DENTSPLY SIRONA : Q1 2026 Earnings Presentation vF

Published: 2026-05-05 16:15:37 ET XRAY

Published on 05/05/2026 at 04:15 pm EDT

May 5, 2026

First Quarter 2026 Earnings Conference Call

Key Developments

Transitioned into execution of Return-to-Growth Action Plan

Launched Smart View-Detect, the world's first FDA-cleared, AI-enabled diagnostic aid designed to identify teeth with periapical radiolucencies (PARL) in CBCT scans, plus CE-marked

Continued to penetrate connected technology solutions market

with new Atlanta Dental Supply distributor agreement

Installed first CEREC® system under the new Benco Dental distribution agreement, marking an important early milestone

Began implementation of new capital allocation strategy by reducing debt, managing liquidity, and improving working capital

Maintaining FY26 outlook for net sales, operational growth and adj. EPS

First Quarter 2026 Financial Summary

0.1%

$879M

YoY

Q1 2025

Q1 2026

$362M

1.1%

(6.7%)

Net sales +0.1% YoY

Increases in CTS and Wellspect offset by declines in EDS and OIS

Constant currency revenue down (6.7%), including (2.2%) impact for Byte and one-time institutional installation in 1Q25

Operating Expenses $366M

OPEX on a constant currency basis down ($20) million YoY, reflecting benefits from restructuring and cost-management

Adj. EBITDA % 14.7% 19.0% (430) bps

$7M

471%

initiatives

Adj. EBITDA margin 14.7%, (430) bps YoY

Decline driven by lower volumes and tariff impacts on gross profit

Operating Cash Flow of $40M

AR improvement YoY

Free Cash Flow flat YoY

$190M cash and cash equivalents

Commentary and trends are based on as-reported vs. Q1 2025 unless otherwise noted

First Quarter 2026 Segment Results

Net Sales

As Reported

Constant Currency

Commentary

Connected Technology Solutions (CTS)

CAD/CAM: Growth in APAC, offset by lower sales in EMEA

Equipment & Instruments: Primarily driven by tough comparable (+DD Q1 2025) with Treatment Center institutional sale in 1Q25

Lower volumes in Americas and EMEA, partially offset by growth across each product category in APAC

Essential Dental Solutions

(EDS)

Orthodontic and Implant Solutions (OIS)

Orthodontics: Decline due to ($14M) Byte YoY impact

Implants & Prosthetics: Lower implant volumes across three regions

Growth driven by new product launches and increased volumes across all three regions

Wellspect Healthcare

Growth commentary and trends are based on constant currency vs. Q1 2025

Maintaining 2026 Outlook*

Net Sales

Operational Growth

Adjusted EPS

Operational growth represents change in expected FY2026 net sales in constant currency when compared to FY2025, excluding net sales attributable to Byte and the anticipated impact of the new dealer inventory model for equipment products

6 *Actual results may differ materially due to a number of factors and risks, including those described in the Company's filings with the SEC

Expanding Workflow Capabilities with Product Innovation

DS Core

Endo

CTS

Wellspect

Advancing Innovation Across the Portfolio

Return-to-Growth Action Plan

Customer-Centric Mindset

Establishing strategic KOL Advisory Board to support CEO

Building out scalable, structured global clinical education program

Developing sales education focused on workflows facilitating connected dentistry

Reigniting Sustainable Growth

Driving U.S. turnaround while investing in EMEA and APAC

Accelerating innovation with multiple FDA and CE mark clearances

Penetrating CTS market with new Atlanta Dental Supply distributor agreement

Delivering on strategic partnerships with Benco Dental installing its first CEREC© system

Increasing investment in sales organization

Empowering Performance

Transformation Office driving Return-

to-Growth Action Plan

and AI strategy

Simplifying and optimizing operating model to improve scalability

Elevating capabilities within finance organization to strengthen execution

Scaling Organization

Executing on restructuring program and indirect cost optimization to unlock P&L efficiencies to fuel Return-to-Growth Action Plan

Implementing lean principles to further improve customer experience and improve organizational speed

Rationalizing legal entities and IT systems to reduce complexity & standardize processes

Financial Strength

Retired approximately

$80 million of debt in Q1 2026

Focused on debt reduction and share repurchases, supported by improving free cash flow and working capital efficiency

Improving free cash flow and reducing inventory levels by 20%

In Summary

Executing on Return-to-Growth Action Plan

Expanding market access for connected technology solutions products

Reallocating savings into innovation, clinical education, and sales team training

Implementing new capital allocation

strategy and improving working capital

Appendix

Non-GAAP Financial Measures Definitions

Constant Currency

Reported net sales adjusted for the impact of foreign currency changes, which is calculated by translating current period net sales using the comparable 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. Adjusted operating margin is calculated by dividing adjusted operating income by net sales.

Business combination-related costs: costs related to consummating and integrating acquired businesses, as well as net gains and losses related to disposed businesses. Costs include the post-acquisition roll-off of fair value adjustments recorded related to business combinations, except for amortization expense of purchased intangible assets noted below.

Restructuring-related charges and other costs: 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. 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.

Goodwill and intangible asset impairments: include charges related to goodwill

and intangible asset impairments.

Amortization of purchased intangible assets: includes the periodic amortization expense related to purchased intangible assets, which are recorded at fair value.

Fair value and credit risk 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, contingent consideration from past acquisitions, and equity-method investments.

Adjusted Gross Profit and Margin

Gross profit excluding the impact of any of the above adjustments that affect either net sales or cost of sales. Adjusted gross margin is calculated by dividing adjusted gross profit by net sales.

Adjusted Net Income (Loss)

Net income (loss) as reported in accordance with US GAAP, adjusted to exclude the items identified above and the related income tax impacts of those items, as well as the tax effects of certain significant and discrete tax adjustments, including benefits and provisions related to changes in realization of deferred tax assets and tax credit carryforwards, as well as other events that affect comparability and are not core to our underlying operational performance.

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

Computed by dividing adjusted earnings (loss) attributable to Dentsply Sirona stockholders by the diluted weighted average number of common shares outstanding.

Free Cash Flow

Net cash provided by operating activities minus capital expenditures during the same period.

Trailing Nine Quarters

In millions (except percentages)

Q1 24

Q2 24

Q3 24

Q4 24

Q1 25

Q2 25

Q3 25

Q4 25

Q1 26

Net Sales

$953

$984

$951

$905

$879

$936

$904

$961

$880

Adjusted EBITDA

$160

$173

$170

$128

$168

$197

$167

$135

$129

Adj. EBITDA Margin %

16.8%

17.5%

17.9%

14.2%

19.0%

21.1%

18.4%

14.1%

14.7%

Cash Flow

Net Cash Provided by Operating Activities

$25

$208

$141

$87

$48

$79

$101

$40

Less: Capital Expenditures

$34

$52

$43

$51

$19

$32

$39

$41

$52

Free Cash Flow

($9)

$156

$98

$36

($12)

$16

$40

$60

($12)

12 Cash flow related quarterly results may be rounded to tie to year-to-date statement of cash flows Percentages are based on actual values and may not reconcile due to rounding

(unaudited)

Condensed Consolidated Statements of Operations Q1 2026

(unaudited)

Condensed Consolidated Statements of Operations Q1 2025

(unaudited)

Adjusted EBITDA

(unaudited)

Free Cash Flow

(unaudited)

Disclaimer

Dentsply Sirona Inc. published this content on May 05, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 05, 2026 at 20:14 UTC.