Envista (NVST) Evercore ISI 8th Annual HealthCONx Conference summary

Market overview and performance

• Dental market remains soft but stable, with low single-digit growth and consistent trends across segments.

• Consumables show the most stability, while orthodontics and implants maintain low to mid-single-digit growth.

• Diagnostics experienced a negative low single-digit trend but is modestly improving, aided by interest rate optimism.

• North America is recovering, Europe is strong due to favorable rates, and China remains uncertain.

• Year-to-date growth is around 5%, with strong trends expected to continue through year-end.

Spark and orthodontics business

• Aligner market is globally consistent, with mid-single-digit growth and Europe outperforming North America.

• Focus on full solution offerings, combining aligners, brackets, and wires, drives above-market growth.

• Recent product launches include Spark On Demand, retainers, BiteSync, and StageRx, enhancing clinician experience.

• Innovation and portfolio breadth support sustained growth and market share gains.

Accounting and margin dynamics

• Spark's revenue deferral changes have no negative impact on future growth; remaining $15M deferral is a minor tailwind.

• Margin improvement levers include global automation, design cost reduction, and leveraging fixed costs through growth.

• Continued investment in sales, marketing, and R&D, especially for new market entries like Japan.