Envista Holdings Corporation — Third Quarter 2026 Earnings Summary

Financial Performance:

• Third quarter sales were $691 million, representing 3.2% total sales growth and 2.7% core sales growth year-over-year.
• GAAP diluted EPS was $3.11, compared to a loss of $(0.18) in the prior year quarter.
• Adjusted diluted EPS was $0.40, a 25% increase year-over-year.
• GAAP net income was $508 million, compared to a loss of $(30) million in the prior year quarter.
• Adjusted EBITDA was $106 million, a 9% increase year-over-year, with an adjusted EBITDA margin of 15.3% (up 80 basis points year-over-year).
• Operating cash flow for the quarter was $78 million, compared to $79 million in the prior year quarter.
• Free cash flow for the quarter was $63 million, compared to $68 million in the prior year quarter.
• Nine-month sales totaled $2,127.5 million, up 8.1% year-over-year.
• Nine-month adjusted diluted EPS was $1.16, up from $0.82 in the prior year period.
• Nine-month adjusted EBITDA was $312 million, up from $260 million in the prior year period.
• Nine-month free cash flow was $152.9 million, compared to $139.2 million in the prior year period.
• GAAP net income for the nine months was $601 million, compared to $14 million in the prior year period.
• A realized cumulative foreign currency translation gain of $428 million ($2.62 diluted EPS) was recognized in the quarter due to the dissolution of certain legal entities; this gain had no cash impact and no impact on adjusted EBITDA or adjusted diluted EPS.

Guidance and Future Outlook:

• Updated full-year 2026 core sales growth guidance to 3.75% to 4.25% (prior guidance: 3.5% to 4.5%).
• Updated full-year 2026 adjusted EBITDA growth guidance to 12.5% to 14% (prior guidance: 11% to 14%).
• Updated full-year 2026 adjusted diluted EPS guidance to $1.54 to $1.58 (prior guidance: $1.50 to $1.55).
• Full-year 2026 free cash flow conversion guidance remains at approximately 100%.

Business Segments and Product Lines:

• Specialty Products & Technologies segment reported 2.0% core sales growth in the quarter.
• Equipment & Consumables segment reported 4.1% core sales growth in the quarter.
• Both reporting segments delivered positive core sales growth.
• The Envista Business System (EBS) contributed to year-over-year adjusted gross margin expansion of 20 basis points.
• A new European Design Center for Spark was opened.
• The company published its 2025 Sustainability Report.

Market and Competitive Landscape:

• The company reported gaining market share during the quarter.
• The company operates as a global leader in the dental industry with over 30 trusted brands, including DEXIS, Kerr, Nobel Biocare, and Ormco.

Risks and Challenges:

• The press release lists standard forward-looking statement risks including global economic conditions, inflation, interest rates, trade policies, tariffs, supply chain disruptions, geopolitical conflicts, climate change, cybersecurity threats, product defects, regulatory changes, and competition.
• Specific risks mentioned include reliance on sole or limited sources of supply, fluctuations in distributor inventory, and risks related to product manufacturing and commodity costs.

Management Commentary and Tone:

• CEO Paul Keel stated the company delivered "another quarter of profitable growth, gaining share and expanding margins."
• Management expressed confidence in raising full-year earnings guidance due to strong momentum and year-to-date progress.
• Management noted they are converting broad-based topline performance into stronger earnings growth while investing in customers, colleagues, and communities.

Other Key Points:

• During the quarter, the company repurchased 386,000 shares for approximately $10 million.
• At the end of the quarter, approximately $273 million of remaining repurchase capacity remained under the stock repurchase program.
• Nine-month capital expenditures (payments for additions to property, plant, and equipment) were $43.5 million.
• Nine-month acquisitions, net of cash acquired, totaled $54.3 million.
• Long-term debt as of October 2, 2026, was $1,429.0 million.
• Cash and cash equivalents as of October 2, 2026, were $1,158.8 million.
• The company will host an investor conference call on November 4, 2026, at 2:00 p.m. PT to discuss results and outlook.