- Q4 2025 Revenue Growth: Report $961M revenue, 6.2% reported sales increase and 2.5% constant currency growth year-over-year.
- Adjusted EBITDA Margin Decline: Margins fell 10 bps to 14.1%, driven by 300 bps gross profit drop from volume, mix, and tariff impacts.
- 2026 Guidance: Net sales projected at $3.5–3.6B (–3% to –1% operational growth), with EPS guidance of $1.40–1.50 for innovation and market investments.
- Capital Deployment Strategy: Dividend elimination frees $128M annually, prioritizing debt retirement and share repurchases under restructuring plans.
- R&D Investment Expansion: R&D spending to rise to 5% of revenue in 2026, targeting 6%+ by 2027–2028 to fuel growth in core and emerging segments.
Guidance and Outlook
For 2026, DENTSPLY SIRONA expects net sales to be in the range of $3.5 billion to $3.6 billion, reflecting a negative 3% to negative 1% operational growth. The company anticipates positive sequential sales momentum in the second half of this year. Adjusted earnings per share are expected to be in the range of $1.40 to $1.50, reflecting accelerated investments in innovation, clinical education, and commercial investments.
Return to Growth Action Plan
The company's 24-month Return to Growth action plan is designed to restore momentum, strengthen execution, and deliver sustained profitable growth. The plan focuses on five pillars: customer-centric mindset, reuniting sustainable growth, empowering performance, scaling the organization, and financial strength. As CEO Dan Scavilla mentioned, "We're confident in our ability to unlock the company's full potential and believe that the opportunity ahead of us is substantial."
Valuation Metrics
Analysts estimate next year's revenue growth at 1.9%. With a P/E Ratio of -4.91, P/B Ratio of 2.19, and EV/EBITDA of -111.65, the market seems to be pricing in a challenging near-term outlook. However, the company's ROE is -35.18%, and ROIC is 5.73%, indicating potential for improvement in profitability.
Investment Priorities
DENTSPLY SIRONA plans to prioritize debt retirement and share repurchases following the elimination of the dividend, which frees up $128 million annually for capital deployment. The company expects to increase R&D spend by double digits to drive growth in key areas, with R&D percentage rising to around 5% in 2026 and targeting 6% in the future.
Commercial Investments and Growth Initiatives
The company is focused on innovation, clinical education, and commercial investments to drive sustained profitable growth globally. With a new contract with Patterson expected to be favorable, DENTSPLY SIRONA is poised to strengthen its position in the market. However, the implementation of steps to turn the implants business around is still ongoing, with a brand strategy still being worked on.