Second Quarter 2026
Filed Aug 5, 2026Envista Reports Second Quarter 2026 Results
Second-quarter core sales growth was 5.0%, adjusted diluted EPS increased 58% year-on-year, adjusted EBITDA increased 28% year-on-year, and the company raised its full-year 2026 outlook for core sales growth, adjusted EBITDA growth, and adjusted diluted EPS.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| SalesGAAP | $730.5M | – | – |
| Core sales growthnon-GAAP | 5.0% | – | 5.0% |
| Cost of salesGAAP | $323.5M | – | – |
| Gross profitGAAP | $407M | – | – |
| Selling, general and administrativeGAAP | $296.3M | – | – |
| Research and developmentGAAP | $30.4M | – | – |
| Operating profitGAAP | $80.3M | – | – |
| Other income (expense), netGAAP | $2.8M | – | – |
| Interest expense, netGAAP | −$8.7M | – | – |
| Income before income taxesGAAP | $74.4M | – | – |
| Income tax expenseGAAP | $20.7M | – | – |
| GAAP Net IncomeGAAP | $54M | – | – |
| Adjusted Net Incomenon-GAAP | $67M | – | – |
| Adjusted EBITDAnon-GAAP | $108M | – | +28% year-on-year |
| Adjusted EBITDA marginnon-GAAP | 14.7% | – | +230 bps year-on-year |
| Earnings - basicGAAP | $0.33 | – | – |
| Earnings - dilutedGAAP | $0.33 | – | – |
| Adjusted Diluted Earnings Per Sharenon-GAAP | $0.41 | – | +58% year-on-year |
| Average common stock and common equivalent shares outstanding - BasicGAAP | 161.9M | – | – |
| Average common stock and common equivalent shares outstanding - DilutedGAAP | 164.1M | – | – |
| Operating cash flowGAAP | $119M | – | – |
| Free cash flownon-GAAP | $105M | – | – |
| Sales - Six Months Ended July 3, 2026GAAP | $1.44B | – | – |
| Cost of sales - Six Months Ended July 3, 2026GAAP | $638.9M | – | – |
| Gross profit - Six Months Ended July 3, 2026GAAP | $797.1M | – | – |
| Selling, general and administrative - Six Months Ended July 3, 2026GAAP | $593.9M | – | – |
| Research and development - Six Months Ended July 3, 2026GAAP | $60.4M | – | – |
| Operating profit - Six Months Ended July 3, 2026GAAP | $142.8M | – | – |
| Other income (expense), net - Six Months Ended July 3, 2026GAAP | −$100K | – | – |
| Interest expense, net - Six Months Ended July 3, 2026GAAP | −$16.1M | – | – |
| Income before income taxes - Six Months Ended July 3, 2026GAAP | $126.6M | – | – |
| Income tax expense - Six Months Ended July 3, 2026GAAP | $34.2M | – | – |
| GAAP Net Income - Six Months Ended July 3, 2026GAAP | $92M | – | – |
| Adjusted Net Income - Six Months Ended July 3, 2026non-GAAP | $126M | – | – |
| Adjusted EBITDA - Six Months Ended July 3, 2026non-GAAP | $207M | – | – |
| Earnings - basic - Six Months Ended July 3, 2026GAAP | $0.57 | – | – |
| Earnings - diluted - Six Months Ended July 3, 2026GAAP | $0.56 | – | – |
| Adjusted Diluted Earnings Per Share - Six Months Ended July 3, 2026non-GAAP | $0.77 | – | – |
| Average common stock and common equivalent shares outstanding - Basic - Six Months Ended July 3, 2026GAAP | 162.9M | – | – |
| Average common stock and common equivalent shares outstanding - Diluted - Six Months Ended July 3, 2026GAAP | 165.3M | – | – |
Full year 2026 outlook
- NoteCore Sales Growth: 3.5% to 4.5%
- NoteAdjusted EBITDA Growth: 11% to 14%
- NoteAdjusted Diluted Earnings Per Share: $1.50 to $1.55
- NoteFree Cash Flow Conversion: ~100%
Capital returns
- During the quarter ended July 3, 2026, we repurchased 2.4 million shares for approximately $59 million.
- At the end of the quarter, we had approximately $283 million remaining repurchase capacity under our stock repurchase program.
What drove it
- Both reporting segments delivered positive growth.
- Specialty Products & Technologies delivered 3.1% core growth.
- Equipment and Consumables delivered 8.5% core growth.
- Ongoing contributions from the Envista Business System supported 70 bps of adjusted gross margin expansion and 230 bps of adjusted EBITDA margin expansion.
- The company cited growth across both reporting segments and all major geographies.
Concerns
- The company cited macro uncertainty.
- The filing identifies risks including conditions in the U.S. and global economy, inflation and increasing interest rates, slower economic growth or recession, trade policies and regulations including tariffs, supply-chain disruptions, currency exchange rates, debt obligations, and fluctuations in distributor and customer inventory.
What to watch
- Delivery against full-year 2026 core sales growth guidance of 3.5% to 4.5%.
- Delivery against full-year 2026 adjusted EBITDA growth guidance of 11% to 14%.
- Delivery against full-year 2026 adjusted diluted earnings per share guidance of $1.50 to $1.55.
- Whether Envista Business System contributions continue to support adjusted gross margin and adjusted EBITDA margin expansion.
- Free cash flow conversion relative to the ~100% full-year 2026 guidance.
Balance sheet and cash flow
- Operating cash flow for the second quarter of 2026 was $119 million, compared to $89 million in the second quarter of 2025.
- Free cash flow for the second quarter of 2026 was $105 million, compared to $76 million in the second quarter of 2025.
- Cash and cash equivalents: $1,125.6 million as of July 3, 2026; $1,211.7 million as of December 31, 2025.
- Trade accounts receivable, less allowance for credit losses: $436.9 million as of July 3, 2026; $429.6 million as of December 31, 2025.
- Inventories, net: $290.9 million as of July 3, 2026; $288.1 million as of December 31, 2025.
- Total current assets: $1,958.0 million as of July 3, 2026; $2,026.6 million as of December 31, 2025.
- Property, plant and equipment, net: $295.7 million as of July 3, 2026; $296.8 million as of December 31, 2025.
- Goodwill: $2,353.5 million as of July 3, 2026; $2,358.2 million as of December 31, 2025.
- Other intangible assets, net: $613.3 million as of July 3, 2026; $627.2 million as of December 31, 2025.
- Total assets: $5,597.1 million as of July 3, 2026; $5,679.0 million as of December 31, 2025.
- Total current liabilities: $807.3 million as of July 3, 2026; $852.6 million as of December 31, 2025.
- Long-term debt: $1,436.3 million as of July 3, 2026; $1,448.3 million as of December 31, 2025.
Analysis
Envista reported second-quarter sales of $730.5 million and core sales growth of 5.0%. Management said both reporting segments and all major geographies grew. Specialty Products & Technologies posted 3.1% core growth, while Equipment and Consumables posted 8.5% core growth, making Equipment and Consumables the faster-growing reported segment on the disclosed core-growth measure.
Profitability improved substantially from the prior-year quarter. GAAP operating profit was $80.3 million versus $46.3 million, GAAP net income was $54 million versus $26 million, and adjusted EBITDA was $108 million versus $84 million. Adjusted EBITDA margin was 14.7%, up 230 bps year-on-year. Management attributed 70 bps of adjusted gross margin expansion and 230 bps of adjusted EBITDA margin expansion to ongoing contributions from the Envista Business System.
Earnings and cash generation were also stronger. GAAP diluted earnings per share were $0.33 versus $0.16, while adjusted diluted earnings per share were $0.41 versus $0.26, an increase of 58% year-on-year. Operating cash flow was $119 million compared with $89 million, and free cash flow was $105 million compared with $76 million. The company repurchased 2.4 million shares for approximately $59 million and retained approximately $283 million of repurchase capacity.
The balance sheet reported $1,125.6 million of cash and cash equivalents and $1,436.3 million of long-term debt as of July 3, 2026. Cash and cash equivalents were $1,211.7 million and long-term debt was $1,448.3 million as of December 31, 2025. The filing also cited macro uncertainty and a range of risks including economic conditions, trade policies and tariffs, supply-chain disruptions, inventory fluctuations, and currency exchange rates.
Management raised full-year 2026 guidance to 3.5% to 4.5% core sales growth, 11% to 14% adjusted EBITDA growth, and $1.50 to $1.55 of adjusted diluted earnings per share. It maintained free cash flow conversion guidance at ~100%. The raised outlook follows first-half adjusted EBITDA of $207 million, adjusted diluted earnings per share of $0.77, and management's stated continued momentum.
Management, verbatim
We built on our fast start in Q1 with continued good performance in Q2. We delivered growth across both our reporting segments and all major geographies. Our focus on operational excellence, underpinned by the Envista Business System, contributed to further margin expansion. Based on our strong first-half performance and continued momentum, we are raising our full year outlook for core sales growth, adjusted EBITDA, and adjusted EPS. We are well-positioned to deliver another year of progress and performance.
Paul Keel, CEO
Not in the filing
stated, not guessed- Segment revenue for Specialty Products & Technologies was not provided in the supplied filing text.
- Segment revenue for Equipment and Consumables was not provided in the supplied filing text.
- GAAP gross margin was not provided.
- Adjusted gross margin was not provided.
- Quarter-over-quarter comparisons were not provided for reported financial metrics.
- A previous-release outlook section was not provided; therefore, no formal comparison of actual results against prior guidance is included.
- Dividend information was not provided.
- The supplied balance-sheet text is truncated after long-term debt; remaining balance-sheet and equity line items were not available.
- Forward-looking GAAP guidance was not provided.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.