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Envista: Envista Holdings Delivers Strong Q4 2025 Results

Envista Holdings Corporation reported a robust fourth quarter 2025, with sales reaching $751 million, representing a core sales growth of 10.8%. Adjusted EBITDA was up 22% driven by strong execution on price, tariff mitigation, and G&A productivity. Adjusted EPS was $0.38, surpassing estimates of $0.32. For the full year, the company delivered sales of $2.7 billion, with core sales increasing 6.5% over 2024. Adjusted EBITDA margin improved by 2 points to around 14%. The company's free cash flow conversion was 114% for the full year.

NVST

USD 29.36

0.89%

A-Score: 3.5/10

Publication date: February 6, 2026

Full Report

Author: Analystock.ai

📋 Highlights
  • Q4 Core Sales Growth: Envista reported 10.8% core sales growth, driven by 400 bps FX benefit, though adjusted core growth was mid-single digits.
  • Adjusted EBITDA Surge: Q4 adjusted EBITDA rose 22% YoY, with full-year margin improvement of 200 bps to 14%, supported by Spark’s profitability and cost discipline.
  • Free Cash Flow Performance: Full-year free cash flow reached $231 million (114% conversion), though Q4 declined $32M due to strong 2024 working capital and higher 2025 CapEx.
  • 2026 Guidance Above Targets: Projected 7-13% EBITDA growth and 13-22% EPS growth exceed medium-term goals, with core revenue growth of 2-4% aligned with 2025’s 4% normalized rate.
  • Implant Market Outperformance: Implants grew mid-single digits in Q4, outpacing the 5% market, reflecting product investments and tariff-driven price gains (not in guidance).

Segment Performance

The company's segment performance was strong across the board, with Specialty Products & Technologies growing nearly 16% year-over-year. The Orthodontics business captured share, driven by leading offerings in both Brackets & Wires and Clear Aligners. The Equipment & Consumables segment delivered broad-based growth across the portfolio, including solid price performance. As Paul Keel mentioned, "we think we outgrew the market again, that's many, many consecutive quarters now that we've done that."

Guidance and Outlook

Envista is guiding to adjusted EBITDA growth of 7-13% and adjusted EPS growth of 13-22% for 2026, both above its medium-term objectives. Core revenue growth is expected to be 2-4%, and free cash flow conversion is expected to be around 100%. Analysts estimate next year's revenue growth at 3.5%, which is slightly below the company's guidance.

Valuation

Using the current stock price and the reported EPS, the P/E Ratio is 101.79, indicating a relatively high valuation. The EV/EBITDA ratio is 15.77, which is reasonable considering the company's growth prospects. The Free Cash Flow Yield is 5.49%, providing a decent return for investors. As the company continues to execute its value creation plan, investors will be watching to see if the company's growth momentum can be sustained.

Envista's A-Score