First Quarter 2025 Earnings Conference Call May 8, 2025 Forward-Looking Statements and Associated Risks All statements in this Presentation that do not directly and exclusively relate to historical facts constitute "forward-looking statements." Such statements are subject to numerous assumptions, risks, uncertainties and other factors that could cause actual results to differ materially from those described in such statements, many of which are outside of our control, including those described in Part I, It ...

Net sales of $879 million decreased (7.7%), organic sales decreased (4.4%) including a (4.0%) Byte sales impactGAAP gross margin of 53.0%, GAAP net income of $20 million or $0.10 per shareAdjusted gross margin of 56.3%, adjusted EBITDA margin of 19.0%, adjusted EPS of $0.43Maintaining FY25 outlook for organic sales and adjusted EPS; increasing reported sales due to F/X changes CHARLOTTE, N.C., May 08, 2025 (GLOBE NEWSWIRE) -- DENTSPLY SIRONA Inc. ("Dentsply Sirona" or the "Company") (Nasdaq: XRAY) today ann ...

While investors typically rely on consensus earnings and revenue estimates to gauge how the business may have fared during the quarter, examining analysts' projections for some of the company's key metrics often helps gain a deeper insight. With that in mind, let's delve into the average projections of some Dentsply metrics that are commonly tracked and projected by analysts on Wall Street. In its upcoming report, Dentsply International (XRAY) is predicted by Wall Street analysts to post quarterly earnings ...

DENTSPLY SIRONA Inc. (XRAY) is scheduled to release first-quarter 2025 results on May 8, before the opening bell.In the last reported quarter, the company’s earnings missed the Zacks Consensus Estimate. It delivered an average earnings surprise of -9.34% in the past four quarters. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)XRAY’s Q1 EstimatesThe Zacks Consensus Estimate for revenues is pegged at $851.6 million. The consensus mark for earnings is pinned at 29 cents per share.Fac ...

Core Viewpoint - Dentsply Sirona will host an investor conference call on May 8, 2025, to discuss its first quarter financial results [1][2]. Group 1: Company Overview - Dentsply Sirona is the largest diversified manufacturer of professional dental products and technologies globally, with over a century of innovation [3]. - The company develops, manufactures, and markets a comprehensive range of dental and oral health products, as well as other consumable medical devices under a strong portfolio of world-class brands [3]. - Dentsply Sirona's innovative products aim to provide high-quality, effective, and connected solutions to enhance patient care and improve dental care safety [3]. Group 2: Investor Relations - The investor conference call will be available via a live webcast on the company's website [2]. - A replay of the conference call will also be accessible on the Investors section of the company's website after the event [2]. - For inquiries, investors can contact Andrea Daley, Vice President of Investor Relations, at +1-704-591-8631 or via email [4].

CHARLOTTE, N.C., March 17, 2025 (GLOBE NEWSWIRE) -- DENTSPLY SIRONA Inc. (“Dentsply Sirona” or the “Company”) (XRAY) today announced that David Ferguson has been appointed Senior Vice President, Global Business Unit Leader, effective March 14, 2025. In this role he will lead the global business unit teams managing the dental product portfolio, serve as a member of the Executive Management Team and report directly to Chief Executive Officer, Simon Campion. David Ferguson joins Dentsply Sirona with 25 years o ...

Core Points - Dentsply Sirona will participate in the Leerink Partners Global Healthcare Conference on March 11, 2025, at 3:00 pm ET [1] - A live audio webcast and replay will be available on the Dentsply Sirona website [2] Company Overview - Dentsply Sirona is the largest diversified manufacturer of professional dental products and technologies globally, with over a century of innovation [3] - The company develops, manufactures, and markets a comprehensive range of dental and oral health products, as well as consumable medical devices under a strong portfolio of brands [3] - Dentsply Sirona's innovative products aim to provide high-quality, effective, and connected solutions to enhance patient care and improve dental care safety [3] - The company is headquartered in Charlotte, North Carolina, and its shares are listed on Nasdaq under the symbol XRAY [3]

Core Insights - Dentsply International's international operations are crucial for understanding its financial strength and growth potential [1][2] - The company's reliance on international markets influences its earnings durability and growth capabilities [2][3] Revenue Performance - Dentsply's total revenue for the recent quarter was $905 million, a decline of 10.6% year-over-year [4] - Revenue from Europe was $408 million, accounting for 45.08% of total revenue, with a surprise increase of +10.82% compared to analyst expectations [5] - The Rest of World segment generated $238 million, constituting 26.30% of total revenue, with a surprise increase of +15.88% compared to projections [6] Future Revenue Predictions - Analysts expect Dentsply to report $876.89 million in total revenue for the current fiscal quarter, reflecting an 8% decline from the previous year [7] - For the full year, total revenue is projected at $3.56 billion, a decline of 6.2% from the prior year, with Europe and Rest of World expected to contribute $1.47 billion and $817.9 million, respectively [8] Conclusion - Dentsply's international revenue trends present both opportunities and risks, making it essential to monitor these patterns for forecasting the company's prospects [9][10]

Financial Performance - Dentsply Sirona's net sales for the year ended December 31, 2024, were reported across four segments: Connected Technology Solutions, Essential Dental Solutions, Orthodontic and Implant Solutions, and Wellspect Healthcare[21]. - No customer accounted for 10% or more of consolidated net sales for the year ended December 31, 2024, indicating a diversified customer base[35]. - The company generates a substantial portion of its revenue through a limited number of distributors, with the two largest distributors accounting for approximately 13% of annual revenue for the year ended December 31, 2024[102]. - The company delivered a one-year notice of non-renewal to Patterson Companies, Inc. regarding its distribution agreements for dental equipment in the U.S. and Canada[102]. - The company has approximately $1.7 billion in outstanding debt as of December 31, 2024, with an additional capacity to incur up to $700 million under the 2023 Credit Facility[130]. - The company experienced a material impact on its results of operations due to the voluntary suspension of the sale and marketing of its direct-to-consumer Byte aligner systems, which represented approximately 3% of annual revenue for the year ended December 31, 2024[165]. - The company recorded pre-tax goodwill impairment charges of $145 million and $359 million for Orthodontic Aligner Solutions and Implant & Prosthetic Solutions reporting units, respectively, for the quarter ended September 30, 2024[118]. - As of December 31, 2024, the company recorded a pre-tax goodwill impairment charge of $269 million for the Implant & Prosthetic Solutions reporting unit due to weaker sales trends and increased competition[120]. Research and Development - The Company maintains an R&D spending level of approximately 4% of annual net sales, focusing on innovation in digital workflow solutions and enhancing patient care[37]. - R&D investments focus on accelerating product innovation and improving manufacturing processes, with an emphasis on customer feedback and returns-based funding[41]. - The Company launched its cloud solution, DS Core, in 2022, integrating digital dentistry workflows and enabling access to case files and orders without software licenses[38]. - In 2023, the Company introduced the SureSmile Simulator, which creates 3D visualizations for clear aligner treatment, and expanded milling and printing materials for Primeprint and Primemill Solutions[39]. - The Company released Primescan 2 in 2024, featuring a cloud-native design that enhances mobility for dental professionals during patient treatment[40]. - The DS Core Enterprise platform was introduced in 2024, allowing dental service organizations (DSOs) to centralize management and monitoring of equipment[40]. - The company faces challenges in developing innovative products due to rapid technological disruption in the dental and continence care markets[94]. Market Presence and Strategy - Dentsply Sirona employs around 4,600 sales and technical staff to provide comprehensive marketing, sales, and technical support globally[32]. - The Company has a significant market presence in approximately 150 countries, with a strong foothold in Europe and the Asia-Pacific region[17]. - The Company focuses on integrating its dental product portfolios to unlock operational efficiencies and enhance its healthcare consumables product portfolio[20]. - The Company believes the dental industry will grow due to factors such as an aging population, increasing demand for aesthetic dentistry, and a shift towards single-visit dentistry[31]. - The Company expanded its implant business in 2024 with the MiS Lynx implant and new technologies for guided surgery and restorative solutions[40]. Regulatory and Compliance - The company is subject to comprehensive regulations, including the EU Medical Device Regulation (MDR), ensuring compliance for its medical devices[49]. - The company maintains compliance with various anti-bribery and anti-corruption laws, which govern its relationships with governmental entities and healthcare professionals[51]. - The ongoing German Tax Investigation could adversely affect the company's reputation, business, and financial condition, with significant time and resources already expended on this matter[164]. - The company must obtain necessary product approvals and marketing clearances from governmental authorities, including the FDA, which can be time-consuming and costly, potentially hindering product market entry[154]. - The EU MDR regulations require significant upgrades to quality systems and processes for medical device manufacturers, with deadlines extended until December 31, 2027, for higher-risk devices[158]. - The company is subject to various regulatory environments, including potential litigation and regulatory examinations related to financial reporting matters, which could harm its business and financial condition[153]. Workforce and Employee Relations - As of December 31, 2024, Dentsply Sirona employed approximately 14,000 employees globally, with around 3,000 in the United States[59]. - Dentsply Sirona's total rewards strategy includes competitive compensation and benefits programs aimed at attracting and retaining top talent[64]. - The company has nine established Employee Resource Groups (ERGs) with approximately 3,800 members globally as of December 31, 2024[67]. - The company has a dedicated Employee Health & Safety program aligned with international standards to ensure employee safety[70]. - The company anticipates a net reduction in its global workforce of approximately 2% to 4% as part of the 2024 restructuring plan[109]. Cybersecurity and Risk Management - The Company maintains a comprehensive cybersecurity risk management strategy, integrating risk assessment into its overall risk management systems[195]. - The Chief Information Officer oversees the company's cybersecurity approach, collaborating with various teams to manage digital risk effectively[197]. - The Company has authorized a share repurchase program of $1.2 billion remaining as of December 31, 2024, with an increase approved on November 7, 2023[214]. - The Company maintains cybersecurity insurance and regularly reviews its policy and coverage levels based on current risks[202]. - The Company has not experienced any material information security breach incidents in the last three years, but future risks remain[202]. - The Company conducts annual information security awareness training for employees and performs monthly internal phishing tests[201]. - The Company collaborates with external third parties for threat assessments and security enhancements, sharing best practices across industries[200]. - The Company has developed contingency plans for business continuity in case of vendor cyberattacks impacting their systems[200]. Environmental and Social Governance - The company is increasingly focused on environmental, social, and governance (ESG) considerations, which may lead to increased compliance costs and scrutiny[190]. - The company operates in approximately 150 countries, making it vulnerable to climate change and natural disasters that could disrupt production and distribution[189]. Financial Reporting and Internal Controls - The company has identified material weaknesses in internal control over financial reporting, which were remediated as of December 31, 2023, but future weaknesses could adversely affect financial reporting accuracy[148]. - Changes in distributor relationships and inventory levels may lead to fluctuations in projected future demand and financial results[104]. - The company recognizes the risk of legal actions, including product liability claims and regulatory investigations, which could materially harm its business and reputation[187]. - The company faces significant fluctuations in quarterly sales and earnings due to various factors, which may lead to failure in meeting investor expectations[180]. - The company has experienced higher prices and supply chain disruptions for certain raw materials, particularly electronic components, which may negatively affect its financial performance[182]. - The company has sought to offset elevated costs from raw material inflation with annual price increases but has been only partially successful[184].

Financial Data and Key Metrics Changes - In Q4 2024, the company reported revenue of $905 million, representing a decline of 10.6% year-over-year and an organic sales decline of 10.7% [34][46] - Adjusted EPS for the quarter was $0.26, down 41.3% from the prior year due to lower margins and a higher tax rate [37][50] - The company recorded noncash charges for impairment of goodwill and other intangibles of approximately $370 million, primarily due to weakened demand [31][32] Business Line Data and Key Metrics Changes - Essential Dental Solutions segment saw organic sales decline of 3.4%, while Orthodontic & Implant Solutions segment experienced a significant decline of 28.7% primarily due to Byte's impact [38][39] - Connected Technology Solutions (CTS) segment reported an organic sales decline of 8.2%, with double-digit declines in global CAD/CAM business [40][46] - Wellspect delivered organic sales growth of 6.7%, driven by new product launches across all regions [41] Market Data and Key Metrics Changes - U.S. sales declined 29.9%, largely driven by Byte and CAD/CAM impacts, while Europe saw organic sales increase of 1.8% [42][43] - Rest of World organic sales declined 2%, with EDS organic sales growing high single digits in China [44][45] Company Strategy and Development Direction - The company is exploring strategic alternatives for its Wellspect HealthCare business to unlock significant value for stakeholders [18][20] - A strategic decision was made to redeploy Byte resources to the SureSmile platform, focusing on enhancing direct-to-consumer demand and e-commerce [17][19] - The company aims to improve operational efficiencies and customer engagement through foundational initiatives and a virtual sales team [60][61] Management's Comments on Operating Environment and Future Outlook - Management expects organic sales to decline by 2% to 4% in 2025, including a negative impact from Byte [51][52] - The external environment is anticipated to remain largely unchanged, with continued focus on innovation and clinical education as key value drivers [16][22] - Management expressed confidence in the transformational initiatives underway, which are expected to contribute positively to EPS in the long term [64][66] Other Important Information - The company completed the largest phase of its ERP deployment in the U.S. on November 1, 2024, which is expected to improve customer experience and operational efficiencies [24][61] - The company returned $376 million in capital to shareholders through share repurchases and dividends in 2024 [50] Q&A Session Summary Question: Can you talk about some of the new product areas that you're working on in Wellspect? - Management indicated that Wellspect and dental businesses are largely separated, allowing for independent strategic exploration [76] Question: What gives you confidence in margin improvement throughout 2025? - Management stated that Q1 will be the lowest point of the year, with expectations for sequential improvement in margins as foundational initiatives ramp up [81][82] Question: Can you discuss the strategy for Byte and its implications on P&L? - Management confirmed that Byte's capabilities will be redeployed to enhance the SureSmile platform, with expectations of a substantial headwind to growth in 2025 [91][100] Question: What is the outlook for the U.S. implant team and its return to growth? - Management acknowledged disappointing growth in the U.S. implant team but emphasized ongoing efforts to enhance digital connectivity and customer education [104][108] Question: Can you provide an update on the German tax situation? - Management stated there is no meaningful update at this time, continuing to work with authorities [131][132]