DENTSPLY SIRONA Inc.

Second-quarter 2026 revenue was $898 million, down 4.1% as reported and 6.3% on a constant-currency basis. Adjusted EPS was $0.52, flat versus last year, and included a $0.17 per-share benefit from tariff refunds. Adjusted EBITDA margins were approximately flat year over year, with $44 million of tariff refunds offsetting gross profit pressure from lower volumes, sales mix, and incremental tariff impacts. Operating cash flow was $99 million versus $48 million in the prior-year quarter. The company repurchased 1.3 million shares at an average price below $10, finished with $239 million of cash and cash equivalents, and had a Q2 net debt-to-EBITDA ratio of 3.2x. Management kept 2026 guidance at $3.5 billion to $3.6 billion in net sales and adjusted EPS of $1.40 to $1.50, excluding tariff refunds and incremental tariffs. For Q3, management expects sequential revenue decline and earnings below Q2, with more of the turnaround benefit expected in Q4.

Dan Scavilla emphasized that the company is still in a turnaround, but said the team is making progress by refocusing on customer engagement, clinical education, commercial execution, and internal simplification. He highlighted new dealer partnerships, broader training for sales teams, and growing traction in digital workflows like DS Core, while repeatedly stressing that the U.S. remains the top priority. His tone was constructive but measured: he said the path will not be linear, more improvement should show up in Q4, and the company is seeing signs its actions are starting to gain traction.

John Fortson framed the quarter around disciplined execution and balance-sheet focus. He cited $898 million of revenue, flat adjusted EPS of $0.52, $99 million of operating cash flow, $239 million of cash, and a 3.2x net debt-to-EBITDA ratio, while noting the company repurchased 1.3 million shares for about $12 million. He said the $44 million tariff refund was not built into initial guidance and that the company continues to prioritize debt reduction and working-capital improvement, including better management of accounts payable and inventory.

Analysts focused on when the turnaround will start to show up more clearly in the P&L, especially from the new U.S. dealer network, commercial hiring, clinical education, and R&D spending. Management said the benefits of dealer onboarding and salesforce training should be more visible later, with John and Dane both pointing to Q4 and next year as the bigger inflection points rather than immediate Q3 impact. Questions also covered tariffs, China VBP timing, implants, capital equipment demand, EDS inventory destocking, and pricing; management said tariff refunds were excluded from base guidance, China impact is not significant this year, EDS pressure is largely inventory-related in Europe, and there has been no significant price increase in consumables since September 2025.