Envista (NVST) 7th Annual Evercore ISI HealthCONx Conference summary

Market trends and patient traffic

• Dental market described as slow but stable, with steady patient traffic and no significant changes in general procedures.

• Higher-ticket procedures like implants and advanced orthodontics have slowed, while basic procedures remain unchanged.

• Optimism exists for future improvement tied to lower interest rates and rising consumer confidence, though not yet reflected in financials.

Impact of interest rates and purchasing behavior

• Lower interest rates are expected to benefit dental market growth, especially for equipment purchases and site expansions.

• Financing is a key factor for both clinicians and patients, particularly for expensive procedures.

Inventory normalization and channel dynamics

• North American distributor inventory levels have normalized from pandemic highs, now at about half the previous levels.

• Inventory drawdown has impacted orders and financials, with Q4 levels expected to remain stable.

• China faces higher inventory volatility due to macroeconomic factors and VBP (volume-based procurement) effects, with stabilization efforts ongoing.