Envista (NVST) investor relations material

Market and business performance

• Dental market rebounded post-COVID, with growth returning to pre-pandemic trends in most categories.

• Consumables outperformed due to higher dental inflation and insulation from consumer sentiment, especially in the U.S.

• Equipment and diagnostics saw a post-pandemic surge, with diagnostics now the fastest-growing category due to innovation and easy comps.

• North America remains the largest and fastest-growing market for core businesses, with efforts to expand internationally.

• Developing markets (excluding China) and Europe are experiencing the fastest growth, while China lags due to VBP policy.

Pricing, inflation, and financial strategy

• Dental market price inflation typically runs at or above CPI, with current company pricing at about 1.8%.

• Recent price increases were supported by external factors like tariffs and raw material costs, but long-term price growth is expected to be 1–1.5%.

• Financial performance has improved across the P&L, with gains in market share and balance sheet strength.

Dental implants and specialty segments

• Global dental implant market grows mid-single digits, with premium segment slower and challenger segment faster.

• Company over-indexes in premium implants (85% of mix), aiming to grow challenger share organically and through M&A.

• Recent acquisitions focused on implants, with preference for deals that are accretive on growth, margin, and valuation.

• Workflow and digital solutions drive growth in premium implants, while regenerative products and diagnostics outperform the core implant product.