Envista (NVST) investor relations material

Strategic priorities and progress

• Focus remains on growth, operations, and people, with a Value Creation Plan launched in March 2025 and six consecutive quarters of broad-based growth, including a 300 basis point margin improvement.

• Enhanced commercial execution, innovation, and operational excellence, including manufacturing productivity, automation, procurement savings, and G&A efficiency.

• Employee engagement and talent development improved, with over half of leadership roles filled internally and a strong focus on succession and culture.

• Expanded capital deployment includes share repurchases, improved balance sheet flexibility, and global charitable initiatives to expand dental care access.

• The Envista Business System (EBS) underpins continuous improvement and measurable impact in growth, operations, and people across all business units.

Financial performance and outlook

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

• 2025 core sales growth at 6.5% and FCF conversion at 114%, with 2026 guidance at or above targets.

• $1.1B cash, 0.7x leverage, and $282M returned to shareholders; $300M share repurchase authorization through 2028.

• Pricing execution contributed ~$100M to growth over three years; procurement initiatives delivered ~$10M in 2026 savings.

• Tax rate reduced by 13 points over two years, with further optimization expected through legal entity simplification and geographic mix.

Business segment highlights

• Implants: Nobel Biocare and challenger brands gaining momentum, S series now 18% of Nobel sales in Europe and North America, with innovation and education driving adoption and margin expansion.

• Orthodontics: Ormco leads in fixed appliances and clear aligners, Spark achieving profitability and HSD growth, over $300 million in sales since launch, and digital platform integration enabling hybrid treatments.

• Consumables: Stable, recurring demand with leading brands in restorative materials and infection prevention, premium positioning, and innovation supporting global expansion.

• Diagnostics: DEXIS holds #1 share in North America, 450,000+ devices in 128 countries, with software and services now 23% of segment revenue and AI-powered diagnostics driving growth.