Envista (NVST) investor relations material

Strategy and value creation

• March 2025 plan focuses on Growth, Operations and People; six consecutive quarters of broad-based growth followed product launches and stronger commercial execution.

• Margins are up ~300 bps versus two years ago, market share has increased in most core categories, and a stronger product pipeline supports a higher medium-term outlook.

• Next phase deepens EBS, accelerates launches and share gains, expands productivity, and maintains disciplined capital deployment; employee engagement improved in three consecutive annual surveys.

• Commercial execution, manufacturing productivity and G&A efficiency improved; over 50% of management roles are filled internally.

Financial performance and capital allocation

• Medium-term outlook raised to 2%-5% core growth, 5%-8% adjusted EBITDA growth, 7%-11% adjusted EPS growth and ~100% free cash flow conversion.

• Underlying growth is 3%-4% excluding Spark deferrals, channel inventory normalization and tariff-related pricing; EBITDA growth is ~2x revenue growth, with another 1-2 points of EPS growth and 1:1 cash conversion.

• 2025 core sales growth was 6.5% and FCF conversion was 114%; $1.1B cash and 0.7x leverage, with $282M returned to shareholders and a $300M repurchase authorization through 2028.

• Nearly $1B of annual procurement spend is addressable, with $10M of expected 2026 savings; pricing contributed ~$100M over three years.

• Capital priorities remain organic investment, M&A and shareholder returns; debt priorities include extending duration, diversifying instruments and staggering maturities.

Business segment highlights

• Implants address a $12B market growing at a mid-single-digit rate; after ~$25M of annual investment began in 2024, the business returned to growth in 2025, with further improvement expected.

• Annual implant launches rose 50% since 2024; S series was 18% of Nobel implants sold in Europe and North America in the latest quarter, EmPro adoption reached 58% in six months, and Versah expanded reach to 300+ representatives.

• Orthodontics is a ~$7B market; Spark exceeded $300M in global sales, reached profitability in 2025 and has a 10% revenue CAGR. Cost per aligner fell ~40% over 12 quarters.

• Consumables address a $10B market; two-thirds of sales are in North America while over 60% of the addressable market is outside it. Manufacturing sites fell from nine to six, and innovation revenue impact rose over 30%.

• Diagnostics returned to growth in late 2025, with double-digit average core growth in H1 2026; 450,000+ devices and workstations serve 50,000+ offices in 128 countries, and software and services are 27% of revenue.