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 consistent execution since then, including six consecutive quarters of broad-based growth and a 300 basis point margin improvement.

• Enhanced commercial execution, innovation, and operational excellence, including manufacturing productivity, automation, procurement savings, and G&A efficiency, supporting faster profit growth than sales.

• Employee engagement and talent development have improved, with over half of leadership roles filled internally and broad-based increases in engagement scores.

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

• Living core values through global charitable initiatives and expanding access to dental care.

Market positioning and business segment updates

• Holds top-three positions in implants, orthodontics, diagnostics, and consumables, with a balanced portfolio across geographies and channels.

• Implant business is gaining momentum, with Nobel Biocare's S series and other innovations achieving rapid adoption and competitive conversions; challenger brands and digital workflows are key growth drivers.

• Orthodontics segment, led by Ormco and Spark, is expanding through digital platforms, hybrid treatment planning, and consistent innovation, with Spark surpassing $300 million in sales and achieving profitability.

• Consumables business is focused on stable, recurring demand, expanding internationally, and launching differentiated products in restorative materials and infection prevention.

• Diagnostics (DEXIS) is recovering with double-digit core growth, leveraging a large installed base, integrated AI-powered software, and a shift toward recurring revenue from services and subscriptions.

Financial outlook and capital allocation

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

• Pricing discipline and procurement initiatives have delivered $100 million in price realization and $10 million in procurement savings in 2026.

• Debt structure to be refreshed by 2028, with a focus on maintaining capital allocation flexibility despite expected higher interest expense.

• Tax rate reduced by 13 points in two years, with further optimization planned.