Envista Q2 Earnings Call Highlights

Strong second-quarter performance: Envista reported $731 million in sales, up just over 7% year over year, with 5% core growth. Adjusted EBITDA rose 28%, margin expanded to 14.7%, adjusted EPS increased 58% to $0.41, and free cash flow reached $105 million.

Equipment and consumables led segment growth: The segment posted 8.5% core growth, while Specialty Products & Technologies grew 3.1%, supported by double-digit Spark clear-aligner growth. New products, share gains and implant investments are central to the company’s growth strategy.

Full-year outlook raised: Envista now expects 2026 core sales growth of 3.5%–4.5%, adjusted EBITDA growth of 11%–14% and adjusted EPS of $1.50–$1.55. Management cautioned that China’s expected orthodontic and implant procurement programs could create pricing pressure in the second half.

Envista NYSE: NVST reported second-quarter 2026 sales of $731 million, supported by 5% core revenue growth and contributions from foreign exchange and acquisitions that lifted total revenue growth to just over 7%. President and Chief Executive Officer Paul Keel said the company delivered balanced growth across its two reporting segments and major geographies, while the dental market remained resilient amid macroeconomic pressure. The company reported 7% core growth for the first half of 2026. Adjusted EBITDA increased 28% year over year, while adjusted EBITDA margin expanded 230 basis points to 14.7%. Adjusted earnings per share rose 58% to $0.41. The company generated $105 million in free cash flow during the quarter, representing 158% conversion, and repurchased approximately 2.4 million shares at an average price of $24 per share.

Equipment and Consumables posted 8.5% core sales growth, with high-single-digit growth in both consumables and diagnostics. Keel said consumables benefited from its relative insulation from macro volatility because its products support procedures that are typically covered by insurance. Diagnostics also benefited from a market recovery following a multiyear post-COVID contraction, he said. Keel said Envista estimates the consumables and diagnostics markets grew at mid-single-digit rates during the first half, while the company’s businesses grew at high-single-digit to low-double-digit rates. He attributed the outperformance to share gains, commercial and operational initiatives, and new-product activity.

Specialty Products & Technologies reported 3.1% core sales growth and nearly 6% total revenue growth. Spark clear aligners again delivered double-digit growth, or high-single-digit growth after accounting for changes in revenue deferrals. Implant core sales increased by low single digits, while brackets and wires declined by high single digits against a prior-year comparison that benefited from customer purchases ahead of tariff and pricing actions. Adjusted operating profit in Specialty Products & Technologies increased $9 million, or 15%, and segment margin improved 120 basis points. Equipment and Consumables adjusted operating profit increased 25%, with operating margin rising 250 basis points, driven by pricing, volume and foreign-exchange benefits.

During the quarter, Envista launched ZenSeal Pro, a bioceramic endodontic sealer used in root canal procedures, and Demi Pro, a lightweight cordless curing light for restorative procedures. Keel said the company expects the launches to build on recent consumables share gains. In orthodontics, Envista expanded Ormco Digital Bonding, or ODB, to all of its bracket systems. The digital platform was initially launched in 2023 with the Damon Ultima system. Keel said...