DENTSPLY SIRONA (XRAY) Q2 2026 earnings summary

Executive summary

• Q2 2026 net sales were $898 million, down 4.1% year-over-year, with net income rebounding to $37 million from a loss last year.

• Adjusted EPS was flat at $0.52, aided by a $0.17 per share benefit from $44 million in tariff refunds.

• Operating cash flow rose to $99 million from $48 million, driven by tariff refunds and improved working capital.

• The Return-to-Growth action plan progressed, including expanded distribution networks and new partnerships in Canada.

• John Fortson was appointed CFO in July 2026.

Financial highlights

• Adjusted EBITDA was $190 million, down 3.3% year-over-year, with margin improving to 21.3%.

• GAAP gross margin improved to 54.9%, up 250 bps year-over-year, driven by tariff refunds and FX.

• Operating cash flow increased to $99 million; free cash flow rose to $55 million from $16 million.

• SG&A expenses increased 6.7% year-over-year, mainly due to FX impacts and investments in sales, marketing, and R&D.

• 1.3 million shares were repurchased for $12 million, the first buyback since Q3 2024.

Outlook and guidance

• 2026 outlook maintained: net sales of $3.5–$3.6 billion and adjusted EPS of $1.40–$1.50, excluding tariff impacts.

• Q3 2026 revenue expected to decline sequentially due to seasonality; Q3 earnings to be below Q2, excluding tariff refund benefit.

• Annualized cost savings of ~$120 million expected from the 2026 restructuring plan, with most charges expensed in 2026–2027.

• R&D investment to remain at ~5% of annual net sales for 2026.

• Capital expenditures for 2026 projected at $140–$160 million, focused on supply chain and digital upgrades.