Dentsply Sirona Reports First Quarter 2025 Results
Dentsply Sirona (XRAY) reported challenging Q1 2025 results with net sales declining 7.7% to $879 million, while organic sales decreased 4.4%. The company's performance was significantly impacted by a 4.0% decline in Byte sales. Despite revenue challenges, GAAP net income increased to $20 million ($0.10 per share) from $18 million in Q1 2024.
The company demonstrated margin improvement with adjusted EBITDA margin expanding to 19.0% from 16.8%, reflecting benefits from transformational initiatives. Geographically, while the US market struggled with a 14.9% organic decline, Europe and Rest of World regions showed positive organic growth of 1.1% and 3.1% respectively.
Dentsply Sirona maintained its FY2025 outlook for organic sales (down 4.0% to 2.0%) and adjusted EPS ($1.80 to $2.00), while increasing reported sales guidance to $3.60-3.70 billion due to foreign exchange rate changes.
Dentsply Sirona (XRAY) ha riportato risultati difficili nel primo trimestre 2025 con un calo delle vendite nette del 7,7% a 879 milioni di dollari, mentre le vendite organiche sono diminuite del 4,4%. La performance dell'azienda è stata significativamente influenzata da una diminuzione del 4,0% nelle vendite di Byte. Nonostante le difficoltà nei ricavi, l'utile netto GAAP è aumentato a 20 milioni di dollari (0,10 dollari per azione) rispetto ai 18 milioni del primo trimestre 2024.
L'azienda ha mostrato un miglioramento dei margini con un'espansione del margine EBITDA rettificato al 19,0% dal 16,8%, riflettendo i benefici delle iniziative trasformazionali. A livello geografico, mentre il mercato statunitense ha subito un calo organico del 14,9%, le regioni Europa e Resto del Mondo hanno registrato una crescita organica positiva rispettivamente dell'1,1% e del 3,1%.
Dentsply Sirona ha confermato le sue previsioni per il FY2025 riguardo alle vendite organiche (in calo tra il 4,0% e il 2,0%) e all'utile per azione rettificato (tra 1,80 e 2,00 dollari), aumentando invece la guida sulle vendite riportate a 3,60-3,70 miliardi di dollari a causa delle variazioni dei tassi di cambio.
Dentsply Sirona (XRAY) reportó resultados desafiantes en el primer trimestre de 2025 con ventas netas que disminuyeron un 7,7% hasta 879 millones de dólares, mientras que las ventas orgánicas bajaron un 4,4%. El desempeño de la compañía se vio significativamente afectado por una caída del 4,0% en las ventas de Byte. A pesar de los desafíos en los ingresos, el ingreso neto GAAP aumentó a 20 millones de dólares (0,10 dólares por acción) desde 18 millones en el primer trimestre de 2024.
La empresa mostró una mejora en el margen con un aumento del margen EBITDA ajustado al 19,0% desde 16,8%, reflejando los beneficios de iniciativas transformacionales. Geográficamente, mientras el mercado estadounidense enfrentó una caída orgánica del 14,9%, las regiones de Europa y Resto del Mundo mostraron un crecimiento orgánico positivo del 1,1% y 3,1% respectivamente.
Dentsply Sirona mantuvo su perspectiva para el FY2025 en ventas orgánicas (con una caída del 4,0% al 2,0%) y ganancias ajustadas por acción (de 1,80 a 2,00 dólares), mientras que incrementó la guía de ventas reportadas a 3,60-3,70 mil millones de dólares debido a cambios en las tasas de cambio.
Dentsply Sirona (XRAY)는 2025년 1분기 실적에서 순매출이 7.7% 감소한 8억 7,900만 달러를 기록했으며, 유기적 매출은 4.4% 감소했습니다. 회사의 실적은 Byte 매출이 4.0% 감소한 영향이 컸습니다. 매출 부진에도 불구하고 GAAP 순이익은 2024년 1분기 1,800만 달러에서 2,000만 달러(주당 0.10달러)로 증가했습니다.
회사는 변혁적 이니셔티브의 혜택을 반영하여 조정 EBITDA 마진이 16.8%에서 19.0%로 확대되는 등 마진 개선을 보였습니다. 지역별로는 미국 시장이 14.9% 유기적 감소를 겪었으나, 유럽과 기타 지역은 각각 1.1%, 3.1%의 긍정적 유기적 성장을 기록했습니다.
Dentsply Sirona는 외환 변동으로 인해 보고 매출 가이드를 36억~37억 달러로 상향 조정했으며, 유기적 매출(-4.0%~2.0%)과 조정 주당순이익($1.80~$2.00)에 대한 2025 회계연도 전망은 유지했습니다.
Dentsply Sirona (XRAY) a annoncé des résultats difficiles pour le premier trimestre 2025 avec un chiffre d'affaires net en baisse de 7,7% à 879 millions de dollars, tandis que les ventes organiques ont diminué de 4,4%. La performance de l'entreprise a été fortement impactée par une baisse de 4,0% des ventes de Byte. Malgré ces difficultés de revenus, le bénéfice net GAAP est passé à 20 millions de dollars (0,10 dollar par action) contre 18 millions au premier trimestre 2024.
L'entreprise a démontré une amélioration de la marge avec une marge EBITDA ajustée en hausse à 19,0% contre 16,8%, reflétant les bénéfices des initiatives de transformation. Géographiquement, alors que le marché américain a souffert d'une baisse organique de 14,9%, les régions Europe et Reste du Monde ont affiché une croissance organique positive de 1,1% et 3,1% respectivement.
Dentsply Sirona a maintenu ses prévisions pour l'exercice 2025 concernant les ventes organiques (en baisse de 4,0% à 2,0%) et le BPA ajusté (entre 1,80 et 2,00 dollars), tout en augmentant ses prévisions de chiffre d'affaires rapporté à 3,60-3,70 milliards de dollars en raison des fluctuations des taux de change.
Dentsply Sirona (XRAY) meldete herausfordernde Ergebnisse für das erste Quartal 2025 mit einem Rückgang der Nettoumsätze um 7,7% auf 879 Millionen US-Dollar, während die organischen Umsätze um 4,4% sanken. Die Unternehmensleistung wurde maßgeblich durch einen Rückgang der Byte-Verkäufe um 4,0% beeinträchtigt. Trotz der Umsatzprobleme stieg der GAAP-Nettogewinn von 18 Millionen US-Dollar im ersten Quartal 2024 auf 20 Millionen US-Dollar (0,10 US-Dollar je Aktie).
Das Unternehmen zeigte eine Verbesserung der Margen mit einer Ausweitung der bereinigten EBITDA-Marge auf 19,0% von 16,8%, was die Vorteile der Transformationsinitiativen widerspiegelt. Geografisch gesehen kämpfte der US-Markt mit einem organischen Rückgang von 14,9%, während Europa und der Rest der Welt ein positives organisches Wachstum von 1,1% bzw. 3,1% verzeichneten.
Dentsply Sirona bestätigte seine Prognose für das Geschäftsjahr 2025 für organische Umsätze (Rückgang zwischen 4,0% und 2,0%) und bereinigtes Ergebnis je Aktie (1,80 bis 2,00 US-Dollar), erhöhte jedoch die Prognose für die berichteten Umsätze auf 3,60 bis 3,70 Milliarden US-Dollar aufgrund von Wechselkursschwankungen.
- Adjusted EBITDA margin expanded to 19.0% from 16.8% YoY
- Positive organic growth in Europe (1.1%) and Rest of World (3.1%) regions
- Adjusted EPS increased 3.7% to $0.43 from $0.42 YoY
- Maintained FY2025 earnings guidance despite challenges
- Net sales declined 7.7% to $879 million
- Organic sales decreased 4.4%, with Byte sales contributing -4.0%
- US market showed significant weakness with 14.9% organic sales decline
- Operating cash flow decreased to $7 million from $25 million YoY
- Orthodontic and Implant Solutions segment showed steep decline of 17.7% in organic sales
Insights
Dentsply Sirona's Q1 shows improving profitability (EBITDA +4.2%) despite sales decline (-7.7%), suggesting effective cost management while facing significant revenue challenges, particularly in the U.S. market.
Dentsply Sirona's Q1 2025 results present a nuanced financial picture with declining sales offset by improved operational efficiency. The
The company demonstrated notable ability to expand profitability despite revenue challenges. Adjusted EBITDA increased
Segment performance reveals divergent trends. Wellspect Healthcare stands out with robust
Cash flow metrics warrant attention, with operating cash flow declining to
Management's decision to maintain guidance for both organic sales (down
- Net sales of
$879 million decreased (7.7% ), organic sales decreased (4.4% ) including a (4.0% ) Byte sales impact - GAAP gross margin of
53.0% , GAAP net income of$20 million or$0.10 per share - Adjusted gross margin of
56.3% , adjusted EBITDA margin of19.0% , adjusted EPS of$0.43 - Maintaining 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 announced its financial results for the first quarter of 2025.
First quarter net sales of
"In the first quarter, organic sales were roughly flat excluding the Byte sales impact, with growth in two of our three regions. Adjusted EBITDA margin expanded which primarily reflects the benefits from our transformational initiatives and internal financial discipline. We are delivering progress through customer-centric innovation, customer experience improvements, and operational efficiency, while operating in an increasingly uncertain macroeconomic environment," said Simon Campion, President and Chief Executive Officer. "Looking forward, we are maintaining our outlook for organic sales and adjusted EPS and will continue to focus on improving what is within our control to deliver sustainable long-term performance."
Q1 25 Summary Results (GAAP)
| (in millions, except per share amount and percentages) | Q1 25 | Q1 24 | YoY | |
| Net Sales | (7.7%) | |||
| Gross Profit | (7.9%) | |||
| Gross Margin | ||||
| Net Income Attributable to Dentsply Sirona | NM | |||
| Diluted Earnings Per Share | NM |
Q1 25 Summary Results (Non-GAAP)[1]
| (in millions, except per share amount and percentages) | Q1 25 | Q1 24 | YoY | |
| Net Sales | (7.7%) | |||
| Organic Sales Growth % | (4.4%) | |||
| Adjusted Gross Profit | (8.3%) | |||
| Adjusted Gross Margin | 56.3% | 56.6% | ||
| Adjusted EBITDA | 4.2% | |||
| Adjusted EBITDA Margin | 19.0% | 16.8% | ||
| Adjusted EPS | 3.7% |
NM - not meaningful
Percentages are based on actual values and may not reconcile due to rounding.
[1] Organic sales growth, adjusted gross profit, adjusted EBITDA, and adjusted EPS are Non-GAAP financial measures which exclude certain items. Please refer to "Non-GAAP Financial Measures" below for a description of these measures and to the tables at the end of this release for a reconciliation between GAAP and Non-GAAP measures.
Q1 25 Segment Results
| Net Sales Growth % | Organic Sales Growth % | |||
| Connected Technology Solutions | (4.7%) | (0.5%) | ||
| Essential Dental Solutions | (2.7%) | 0.4% | ||
| Orthodontic and Implant Solutions | (20.0%) | (17.7%) | ||
| Wellspect Healthcare | 3.4% | 8.0% | ||
| Total | (7.7%) | (4.4%) |
Q1 25 Geographic Results
| Net Sales Growth % | Organic Sales Growth % | |||
| United States | (15.2%) | (14.9%) | ||
| Europe | (3.4%) | 1.1% | ||
| Rest of World | (2.8%) | 3.1% | ||
| Total | (7.7%) | (4.4%) |
Cash Flow and Liquidity
Operating cash flow in the first quarter of 2025 was
2025 Outlook
The Company is maintaining its 2025 outlook for organic sales in the range of down (
Other 2025 outlook assumptions are included in the first quarter 2025 earnings presentation posted on the Investors section of the Dentsply Sirona website at https://investor.dentsplysirona.com. The Company does not provide forward-looking estimates on a GAAP basis as certain information, which may include, but is not limited to, restructuring charges, transformation-related costs, impairment charges, certain tax adjustments, and other significant items, is not available without unreasonable effort and cannot be reasonably estimated. The exact amounts of these charges or credits are not currently determinable but may be significant.
Conference Call/Webcast Information
Dentsply Sirona’s management team will host an investor conference call and live webcast on May 8th, 2025, at 8:30 am ET. A live webcast of the investor conference call and a presentation related to the call will be available on the Investors section of the Company’s website at https://investor.dentsplysirona.com.
For those planning to participate on the call, please register at https://register-conf.media-server.com/register/BIb73584ce1e6f4d81b57af1bfbeec6816. A webcast replay of the conference call will be available on the Investors section of the Company’s website following the call.
About Dentsply Sirona
Dentsply Sirona is the world’s largest diversified manufacturer of professional dental products and technologies, with over a century of innovation and service to the dental industry and patients worldwide. Dentsply Sirona develops, manufactures, and markets a comprehensive solutions offering including dental and oral health products as well as other consumable medical devices under a strong portfolio of world-class brands. Dentsply Sirona’s innovative products provide, high-quality, effective and connected solutions to advance patient care and deliver better and safer dental care. Dentsply Sirona’s headquarters is located in Charlotte, North Carolina. The Company’s shares are listed in the United States on Nasdaq under the symbol XRAY. Visit www.dentsplysirona.com for more information about Dentsply Sirona and its products.
Contact Information:
Investors:
Andrea Daley
Vice President, Investor Relations
+1-704-591-8631
InvestorRelations@dentsplysirona.com
Press:
Marion Par-Weixlberger
Vice President, Public Relations & Corporate Communications
+43 676 848414588
marion.par-weixlberger@dentsplysirona.com
Forward-Looking Statements and Associated Risks
All statements in this Press Release 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, Item 1A, "Risk Factors" of the Company's most recent Annual Report on Form 10-K, and any updating information or other factors which may be described in the Company’s other filings with the Securities and Exchange Commission (the "SEC"). No assurance can be given that any expectation, belief, goal or plan set forth in any forward-looking statement can or will be achieved, and readers are cautioned not to place undue reliance on such statements which speak only as of the date they are made. We do not undertake any obligation to update or release any revisions to any forward-looking statement or to report any events or circumstances after the date of this Press Release or to reflect the occurrence of unanticipated events. Investors should understand it is not possible to predict or identify all such factors or risks. As such, you should not consider the risks identified in the Company’s SEC filings to be a complete discussion of all potential risks or uncertainties associated with an investment in the Company.
DENTSPLY SIRONA INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(in millions, except per share amounts)
(unaudited)
| Three Months Ended March 31, | |||||||
| 2025 | 2024 | ||||||
| Net sales | $ | 879 | $ | 953 | |||
| Cost of products sold | 413 | 447 | |||||
| Gross profit | 466 | 506 | |||||
| Selling, general, and administrative expenses | 358 | 415 | |||||
| Research and development expenses | 36 | 42 | |||||
| Intangible asset impairments | — | 6 | |||||
| Restructuring and other costs | 9 | 1 | |||||
| Operating income | 63 | 42 | |||||
| Other income and expenses: | |||||||
| Interest expense, net | 19 | 18 | |||||
| Other (income) expense, net | — | (7 | ) | ||||
| Income before income taxes | 44 | 31 | |||||
| Provision for income taxes | 25 | 14 | |||||
| Net income | 19 | 17 | |||||
| Less: Net loss attributable to noncontrolling interest | (1 | ) | (1 | ) | |||
| Net income attributable to Dentsply Sirona | $ | 20 | $ | 18 | |||
| Earnings per common share attributable to Dentsply Sirona: | |||||||
| Basic | $ | 0.10 | $ | 0.09 | |||
| Diluted | $ | 0.10 | $ | 0.09 | |||
| Weighted average common shares outstanding: | |||||||
| Basic | 199.1 | 207.4 | |||||
| Diluted | 199.8 | 208.5 | |||||
DENTSPLY SIRONA INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(in millions, except share and per share amounts)
(unaudited)
| March 31, 2025 | December 31, 2024 | ||||
| Assets | |||||
| Current Assets: | |||||
| Cash and cash equivalents | $ | 398 | $ | 272 | |
| Accounts and notes receivable-trade, net | 604 | 556 | |||
| Inventories, net | 612 | 564 | |||
| Prepaid expenses and other current assets | 364 | 354 | |||
| Total Current Assets | 1,978 | 1,746 | |||
| Property, plant, and equipment, net | 791 | 766 | |||
| Operating lease right-of-use assets, net | 133 | 136 | |||
| Identifiable intangible assets, net | 1,212 | 1,207 | |||
| Goodwill | 1,632 | 1,597 | |||
| Other noncurrent assets | 304 | 301 | |||
| Total Assets | $ | 6,050 | $ | 5,753 | |
| Liabilities and Equity | |||||
| Current Liabilities: | |||||
| Accounts payable | $ | 276 | $ | 241 | |
| Accrued liabilities | 738 | 754 | |||
| Income taxes payable | 37 | 45 | |||
| Notes payable and current portion of long-term debt | 742 | 549 | |||
| Total Current Liabilities | 1,793 | 1,589 | |||
| Long-term debt | 1,593 | 1,586 | |||
| Operating lease liabilities | 88 | 91 | |||
| Deferred income taxes | 134 | 129 | |||
| Other noncurrent liabilities | 432 | 415 | |||
| Total Liabilities | 4,040 | 3,810 | |||
| Total Equity | 2,010 | 1,943 | |||
| Total Liabilities and Equity | $ | 6,050 | $ | 5,753 | |
DENTSPLY SIRONA INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in millions)
(unaudited)
| Three Months Ended March 31, | |||||||
| 2025 | 2024 | ||||||
| Cash flows from operating activities: | |||||||
| Net income | $ | 19 | $ | 17 | |||
| Adjustments to reconcile net loss to net cash provided by operating activities: | |||||||
| Depreciation | 34 | 32 | |||||
| Amortization of intangible assets | 45 | 54 | |||||
| Indefinite-lived intangible asset impairment | — | 6 | |||||
| Deferred income taxes | 1 | (9 | ) | ||||
| Stock-based compensation expense | 10 | 11 | |||||
| Other non-cash expense | 9 | 19 | |||||
| Changes in operating assets and liabilities: | |||||||
| Accounts and notes receivable-trade, net | (31 | ) | 27 | ||||
| Inventories, net | (26 | ) | (5 | ) | |||
| Prepaid expenses and other current assets | (1 | ) | (28 | ) | |||
| Other noncurrent assets | 4 | (6 | ) | ||||
| Accounts payable | 14 | (28 | ) | ||||
| Accrued liabilities | (44 | ) | (50 | ) | |||
| Income taxes | (12 | ) | (2 | ) | |||
| Other noncurrent liabilities | (15 | ) | (13 | ) | |||
| Net cash provided by operating activities | 7 | 25 | |||||
| Cash flows from investing activities: | |||||||
| Capital expenditures | (19 | ) | (34 | ) | |||
| Cash received on derivative contracts | 1 | — | |||||
| Cash paid on derivative contracts | — | (9 | ) | ||||
| Proceeds from sale of property, plant, and equipment | 1 | — | |||||
| Net cash used in investing activities | (17 | ) | (43 | ) | |||
| Cash flows from financing activities: | |||||||
| (Repayments) proceeds on short-term borrowings, net | (272 | ) | 23 | ||||
| Proceeds from 364-day bridge loan | 435 | — | |||||
| Cash dividends paid | (32 | ) | (29 | ) | |||
| Repayments on long-term borrowings | (2 | ) | (3 | ) | |||
| Cash paid for deferred financing costs | (3 | ) | — | ||||
| Other financing activities, net | (3 | ) | (5 | ) | |||
| Net cash provided by (used in) financing activities | 123 | (14 | ) | ||||
| Effect of exchange rate changes on cash and cash equivalents | 13 | (11 | ) | ||||
| Net increase (decrease) in cash and cash equivalents | 126 | (43 | ) | ||||
| Cash and cash equivalents at beginning of period | 272 | 334 | |||||
| Cash and cash equivalents at end of period | $ | 398 | $ | 291 | |||
| Supplemental disclosures of cash flow information: | |||||||
| Interest paid, net of amounts capitalized | $ | 13 | $ | 15 | |||
| Non-cash investing activities: | |||||||
| Property, plant and equipment in accounts payable at end of period | $ | 22 | $ | 24 | |||
| Exchange of inventory for naming and other rights | $ | 14 | $ | — | |||
Non-GAAP Financial Measures
In addition to results determined in accordance with U.S. generally accepted accounting principles ("US GAAP"), the Company provides certain measures in this press release, described below, which are not calculated in accordance with US GAAP and therefore represent Non-GAAP measures. These Non-GAAP measures are used by the Company to measure its performance and may differ from those used by other companies. These Non-GAAP measures should not be considered in isolation from, or as a substitute for, measures of financial performance prepared in accordance with US GAAP.
Management believes that these Non-GAAP measures are helpful as they provide a measure of the results of operations, and are frequently used by investors and analysts to evaluate the Company’s performance exclusive of certain items that impact the comparability of results from period to period, and which may not be indicative of past or future performance of the Company.
Organic Sales
The Company defines "organic sales" as the reported net sales adjusted for: (1) net sales from acquired businesses recorded prior to the first anniversary of the acquisition; (2) net sales attributable to disposed businesses in both the current and prior year periods; and (3) the impact of foreign currency changes, which is calculated by translating current period net sales using the comparable prior period's foreign currency exchange rates.
Adjusted Operating Income and Margin
Adjusted operating income is computed by excluding the following items from operating income (loss) as reported in accordance with US GAAP:
(1) Business combination-related costs and fair value adjustments. These adjustments include costs related to consummating and integrating acquired businesses, as well as net gains and losses related to disposed businesses. In addition, this category includes the post-acquisition roll-off of fair value adjustments recorded related to business combinations, except for amortization expense of purchased intangible assets noted below. Although the Company is regularly engaged in activities to find and act on opportunities for strategic growth and enhancement of product offerings, the costs associated with these activities may vary significantly between periods based on the timing, size and complexity of acquisitions and as such may not be indicative of past and future performance of the Company.
(2) Restructuring-related charges and other costs. These adjustments include costs related to the implementation of restructuring initiatives, including but not limited to, severance costs, facility closure costs, and lease and contract termination costs, as well as related professional service costs associated with these restructuring initiatives and global transformation activity. The Company is continually seeking to take actions that could enhance its efficiency; consequently, restructuring charges may recur but are subject to significant fluctuations from period to period due to the varying levels of restructuring activity, and as such may not be indicative of past and future performance of the Company. Other costs include gains and losses on the sale of property, legal settlements, executive separation costs, write-offs of inventory as a result of product rationalization, and changes in accounting principles recorded within the period. This category also includes costs related to investigations and associated legal cases and remediation activities, which primarily include legal, accounting and other professional service fees, as well as turnover and other employee-related costs.
(3) Goodwill and intangible asset impairments. These adjustments include charges related to goodwill and intangible asset impairments.
(4) Amortization of purchased intangible assets. This adjustment excludes the periodic amortization expense related to purchased intangible assets, which are recorded at fair value. Although these costs contribute to revenue generation and will recur in future periods, their amounts are significantly impacted by the timing and size of acquisitions, and as such may not be indicative of the future performance of the Company.
(5) Fair value and credit risk adjustments. These adjustments include the non-cash mark-to-market changes in fair value associated with pension assets and obligations, the credit risk component of hedging instruments, and equity-method investments. Although these adjustments are recurring in nature, they are subject to significant fluctuations from period to period due to changes in the underlying assumptions and market conditions. The non-service component of pension expense is a recurring item, however it is subject to significant fluctuations from period to period due to changes in actuarial assumptions, interest rates, plan changes, settlements, curtailments, and other changes in facts and circumstances. As such, these items may not be indicative of past and future performance of the Company.
Adjusted operating margin is calculated by dividing adjusted operating income by net sales.
Adjusted Gross Profit and Margin
Adjusted gross profit is computed by excluding from gross profit the impact of any of the above adjustments that affect either sales or cost of sales.
Adjusted gross margin is calculated by dividing adjusted gross profit by net sales.
Adjusted Net Income (Loss)
Adjusted net income (loss) consists of net income (loss) as reported in accordance with US GAAP, adjusted to exclude the items identified above, as well as the related income tax impacts of those items. The income tax effect of each pre-tax adjustment was determined based on the tax rate of the jurisdiction in which the related pre-tax adjustment was recorded.
Additionally, net income is adjusted for other tax-related adjustments such as discrete or significant adjustments to valuation allowances and other uncertain tax positions, final settlement of income tax audits, discrete tax items resulting from the implementation of restructuring initiatives, the windfall or shortfall relating to exercise of employee stock-based compensation, any difference between the interim and annual effective tax rate, and adjustments relating to prior periods.
Management believes that these adjustments for certain tax-related matters are helpful to normalize the tax effects of certain discrete or significant items that are irregular or infrequent in timing and may not be indicative of past or future performance of the Company.
Adjusted EBITDA and Margin
In addition to the adjustments described above in arriving at adjusted net income, adjusted EBITDA is computed by further excluding any remaining interest expense, net, income tax expense, depreciation and amortization.
Adjusted EBITDA margin is calculated by dividing adjusted EBITDA by net sales.
Adjusted Earnings (Loss) Per Diluted Share
Adjusted earnings (loss) per diluted share (adjusted EPS) is computed by dividing adjusted earnings (loss) attributable to Dentsply Sirona stockholders by the diluted weighted average number of common shares outstanding.
Adjusted Free Cash Flow and Conversion
The Company defines adjusted free cash flow as net cash provided by operating activities minus capital expenditures during the same period, and adjusted free cash flow conversion is defined as adjusted free cash flow divided by adjusted net income (loss). Management believes this Non-GAAP measure is important for use in evaluating the Company’s financial performance as it measures our ability to efficiently generate cash from our business operations relative to earnings. It should be considered in addition to, rather than as a substitute for, net income (loss) as a measure of our performance or net cash provided by operating activities as a measure of our liquidity.
DENTSPLY SIRONA INC. AND SUBSIDIARIES
(In millions, except percentages)
(unaudited)
A reconciliation of reported net sales to organic sales by geographic region is as follows:
| Three Months Ended March 31, 2025 | Q1 2025 Change | Three Months Ended March 31, 2024 | |||||||||||||||||||||||||
| (in millions, except percentages) | U.S. | Europe | ROW | Total | U.S. | Europe | ROW | Total | U.S. | Europe | ROW | Total | |||||||||||||||
| Net sales | $ | 302 | $ | 362 | $ | 215 | $ | 879 | (15.2 | %) | (3.4 | %) | (2.8 | %) | (7.7 | %) | $ | 356 | $ | 376 | $ | 221 | $ | 953 | |||
| Foreign exchange impact | (0.3 | %) | (4.5 | %) | (5.9 | %) | (3.3 | %) | |||||||||||||||||||
| Organic sales | (14.9 | %) | 1.1 | % | 3.1 | % | (4.4 | %) | |||||||||||||||||||
Percentages are based on actual values and may not reconcile due to rounding.
A reconciliation of reported net sales to organic sales by segment is as follows:
| Three Months Ended March 31, 2025 | Q1 2025 Change | Three Months Ended March 31, 2024 | |||||||||||||||||||||||||||||||
| (in millions, except percentages) | Connected Technology Solutions | Essential Dental Solutions | Orthodontic and Implant Solutions | Wellspect Healthcare | Total | Connected Technology Solutions | Essential Dental Solutions | Orthodontic and Implant Solutions | Wellspect Healthcare | Total | Connected Technology Solutions | Essential Dental Solutions | Orthodontic and Implant Solutions | Wellspect Healthcare | Total | ||||||||||||||||||
| Net sales | $ | 235 | $ | 353 | $ | 217 | $ | 74 | $ | 879 | (4.7 | %) | (2.7 | %) | (20.0 | %) | 3.4 | % | (7.7 | %) | $ | 247 | $ | 364 | $ | 271 | $ | 71 | $ | 953 | |||
| Foreign exchange impact | (4.2 | %) | (3.1 | %) | (2.3 | %) | (4.6 | %) | (3.3 | %) | |||||||||||||||||||||||
| Organic sales | (0.5 | %) | 0.4 | % | (17.7 | %) | 8.0 | % | (4.4 | %) | |||||||||||||||||||||||
Percentages are based on actual values and may not reconcile due to rounding.
DENTSPLY SIRONA INC. AND SUBSIDIARIES
(In millions, except percentages)
(unaudited)
The Company’s segment adjusted operating income for the three months ended March 31, 2025 and 2024 was as follows:
| Three Months Ended March 31, | |||||||
| (in millions) | 2025 | 2024 | |||||
| Connected Technology Solutions | $ | 7 | $ | 2 | |||
| Essential Dental Solutions | 135 | 115 | |||||
| Orthodontic and Implant Solutions | 37 | 42 | |||||
| Wellspect Healthcare | 26 | 23 | |||||
| Segment adjusted operating income | 205 | 182 | |||||
| Reconciling items expense (income): | |||||||
| All other (a) | 87 | 79 | |||||
| Intangible asset impairments | — | 6 | |||||
| Restructuring and other costs | 9 | 1 | |||||
| Interest expense, net | 19 | 18 | |||||
| Other (income) expense, net | — | (7 | ) | ||||
| Amortization of intangible assets | 45 | 54 | |||||
| Depreciation resulting from the fair value step-up of property, plant, and equipment from business combinations | 1 | — | |||||
| Income before income taxes | $ | 44 | $ | 31 | |||
(a) Includes unassigned corporate headquarters costs.
DENTSPLY SIRONA INC. AND SUBSIDIARIES
(In millions, except percentages)
(unaudited)
For the three months ended March 31, 2025, a reconciliation of selected items as reported in the Condensed Consolidated Statements of Operations to adjusted Non-GAAP items is as follows:
| (in millions, except percentages and per share data) | Gross Profit | Operating income | Net Income Attributable to Dentsply Sirona (a) | Diluted EPS | ||||||||||
| GAAP | $ | 466 | $ | 63 | $ | 20 | $ | 0.10 | ||||||
| Non-GAAP Adjustments: | ||||||||||||||
| Amortization of Purchased Intangible Assets | 28 | 45 | 33 | 0.16 | ||||||||||
| Restructuring-Related Charges and Other Costs | — | 25 | 19 | 0.10 | ||||||||||
| Business Combination-Related Costs and Fair Value Adjustments | 1 | 1 | 1 | — | ||||||||||
| Income Tax-Related Adjustments | — | — | 14 | 0.07 | ||||||||||
| Adjusted Non-GAAP | $ | 495 | $ | 134 | $ | 87 | $ | 0.43 | ||||||
| GAAP Margin | 53.0 | % | 7.1 | % | ||||||||||
| Adjusted Non-GAAP Margin | 56.3 | % | 15.1 | % | ||||||||||
| Weighted average common shares outstanding used in calculating diluted GAAP net loss per common share | 199.8 | |||||||||||||
| Weighted average common shares outstanding used in calculating diluted Non-GAAP net income per common share | 199.8 | |||||||||||||
| (a) The tax expense on the Non-GAAP adjustments totals | ||||||||||||||
Percentages are based on actual values and may not reconcile due to rounding.
DENTSPLY SIRONA INC. AND SUBSIDIARIES
(In millions, except percentages)
(unaudited)
For the three months ended March 31, 2024, a reconciliation of selected items as reported in the Condensed Consolidated Statements of Operations to adjusted Non-GAAP items is as follows:
| (in millions, except percentages and per share data) | Gross Profit | Operating income | Net Income Attributable to Dentsply Sirona (a) | Diluted EPS | ||||||||||
| GAAP | $ | 506 | $ | 42 | $ | 18 | $ | 0.09 | ||||||
| Non-GAAP Adjustments: | ||||||||||||||
| Amortization of Purchased Intangible Assets | 31 | 54 | 40 | 0.19 | ||||||||||
| Restructuring-Related Charges and Other Costs | 3 | 17 | 13 | 0.06 | ||||||||||
| Goodwill and Intangible Asset Impairments | — | 6 | 4 | 0.02 | ||||||||||
| Business Combination-Related Costs and Fair Value Adjustments | — | 1 | 1 | — | ||||||||||
| Income Tax-Related Adjustments | — | — | 11 | 0.06 | ||||||||||
| Adjusted Non-GAAP | $ | 540 | $ | 120 | $ | 87 | $ | 0.42 | ||||||
| GAAP Margin | 53.1 | % | 4.4 | % | ||||||||||
| Adjusted Non-GAAP Margin | 56.6 | % | 12.6 | % | ||||||||||
| Weighted average common shares outstanding used in calculating diluted GAAP net loss per common share | 208.5 | |||||||||||||
| Weighted average common shares outstanding used in calculating diluted Non-GAAP net income per common share | 208.5 | |||||||||||||
| (a) The tax expense on the Non-GAAP adjustments totals | ||||||||||||||
Percentages are based on actual values and may not reconcile due to rounding.
DENTSPLY SIRONA INC. AND SUBSIDIARIES
(In millions, except percentages)
(unaudited)
A reconciliation of reported net income attributable to Dentsply Sirona to adjusted EBITDA and margin for the three months ended March 31, 2025 and 2024 is as follows:
| Three Months Ended March 31, | ||||||||
| (in millions, except percentages) | 2025 | 2024 | ||||||
| Net income attributable to Dentsply Sirona | $ | 20 | $ | 18 | ||||
| Interest expense, net | 19 | 18 | ||||||
| Income tax expense | 25 | 14 | ||||||
| Depreciation(1) | 33 | 32 | ||||||
| Amortization of purchased intangible assets | 45 | 54 | ||||||
| Restructuring-related charges and other costs | 25 | 17 | ||||||
| Goodwill and intangible asset impairments | — | 6 | ||||||
| Business combination-related costs and fair value adjustments | 1 | 1 | ||||||
| Adjusted EBITDA | $ | 168 | $ | 160 | ||||
| Net sales | $ | 879 | $ | 953 | ||||
| Adjusted EBITDA margin | 19.0 | % | 16.8 | % | ||||
(1) Excludes those depreciation-related amounts which were included as part of the business combination-related adjustments and Restructuring-related charges and other costs.
Percentages are based on actual values and may not reconcile due to rounding.
A reconciliation of adjusted free cash flow conversion for the three months ended March 31, 2025 and 2024 is as follows:
| Three Months Ended March 31, | ||||||||
| (in millions, except percentages) | 2025 | 2024 | ||||||
| Net cash provided by operating activities | $ | 7 | $ | 25 | ||||
| Capital expenditures | (19 | ) | (34 | ) | ||||
| Adjusted free cash flow | $ | (12 | ) | $ | (9 | ) | ||
| Adjusted net income | $ | 87 | $ | 87 | ||||
| Adjusted free cash flow conversion | (14 | %) | (10 | %) | ||||
Percentages are based on actual values and may not reconcile due to rounding.
FAQ
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