Release Date: May 08, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Dentsply Sirona Inc (XRAY, Financial) delivered organic growth in two of its three global regions, exceeding expectations despite a 4.4% decline due to a negative 4% pipe impact.
- Imaging and Wellspect Healthcare segments showed strong performance, with growth across all regions driven by new product introductions and solid execution.
- The company achieved EBITDA margin expansion and EPS growth, reflecting transformational savings and improved operational efficiency.
- Dentsply Sirona Inc (XRAY) maintained its 2025 outlook for organic sales and adjusted EPS, with an increased outlook for reported sales due to favorable foreign currency translation changes.
- The DS Core ecosystem continues to gain traction, surpassing 42,000 unique users and processing over 100,000 lab orders each month, indicating strong adoption of digital dentistry solutions.
Negative Points
- The company faces headwinds from global trade tariffs, with an estimated $50 million annualized impact, which has been factored into the current guidance.
- Organic sales in the US declined by 14.9%, primarily due to a negative impact from Byte and declines in CAD/CAM and IPS segments.
- The Orthodontic and Implant Solutions segment experienced a significant organic sales decline of 17.7%, with a notable impact from the loss of a DSO customer in the US.
- Despite improvements, the company continues to face challenges in the US implant market, with a need to rebuild commercial team relationships and improve sales performance.
- Dentsply Sirona Inc (XRAY) is still in the process of searching for a permanent CFO, with the interim CFO having completed his assignment, which may impact financial leadership stability.
Q & A Highlights
Q: Can you expand on the tariff impact and how it is incorporated into your guidance?
A: Simon Campion, CEO, explained that the current guidance includes approximately $0.10 impact from tariffs, translating to an annualized exposure of about $50 million. The company has plans to mitigate any further impacts, but specific strategies were not disclosed.
Q: What is the status of the CFO search?
A: Simon Campion stated that the search is progressing well, with several candidates in the late stages of the process. The company hopes to finalize the appointment in the near future.
Q: Could you provide more details on the orthodontic side, particularly regarding SureSmile and its expansion beyond the current GP market?
A: Simon Campion noted that resources have been redeployed to improve the user interface and e-commerce platforms. The company is focusing on re-engaging with the orthodontist community, as the majority of volume is in that area. Improvements are expected by the end of the year or early next year.
Q: What are the mitigation strategies for the tariff impact in 2025, and are they included in the $0.10 guidance?
A: Simon Campion clarified that no mitigation strategies are currently included in the $0.10 guidance. However, the company is considering options such as strategic stock builds, product redistribution, and potential price increases in certain areas.
Q: Can you provide more color on the current trends and why there was no change to the full-year guidance despite a strong Q1?
A: Simon Campion mentioned that while Q1 had some timing benefits, the company is being prudent with its guidance due to macroeconomic uncertainties. The survey data showed stable patient footfall and customer sentiment, but the company remains cautious.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
