DENTSPLY SIRONA Inc.

DENTSPLY SIRONA Inc. is the world's largest diversified manufacturer of professional dental products and technologies, with a 139-year history of innovation and service to the dental industry and a vision of improving oral health and continence care globally. The Company develops, manufactures, and markets comprehensive solutions, including technologically advanced dental equipment supported by cloud-enabled software solutions as well as dental products and healthcare consumable products in urology and enterology under a strong portfolio of world-class brands. The Company sells products globally through its foreign subsidiaries to customers in approximately 140 countries. Industry growth drivers include increasing worldwide population with a shift toward aging demographics, increasing demand for aesthetic dentistry and clear aligners, continued opportunities in emerging markets, growing preference for single visit dentistry, increasing demand for earlier preventive care, increasing opportunity for digital collaboration, increasing demand for efficiency and digital tools, and an accelerating trend toward consolidation of dental practices into group affiliations. For the healthcare consumables market, growth drivers include aging demographics and increasing incidence of chronic diseases, expansion of population covered by medical insurance, and growth in specialized care facilities and technical advancements.

The Company conducts its global operations in highly competitive market conditions, with competition based primarily upon product performance, quality, safety and ease of use, as well as price, customer experience, innovation and acceptance by clinicians, technicians and patients. Dentsply Sirona believes that its principal strengths include its well-established brand names, its end-to-end dental portfolio, its reputation for high quality and innovative products, its leadership in product development and manufacturing, its global sales force, the breadth of its distribution network, its commitment to customer satisfaction and the support of the Company's products by dental and medical professionals. The size and number of the Company's competitors vary by product and region, and no single competitor produces the breadth of products that are produced by Dentsply Sirona. Customers that accounted for 10% or more of net sales for the year ended December 31, 2025 were Henry Schein, Inc. at 13% ¹ of net sales, and Patterson Companies, Inc. accounted for 11% ² of accounts receivable.

The Company generates revenue through the design, manufacture, and sale of comprehensive solutions including technologically advanced dental equipment supported by cloud-enabled software solutions, dental products, and healthcare consumable products in urology and enterology. Dentsply Sirona sells approximately two-thirds of its dental consumable and technology and equipment products through third-party distributors. Certain products, such as endodontic instruments and materials, dental implants and orthodontic aligners and appliances, are often sold directly to dental laboratories or dental professionals in some markets. Continence care products are primarily sold to distributors of medical supplies, with the remaining sales being made directly to patients and medical providers. The Company also offers an open, cloud-based platform for digital services, DS Core.

The Company conducts business through four reportable segments: Connected Technology Solutions, Essential Dental Solutions, Orthodontic and Implant Solutions, and Wellspect Healthcare. Connected Technology Solutions includes the design, manufacture and sales of dental technology and equipment products, comprising Equipment & Instruments (imaging equipment, motorized dental handpieces, treatment centers, and other instruments) and CAD/CAM (intraoral scanners, 3-D printers, mills, software and services, and the CEREC offering). Essential Dental Solutions includes value-added endodontic, restorative, and preventive consumable products and small equipment, including endodontic handpieces, files, sealers, restorative products like curing light systems and composites, and preventive products like ultrasonic scalers and polishers. Orthodontic and Implant Solutions includes digital implant systems, dental implant products, digital dentures, and digital orthodontic solutions, with Orthodontics including the SureSmile brand and previously the Byte direct-to-consumer clear aligner product, and Implants & Prosthetics including a portfolio of dental implant products, digital dentures, crown and bridge products, and bone regenerative solutions. Wellspect Healthcare includes innovative continence care solutions for both urinary and bowel management, including catheters and advanced irrigation systems.

For the year ended December 31, 2025, net sales by segment were: Connected Technology Solutions $1,036 million ³, Essential Dental Solutions $1,469 million ⁴, Orthodontic and Implant Solutions $850 million ⁵, and Wellspect Healthcare $325 million ⁶. Segment adjusted operating income for the year ended December 31, 2025 was: Connected Technology Solutions $52 million ⁷, Essential Dental Solutions $514 million ⁸, Orthodontic and Implant Solutions $108 million ⁹, and Wellspect Healthcare $102 million ¹⁰.

During 2025, the Company introduced CEREC Primemill Lite, which offers bridges, veneers, and other material classes in a budget-friendly format, and launched CEREC Go, an easy-to-use wet-grinding unit designed specifically for composite and hybrid ceramic restorations. The Company also launched a bioceramic sealer product called ProRoot Bio Sealer and introduced the CEREC Cercon 4D Multidimensional Zirconia Abutment Block. The Company continued to expand and simplify workflows through clinical AI-powered solutions by launching DS Core Diagnose features in the United States. On October 24, 2024, the Company announced the voluntary suspension of the sale and marketing of its direct-to-consumer Byte aligner systems and impression kits, and in January 2025 announced that Byte aligners would no longer be offered to new patients. The Company entered into new non-exclusive distribution agreements with Patterson Dental Holdings for the distribution of dental equipment in the United States. On June 12, 2025, the Company issued $550 million ¹¹ aggregate principal amount of 8.375% Fixed-to-Fixed Reset Rate Junior Subordinated Notes due 2055 through a public offering. On November 7, 2023, the Board of Directors approved an increase to the authorized share repurchase program of $1.0 billion ¹². At December 31, 2025, the Company had authorization to repurchase $1.2 billion ¹³ in shares of common stock remaining under this program. On February 23, 2026, the Company's Board of Directors eliminated the declaration of quarterly dividends on the Company's common stock starting in the quarter ending March 31, 2026.

For the year ended December 31, 2025, net sales decreased 3.0% ¹⁴ compared to the prior year. On a constant currency basis, net sales decreased 4.3% ¹⁵ for the year ended December 31, 2025 compared to the prior year. Net sales were positively impacted by approximately 1.3% ¹⁶ due to the weakening of the U.S. dollar over 2025. Net loss was $598 million ¹⁷ as compared to net loss of $910 million ¹⁸ for the prior year, primarily due to lower goodwill and intangible asset impairment charges of $650 million ¹⁹ compared to $1,014 million ²⁰ in the prior year. Diluted loss per share was $3.00 ²¹ compared to diluted loss per share of $4.48 ²² in the prior year. Cash flow from operations was $235 million ²³, as compared to $461 million ²⁴ in the prior year.

The Company expects to incur non-recurring charges in the approximate range of $55 million to $65 million ²⁵ in connection with the 2026 Plan, the majority of which will be expensed and paid in cash in 2026 and 2027. The 2026 Plan is anticipated to result in approximately $120 million ²⁶ in annualized cost savings.

The Company plans to increase its annual investment in research and development to approximately 5% ²⁷ of net sales beginning in 2026. The Company has continued to prioritize investments supporting digitally connected solutions and enhanced workflows through each stage of patient care, including software for improved collaboration and treatment planning, imaging and scanning technologies used in diagnosis, and products which are customizable and scalable. The Company intends to reinvest a portion of the anticipated savings from the 2026 Plan in targeted return-to-growth initiatives, including investments in accelerated innovation, clinical education, and sales team education focused on connected dentistry.

The Company has implemented and continues to evaluate additional strategies to mitigate the impacts of tariffs and changes in trade policy, including competitive pricing strategies to offset tariffs and evaluating potential sourcing options that work with vendors and merchants to seek to minimize products sourced from high tariff rate countries, both for existing products and for new product development.

The Company estimates that capital expenditures will be in the range of approximately $125 million to $150 million ²⁸ for the twelve months ending December 31, 2026 and expects these investments to include expenses for the ongoing implementation of a new global Enterprise Resource Planning system, equipment upgrades, and capacity expansion to support product innovation and consolidate operations for enhanced efficiencies.

The Company plans to increase its annual investment in research and development to approximately 5% ²⁹ of net sales beginning in 2026. The Company estimates that capital expenditures will be in the range of approximately $125 million to $150 million ³⁰ for the twelve months ending December 31, 2026. At December 31, 2025, the Company had authorization to repurchase $1.2 billion ³¹ in shares of common stock remaining under the share repurchase program. On February 23, 2026, the Company's Board of Directors eliminated the declaration of quarterly dividends on the Company's common stock starting in the quarter ending March 31, 2026.

Various headwinds are expected to weigh on global growth in 2026, due in large part to increasing uncertainties related to global trade policies and inflation. Changes in trade policy, supply chain constraints, higher energy costs, labor shortages, and geopolitical tensions have all contributed to the risk of higher inflation and general economic uncertainty across the industry and the regions in which the Company operates. The challenging macroeconomic conditions have impacted consumer confidence, the ability and willingness of clinicians to obtain financing to purchase equipment, and consumer discretionary spending for elective procedures, leading to adverse impacts on the Company's results of operations, particularly in the United States. The Company's business is subject to risks related to tariffs and other trade protection measures put in place by the United States and other countries, and the impact that these tariffs and changes in trade policy will ultimately have on the Company's financial results remains uncertain.

The Company faces material risks from its reliance on information technology, with the 2022 launch of DS Core and the 2024 launch of Primescan 2 introducing new potential vulnerabilities to cyber attacks. The Company has recognized substantial goodwill and indefinite-lived intangible asset impairment charges, recording $650 million ³² in goodwill and intangible asset impairments in 2025 and $1,014 million ³³ in 2024, and may be required to recognize additional charges if there is a decline in the fair value of reporting units. The voluntary suspension of Byte aligner sales had a material impact on results of operations, with Byte sales representing approximately 2% ³⁴ of annual revenue for the year ended December 31, 2025, and assets related to the Byte aligner business representing approximately 5% ³⁵ of the Company's assets as of December 31, 2025. The Company's business is subject to risks related to tariffs and trade protection measures, with a significant share of dental equipment sold in the United States manufactured in Europe and sales in China representing less than 5% ³⁶ of global sales on an annual basis. The Company has $56 million ³⁷ of cash and cash equivalents held within Russia as of December 31, 2025, which is limited in its ability to be transferred out of the country due to currency control measures.

Management's message emphasizes the Company's position as the world's largest diversified manufacturer of professional dental products and technologies with a 139-year history of innovation and a vision of improving oral health and continence care globally. The Company's mission is to transform oral health and continence care with innovative products, solutions and services through an engaged workforce. Management highlights the 2025 operational summary including net sales decrease of 3.0% ³⁸, net loss of $598 million ³⁹, and diluted loss per share of $3.00 ⁴⁰. Key strategic priorities include increasing annual investment in research and development to approximately 5% ⁴¹ of net sales beginning in 2026, executing the 2026 Plan to improve operational performance and drive stockholder value creation with expected non-recurring charges in the approximate range of $55 million to $65 million ⁴² and anticipated annualized cost savings of approximately $120 million ⁴³, and continuing to prioritize investments supporting digitally connected solutions and enhanced workflows.