DENTSPLY SIRONA (XRAY) Q4 2024 earnings summary

Executive summary

• FY24 net sales declined 4.3% to $3,793M, with organic sales down 3.5% including a 1.2% Byte impact; Q4 net sales fell 10.6% to $905M, with a 6.1% Byte impact.

• FY24 GAAP net loss was $910M due to $870M in non-cash impairment charges; adjusted EPS was $1.67.

• Strategic transformation initiatives advanced, including ERP deployment, virtual sales team launch, and redeployment of Byte resources to SureSmile.

• Strategic review of Wellspect Healthcare underway to unlock stakeholder value.

• Outperformed latest guidance excluding incremental Byte impacts; Board augmented with two new members.

Financial highlights

• FY24 revenue was $3,793M, down 4.3% reported and 3.5% organic; Q4 revenue was $905M, down 10.6% reported and 10.7% organic.

• Adjusted EBITDA margin was 16.6% for FY24 (down 80 bps YoY); Q4 adjusted EBITDA margin was 14.2%.

• Adjusted EPS for FY24 was $1.67 (down 8.4% YoY); Q4 adjusted EPS was $0.26 (down 41.3% YoY).

• Operating cash flow for FY24 was $461M (+22.3% YoY); adjusted free cash flow conversion was 83%.

• $376M returned to shareholders in 2024 via dividends and share repurchases.

Outlook and guidance

• FY25 net sales expected between $3.50B and $3.60B, with organic sales down 4.0% to 2.0%, including a 2% Byte impact.

• Adjusted EBITDA margin expected to exceed 18% in 2025, with adjusted EPS guidance of $1.80–$2.00.

• Q1 2025 organic sales expected to decline high single digits YoY, with margin expansion anticipated later in the year.

• Capital expenditures projected at $160M–$190M; ≥75% of free cash flow to be returned to shareholders.

• FX expected to be an $0.11 headwind to EPS.