Accessing market growth: • Ongoing broad-based contributions from EBS • Effective price capture • G&A spending down 15% • 5% increase in Sales & Marketing investment • Customer service levels again above 95% • High-impact customer events included
Slide 7: Q2 2025 | Financial Metrics
Q2 2025 | Financial Metrics Q2 Q2 Summary Key Metric vPY 2025 2024 Revenue $ 682.1M $633.1M +$49.0M • 5.6% Core Growth o Growth in all major businesses and major geographies Core Sales Growth(%) 5.6% -3.2% +880 bps o Helped by customer buy ahead and Q2’24 comparable Adjusted Gross Margin 54.4% 54.2%
Slide 8: Q2 2025 | Reported Revenue
Growth Rate % Reported Revenue +7.7% Q2 2025 | Reported Revenue Core Growth % +5.6% $2M $1M $682M $9M $12M $25M $633M Q2 Volume FX Price Spark Acquisition Q2 2024 Deferral 2025 8 Core Growth is a non-GAAP measure. See appendix for reconciliation.
Slide 9: Q2 2025 | Adjusted EBITDA
Q2 2025 | Adjusted EBITDA 0.2% 1.3% -0.6% 1.6% 2.3% 12.4% -2.4% 10.0% Q2 2024 PY 1x Costs Vol/Mix Price Productivity Tariff Costs FX Q2 2025 & Investment 9 Adj. EBITDA Margin is a non-GAAP measure. See appendix for reconciliation.
Slide 10: Q2 2025 | Specialty Products & Technologies
Q2 2025 | Specialty Products & Technologies Revenue ($M) Core Sales Growth +4.7% Revenue $415.1 • Spark sales grew DD with minimal impact from net deferral change Q2 2024 • Brackets & Wires up HSD $445.1 • Premium grew for 3rd straight quarter; up LSD globally and in North America Q2 2025 • Challeng
Slide 11: Q2 2025 | Equipment & Consumables
Q2 2025 | Equipment & Consumables Revenue ($M) Core Sales Growth +7.3% Revenue Q2 2024 $218.0 • Consumables up DD against softer prior year comparable • Diagnostics up LSD globally, up MSD in North America Q2 2025 $237.0 Adjusted Operating Margin Adjusted Operating Margin Q2 2024 16.1% • Margin expa
Slide 12: Q2 2025 | Cash Flow
Q2 2025 | Cash Flow Q2 2025 Q2 2024 H1 2025 H1 2024 Operating Cash Flow $88.7M $93.1M $89.0M $133.4M Capital Expenditure, net $12.3M $6.8M $17.7M $17.8M Free Cash Flow $76.4M $86.3M $71.3M $115.6M Net Debt / Adj. EBITDA of ~1X 4.8M shares repurchased in Q2 12 Free Cash Flow is a non-GAAP measure. Se
Slide 13: FY 2025 | Updated Guidance
FY 2025 | Updated Guidance Current 2025 Guidance Prior 2025 Guidance Core Sales Growth 3% to 4% 1% to 3% Adj. EBITDA Margin ~14% ~14% Adj. EPS $1.05 to $1.15 $0.95 to $1.05 These forward-looking estimates do not reflect future gains and charges that are inherently difficult to predict and estimate d
Slide 14: FY 2025 | Updated Guidance Assumptions
FY 2025 | Updated Guidance Assumptions Key Driver Assumptions Dental Market Continued stable market with no significant improvement in the second half Exchange Rates Revenue benefit of ~150 bps year over year; no significant net impact to EBITDA or EPS Tariffs Tariff cost offset by supply chain, pri
Slide 15: Closing Thoughts
Closing Thoughts • Stable dental market fundamentals, with continued macro uncertainty • Continuing to execute on value creation plan communicated at our March CMD • Q2 core growth of 5.6%, aided in part by customers buying ahead of expected price and tariff impacts, resulting in H1 growth of 2.9% •
Slide 16: Q&A
Q&A 16
Slide 17: Appendix Non-GAAP Reconciliations
Appendix Non-GAAP Reconciliations 17
Slide 18: Reconciliations | Adjusted Gross Profit and Adjusted Gross Margin
Reconciliations | Adjusted Gross Profit and Adjusted Gross Margin ($ in Millions) Three Months Ended Six Months Ended June 27, 2025 June 28, 2024 June 27, 2025 June 28, 2024 Gross Profit $ 369.9 $ 326.6 $ 705.9 $ 682.9 Restructuring costs and asset impairments B 0.3 16.3 2.2 18.0 Fair value adjustme
Slide 19: Reconciliations | Adjusted Operating Profit
Reconciliations | Adjusted Operating Profit ($ in Millions) Three Months Ended Six Months Ended June 27, 2025 June 28, 2024 June 27, 2025 June 28, 2024 Consolidated Operating Profit (Loss) $ 46.3 $ (1,153.3) $ 85.3 $ (1,105.2) Amortization of acquisition-related and other intangible assets 19.0 22.4
Slide 20: Reconciliations | Adjusted Net Income
Reconciliations | Adjusted Net Income ($ in Millions) Three Months Ended Six Months Ended June 27, 2025 June 28, 2024 June 27, 2025 June 28, 2024 Net Income (Loss) $ 26.4 $ (1,151.6) $ 44.4 $ (1,128.0) Amortization of acquisition-related and other intangible assets 19.0 22.4 37.8 45.0 Goodwill and i
Slide 21: Reconciliations | Adjusted Diluted Earnings Per Share and Diluted Shares Outstanding
Reconciliations | Adjusted Diluted Earnings Per Share and Diluted Shares Outstanding Three Months Ended Six Months Ended June 27, 2025 June 28, 2024 June 27, 2025 June 28, 2024 Diluted Earnings (Loss) $ 0.16 $ (6.69) $ 0.26 $ (6.56) Amortization of acquisition-related and other intangible assets 0.1
Slide 22: Reconciliations | Adjusted EBITDA
Reconciliations | Adjusted EBITDA ($ in Millions) Three Months Ended Six Months Ended June 27, 2025 June 28, 2024 June 27, 2025 June 28, 2024 Net Income (Loss) $ 26.4 $ (1,151.6) $ 44.4 $ (1,128.0) Interest expense, net 8.0 11.7 17.3 24.6 Income tax expense (benefit) 14.3 (14.5) 25.3 (2.8) Depreciat
Slide 23: Reconciliations | Core Sales Growth
Reconciliations | Core Sales Growth1 % Change Three Month % Change Six Month Period Period Ended June 27, 2025 Ended June 27, 2025 vs. Consolidated vs. Comparable 2024 Period Comparable 2024 Period Total sales growth 7.7 % 3.4 % Plus the impact of: Acquisitions (0.2)% (0.1)% Currency exchange rates
Slide 24: Reconciliations | Free Cash Flow
Reconciliations | Free Cash Flow ($ in Millions) Three Months Ended Six Months Ended June 27, 2025 June 28, 2024 June 27, 2025 June 28, 2024 Net Operating Cash Provided by Operating Activities $ 88.7 $ 93.1 $ 89.0 $ 133.4 Less: payments for additions to property, plant and equipment (capital expendi
Slide 25: Notes to Reconciliation of GAAP to Non-GAAP Financial Measures
NOTES TO RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (UNAUDITED) A Represents impairment charge related to goodwill and certain intangible assets. B We exclude impairment of certain long-lived assets, executive transition costs, and cost incurred pursuant to discrete restructuring plans. C
Slide 26: Statement Regarding Non-GAAP Measures
Statement Regarding Non-GAAP Measures Each of the non-GAAP measures set forth above should be considered in addition to, and not as a replacement for or superior to, the comparable GAAP measure, and may not be comparable to similarly titled measures reported by other companies. Management believes t