DENTSPLY SIRONA (XRAY) Stifel Jaws & Paws Conference 2025 summary

Market landscape and performance

• Q1 2025 results exceeded guidance, with EPS well above expectations despite mid-single digit revenue decline, mainly due to Byte.

• Patient traffic remains stable but below pre-COVID levels, with only slight degradation in customer sentiment.

• No significant week-to-week changes in customer purchase intent or footfall across major markets.

• Germany shows slight ongoing improvement, while the U.S. market sentiment reflects mild concern post-Liberation Day, but no impact on purchasing or patient traffic.

• Persistent challenges to returning to pre-COVID levels include oral health awareness, price sensitivity, and high interest rates affecting capital equipment purchases.

Divisional outlook and growth initiatives

• CTS and implants/prosthetics divisions are expected to be down in 2025, with CTS impacted by interest rates and implants by sales force transitions.

• DS Core platform penetration increased globally, with significant growth in users, connected devices, and lab order utilization.

• Implants division is addressing sales force expertise and customer engagement, with plans to integrate implants into DS Core later this year.

• Orthodontics division expects growth as Byte headwinds subside and SureSmile software improvements are implemented, leveraging strong European performance.

Financial discipline and margin expansion

• All four divisions reported year-over-year margin improvement, aided by cost reductions and an $8 million Byte refund adjustment.

• Several hundred million dollars in expenses have been removed over the past two years, with ongoing diligence in expenditure.

• OPEX was down 14% year-over-year in Q1 2025, with further benefits expected from ERP, SKU rationalization, and network consolidation into 2026.

• Selective investments continue in SureSmile and implants, aiming for future P&L impact as growth returns.