DENTSPLY SIRONA Inc.

What they do

DENTSPLY SIRONA designs, manufactures, and sells dental equipment (e.g., imaging, CAD/CAM like CEREC and Primescan), dental consumables (endodontic, restorative, preventive), digital orthodontics and implants, and continence care products under the Wellspect brand. The company operates through four reportable segments: Connected Technology Solutions, Essential Dental Solutions, Orthodontic and Implant Solutions, and Wellspect Healthcare. Products are sold globally to customers in approximately 140 countries.

Revenue drivers

• Essential Dental Solutions — Largest segment with Q2 2026 net sales of $376 million, including endodontic, restorative, and preventive consumables.
• Connected Technology Solutions — Q2 2026 net sales of $239 million, from dental equipment, imaging, and CAD/CAM products including CEREC and intraoral scanners.
• Orthodontic and Implant Solutions — Q2 2026 net sales of $197 million, driven by implant systems, digital dentures, and clear aligners.
• Wellspect Healthcare — Q2 2026 net sales of $86 million, growing 7.1% year-over-year, from continence care catheters and irrigation systems.

Recent performance

In Q2 2026, net sales were $898 million, down 4.1% year-over-year, with constant currency sales down 6.3%. GAAP diluted EPS was $0.18 (net income of $37 million) versus a loss of $0.22 in Q2 2025. Adjusted EPS was flat at $0.52, and adjusted EBITDA margin was 21.3%. For full-year 2025, the company reported a net loss of $598 million on net sales of $3.68 billion, with operating cash flow of $235 million. The company repurchased 1.3 million shares in Q2 2026.

Strategy

Management is executing a Return-to-Growth Action Plan focused on strengthening distributor relationships, realigning sales teams, and reinvesting in the business. They are expanding partnerships, such as with Patterson Dental for U.S. equipment distribution and Medline Sinclair in Canada. The plan includes leveraging digital platforms like DS Core and cloud-native products to drive growth. Additionally, they are taking actions to mitigate tariff impacts and improve cash flow.

Risks

• Macroeconomic headwinds — Consumer confidence and clinician financing challenges are reducing discretionary spending on elective dental procedures, hurting results particularly in the U.S.
• Tariff exposure — U.S. tariffs on imported goods, especially dental equipment manufactured in Europe, could increase costs; the company received $44 million in refunds in Q2 2026 but faces ongoing uncertainty.
• Cyber incidents — Increased reliance on cloud platforms like DS Core and intraoral scanners like Primescan 2 expands vulnerabilities to cyberattacks and data breaches.
• Currency fluctuations — Foreign exchange movements could adversely affect reported net sales, as seen with constant currency sales declining faster than reported sales in Q2 2026.

Outlook

Management reaffirmed its 2026 outlook for net sales and adjusted EPS. They continue to expect headwinds from global trade policies and inflation, impacting growth. The company is focusing on its Return-to-Growth Action Plan to drive sustained, profitable growth and strengthen its financial foundation.