Dentsply Sirona | 8-K: FY2025 Q2 Revenue Beats Estimate at USD 936 M

Revenue: As of FY2025 Q2, the actual value is USD 936 M, beating the estimate of USD 933.07 M.

EPS: As of FY2025 Q2, the actual value is USD -0.22, missing the estimate of USD 0.2357.

Segment Revenue

• Connected Technology Solutions: Net sales decreased by 3.8% to $243 million, with a constant currency decrease of 5.9%.
• Essential Dental Solutions: Net sales increased by 2.9% to $387 million, with a constant currency increase of 1.1%.
• Orthodontic and Implant Solutions: Net sales decreased by 18.1% to $226 million, with a constant currency decrease of 19.4%.
• Wellspect Healthcare: Net sales increased by 1.2% to $80 million, with a constant currency decrease of 2.5%.

Operational Metrics

• Net Income: The company reported a net loss of -$45 million, compared to a net loss of -$4 million in the same quarter of the previous year.
• Gross Margin: GAAP gross margin was 52.4%, while the adjusted gross margin was 55.9%.
• Operating Loss: The operating loss was -$128 million, compared to an operating income of $50 million in the previous year.
• Adjusted EBITDA: Adjusted EBITDA was $197 million, an increase of 14.6% from $173 million in the previous year.

Cash Flow

• Operating Cash Flow: Operating cash flow was $48 million, down from $208 million in the previous year, primarily due to unfavorable working capital and a foreign tax refund received in the prior year.
• Adjusted Free Cash Flow: Adjusted free cash flow was $16 million, compared to $156 million in the previous year.

Unique Metrics

• Goodwill and Intangible Asset Impairments: The company recorded a non-cash charge for the impairment of goodwill and other indefinite-lived intangible assets of -$214 million net of tax.

Outlook / Guidance

• The company reaffirmed its 2025 outlook, maintaining its net sales guidance of $3.60 billion to $3.70 billion, reflecting a decrease of 4.0% to 2.0% on a constant currency basis, and adjusted EPS in the range of $1.80 to $2.00.