DENTSPLY's Q2 2025 Earnings Call: Unpacking Contradictions in Tariffs, Orthodontics, and Customer Support

Tariff impact and mitigation strategies, orthodontic product performance and strategy, customer support and execution focus, implant market performance, and tariff impact and mitigation are the key contradictions discussed in DENTSPLY SIRONA's latest 2025Q2 earnings call.



Revenue Decline and Market Conditions:
- DENTSPLY SIRONA reported global sales of $936 million, decreasing 5% reported and negative 7% on a constant currency basis for Q2 2025.
- Excluding the Byte impact, sales declined approximately 4%.
- The decline was driven by continued softness in connected technology solutions and orthodontic and implant solutions, particularly in the U.S. market.

Adjusted EBITDA and EPS Growth:
- The adjusted EBITDA margin expanded 360 basis points to 21%, and adjusted earnings per share grew 7% to $0.52.
- This growth was driven primarily by the suspension of Byte sales and active cost reduction programs.

U.S. and Segment Performance:
- U.S. sales were $293 million, down 18% overall or 11% excluding Byte impact.
- European sales were $404 million, largely flat year-over-year.
- Rest of World sales were $239 million, up slightly with growth in essential dental solutions and SureSmile.

Tariff Impact and Financial Outlook:
- DENTSPLY SIRONA now anticipates an annualized tariff impact of $80 million, up from an earlier estimate of $50 million.
- This increase is due to recent changes with Europe and Switzerland, with $25 million of impact expected in the second half of 2025.
- Despite these challenges, the company maintains its full-year outlook for sales, adjusted EBITDA margin, and adjusted EPS, expecting a balanced first and second half of the year.