DENTSPLY SIRONA (XRAY) Q1 2026 earnings summary

Executive summary

• Q1 2026 net sales were $880 million, flat year-over-year, with a GAAP net loss of $10 million or $(0.05) per diluted share, compared to net income of $20 million in Q1 2025.

• Adjusted EPS was $0.27, down from $0.44 in the prior year quarter; adjusted EBITDA was $129 million, a 22.8% decrease year-over-year.

• The Return-to-Growth Action Plan commenced, focusing on innovation, operational efficiency, and capital allocation, with early restructuring and foundational changes underway.

• Launched Smart View - Detect, the first FDA-cleared AI-enabled diagnostic aid for dental imaging, and expanded distribution agreements.

• Management and board alignment, new commercial leadership, and increased field engagement are supporting transformation.

Financial highlights

• Q1 2026 revenue was $880 million, up 0.1% as reported; constant currency sales declined 6.7%.

• Adjusted EBITDA margin declined 430 basis points to 14.7%, mainly due to a 560 basis point drop in gross profit from lower volumes, mix, and tariffs.

• Adjusted EPS was $0.27; operating cash flow improved to $40 million from $7 million year-over-year.

• Cash and equivalents at quarter-end were $190 million, down from $326 million at year-end 2025; net debt to EBITDA ratio was 3.3x.

• $79–$80 million of debt retired in Q1, with a continued focus on deleveraging.

Outlook and guidance

• Full-year 2026 outlook maintained: net sales of $3.5–$3.6 billion and adjusted EPS of $1.40–$1.50.

• Guidance reflects a risk-aware approach amid macro and geopolitical uncertainty; management prefers to reassess after more quarters before updating guidance.

• Most material benefits from restructuring and growth initiatives expected in late 2026 and into 2027–2028.

• Capital expenditures for 2026 expected to be $125–$150 million, focused on supply chain, innovation, and ERP.

• R&D investment to remain at least 5% of annual net sales for 2026.