DENTSPLY SIRONA ((XRAY)) has held its Q3 earnings call. Read on for the main highlights of the call.
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DENTSPLY SIRONA’s recent earnings call painted a challenging picture, marked by a decline in global and U.S. sales, an impairment charge, and a drop in EPS. Despite some positive developments, such as growth in European sales and Wellspect Healthcare, the overall sentiment was negative due to the financial difficulties and strategic hurdles the company faces. The focus was on a turnaround strategy to navigate these pressing issues.
European Sales Growth
European sales provided a bright spot in the earnings call, with revenues reaching $382 million, marking a 9.9% increase as reported, or 2.6% on a constant currency basis. This growth was driven by Connected Technology Solutions and Labs, with notable performance in the U.K., France, Italy, and Spain.
Wellspect Healthcare Sales Increase
Wellspect Healthcare also showed promising results, with sales increasing by 9.3% in constant currency across all three regions. This segment is expected to be pivotal in achieving the company’s financial objectives moving forward.
Return to Shareholders
DENTSPLY SIRONA demonstrated its commitment to shareholders by returning $32 million through dividends in the third quarter, totaling $96 million year-to-date.
Decline in Global Sales
Global sales in Q3 2025 were disappointing, falling to $904 million, a 5% decrease as reported and an 8% decline on a constant currency basis. The U.S. market was particularly affected, with a 22.2% drop due to lower sales in Essential Dental Solutions, CAD/CAM, Imaging, and Implants.
Impairment Charge
The company recorded a substantial $263 million non-cash after-tax charge due to the impairment of goodwill and intangible assets, primarily driven by tariffs and lower projected volumes in the U.S.
Adjusted EPS Decline
Non-GAAP earnings per share fell to $0.37, down by $0.13 from the previous year. This decline was attributed to an unfavorable sales mix, tariffs, and higher non-GAAP tax rates.
Challenges in China
The Chinese market posed additional challenges, with a slowdown attributed to the anticipation of the second phase of the VBP program, impacting implant volumes.
Forward-Looking Guidance
Looking ahead, DENTSPLY SIRONA revised its 2025 outlook, expecting net sales between $3.6 billion and $3.7 billion, with a projected decline of 4% to 5% in constant currency sales year-over-year. Adjusted EPS is anticipated to be around $1.60. The company is implementing a Return-to-Growth action plan aimed at delivering sustained profitable growth over the next 24 months, focusing on customer-centricity, reigniting U.S. business, empowering employees, and operational evolution.
In conclusion, DENTSPLY SIRONA’s earnings call highlighted significant challenges, overshadowing the positive aspects of European and Wellspect Healthcare sales growth. The company’s strategic focus on a turnaround plan underscores the pressing need to address financial difficulties and drive future growth.