Envista (NVST) Q4 2025 earnings summary

Executive summary

• Achieved double-digit core sales, adjusted EBITDA, and EPS growth in Q4 2025, with all major businesses and geographies contributing positively and 6.5% core growth for the year.

• Launched several new products in 2025, generating approximately $100 million in revenue, and increased customer training by 30%.

• Implemented a $250 million share repurchase program, returning $166 million to shareholders in 2025 (over 9 million shares repurchased at ~$18/share).

• Advanced the Value Creation Plan with record employee engagement, significant management refresh, and increased internal promotions.

• Donated over $2 million to community organizations through the Envista Smile Project.

Financial highlights

• Q4 2025 sales reached $751 million, with core sales up 10.8% year-over-year; adjusted EBITDA was $111 million (14.8% margin, up 90 bps), and adjusted EPS was $0.38, up 58% year-over-year.

• Full-year 2025 sales were $2,719 million, with core sales up 6.5%; adjusted EBITDA was $372 million (13.7% margin, up 190 bps), and adjusted EPS was $1.19, up 63% year-over-year.

• Free cash flow for 2025 was $231 million, with a conversion rate of 114%.

• Q4 adjusted gross margin was 55%, down 220 basis points year-over-year; full-year adjusted gross margin was 55.1%, down 30 basis points.

• Net debt to adjusted EBITDA at approximately 0.6x, indicating a strong balance sheet.

Outlook and guidance

• 2026 guidance: core revenue growth of 2%-4%, adjusted EBITDA growth of 7%-13%, adjusted EPS of $1.35–$1.45 (13%-22% growth), and free cash flow conversion around 100%.

• Dental market expected to remain stable with potential modest improvement; FX projected to provide a 1.5% revenue benefit.

• Tariff headwinds expected to increase to $40 million in 2026, but anticipated to be offset by price increases and cost reductions.

• Non-GAAP tax rate expected to decrease to approximately 28% in 2026, with actions taken to reduce tax rate by ~4 points.

• Guidance does not reflect future gains/losses from unpredictable events such as acquisitions, divestitures, or legal matters.