Envista Holdings Corporation · NYSE:NVST
Envista — Q1 2025 Earnings Presentation
25 slides from Envista's earnings presentation, May 1, 2025
Slide 1: Q1 2025 Results
Q1 2025 Results May 1, 2025 Envista
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 Opening Thoughts Paul Keel Financial Results – Q1 2025 Eric Hammes Strategic and Operational Update Paul Keel Q&A 3
Slide 4: Opening Thoughts
Opening Thoughts Solid Q1 performance, in line with Continued progress executing Macro uncertainty elevated, our expectations our value creation plan taking action to mitigate • 0.2% core growth1 • Growth in Consumables, Premium Increased uncertainty Implants, and Ortho (ex. China) • Q1 market deman
Slide 5: Q1 2025 | Financial Metrics
Q1 2025 | Financial Metrics Q1 Q1 Summary Key Metric1 vPY 2025 2024 • Positive growth Revenue $616.9M $623.6M -$6.7M o Growth in Consumables, Premium Implants, and Spark o China down on Orthodontics VBP preparation Core Sales Growth(%) 0.2% 0.4% -20 bps o Diagnostics declined in a tough market Adjus
Slide 6: Q1 2025 | Reported Revenue
Growth Rate % Q1 2025 | Reported Revenue Reported Revenue -1.1% Core Growth1 % +0.2% $624M $6M $617M -$8M -$4M $0M Q1 FX Spark Volume Price Q1 2024 Deferral 2025 1 Core Sales Growth is a non-GAAP financial measure. For a reconciliation to the most directly comparable GAAP measures, please see Append
Slide 7: Q1 2025 | Adjusted EBITDA
Q1 2025 | Adjusted EBITDA1 14.0% 0.8% 12.8% -1.7% 1.5% -1.2% -0.6% Q1 2024 FX Vol/Mix Spark Deferral Net Productivity Price Q1 2025 7 1 Adjusted EBITDA & adjusted EBITDA margin are non-GAAP financial measures. For a reconciliation to the most directly comparable GAAP measures, please see Appendix. B
Slide 8: Q1 2025 | Specialty Products & Technologies
Q1 2025 | Specialty Products & Technologies Revenue ($M) Core Sales Growth1 -0.7% Revenue • Spark sales grew LSD YoY, including net deferral change Q1 2024 $408.7 • Brackets & Wires down MSD; up LSD ex-China (VBP preparation) $400.3 • Premium implants grew globally, with particular strength in China
Slide 9: Q1 2025 | Equipment & Consumables
Q1 2025 | Equipment & Consumables Revenue ($M) Core Sales Growth1 +1.7% Revenue $214.9 • Strong Consumables performance, both volume and price Q1 2024 • Diagnostics growth in Western Europe and Emerging Markets (ex. China) offset by declines in North America and China Q1 2025 $216.6 Adjusted Operati
Slide 10: Q1 2025 | Cash Flow
Q1 2025 | Cash Flow Q1 2025 Q1 2024 Operating Cash Flow $0.3M $40.3M Capital Expenditure, net $5.4M $11.0M • Low leverage levels support financial flexibility • Repurchased over 1M shares in Q1 Free Cash Flow1 -$5.1M $29.3M Envista operates with Net Debt / Adj. EBITDA of ~1X 2 10 2 Free Cash Flow is
Slide 11: Envista's Value Creation Plan
Envista’s Value Creation Plan 2025 Growth Core Growth 1 - 3% Adj. ~14% We partner EBITDA with dental Adj. EPS $0.95 - $1.05 professionals Operational to improve Excellence Medium-term* patients’ lives Core Growth 2 - 4% Adj. EBITDA 4 - 7% Growth People Adj. EPS 7 - 10% Growth FCF Conversion ~100% 11
Slide 12: A Solid Start to the Year
A Solid Start to the Year • Growth in Consumables, Premium Implants, and Ortho (ex. China) • Growth in North America and Emerging Markets (ex. China Ortho) Growth • Solid price capture • Trained >15,000 clinicians • Ongoing broad-based contributions from EBS • Maintained high customer service of ~95
Slide 13: Macro Uncertainty | Tariff Landscape
Macro Uncertainty | Tariff Landscape Potential Exposure Immediate Actions Impact • Our global reach is a • Daily monitoring and • Q1 impact negligible fundamental strength of management through Tariff Envista, but by operating in Task Force 130+ countries we are • We expect to offset known naturally
Slide 14: Closing Thoughts
Closing Thoughts • Q1 market demand remained soft but stable, similar to H2 2024 • Q1 performance in line with our expectations • Macro uncertainty has increased • Tariff landscape is fluid • Maintaining 2025 guidance − 1 to 3% core growth − ~14% Adj. EBITDA margins − $0.95 to $1.05 Adj. EPS 14
Slide 15: Q&A
Q&A 15
Slide 16: Appendix Non-GAAP Reconciliations
Appendix Non-GAAP Reconciliations 16
Slide 17: Reconciliations | Adjusted Gross Profit and Adjusted Gross Margin
Reconciliations | Adjusted Gross Profit and Adjusted Gross Margin ($ in Millions) Three Months Ended March 28, 2025 March 29, 2024 Gross Profit $ 336.0 $ 356.3 Restructuring costs and asset impairments A 1.9 1.7 Fair value adjustment of acquisition-related inventory B 0.4 — Adjusted Gross Profit $ 3
Slide 18: Reconciliations | Adjusted Operating Profit
Reconciliations | Adjusted Operating Profit ($ in Millions) Three Months Ended March 28, 2025 March 29, 2024 Consolidated Operating Profit $ 39.0 $ 48.1 Amortization of acquisition-related and other intangible assets 18.8 22.6 Restructuring costs and asset impairments A 11.4 6.9 Fair value adjustmen
Slide 19: Reconciliations | Adjusted Net Income
Reconciliations | Adjusted Net Income ($ in Millions) Three Months Ended March 28, 2025 March 29, 2024 Net Income $ 18.0 $ 23.6 Amortization of acquisition-related and other intangible assets 18.8 22.6 Restructuring costs and asset impairments A 11.4 6.9 Fair value adjustment of acquisition-related
Slide 20: Reconciliations | Adjusted Diluted Earnings Per Share
Reconciliations | Adjusted Diluted Earnings Per Share Three Months Ended March 28, 2025 March 29, 2024 Diluted Earnings $ 0.10 $ 0.14 Amortization of acquisition-related and other intangible assets 0.11 0.13 Restructuring costs and asset impairments A 0.07 0.04 Fair value adjustment of acquisition-r
Slide 21: Reconciliations | Adjusted EBITDA
Reconciliations | Adjusted EBITDA ($ in Millions) Three Months Ended March 28, 2025 March 29, 2024 Net Income $ 18.0 $ 23.6 Interest expense, net 9.3 12.9 Income tax expense 11.0 11.7 Depreciation 9.1 9.5 Amortization of acquisition-related and other intangible assets 18.8 22.6 Restructuring costs a
Slide 22: Reconciliations | Core Sales Growth
Reconciliations | Core Sales Growth1 % Change Three Month Period Ended March 28, 2025 Consolidated vs. Comparable 2024 Period Total sales growth (1.1)% Plus the impact of: Acquisitions (0.1)% Currency exchange rates 1.4 % Core sales growth 0.2 % Specialty Products & Technologies Total sales growth (
Slide 23: Reconciliations | Free Cash Flow
Reconciliations | Free Cash Flow ($ in Millions) Three Months Ended March 28, 2025 March 29, 2024 Net Operating Cash Provided by Operating Activities $ 0.3 $ 40.3 Less: payments for additions to property, plant and equipment (capital expenditures) (5.9) (11.0) Plus: proceeds from sales of property,
Slide 24: Notes to Reconciliation of GAAP to Non-GAAP Financial Measures
NOTES TO RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (UNAUDITED) A We exclude impairment of certain long-lived assets, executive transition costs, and cost incurred pursuant to discrete restructuring plans that are fundamentally different (in terms of the size, strategic nature and plannin
Slide 25: 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