NVST · Envista Holdings Corp

Envista delivered a strong Q1 2026 start with sales of $705.5 million, reflecting 9.5% core growth driven by customer engagement and new product launches across all major businesses. The Specialty Products & Technologies segment grew 8.4% on a core basis, while Equipment & Consumables achieved 11.5% core growth, demonstrating resilience amid macro uncertainty. CEO Paul Keel highlighted continued execution of strategic priorities, including double-digit increases in R&D and sales & marketing investments. Margin expansion was notable, with adjusted EBITDA margin reaching 14.0% (up 120 bps YoY), supported by the Envista Business System contributing 100 bps to gross margin and 120 bps to EBITDA margin. GAAP net income rose to $38.7 million from $18.0 million, and adjusted diluted EPS surged 50% to $0.36. Cash flow remained negative at -$3.3 million operating and -$16 million free cash flow, partly due to a $54.4 million acquisition and working capital changes. Balance sheet shows $1,082.8 million cash against $1,439.1 million long-term debt. The company repurchased 1.6 million shares for $43 million in the quarter and authorized an additional $300 million buyback through 2029, signaling confidence. Full-year guidance is reaffirmed at 2-4% core sales growth, 7-13% adjusted EBITDA growth, and $1.35-1.45 adjusted EPS, with ~100% free cash conversion. Investors can access the conference call and presentation on www.envistaco.com.