Envista (NVST), a dental equipment and solutions company serving dental professionals in over 130 countries, announced its second quarter 2025 earnings on July 31, 2025. The standout news was that it surpassed Wall Street estimates on both revenue (GAAP) and adjusted earnings per share (non-GAAP). It also raised its full-year outlook for core sales growth and adjusted EPS for FY2025. Revenue (GAAP) totaled $682 million for Q2 2025, well above the expected $640.01 million. Adjusted EPS was $0.26 versus the consensus estimate of $0.23. Overall, the period saw strong operational improvements, broad-based growth across segments and geographies, and meaningful margin gains, even as free cash flow (non-GAAP) declined compared to the prior year for the first half of 2025.
| Metric | Q2 2025 | Q2 2025 Estimate | Q2 2024 | Y/Y Change |
|---|---|---|---|---|
| EPS (Non-GAAP) | $0.26 | $0.23 | $0.11 | 136% |
| Revenue (GAAP) | $682 million | $640.01 million | $633 million | 7.7% |
| Adjusted EBITDA | $84 million | N/A | $63 million | 33% |
| Free Cash Flow (Non-GAAP) | $76 million | N/A | $86 million | (11.6%) |
Source: Analyst estimates provided by FactSet. Management expectations based on management's guidance, as provided in Q1 2025 earnings report.
Envista’s Business and Key Success Factors
Envista specializes in dental equipment, implants, orthodontic solutions, and diagnostic tools. It supports dental practices, dental service organizations, and specialists with products like dental implants, Spark clear aligners, and diagnostic imaging equipment. The company’s broad offering ranges from consumable supplies to advanced digital and personalized treatments.
The company's growth relies on several factors: innovation and product leadership, operational excellence through its global distribution network, and ongoing investment in research and development (R&D). Success also depends on its ability to manage regulatory risks, develop products tailored for both developed and emerging markets, and integrate strategic acquisitions that expand its capabilities or market reach. Emerging markets accounted for 21% of total sales in 2024, making continued expansion there especially important.
Quarter Highlights: Financials, Segments, and Key Drivers
In Q2 2025, Envista outperformed expectations on both revenue (GAAP) and adjusted EPS (non-GAAP), driven by core sales growth of 5.6%. This is a marked acceleration from the first half of 2025. Management stated, “•Sales were $682 million, with core sales growth of 5.6% (non-GAAP).” Growth was broad-based, with both of its key segments -- Specialty Products & Technologies (SP&T) and Equipment & Consumables (E&C) -- recording positive trends. SP&T, which includes implant-based tooth replacements and orthodontic solutions, reported core sales growth of 4.7% and segment revenue of $445 million, up 7.2% from a year ago. E&C, covering dental consumables, disposables, and related equipment, delivered 7.3% core sales growth (non-GAAP), with segment revenue rising to $237 million, up 8.7%.
North America was a focus area, with the Nobel Biocare dental implant line delivering positive growth. The Spark clear aligner business, which offers orthodontic solutions, improved its gross margin again in Q1 2025 and is projected to reach operating profitability in the second half of 2025. Management noted that The Spark clear aligner business improved its gross margin again in Q2 2025.
Profitability also improved, as measured by adjusted EBITDA margin and adjusted EPS (non-GAAP). Adjusted EBITDA rose 34% year over year, while the adjusted EBITDA margin increased by 2.4 percentage points to 12.4%. The company’s adjusted operating margin rose to 10.4%, up from 8.1% in the previous year. In SP&T, the adjusted operating margin jumped to 13.5% from 9.1% in Q2 2024, and In Equipment & Consumables, adjusted operating margin improved to 17.5% from 16.1% in Q2 2024, highlighting gains in both core categories.
Cost structure improvements were visible in lower general and administrative (G&A) expenses, reflecting benefits from restructuring and productivity. There were no material acquisitions during the quarter, but tariff and regulatory exposure, especially volume-based procurement (VBP) in China, remains a focus, but management pointed to supply chain flexibility and proactive pricing as mitigation strategies.
Envista executed $82 million in share repurchases, retiring about 4.8 million shares. This leaves $150 million capacity remaining on its current repurchase program as of the end of Q2 2025. Capital deployment toward share buybacks and continued investment in innovation were notable, but Free cash flow (non-GAAP) was $76 million, down from $86 million in Q2 2024, while Operating cash flow (GAAP) for the first half of 2025 was $89 million compared to $133 million in the first half of 2024.
Looking Ahead: Guidance and Watchpoints
Based on first-half momentum, management revised its full-year 2025 outlook upwards. It now expects core sales growth (non-GAAP) between 3% and 4% for 2025, compared to the prior 1% to 3% range. The adjusted EPS (non-GAAP) forecast for 2025 is now $1.05 to $1.15, an increase from the earlier $0.95 to $1.05 range. The adjusted EBITDA margin target remains around 14% for 2025. Management stated, “Based on the first half momentum and results, we are raising our full year guidance for 2025.”
Looking to coming quarters, investors should monitor Envista’s ability to deliver on cash conversion and maintain margin gains despite ongoing currency and tariff risks. Key areas to watch are continued improvement in Spark clear aligner profitability, ongoing restructuring and cost productivity, and potential regulatory or pricing shifts in China. Tariff mitigation and cash flow recovery remain central to the outlook.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
