Envista (NVST) Q4 2025 earnings summary

Executive summary

• Achieved double-digit sales, adjusted EBITDA, and EPS growth in Q4 2025, capping a strong year with 6.5% core growth and broad-based performance across all businesses and geographies.

• All business units outgrew their respective markets in Q4, with significant contributions from new product launches and increased clinical training.

• Launched several new products in 2025, generating approximately $100M in revenue.

• Implemented a $250 million share repurchase program, returning $166 million to shareholders in 2025.

• Advanced the Value Creation Plan, focusing on growth, operations, and people, with record employee engagement and increased internal promotions.

Financial highlights

• Q4 2025 sales reached $751 million, with core sales up 10.8% year-over-year; reported growth was 15% including FX and acquisitions.

• Adjusted EBITDA for Q4 2025 was $111 million (14.8% margin, up 90 bps); adjusted EPS was $0.38, up 58% year-over-year.

• Full-year 2025 sales were $2,719 million, with core sales up 6.5%; adjusted EBITDA margin improved by 190 basis points to 13.7%.

• Adjusted EPS for 2025 was $1.19, up 63% year-over-year; free cash flow conversion was 114%.

• Operating cash flow for FY2025 was $276 million; free cash flow $231 million.

Outlook and guidance

• 2026 guidance: core revenue growth of 2%-4%, adjusted EBITDA growth of 7%-13%, adjusted EPS of $1.35–$1.45, and free cash flow conversion around 100%.

• Dental market expected to remain stable with potential modest improvement; Q1 2026 to benefit from more selling days, Q4 to have fewer.

• FX expected to provide a 1.5% revenue benefit in 2026; tariff headwinds anticipated to increase to $40 million.

• Non-GAAP tax rate projected at 28% for 2026, reflecting improved U.S. profitability and intercompany loan resolution.

• Guidance does not reflect future gains/losses from unpredictable events such as acquisitions, divestitures, or legal matters.