Envista Raises 2026 Earnings Outlook To $1.54-$1.58 A Share After Adjusted Profit Climbs 25%
The dental products maker's $508 million GAAP profit includes a $428 million non-cash gain; adjusted EPS was $0.40.
Envista, which makes dental implants, braces, imaging systems and consumables, raised its 2026 adjusted earnings guidance to $1.54 to $1.58 a share, from $1.50 to $1.55, after third-quarter adjusted EPS rose 25% to $0.40. Headline GAAP net income of $508 million was inflated by a $428 million non-cash gain.
A $428 million gain flatters the bottom line
GAAP net income came to $508 million, against a $30 million loss a year earlier. Diluted GAAP EPS was $3.11. The company said a foreign currency translation gain added $428 million to operating profit and $2.62 to diluted EPS, before tax effects.
The gain came from releasing cumulative translation adjustments as certain legal entities were dissolved in a legal entity simplification. It had no cash impact and no effect on adjusted EBITDA, adjusted operating income or adjusted EPS, the company said.
Sales were $691 million, with core sales growth of 2.7% (sales excluding acquisitions, discontinued products and currency swings).
Adjusted margins widen, both segments grow
Adjusted EBITDA rose 9% to $106 million, a 15.3% margin, up 80 basis points (0.8 percentage points) from a year earlier. Adjusted gross margin expanded 20 basis points, which the company credited to contributions from the Envista Business System, its internal operating program.
Equipment & Consumables core sales grew 4.1% and Specialty Products & Technologies 2.0%. Envista sells more than 30 brands, including Nobel Biocare, Ormco, DEXIS and Kerr, to dentists, orthodontists and dental labs.
CEO Paul Keel said the company is "converting broad-based topline performance into even stronger earnings growth."
Guidance, buybacks and the call
Envista also narrowed 2026 core sales growth guidance to 3.75% to 4.25%, from 3.5% to 4.5%, and lifted its adjusted EBITDA growth range to 12.5% to 14%, from 11% to 14%. Free cash flow conversion stays at about 100%.
Third-quarter free cash flow was $63 million, versus $68 million a year earlier. The company repurchased 386 thousand shares for about $10 million and has roughly $273 million of buyback capacity left.
Management discusses the quarter and outlook on an investor call at 2:00 p.m. PT Wednesday, with a slide presentation on its website.
Sources
- 8-K Filing — Envista Holdings Corp (NVST) — SEC EDGAR
- Exhibit nvst-ex991x10226xworkingfi.htm — Envista Holdings Corp 8-K exhibit — SEC EDGAR
- Envista Reports Third Quarter 2026 Results — prnewswire.com
