GuruFocus News
9 min read
This article first appeared on GuruFocus.
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Global Sales: $3.5 billion, up 4.0% year over year; 3.1% local currency internal growth, 0.2% FX benefit, 0.7% from acquisitions.
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US Dental Merchandise Sales: Grew 8.6%, including 7% local currency internal growth driven primarily by volume and market share gains.
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US Dental Equipment Sales: Grew 1.6%, driven by traditional equipment, partially offset by lower digital equipment sales.
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US Medical Sales: Grew 1.0%; Home Solutions grew 11.4%; excluding point-of-care diagnostics and flu/COVID-19 vaccines, sales grew low to mid-single digits.
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International Dental Merchandise Sales: Grew 5.4%, with 3.3% local currency internal growth.
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International Dental Equipment Sales: Grew 2.9%, with 3.2% local currency internal growth.
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Global Value-Added Services Sales: Declined 4.8%, primarily on lower brokerage revenue.
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Global Specialty Products Sales: Grew 6.1%, with 3.4% local currency internal growth.
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Global Technology Sales: Grew 5.2%, with 6.5% local currency internal growth.
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GAAP Operating Margin: 5.57%, up 69 basis points year over year.
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Non-GAAP Operating Margin: 8.03%, up 20 basis points year over year.
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GAAP Net Income: $119 million, or $1.06 per diluted share (prior year: $101 million, or $0.84 per diluted share).
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Non-GAAP Net Income: $175 million, or $1.56 per diluted share (prior year: $167 million, or $1.38 per diluted share).
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Adjusted EPS Growth: 19.1% to $1.37, excluding net tariff refund benefit and prior year remeasurement gain.
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Tariff Refunds: Net benefit of $0.19 per diluted share in the quarter.
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Adjusted EBITDA: $321 million, up 8.7% from $295 million.
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Operating Cash Flow: $161 million in Q3, in line with prior year; full-year expected to exceed net income.
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Restructuring Expenses: $22 million, or $0.14 per diluted share.
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Share Repurchases: $125 million in Q3 (approx. 1.4 million shares at $86.67 average); $450 million year to date; $330 million remaining authorization.
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Value Creation Plan: More than $200 million operating income improvement expected, including $125 million run rate by end of 2026.
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2026 Guidance: Total sales growth unchanged at 4.5%5.5%; non-GAAP diluted EPS raised to $5.50$5.56 (from $5.29$5.39); adjusted EBITDA expected to grow high single digits; non-GAAP effective tax rate ~24%.
Release Date: November 03, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
