<div id="readability-page-1"><ul><li>Dentsply Stock is Repricing Itself </li></ul>DENTSPLY SIRONA NASDAQ: XRAY executives told investors on the company’s fourth-quarter 2025 earnings call that 2025 marked a year of organizational changes and that management is now focused on executing a 24-month “Return-to-Growth” action plan in 2026, centered on customer focus, accelerated innovation, improved execution, and capital allocation changes.<div>Get DENTSPLY SIRONA alerts:</div><h2>Fourth-quarter results included revenue growth and a goodwill impairment charge</h2> Interim CFO Mike Pomeroy said the company finished 2025 with fourth-quarter revenue of $961 million, a 6.2% reported increase and 2.5% constant-currency growth. Foreign exchange provided a 370-basis-point tailwind to sales versus the prior-year quarter, while the quarter also benefited from prior-year comparisons that included a one-time Byte customer refund and distributor pre-buys related to an ERP implementation. Adjusted EBITDA margin in the quarter was 14.1%, down 10 basis points year over year. Pomeroy said margins were pressured by a 300-basis-point decline in gross profit driven by lower volume, sales mix, and tariffs. He cited an approximately $15 million tariff impact to gross profit in the quarter. Adjusted earnings per share were $0.27, up $0.01 from the prior-year period. During the quarter, the company recorded a $144 million non-cash, net-of-tax charge related to the impairment of goodwill and other intangible assets within the CTS and OIS segments. Pomeroy said the impairment was primarily driven by the impacts of tariffs and volume declines, partially reflecting competitive pressures. Operating cash flow for the quarter was $101 million, and free cash flow was $60 million. The company ended the quarter with $326 million in cash and cash equivalents and a net debt-to-EBITDA ratio of 3.0%. The company paid $32 million in dividends during the quarter, bringing full-year 2025 dividends to $128 million. <h2>Segment performance: U.S. strength in CTS contrasted with implant and aligner declines</h2> Pomeroy detailed fourth-quarter performance by segment: <ul> <li>Connected Technology Solutions (CTS): Constant-currency sales declined 1.9%, driven by lower CAD/CAM sales in “rest of world” and Europe. This was partially offset by “high single-digit growth” in the U.S. across equipment, instruments, and CAD/CAM. Pomeroy noted U.S. distributor inventory levels remained low versus historical averages.</li> <li>Essential Dental Solutions (EDS): Constant-currency sales increased 4%, with growth in “rest of world” across endo, resto, and preventative categories. Preventative grew 17%, driven by strength in the U.S. and rest of world.</li> <li>Orthodontic and Implant Solutions (OIS): Constant-currency sales increased 6.9%, which Pomeroy attributed to the prior-year quarter’s Byte customer refunds. Implant and Prosthetics Solutions (IPS) declined “high single digits,” driven by lower implant volumes across regions. Management also cited changing buying behavior in China tied to expectations for the second phase of volume-based procurement in 2026. SureSmile declined “low single digits,” with a 10% decline in the U.S. partially offset by 15% growth in Europe.</li> <li>Wellspect HealthCare: Constant-currency sales increased 1.9%, including 15% growth in the U.S., offset in part by Europe.</li> </ul> <h2>Full-year 2025: sales declined while margins expanded</h2> For the full year, Pomeroy reported sales of $3.68 billion, down 3% reported and down 4.3% on a constant-currency basis. Byte negatively impacted constant-currency performance by 1.9% for the year, while foreign exchange provided a 130-basis-point tailwind due to a weaker dollar. Pomeroy said the “largest challenges” in 2025 were lower CAD/CAM and implant volumes across all regions. Full-year adjusted EBITDA margin expanded 150 basis points to 18.1%, primarily from lower SG&amp;A, partially offset by lower gross profit due to geographic mix and tariffs. He said tariffs were a $23 million headwind to gross profit across the balance of 2025. Adjusted EPS was $1.60, down 4.6%, which Pomeroy attributed to a higher tax rate. Full-year EPS included approximately $0.13 of income from Byte, which management said will not recur as the company winds down Byte in the first quarter of 2026. Full-year operating cash flow was $235 million, and free cash flow was $104 million. <h2>Return-to-Growth plan: more R&amp;D, commercial changes, restructuring, and dividend elimination</h2> CEO Dan Scavilla said the company’s Return-to-Growth plan is anchored in five pillars: customer-centric mindset, reigniting sustainable growth, empowering performance, scaling the organization, and financial strength. Key actions discussed included: <ul> <li>Customer focus: The company created a global customer service and technical service organization and is forming strategic dentist and lab advisory councils within each business segment. Scavilla also said Dentsply Sirona will increase investment in clinical education by 50% starting in 2026 and will invest in expanded sales force training.</li> <li>Innovation and R&amp;D: Scavilla said the company will increase R&amp;D investment by “double digits” in 2026 to accelerate DS Core capabilities, connected dentistry, and innovation across EDS, implants, and orthodontics. In Q&amp;A, Scavilla said the increased R&amp;D spending is not expected to “meaningfully pull anything into 2026,” with benefits more oriented to 2027 and 2028, although he also described opportunities to accelerate certain software functionalities.</li> <li>U.S. commercial reset: Scavilla said restoring the health of the U.S. business is a top priority. He said the company reorganized and unified its commercial teams, hired Mark Bezjak (formerly of Zimmer Biomet) to lead the North America sales force, and added leadership across implants, orthodontics, endodontics, and connected dentistry.</li> <li>Dealer strategy: Scavilla highlighted new or expanded agreements with Benco, Patterson, Burkhart, and A-dec, and said the company continues discussions with additional dealers. He indicated dealer-related activity early in 2026 is expected to translate into results later in the year, with benefits “closer at late third quarter, early fourth quarter.”</li> <li>Restructuring: Management outlined a restructuring program expected to unlock approximately $120 million annually across the P&amp;L, which Scavilla said will be reinvested in the plan. The company expects $55 million to $65 million in nonrecurring charges, with most expensed and paid in cash in 2026 and 2027.</li> <li>Dividend elimination: Following a strategic review, the company eliminated its dividend, with Scavilla saying the funds will be redirected toward debt reduction and share repurchases while maintaining investment-grade credit metrics. In Q&amp;A, he said the company’s “first out of the gate” priority is debt control, with the goal to move into share repurchases “as soon as we can.”</li> </ul> <h2>2026 outlook: sales down, investment-driven EPS range, and second-half momentum expected</h2> For 2026, management guided to net sales of $3.5 billion to $3.6 billion, which Scavilla said represents -3% to -1% operational growth. The company expects positive sequential sales momentum in the second half of the year. Management said operational growth excludes a 2.1% headwind from Byte and a one-time dealer capital equipment inventory sell-through as the company adjusts dealer inventory models. On the dealer inventory shift, Scavilla told analysts the company is moving toward a drop-ship model rather than selling into dealer inventory. He estimated approximately $30 million in inventory to be sold through, which he expected to occur in the first half of 2026, with the goal of reaching full drop-ship with all vendors by the time the company enters the fourth quarter. Adjusted EPS guidance for 2026 was $1.40 to $1.50, reflecting higher investments in innovation, clinical education, Wellspect market penetration, and commercial initiatives. Scavilla said he wants to see a noticeable change beginning in the third quarter and said he aims for the U.S. business to show positive growth by the fourth quarter, adding that the company’s “return to health is not market dependent,” and is instead driven by execution.<h2>About DENTSPLY SIRONA NASDAQ: XRAY</h2>Dentsply Sirona Inc NASDAQ: XRAY is a leading global manufacturer of professional dental products and technologies. The company, formed through the merger of Dentsply International and Sirona Dental Systems in February 2016, brings together a long heritage of innovation in dental care. Headquartered in Charlotte, North Carolina, Dentsply Sirona develops and markets a comprehensive range of dental consumables, laboratory products, and advanced imaging and CAD/CAM systems. The company's product portfolio spans preventive, restorative, orthodontic, endodontic and surgical care.<h2>Featured Articles</h2><ul><li>Five stocks we like better than DENTSPLY SIRONA</li><li>The gold chart Wall Street is terrified of…</li><li>America’s 1776 happening again</li><li>This makes me furious</li><li>Buy this Gold Stock Before May 2026</li><li>What a Former CIA Agent Knows About the Coming Collapse</li></ul>This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.<h2>Should You Invest $1,000 in DENTSPLY SIRONA Right Now?</h2>Before you consider DENTSPLY SIRONA, you'll want to hear this.MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and DENTSPLY SIRONA wasn't on the list.While DENTSPLY SIRONA currently has a Hold rating among analysts, top-rated analysts believe these five stocks are better buys.View The Five Stocks Here </div>

XRAY

DENTSPLY SIRONA (NASDAQ:XRAY) reported its Q4 2025 earnings, highlighting a 6.2% revenue increase to $961 million, despite a goodwill impairment charge of $144 million. The company is implementing a 24-month "Return-to-Growth" plan focusing on customer service, innovation, and capital allocation. Adjusted EPS rose to $0.27, while full-year sales declined 3% to $3.68 billion. The CEO emphasized increased R&D investment and restructuring efforts to drive sustainable growth. The company ended the quarter with $326 million in cash and a net debt-to-EBITDA ratio of 3.0%.

DENTSPLY SIRONA Q4 Earnings Call Highlights