Envista Holdings Corporation

What they do

Envista develops, manufactures and markets dental implants, orthodontic systems, digital imaging, and consumables such as restoratives, endodontics and infection prevention products. It operates through two segments: Specialty Products & Technologies (Dental Implant Solutions and Orthodontic Solutions) and Equipment & Consumables (Diagnostic and Consumables Solutions). The company sells directly and through distributors; in 2025 about 85% of total sales came from consumables, services and spare parts. It was formed in 2018 as a Danaher subsidiary and went public in 2019.

Revenue drivers

• Specialty Products & Technologies — Largest segment at 64% of 2025 sales ($1,752.8 million), including dental implants under Nobel Biocare and orthodontics under Ormco. 84% of its 2025 sales were direct, and 93% were consumables, services and spare parts.
• Equipment & Consumables — Second segment at 36% of 2025 sales ($966.7 million), comprising diagnostic imaging and consumable solutions such as restoratives, endodontics and infection prevention. Sold largely through distribution partners.
• North America — Largest geographic market at $1,395.2 million in 2025, split between Specialty ($720.5 million) and Equipment & Consumables ($674.7 million).
• Emerging markets — Second-largest region at $586.2 million in 2025, with Specialty contributing $444.8 million and Equipment & Consumables $141.4 million. Western Europe added $615.3 million.

Recent performance

For the second quarter ended July 3, 2026, net sales were $731 million with 5.0% core sales growth. GAAP net income was $54 million, GAAP diluted EPS was $0.33, and adjusted EBITDA was $108 million (14.7% margin, up 230 basis points year over year). Both segments grew, with 3.1% core growth in Specialty Products & Technologies and 8.5% in Equipment & Consumables. Second-quarter operating cash flow was $119 million and free cash flow was $105 million, versus $89 million and $76 million a year earlier. The company repurchased 2.4 million shares for about $59 million in the quarter.

Strategy

Management credits the Envista Business System for margin expansion, citing 70 basis points of adjusted gross margin and 230 basis points of adjusted EBITDA margin improvement in the second quarter of 2026. The company continues to invest in its brands, commercial organization and digital dentistry portfolio, including implants, orthodontics and imaging. It is returning capital through share repurchases, with approximately $283 million of capacity remaining at quarter-end. Management raised full-year 2026 guidance for core sales growth, adjusted EBITDA and adjusted EPS, citing first-half performance and continued momentum.

Risks

• Macroeconomic and market conditions — Conditions in the global economy, inflation, higher interest rates, slower growth or recession could reduce demand in the dental markets Envista serves.
• Trade policy uncertainty — Developments and uncertainties in trade policies, including tariffs or other impositions on imported goods, could adversely affect the business.
• Supply chain and manufacturing dependence — Reliance on sole or limited sources of supply and inability to adjust manufacturing capacity or purchases to changing demand could cause production interruptions and inefficiencies.
• Information technology and data privacy — A significant disruption or breach of IT systems, violations of data privacy laws, or risks from growing use of artificial intelligence systems could harm operations and reputation.

Outlook

Management raised full-year 2026 guidance on August 5, 2026: core sales growth of 3.5% to 4.5% (previously 2% to 4%), adjusted EBITDA growth of 11% to 14% (previously 7% to 13%), and adjusted diluted EPS of $1.50 to $1.55 (previously $1.35 to $1.45). Free cash flow conversion is expected at 100%. The company does not provide forward-looking estimates on a GAAP basis because certain information is not available and cannot be reasonably estimated.