Envista Holdings Corporation (NVST) Earnings Call Transcript & Summary

Good morning everyone. I'm Jim Gustafson, Vice President of Investor Relations for Envista, and it's my pleasure to welcome you to our 2026 Investor Day. We want to thank you for your interest in our company. And a special thanks to those of you who've made the journey to join us in person here at our Nobel Biocare facility in Mahwah, New Jersey. I'd like to remind you that during the presentation, that we are sharing today. It will also be available for download at the Events & Presentations section of our IR website at investors.evistaco.com. Additionally, this is being webcast live on the same Events and Presentations section of our IR website and will be available for replay later today after the event has concluded. So in our presentation today, we will make forward-looking statements within the meaning of the federal securities laws. These statements are subject to a number of risks and uncertainties. For more information on these risks, please refer to our SEC filings, including our recently filed Form 10-K and subsequent filings. Additionally, we will reference some non-GAAP financial measures. Reconciliation of these non-GAAP measures to the most comparable GAAP measures are included in the appendix of this presentation, which, as I mentioned, is available for download on our website. So today, you'll have the opportunity to hear from 6 members of Envista's leadership team. Paul Keel, our CEO, will lead off the agenda with a discussion of our value creation plan. This will be followed by a presentation from the leaders of our 4 main businesses, Stefan Nilsson will discuss our dental implant business and Veronica Acurio will go over our plans in orthodontics. Filippo Impieri will then review our dental consumables business and Robert Befidi will share details on our diagnostics business. Eric Hammes, our Chief Financial Officer, will then close with details on our multiyear financial outlook. And after a brief break to set up for Q&A, those of you in the room will have the opportunity to ask questions to members of our leadership team. And after that, I will now turn it over to our CEO, Paul Keel.

We're the applause for Jim or for me. All right. Good. We appreciate it. So good morning, everybody. Thanks for joining us. I am going to kick things off with 3 kind of opening comments to set the frame for the rest of the morning. So first, you'll remember in March of 2025, we shared a value creation plan that consisted of 3 core priorities: accelerating our growth, improving our operations and investing in our people. Now at that time, we believe that improvement along these dimensions would also bring up increase in Envista's financial performance, particularly around the medium-term metrics that you see here. So looking back across the past 18 months since that event, we're encouraged by our progress, propelled by new product and commercial execution we posted now 6 straight quarters of fairly broad-based growth. Leveraging the Envista Business System, we've amplified that top line growth into even faster EBITDA and EPS expansion. And with a deeper commitment to people and culture, we're seeing sustained increases in employee engagement, talent development and our community impact. The resulting financial performance as we hoped has improved alongside this. And we're consistently delivering at or above those ranges that are shown here. So now across multiple dimensions, Envista is an even stronger company today than we were just 2 years ago. Our new product pipeline has never been stronger. Margins are up around 300 basis points, and we've gained market share in most of the main categories where we compete. Envista is now performing at a higher level. And as such, we're raising our medium-term outlook. I'll say more about this in just a moment. Now before we go through the drivers underpinning the step up, let's take a step back and look at the broader dental market. So as everyone in this room knows, dental is a structurally attractive industry. Across the full landscape, it amounts to around $400 billion in annual spend, making it one of the larger health care categories. This stands to reason as it's one of the few markets where every person on the planet is a potential patient, and most of us, our dental demand grows as we get older. Now supported by a number of structural factors like those you see on the right side of this chart, dental consistently outgrow the broader economy. Now this has been true in stronger economic times, like 2004 to 2007 or the run-up to COVID in 2016 to 2019. It's also been true in contractionary times like the global financial crisis of '08 to '09. In fact, if you look at the chart on the left, you can see that there's only a very small handful of years where dental growth materially lagged GDP. The COVID lockdown of 2020, of course, is the most extreme example when U.S. dental expenditure compressed by 11% against a nominal GDP decline of just 1%. But if you look to the right of the COVID bar, you can see that dental is once again settling back into its long-term trend, outgrowing the broader economy in 2 of the last 3 years. Now while dental is a good category in general, we participate in some of the very best segments within the market. We've been in and out of various parts of the dental landscape across our history. And you see some of those at the bottom of the chart, but we particularly like the 4 at the top: implants, ortho, diagnostics and consumables, and we hold a top 3 position in each of these. Now there's a clear logic to this focus. Every dental procedure has the same 3 steps: scan, plan and treat. Scan describes the upfront diagnostic step where a patient's needs are assessed. Plan is the middle step where the care is designed. And treat is a therapeutic step at the end where the care is delivered. Now it's difficult to serve customers across the full continuum. But for the small handful of players that can do it, there are clear economic, clinical and operational benefits that accrue. We aggregate our 4 businesses into the 2 reporting segments you see here. Specialty Products & Technologies accounts for about 2/3 of our sales and equipment consumables accounts for the remaining third. Specialty categories like implant and ortho are most often sold directly to clinicians with no distribution layer in between. This requires unique clinical education and service capabilities that take use to build. But as a consequence, the supplier set tends to be smaller. For these and other reasons, over time, specialty dental tends to grow more quickly and with higher margins than general dentistry. Now unlike specialty products, equipment and consumables products are used by all clinicians. As such, suppliers like Envista, again, who support customers across that full continuum have a distinct competitive advantage, especially with diversified customers, like DSOs or universities or outside the U.S. with public hospital systems. Consumables are typically used in primary care procedures, which in turn are most often covered by insurance, so while through cycle growth for consumables tends to be lower than specialty, demand also tends to be more stable. Now Envista, with our full portfolio, we benefit from both of these dynamics. We have greater stability in periods of heightened uncertainty, and we also benefit from accelerated growth when sentiment is stronger. Now having touched on the broader market, let's focus in Envista. We've been a leader in the global dental market now for over 135 years. Amer home to many of the most respected brands in the industry, brands like Bell Biocare, Ormco and Kur enjoy 100% recognition amongst clinicians in those respective categories. As you can see across the bottom of the chart, in addition to being well balanced in terms of product, our portfolio is also nicely diversified in terms of geography and go-to-market model. Roughly half of our sales come from North America, with the balance roughly equally split between Europe and developed markets. In terms of channel, about 60% of our sales, as I mentioned, are sold direct and the remaining go through distribution partners, many of whom we worked with for decades. We hold over 1,500 patents and have played a role in many of the most important innovations in dentistry and I'll say more about this shortly. You'll recognize this slide from last March when we first communicated our value creation plan, and the architecture of the plan remains unchanged. A clear purpose a shared set of values and 3 enterprise priorities. Everything begins on the left with our purpose of partnering with dental professionals to improve patient lives. The purpose connects us directly to our customers. It gives true meaning to our work each day, and it keeps everyone focused on patient outcomes, which is at the center of everything in dentistry. Just as important are the values that define how we operate across more than 130 countries, the 12,000 employees of Envista are unified by our circle values, all nonproduction employees in our company and the resulting compensation that comes from that are measured both by what we achieve as well as how we achieve it. We do this because sustainable performance demands both. We bring our purpose and values to life through the 3 core priorities you see, growth, operations and people. And these priorities form the seabed of how we continually advance our capabilities, improve our performance and create value for all stakeholders. You'll also recognize this slide from our last capital markets event, it laid out the specific areas we said we were going to work on. Let's now turn to our assessment of how we're progressing across those priorities. The headline here is that we're moving the needle in all priority areas. On growth, we strengthened both our customer penetration and our commercial execution. We're building on our strong position in core developing markets like China and Russia, while also expanding our smaller presence in other fast-growing countries like India and Brazil. We're also deepening our penetration with DSOs, and we're taking share in many of the largest accounts around the world. You'll see we gave ourselves a half moon rating here to recognize the progress we've made but more importantly, the very significant upside that's still available to us. In terms of commercial execution -- let me catch up here. In terms of commercial execution, you'll see that implants has now returned to growth. And last year, we delivered our fastest performance since 2022. We also gave ourselves a half moon rating here. We're encouraged but not yet fully satisfied with our accelerating growth. Stefan? Spark is performing wonderfully, having gained share and expanded margins every year since launch, tremendous progress, but even more upside still ahead of us even with Spark. With respect to innovation, we've materially increased our R&D investment and early returns are promising. Alongside improved organic execution, we've also restarted our inorganic engine and we completed 3 small bolt-on but accretive acquisitions over the past 18 months. Moving to operations in the orange. We're delivering durable improvement to sustainably fund our faster growth. We've redoubled our focus on factory productivity, launching enterprise footprint, automation and procurement efforts that didn't exist 2 years ago. We gave ourselves another half moon here pointed in the right direction but still with a lot of margin to play for. G&A as a percentage of sales is down almost 3 points, and our working capital turns are steadily in the 5s amongst the best in the industry. So we thought that earned a 3-quarter pie. Maybe most importantly, on people, we're strengthening the foundation that makes all this progress possible. We've refreshed our leadership team. We're investing in talent development, and we're seeing broad-based year-on-year improvements in employee engagement, 3/4 of a moon. And now while we've covered a lot of ground over the past 1.5 years, it's important to underline that we're not just pursuing near-term improvement. We're building repeatable capabilities to support stronger performance over time. Let's now take a look at how this progress has translated into results. As you see on this slide, we have delivered above the outlook range for each metric in 2025, and we're guiding to be again in the range for 2026. We're encouraged by this performance, both the absolute numbers as well as what Eric calls the say-do ratio. Are we clearly and transparently communicating to all of you are current and as well as can be expected, our future performance. That's the say. And are we delivering in line or better when taking into account exogenous factors. That's the do. Now central to the say-do ratio is making both tailwinds and headwinds visible. So to iterate what we talked about on prior calls, our performance over the past 18 months has benefited from some nonrecurring tailwinds. For example, Spark deferral, channel inventory normalization and tariff-related pricing actions. Netting all of these out, Envista is consistently growing around 3% to 4%. And through the work I just described in COGS and G&A productivity, we leverage this into EBITDA growth of about twice as fast. Add to that another point or 2 in EPS growth from expanded initiatives in tax and capital deployment, and we convert all of this into cash at a sustainably efficient 1:1 ratio. The takeaway for all of you is that Envista is now durably operating at a higher level than where we were 2 years ago. So where do we go from here? Our plan moving forward builds on our 2 prior phases of life as a public company. From 2019 to 2023, we executed the spin from Danaher. We navigated COVID, strengthened our portfolio and rapidly scaled Spark. This critically important phase formed the foundation of what's now in Envista. In 2024, we refreshed our leadership team, adding new capabilities to supplement the strengths that were already in the organization. We developed a new value creation plan. And as we just covered, are progressing well in delivering it. We strengthened our balance sheet and capital deployment. And all of this in combination has strengthened stakeholder confidence, with our customers, with our colleagues, with the communities that we support, and hopefully, with all of you. Envista is now in the next phase of performance. We're not changing direction in this phase, but rather we're building strength on strength. That means deploying the Envista business system even more deeply across the enterprise. It means further accelerating our new product momentum and translating that innovation into further share gains. It means advancing productivity initiatives to fund this growth while also expanding our capacity for disciplined capital deployment. And higher performance, of course, means high expectations and consistent with us. As I mentioned, we're raising the outlook. Across the next few slides, I'll outline the new LRP as well as the capabilities we're building to support the step-up. I'll begin with growth. Innovation has long been the lifeblood of Envista. Over the past 135 years, we've had a hand in many of the most defining advances in dentistry, like inventing the now ubiquitous endodontic K file or dental implants or panoramic radiographs for both conventional and customized orthodontic systems. Our strong pipeline today is built on this firm foundation of innovation. The next slide captures just a few of the many recent launches. So we've increased new product investment at a double-digit rate each of the last 2 years, and this has allowed us to grow R&D as a percent of sales from 3.7% to 4.2%. Some of the new programs funded by this step-up are still in development, but many of them have already launched, like the new Nobel series just 6 months after introduction already accounts for about 20% of our premium implant sales and 1/4 of these have come from competitive accounts or the new CBCT platform from Dexis, which has already grown to be one of Envista's largest launches across the last 5 years or go Zoom, a novel new loop system that combines superior economics with adjustable magnification, where the half dozen plus major launches from Spark, which have allowed that business to go from 0 in sales to over $300 million since our launch in 2019. Now the business presidents are going to say much more about these and other innovations. And those of you who joined us today are going to get a deeper dive at the innovation forum this afternoon. Now innovation is the way we grow at Envista and EBS is the way we work. EBS is deployed throughout our enterprise and underpins all of our growth, operations and people priorities. An even deeper deployment of EBS is driving measurable impact. Over the past year, we have -- past 2 years, we put in place EBS leaders in every business, every function and every factory. When tariff activity started eating up, for instance, in the first half of last year, we launched a number of high-impact Kaizens to nimbly rebalance our supply without impacting our industry-leading service levels. To help fund the many new growth initiatives that I just mentioned, EBS at the centerpiece of a company-wide factory productivity effort. This has supported the consolidation of 3 sites and the automation of many more. And as inflationary pressures continue to mount EBS underpins both our new procurement and pricing programs. As Eric will say more about shortly, we'll generate roughly $10 million in incremental procurement savings this year, in addition to the $100 million or so in pricing benefit we've generated over the last 3. And most encouraging for all the progress we've made, we are still very far from realizing the full potential of EBS at Envista. This is by design because that is the very nature of continuous improvement. Our third priority is people because sustaining better performance takes even more than accelerating growth and improving operations. Most of all, it takes engaged teams, capable leaders and a shared sense of purpose. With respect to engagement, our efforts have resulted in broad-based sequential increases in our last 3 annual employee surveys. This stands to reason as stronger performance and stronger engagement go hand in hand. On talent, we've implemented a disciplined approach to leadership development and succession planning, supported by targeted work ops and individual growth plans. More than half of leadership roles in our company right now are being filled internally, both to effectively build our bench and also to create even more meaningful career path for our employees. And we're living our purpose through the Envista Smile Project and dozens of associated activities around the world every year. Last year alone, we donated more than $2 million in cash and materials working side by side with our customers and our partners to reach roughly 20,000 patients in underserved communities. Together, these priorities advance the hot-performing continuous improvement culture that we're building. Let's now take a look at the financial outcome of this. With respect to our medium-term outlook, we are raising 3 of the 4 metrics: core revenue, EBITDA and EPS growth. And one, free cash flow conversion remains unchanged at a healthy 100%. You'll see we're raising the top end of our core growth range from 4% to 5% and supported by market share momentum and a stronger new product engine, but with continued macro uncertainty, we're leaving the low end unchanged at 2%. We're shifting our entire EBITDA growth range up 1 point from 4% to 7% to 5% to 8%, expanding gross margins, together with the productivity initiatives that I just outlined, support our ability to grow profits even faster than sales. For adjusted EPS, we're also raising the top end of the range by 1 point to 11%, reflecting a combination of stronger operating performance and disciplined capital deployment. As Eric will detail in just a moment, we'll also be laying out our balance sheet priorities. While this will give us even greater flexibility in the current environment, it will also likely come with higher interest expense. As such, we leave the bottom end of our EPS growth range unchanged at 7%. So to summarize the approach, we've strengthened our capabilities, execution and results. So we're raising our outlook as well. Let me close by bringing it back to 4 main points. First, in March of 2025, we communicated a value creation plan centered around 3 priorities of growth, operations and people. Second, we're continuously improving our capabilities. resulting in financial performance consistently above the ranges we initially gave you. Third, it naturally follows then that we're raising our outlook. And fourth, Envista is now in a new phase of performance, extending our momentum, advancing capabilities and creating ever more value for all stakeholders. In summary, Envista is a stronger company today. We have greater momentum, deeper capabilities and an even clearer path to sustained value creation. Most importantly, we're building a company that will keep getting better for our customers, our colleagues to the communities that we work in and for our shareholders. That's what gave us confidence to raise our medium-term outlook and to move to the next phase of Envista's performance. With that, I'm going to hand it over to Stefan to walk us through the implant plan. Thank you.

Thank you, Paul. All right. So good morning, everyone. Welcome to Procera. This is our home to the prosthetic and Digital business unit. I'm Stefan Nilsson. I'm the President of the Implant Group, and I'm excited to be here today with you. We want to share the progress we are making within our business, and we believe we are in a uniquely positioned global leader that is gaining momentum in the market. As we think about the opportunity ahead, I would highlight 3 themes that gives us confidence in our future and differentiate us within the industry. First, we are a top global player in one of the most attractive categories in dental care. Second, we are a healthier business today than we were just a few years ago, just like Paul mentioned. And third, our innovation engine is back. Together, these strengths create a powerful foundation for sustained growth, market share gain and long-term value creation. So with that context, let me start by showing how these strengths are translating into momentum across the business and why we believe we are increasingly well positioned to capture growth opportunities across both premium and challenger segments. Our ambition is to be the leader in the global implant market and be the preferred portfolio of brands across both the premium and challenger segments. One of our unique advantages is the strength of the Nobel Biocare brand. For decades, Nobel has always been linked with a scientific leadership, innovation and clinical excellence. That trust extends beyond the premium segment. We believe Nobel Biocare creates a powerful halo effect for Implant Direct, Alpha Biotech, Procera and our regenerative portfolio. As customers engage with Nobel Biocare, it strengthened credibility across a broader portfolio and helps accelerate adoption of our challenger brands. We're also seeing the benefits of recent investments. New innovations such as the S-Series, EmPro, SmileGrid, are beginning to gain traction, while our commercial and marketing investments are driving improved engagement with clinicians from all around the world. That momentum is important, but it becomes even more compelling when viewed against the backdrop of the market opportunity itself. Let me spend a minute on the category and why we remain so excited about the long-term growth potential. We participate in a highly attractive $12 billion global market that continues to grow at the mid-single digit. What is particularly attractive is where much of that growth occurs. The Challenger implant segment continues to grow at a faster pace than the overall market, creating meaningful opportunities for market share expansion. We also have 2 very strong challenger companies with Implant Direct and Alpha Biotech, each with its own unique offering and value proposition. Overall, our portfolio is uniquely positioned to support a wide range of segments and key patient demands. We also see attractive opportunities within prosthetic and regenerative solutions. What differentiates us is our ability to participate across the entire treatment journey through a highly connected ecosystem. At the beginning of '24, we increased annual investment by approximately $25 million. This was focused on 3 priorities: strengthening commercial execution significantly expanding clinical education and rebuilding our innovation engine. Those investments are producing results. We improved sales coverage. We also revitalized our marketing organization and the Nobel Biocare brand, expanded the number of clinicians trained and increased investments in R&D. The chart shows the impact following the investments initiated in '24, the business returned to growth in '25. We expect further improvement in '26 and beyond. The key message is that this is a company gaining momentum. We have a healthier commercial foundation stronger customer engagement and an innovation pipeline that is the beginning to deliver are now focused and sustaining this trajectory, growing in line with the implant market. increasingly capturing the faster growth opportunity within our challenger segment, the prosthetic and regenerative businesses. Our improving performance is supported by more than the commercial investments. It's also supported by the breadth of our portfolio and our ability to connect solutions across the implant treatment workflow. One of our key differentiators is our ability to support clinicians across the entire implant ecosystem. We bring together the full clinical journey with one of the most comprehensive integrated digital workflows. This supports not only Nobel Biocare, but also our challenger, prosthetic and regenerative businesses. The broader and more connected, our offering becomes the more value we create for customers and the more opportunities we create for growth. The strategic value is important. We are not competing for just a single implant sale. We are building an ecosystem that can improve clinical predictability, reduce complexity, strengthen customer loyalty and increased participation across the complete treatment workflow. The reason we have been able to build such a comprehensive digital workflow starts with the foundation of Nobel Biocare itself. To understand our future opportunity, it's worth reflecting on the success of our past innovations and what lies ahead. Our company holds a unique position within the industry. More than a leading implant brand, we created modern implant dentistry through the pioneering work of Professor Branemark and the discovery of Osseointegration. Over the decades, Nobel Biocare has consistently introduced innovations that have revolutionized the shape of this industry from the development, the invention of the All-on-4 protocol to the first same-day guided treatments, we Nobel Guide. We also introduced Nobel Active, a truly disruptive new implant design that still leads the way in its innovative threat design and desirability for immediate function. This heritage matters because it continues to influence customers today and it's the foundation we use for future innovations. We have the trust and credibility associated with being a decades-long leader in implant therapy. We are focused on the future and looking for new ways to improve clinical outcomes of our clinicians. Patient is and always will be our North Star. This is what guides our purpose and what drives us. Our goal is not simply to celebrate our history, but to leverage that heritage to drive future growth. While we are incredibly proud of our history, we are focused on what comes next. And that starts with rebuilding the innovation engine that has historically made Nobel Biocare, a leader in this industry. Innovation is fundamental to our strategy, just what Paul mentioned, and it is a critical driver for long-term growth. What is important about this pipeline is its breadth. It spans all major categories across Nobel Biocare, Implant Direct, Alpha-Bio Tech, Procera, Osteogenics and Versah. This ensures that innovation is contributing to growth across the entire portfolio, not just a single brand or area of the business. We are investing behind the areas where we see the greatest opportunities for customer adoption, market share gain and profitable growth. Over the last 2 years, we have increased focus on our R&D activity. This has led to a 50% increase in the number of high-impact launches over the last 2 years. This is the table I presented to you in March 25, showing our innovation pipeline at that time. However, the pipeline only creates value if it ultimately reaches the customer. Let me show you how we are translating the innovation pipeline into commercial product launches today. This slide reflects our ability to convert innovation into commercial execution. Over the past 2 years, we accelerated the pace of launches. Since '24, we have increased the number of annual launches by 50%, with 4 meaningful launches in '26. It is important to note that 2 of those 4 launches this year are considered high impact versus low or medium. Our Challenger business where innovation can be meaningful, differentiator is gaining momentum as well. We had a strong push in late '25 with 4 key launches that position us well to compete for market share with more complex cases. Sand body systems for both ABT and Implant Direct as well as new multiunit apartments for both systems. Implant Direct launched a direct arch digital workflow, while ABT added the omni-based final abutment system. The key message is simple. Our innovation engine is delivering today while also building a foundation for future growth. Among those launches, S-Series is one of the best examples how we are bringing meaningful innovation to the market while driving customer adoption and competitive conversion. S-Series is a strong example of customer-focused innovation, built on decades of Nobel Biocare clinical evidence, S-Series simplifies workflows for clinicians while maintaining the performance and predictability that customers expect from a premium franchise. The response has exceeded our expectations with strong adoption and meaningful competitive conversion. We view this as an important proof point that our renewed innovation strategy is translating into commercial success. Our launch have S-Series has started off very well. In the last quarter, S-Series made up 18% of Nobel Implants sold across Europe and North America. Innovation for us doesn't stop at the implant itself. We are also investing across the broad treatment workflow, including prosthetic solutions that help improve clinical outcomes and customer experience. EmPro. EmPro represents another example of innovation designed around customer needs. Its emergence profile design provides the clinicians and laboratories with great flexibility in managing soft tissue and achieving natural-looking aesthetic results. This is strategically important because clinicians do not judge success only whether an implant integrates, they judge success by the quality and appearance of the final restoration. EmPro launched in Europe in the second quarter of this year. So far, we have seen fast adoption of the new product with 58% of our customers moving over from legacy components in just the first 6 months. In addition, EmPro is playing a significant role in getting our prosthetic product category back to growth. It is a strong example how we can leverage previous proven technologies like Seal with a newly designed product to create a better system for clinicians and patients. And this dentistry becomes increasingly digital, connecting these technologies together becomes just as important as the technologies themselves. There is where SmileGrid plays a critical role. SmileGrid is our new cloud-based workflow platform. It helps clinicians specialists, laboratories and treatment teams to collaborate through a connected digital environment. Rather than forcing customers into a fixed process. It allows them to customize workflows based on the way they prefer to practice and the needs of their patients. Strategically, SmileGrid helps connect our customers to the systems and services, they choose to better treat their patients. They can do this in a completely open environment with the confidence that all their data will be accessible from anywhere. They also have the security of knowing all their patient data is protected and fully HIPAA compliant. We believe this opportunity is particularly compelling within our challenger portfolio, where clinicians increasingly expect easy to adopt digital solutions that improve efficiency and enhance customer engagement. Beyond digital workflows, we are also expanding our portfolio through strategic acquisitions and highly differentiated technologies. Versah is a great example of that approach in action. Versah is an excellent example of how we are expanding our portfolio through differentiated technologies. Earlier this year, we completed the full acquisition of the business and began integration activities in May. Since then, we have expanded commercial reach from 3 primarily education-focused representatives to more than 300 implant and regenerative sales representatives across our premium and challenger business. The business is performing well, tracking towards double-digit growth by year-end, while generating attractive margins. Beyond the financial opportunity, Versah strengthens our position in implant surgery and creates additional cross-selling opportunities across implants and regenerative solutions. Technology alone is not enough. Adoption requires education, clinical confidence and scientific validation. That's why our partnerships with the clinical community remains such an important strategic advantage. Education remains a critical part of our growth strategy. Our partnership, the foundation for oral rehabilitation supports global clinical education scientific advancement and leadership development. This is valuable across all our businesses because education helps drive adoption, improved clinical confidence and expand access to implant treatment. We are very excited to see momentum and interest building with the foundation. In '26, we will launch new council in Turkey, and we have plans to expand to India in 27. These councils provide a framework for local education, humanitarian support as well as scientific research platforms for local clinicians. Our partnership with FOR is just one part of a much broader commitment to education, which continues to be one of the most important drivers of customer engagement and long-term growth. Education has always been one of Nobel Biocare's greatest strength. By supporting clinicians throughout their professional journey, we help accelerate adoption of implants, prosthetics, regenerative solutions and digital workflows. As more clinicians enter implant dentistry globally, education becomes an important growth engine that supports procedure growth and expands our customer base. As you can see from the slide, our investments in '24 have yielded strong results in this area. Significant growth in the last 2 years has resulted in a 10x increase in the number of clinicians trained around the globe. This forms a strong foundation for future growth. When our customers grow, we grow with them. While innovation education create demand, sustainable growth also requires strong execution. Paul spoke about EBS. EBS is helping us to become a more focused and disciplined organization. Alongside innovation, EBS is helping us improve execution across businesses. Our focus areas include go-to-market effectiveness, supply chain agility, pricing discipline and manufacturing optimization. These efforts help us scale our businesses while improving efficiency and profitability. When we bring innovation, education commercial execution and operational excellence together, we create something much more powerful than individual products. We create a complete solution for our customers. What differentiates us is not simply having a strong premium implant franchise. We have built a portfolio that spans premium implants, challenger implants regenerative biomaterials, prosthetics, digital workflows and clinical education. The strength of Nobel Biocare creates credibility across that portfolio, enabling us to drive adoption across multiple customer segments and geographies. We believe specifically that our challenger and regenerative businesses represent some of the most significant opportunities to accelerate growth in the years ahead. So let me close by bringing everything together and highlighting why we believe this business is exceptionally well positioned for the future. First, we participate in an attractive and growing market with significant unmet patient need and substantial room for expansion. Second, we have built a uniquely advantaged position through our premium challenger, prosthetic, regenerative and digital portfolios. We believe the strength of Nobel Biocare can continue to create a halo effect that accelerates growth across the broader portfolio. Third, we have a clear growth strategy centered around innovation, commercial excellence, education and operational discipline, combined with the strength of the Nobel Biocare brand and the revitalized innovation pipeline. We believe we are well positioned to deliver sustainable growth, margin expansion and long-term value creation. Thank you. I would like now to introduce Veronica, who will tell you about the orthodontic within Envista.

Thank you, Stefan. Good morning, everyone. It's a pleasure to be here to share the work we are doing to expand Envista's leadership in orthodontics. And as you all know, Ormco is a business of Envista that has a significant potential for accelerated growth and a compelling opportunity to further transform the orthodontic market. The market in which we compete is attractive. Orthodontics is a large, approximately $7 billion global category growing at a mid-single-digit rate, with a long runway for further growth because of the substantial number of unserved patients globally. With 65 years of experience and a legacy of introducing many of the foundational and best-known innovations in orthodontics, we are distinctively positioned to serve orthodontists. Ormco is a global market leader with a differentiated digital platform designed to address needs of both patients and clinicians. We have a strong presence in fixed appliances traditionally known as Brackets & Wires and in clear aligners a category with a significant growth potential. We are the leaders in self-ligating appliances a treatment modality within Brackets & Wires that offers more predictable treatments with greater efficiency and comfort. And Spark, one of the best and fast-growing aligner products in the market is a product that we developed through internal R&D and successfully launched only about 7 years ago. These strong products served by an extensive clinical education and leading digital orthodontic treatment platform are here for success. We have demonstrated a track record of profitability growth. Ormco is one of Envista's most important profit drivers. Our Spark business just turned profitable last year, and within 7 years have achieved global sales of more than $300 million. We intend to sustain this promising trajectory of growth and profitability over the coming years. We believe this market offers significant opportunity. about half of the world's population suffers from malocclusions, with over 6 million -- $600 million who would benefit from orthodontic treatment and have the ability to pay, only approximately 21 million begin treatment every year, almost 3.5% of the estimated addressable market. Evolving treatment modalities and channel expansion are helping to address several barriers for treatment, including concerns of appearance, the need for more predictable and shorter treatment times and affordability, particularly in minor or relapsed cases. Of the approximately 21 million annual cases starts, about 75% continue to be using Brackets & Wires and 25% use aligners. Although some general dentists have expanded into orthodontics, care over the last decades, orthodontist still represent approximately 3 out of every 4 cases. They have the most specialized training and experience in tooth movement and Ormco remains focused in serving this specialty. The introduction of clear aligners more than 25 years ago represented a major breakthrough in orthodontics. It significantly expanded interest among adults an unserved population seeking aesthetic, more comfortable treatments and a modality that fits their lifestyle. And despite the growth of aligners, most teenagers are still being treated with Brackets & Wires. Team patients can be less compliant with removable appliances and fixed alliances are widely accepted because of many of their peers are still treated with the Brackets & Wires as well. Within Brackets & Wires the principal modalities includes traditional twin brackets and self-ligating systems, such as our diamond franchise. Self-ligating systems are the fastest-growing modality, offering a more predictable treatment with greater efficiency and comfort. Similarly, clear aligners span a range of options designed for complex and simple cases, early intervention and expanded indications. In recent years, both Brackets & Wires and clear aligners have expanded their use of digital treatment planning. Aligner treatment is only supported by digital planning and customized trades, and the resulting data will continue to improve treatment predictability. In Brackets & Wires, digital adoption is growing and enabling more customized treatments. But it remains still in early stages and represents a meaningful opportunity for further transformation. We believe Ormco is positioned to lead in digital orthodontics. Ormco has a well-defined business model that we use to compete and win in this category. First, our training and education. We collaborate with an extensive network of key opinion leaders and clinicians to communicate the science behind our treatment opens. Last year, our team and clinical experts delivered more than 3,000 educational events, reaching over 50,000 clinicians. Second, our global reach. Our commercial scale extends to more than 120 markets with direct sales supporting supported by more than 500 commercial resources that represent our complete portfolio. Third, our innovation. Our R&D and product management continues to advance both modalities of Brackets & Wires and aligners with a particular focus on digitalizing both modalities through our Ormco DTX platform. And third, our comprehensive offering. We support more than 2 million cases annually. Ormco is differentiated as one of the largest orthodontic product companies. We are unique because we have a scale, leading position in both clear aligners and Brackets & Wires with a strong and resilient Brackets & Wires business, supporting the needs of a stable teen orthodontic market, and a leading growing aligner that has grown and capture share every year since launch. We are clearly a market leader positioned to serve orthodontist, the clinical segment that delivers today more than 75% of orthodontic treatment globally. One of the most exciting opportunities that we have is to leverage our digital platform to plan treatment and help clinicians select the best solution for patients. Our digital platform was initially developed to planned treatment with the Spark aligners. Last year, we launched StageRx, a groundbreaking visual treatment planning platform for Spark that improves treatment predictability, reduces design time and simplifies workflows for orthodontists. This platform now can not only support aligners and retailers, but also treatment planning for bracken and wires. And this year, we have expanded our Ormco digital bonding within the platform to include our full range of brackets. This single platform supporting both aligners and Brackets & Wires creates an opportunity for new hybrid treatment approaches that combines modalities within a single case, an area that we are actively developing. This is the power of our portfolio. with leading offerings in broth, Brackets & Wires and clear aligners supported by one digital platform. We can help clinicians choose the treatment approach that fits better patient needs. We are not constrained to a single modality that may not be appropriate in every case. Around this platform, we're also building a comprehensive ecosystem to better orchestrate and simplify clinicians' workflow. With Ormco and Envista's portfolio and integrating partnerships, we plan to cover across all workflow stages, supporting all treatment modalities through one Ormco DTX platform. We continue to expand partnerships, creating open, integrated orthodontic ecosystem that simplifies clinicians' work and supports greater treatment predictability, shorter treatment times and a superior patient experience. When it comes to product innovation, we take inspiration from the orthodontic experts we serve. Ormco has a long history of introducing game-changing products and treatment modality. Our 65-year legacy of innovation spans the breadth of our portfolio. Ormco pioneered with straight wire appliances, helping clinicians position teeth more precisely and introducing a series of advancements in self-ligating appliances. We also have been pioneers in customized treatments. In the recent years, we mobilized our teams to build a compelling clear aligner offering, leading to the introduction of Spark, while continuing to advance our Brackets & Wires through our Damon Ultima and ultimately, our Ormco digital bonding. These solutions are designed to improve control of tooth movement, bracket placement accuracy edition and patient experience. Some of our latest innovations include the introduction of Spark On Demand, Spark Retainers, Ormco EtchFree, an innovative orthodontic adhesive system that eliminates the need for acid etching during bracket and attachment bonding, Spark Jr. with BiteSync, Ormco's clear aligner solution designed for growing patients a two-phase orthodontic treatment for early interception combining the proven performance of Spark aligners with BiteSync, Class II correction supporting healthy development, jaw correction and tooth alignment in a single workflow and StageRx. This year, we expect to deliver close to $75 million from products that we have introduced in the last 3 years. We are orthodontic experts with an unmature record of innovation and one of the industry's most complete offerings for both patients and clinicians. We are leading the way towards faster, more efficient treatments and improved outcomes. With a strong innovation pipeline, Ormco is well positioned to accelerate growth and shape the future of orthodontic Continuing to drive Spark growth is our first priority. We are gaining share and with a 10% revenue CAGR over the -- growing faster than the market. And since Spark's introduction, we have surpassed more than 1.4 million cases globally. We plan to continue to build on the success of gaining share among patients that are treated with clear aligners. By doing 2 things: one, our relentless focus on expanding customer reach, strengthening our commercial execution, we will continue to prioritize markets in Europe, in North America, expanding our partnerships in orthodontic practices and DSOs, but all the further penetrating and entering in new high-potential geographies. Like this year, we just introduced Spark in Japan and are all being supported by an increased investment in our allocation. And the second piece growing our Spark is increasing utilization through the expansion of our portfolio with new products, with more in our pipeline. As I mentioned earlier, we recently introduced Spark 35, Spark On Demand, BiteSync, Spark Jr. and StageRx, and there's many more introductions that we're planning to support the growth in this category. We achieved profitability last year for Spark, and we'll continue to drive a Spark towards greater profitability, supported by our efforts of our operations team and the Envista business system. Over the past 12 quarters, we have reduced the cost of aligner by approximately 40%. This progress reflects our team's use of Envista business systems to drive continuous improvement. Our improvement of efforts have focused on further automating our production lines and increasing our case design productivity. With major production facilities across 3 continents, we have a differentiated model for scale in automation. At a pilot plant in Newark, California headquarters, engineers identify opportunities, test and refine processes and then deploy proven improvements across our global production network. This enables consistent, continuous improvement, and we have an ambitious plan to continue to improve Spark's cost position and service levels. Our roadmap includes further manufacturing automation, expanded case design automation, optimization of our global footprint and additional material cost improvements. In summary, I am excited about the opportunities that is ahead of us. The orthontic market is large with a substantial unserved population around the world. Ormco has expanded market and margin position every single year over the past 7 years. And we will continue to be one of Envista's most important profit drivers. We believe we are distinctly positioned to continue to be a market leader serving orthodontists under a differentiated platform designed to address needs of all patients and clinicians. With Damon, we will lead and will continue the self-ligating the fastest-growing modality within Brackets & Wires. And with the Spark, we have one of the industry's leading and fastest-growing clear aligner offerings, both supported by a single leading digital treatment planning offering. While we drive growth, we will continue to have -- we continue to have significant opportunities to improve design and manufacturing efficiency to improve margins. We believe we have a great capabilities clear plan and the right team to deliver continued innovation, growth, profitability and operational improvements. So with that, this -- I will finish my presentation. And now I will hand it over to Filippo. Thank you.

Well, thank you, Veronica, and good morning, everyone. It is great to be here. Let me start with a quick introduction. I've been with the organization for over 2 decades. I was part of the very first acquisition that Danaher made in dental to build a platform that eventually became Envista. And since July, I stepped into a new role leading our consumables organization. And over the last year, we have changed our posture on this business. assuming a more growth-oriented mindset. So over the next few minutes, I would like to talk about the market opportunity, how we win a why we believe the runway I had for consumables is meaningful. Consumables is at the heart of dentistry. Every day, our products support the clinical workflows that keep dental practices moving, preparing for new patient visit, preventing infections, restoring the dentition, helping clinicians deliver consistent outcomes for patients. That everyday relevance is important. These are not occasional procedures. They are recurring treatments that clinicians perform every day, creating a stable and resilient demand fundamentals. On this slide, there are 3 ideas that I would like you to keep in mind. First, demand for everyday dental treatment is steady, demographic trends like aging population, the expansion of the middle class in emerging markets, this trend support demand for routine and preventive procedures. In addition, we continue to see interest in aesthetic and early treatment treatments, and at the same time, infection prevention remains an important aspect in clinical environments. Second, we are a trusted leader in consumables. Our heritage spans over 135 years with a track record of category defining innovation from the very first in-office furnace solution to manufacture crowns, to the invention of the K file still used today in endodontic procedures to a series of dental innovation in material science. Today, we hold leading positions in some of the most differentiated consumable segments, positions that are supported by clinical evidence, customer trust and brands that clinicians know well. Matrix adds another important dimension to our leadership, our surface disinfectants are among the most mentioned in dental equipment instructions for use. Third, we have multiple opportunities to drive sustainable growth in consumables. We see opportunities for additional share gain by delivering a steady cadence of innovation and we see opportunities to expand in underpenetrated segment as well as geographies. What I would like you to take away here is the combination. Stability by itself is attractive, but stability, combined with the differentiated positions in multiple growth levers is what makes this business compelling in the entire investor portfolio. With this framework in mind, let's look at the size of the market opportunity. The starting point is the scale of the clinical need. This marks the importance of what we do, but also speaks to the economic opportunity as a leading player in consumables. According to estimates from the World Health Organization at 3.5 billion people suffer from oral diseases. In only 2 billion people see a dentist each year. 2 billion patients create a large recurring base of preventive, restorative endodontic and routine treatments, and yet, we have clear opportunities to treat more patients and expand our patient population over time. In parallel, infection prevention remains a significant need across health care environments. Today, 1 in 10 patients is affected by a health care-associated infection. And while emerging economies are more affected, mature ones are not excluded. In the U.S. alone, the economic burden of such infection is estimated to be up to $45 billion per year. Together, this needs support a $10 billion addressable market for dental categories in which we participate in. An important point is not just the size of the market is where the opportunity sits relative to our current position. Today, roughly 2/3 of our consumable business is in North America, while more than 60% of the total addressable market is outside of North America. This creates meaningful opportunities and white space for us to expand overseas. It does not mean going after every market, it means being selective about the segment and countries where our brands, clinical evidence and educational models gives us the right to win. For instance, just last month, we have taken the first steps to relaunch and establish a consumable presence in the fast-growing Indian market. As we look at the total market, our opportunity is to fold continue building share in the core North American market, while expanding our presence in attractive international markets. Market opportunity matters, obviously, but only if there is a clear business model able to capture it. So let me cover that next. Our model begins with innovation. We have strong R&D capabilities that allow us to develop differentiated clinical solutions. In restorative and endodontics, that means solution designed to improve performance, predictability of clinical outcomes without compromising on workflow simplicity. In infection prevention, it means formulation that are designed to address pathogens of concerns as well as evolving requirements. The second element of our winning formula is training and education, a differentiated product has value only with clinicians understand how to use it with confidence and when they can see how it improves their daily work. our network of key expert, learning platforms, educational tools as well as events help translate product performance into clinical confidence and product adoption. We continue to evolve and expand our offering in training and education from tailored educational programs to larger events like the sold-out Kerr Summit in Lisbon in October. The third element is about brands and partnerships. Our brands have earned the trust of clinicians. They have established credibility in their respective segments. This, combined to our global network of trained, highly specialized and experienced distribution partners helps us extend our reach in the marketplace. Our partners helps us connect innovation and education with customers. Those 3 capabilities: reinforce one another, innovation, gives our sales organization a stronger product, a stronger story to tell. Education gives clinician confidence in our partnerships allows us to scale our value proposition around the world. The result is not only commercial, but most importantly, it makes a difference for clinicians and patients. Every year, our restorative solutions helped transform more than 30 million smiles. And every year, our infection prevention solutions contribute to more than 500 million patient visits taking place in a safer environment. These figures makes the model a tangible behind each number is a clinician completing a procedure with confidence, a patient receiving care in a workflow supported by products that have earned trust over time. Not all consumables categories are created equal and all have the same attractiveness. We are positioned where differentiation matters most. On the left of this slide, you can see 2 categories: restorative materials and surface disinfection. These are our 2 largest consumable categories. Together, they represent more than 70% of our business. Adhesive, cements and composite are critical to the clinical outcome and to the longevity of our restorative treatments. Clinicians evaluate these materials based on science, handling predictability and confidence. In the U.S. market, branded product represent more than 95% of the category. Clinicians gravitate towards brands solutions that have learned to incorporate into their workflows. We have a very strong portfolio of product brands in these categories, in names like Optimum, harmonized, Maxim are among the most trusted and premium solution in this market segment. In surface disinfection, formulations have unique properties. They are incorporated into clinical protocols, and they are carefully validated through equipment IFUs. Here again, the category is predominantly branded at approximately 90% of the entire U.S. market. Our portfolio includes the dental market most popular brands in surface disinfection CaviWipes and CaviCide. Now compare those categories with others that are more commoditized and disposable gloves, for instance, gloves are more price-sensitive, are more prone to switching, private label represents most of the market and it does not have a product in this category. This comparison is strategically important. Our portfolio is concentrated in segment where clinical performance and workflow sensitivity influence the purchase decision. One of the ways we sustain our differentiation and our premium positioning is through a consistent cadence of innovation. This slide shows the breadth of our recent innovation across 4 parts of our portfolio. In infection prevention, CaviWipes and CaviCide HP use hydrogen peroxide technology to enable faster, simpler disinfection. The platform is also positioned for evolving pathogens concerns through its EPA emerging viral pathogen designation. We have launched our HPE formulation in the popular wipe canister format first and gone through the routine EPA and step by state approval, which was completed middle of last year. And now we have switched our focus towards expanding the HP portfolio with ready-to-use packaging solutions. HP has been a wonderful addition to our product portfolio formulation, especially in clinical environments dedicated to young and elderly patients. In April, we launched the Demi-Pro curing light dental practices, spend more than $3 billion a year in dental materials that rely on like curing be probably set in place. Demi-Pro combines leading curing performance with a lighter, more ergonomic experience. It's 360 rotating tip gives maximum freedom, it's translumination tip expands the application of the light outside of the traditional curing function by providing a simple yet powerful vision aid to identifying areas that need attention. In April, we have also launched ZenSeal Pro, a product designed to provide durable seal during root canal procedures. ZenSeal Pro provides advanced bioceramic chemistry compatibility with all operation techniques while ensuring elevated levels of PH to help create a favorable environment for the success of the root canal procedure. This premium material properties are combined with a new dispensing tip, which is designed to minimize waste and allow for more root canals treated per syringe compared to similar competitive solutions. ZenSeal Pro expands our endodontic portfolio into a multimillion-dollar segment bioceramic sealers that is mostly new to curve providing good market gain opportunities. And finally, in magnification loops, ErgoZoom along just last September, is among the very first to offer an ergonomic optical system with the convenience of variable magnification. ErgoZoom allow clinicians to work in a more upright posture while adjusting magnification to the task at hand. These are different products in different categories, but the innovation logic is consistent, identifying a meaningful customer problem and create a clinically differentiated solution and launch it with the educational and commercial discipline needed to drive adoption. The customer comments on this slide bring that logic to life. They speak to those practical benefits that our customers enjoy in the everyday use of these products. EBS is essential to our value creation story in consumables. So let me illustrate that with 3 examples. First, in manufacturing, our challenge was optimizing our manufacturing footprint, improved factory productivity, our team using EBS tools simplified the global manufacturing footprint going from 9 to 6 sites in just 3 years. And streamline the distribution of our products around 3 global distribution centers, greatly simplifying how we work with distributor partners. The second example is in sales and marketing. Our opportunity was to improve targeting, increased win rates and advanced share of wallet. Again, as several EBS tools have been instrumental in our improvement journey. Our team have improved account targeting, create greater visibility to the sales organization and strengthen training and education tools. The new learning management system, for instance, allows us to provide flexible educational pathways to clinicians and DSO organization using a combination of online and off-line tools. Third, EBS in innovation. The opportunity at end was about expanding the funnel of innovation ideas, accelerating the pace of innovation and ultimately increase the commercial impact of our new product launches. Once again, EBS tools have helped improve our launch revenues. And over the last years, we have seen over 30% increase in the revenue impact of innovation. The recent Demi-Pro launch is one of the latest examples of EBS in action. Just in the first 3 months since product introduction, the new product was able to triple our share position in this category. So in summary, let me leave you with 3 conclusions. First, we operate in a large and attractive $10 billion consumables market with stable recurring demand, and we have opportunities to expand our presence in strategic segment as well as key geographies. Second, we hold a leadership position in differentiated segments. This is supported by trusted brands a portfolio with strong clinical evidence and an ever productive innovation engine. Our innovation, combined with our training and education offering and key opinion leader network, allow customers to incorporate our solution in their clinical workflows with confidence. And finally, EBS gives us a repeatable operating system that improves how we innovate, how we manufacture, how we commercialize our solutions. And ultimately, how we support customers and distribution partners. As I mentioned at the beginning, consumables is at the heart of dentistry, and we are excited about the role that we can play in the Envista portfolio and its value creation story. And with that, let me introduce you to Robert to talk about diagnostics. Thank you.

Good morning. It's great to be here with all of you. My name is Robert Befidi, and I lead the diagnostics business at Envista. A couple of comments about my background. So over the past 30 years, I've held leadership roles across industrial, diversified health care technology, private equity and consulting organizations. My academic background spans software engineering, finance, marketing and operations management. I joined Envista in late 2023, and have been focused on advancing a diagnostics portfolio and growth strategy. Diagnostics is the equipment business of Envista. It's a global leader in dental imaging and diagnostics. In the coming 15 to 20 minutes, I will make 3 points. First, we participate in an attractive category. Second, we offer one of the industry's most comprehensive imaging and diagnostic portfolios. And third, with more than 70 years in the business, we have built a large installed base that we are converting into a durable ecosystem advantage across hardware, AI-powered software, clinical workflows and services. Let me start with the business at a glance. There are 3 ideas on this slide and to frame the rest of our presentation. First, digital industry adoption is driving growth. So Imaging and Diagnostics is a $3.5 billion category with growth coming from areas where we are strongest, namely increased adoption of digital imaging equipment, software and services. Critically, the marketplace is moving towards integrated solutions where our connected ecosystem gives us a competitive advantage. Second, Dexis is a leader in units in service and in innovation. We hold the #1 share position in dental imaging in North America. Globally, we have more than 450,000 devices and workstations in service. across more than 50,000 dental offices in 128 countries. DTX Studio Clinic, our software that integrates all modalities of dental imaging is a leader in AI assisted diagnosis, treatment planning, collaboration and patient communication. Third, we have a clear plan for profitable growth. Our differentiated solutions are built for diagnostic confidence, productivity and simplicity in the clinic. In diagnostics, like in all Envista businesses, EBS continues to be the engine underneath both growth, margin expansion and fundamentally our culture. Let me take those points in order, beginning with the category. The diagnostics category has 3 primary segments: 2D and 3D imaging, about $1.5 billion. This segment has been flat. Intraoral scanners about $1 billion, growing low single digit and software and services about $1 billion, growing high single digits. We actively participate in all 3 segments. Now let me show you how our portfolio and execution are translating into performance. This chart shows the performance journey of the Diagnostics business. Revenues declined in 2023 and 2024, driven largely by portfolio and geography exits as well as post-COVID market normalization. The imaging market began to recover in the second half of 2025, and that recovery has continued into 2026. At the same time, we started to turn the business around and returned to growth in late 2025 and in the first half of 2026, core growth has averaged double digit. Those gains were driven by innovation across the portfolio, stronger operational and commercial execution, growth in software and services and disciplined price positioning. The key message is that we move from decline to stabilization and then to grow with both market recovery and our own execution contributing to the improvement. With that performance context, let me describe the composition of the business. Our business is concentrated in attractive parts of the market and benefits from the broad route to customers. By geography, 75% of our business is in North America. By solution, hardware represents 73% of revenue, while software and services represent 27%. Our strategy is to increase the recurring revenue contribution from software and services while sustaining leadership in hardware. By channel, 77% of our revenue flows through distribution, 23% is direct. We work very well with distribution and have long-lasting partnerships globally as they provide reach, local expertise, service coverage across thousands of practices. Our direct business is mostly software and services. Our portfolio is an integrated and connected ecosystem that supports dental imaging and diagnostic modality, whether it be 2D X-ray, 3D X-ray, intraoral scans or intraoral pictures or generally pictures of patients. We go to market primarily through the Dexis brand, with An iconic CBCT brand, and DTX Studio, a hardware agnostic software platform. The scale of that ecosystem is one of our most important advantages. Let's talk about our impact on dentistry. Dexis powers modern dentistry at scale. And this lux shows the reach of our platform. Each year, clinicians use that technology in more than 150 million patient cases, capture more than 0.5 billion images, transfer data to more than 100 practice management systems and seamlessly connect to roughly 10,000 labs. We also made a deliberate choice to remain open. Our software can read images from third-party imaging systems allowing clinicians to bring more of their diagnostic information into one workflow. 2 numbers deserve particular attention. First, our AI capabilities help clinicians detect more than 100 million -- 180 million 2D and 3D AI diagnostics annually; and second, our platform supports tens of millions of specialty procedures each year. Our implant planning software help plan more than 3 million implants last year alone. To understand why this footprint matters, consider where Dexis sits in the clinical workflow. Paul mentioned the 3 steps of each clinical procedure, whether a simple restoration or complex full luxury construction, they all followed same 3 steps, generally speaking, scan, plan and treat. Scan is captured and diagnosis. We bring CBCT, intraoral scanning and 2D X-ray in one suite, enhanced by 2D and 3D AI diagnostics magic assist automated case setup and smart focus tooth level navigation across our modalities. Plan is AI system treatment planning. We support automated implant planning endodontic diagnostics, orthodontic planning with Spark and collaboration with labs, clinicians and patients as well as workflow integration for prosthetic production, whether it is milling or 3D printing, chairside or with lab partners. We also, in this step, provide case presentation, patient communication tools to assist clinicians with case acceptance. Treat is clinical execution. We provide the diagnostic information and workflow connections clinicians use to execute the treatment plan. Texas is the leader in scan and plan the first 2 steps. That position is upstream of everything else. Everything starts with agnostics. Our systems capture data and are used before treatment decisions get made. That means every downstream vendor, whether for restoration, an implant, an aligner or a lab consumes output from Dexis. Other investor businesses are leaders in treated the third step. Here is the operating playbook that we use to extend that advantage. Our operating thesis is straightforward: deliver differentiated diagnostic solutions to diagnostic confidence, productivity and simplicity. Those are the outcomes our customers value so they are how we organize the business. On growth, we're building the best-in-class imaging and diagnostics ecosystem for clinicians and patients, building strength on strength through a robust hardware new product cadence, supported by training and education, services, software and lasting partnerships. On operational excellence, we are modernizing processes to create productivity and operating leverage. This includes margin expansion through efficiency and automation, manufacturing and supply chain footprint actions, including insourcing and agenticAI across sales, customer experience and support. And on people, we are accelerating the mindset and capability required for an AI adapted work environment. That means global talent development and deeper capabilities in EBS, process automation and generative AI. Now let me show the architecture that connects our priorities. I want to be precise about how this ecosystem is built because its architecture is a core competitive advantage. Imaging Hardware is the foundation. Every order capability in the ecosystem, including image visualization, AI diagnostics, clinical workflow, treatment planning, training and support depends on high fidelity images across 2D X-ray, 3D X-ray and intraoral scanning. That dependency runs in one direction. You can build software on excellent images. You cannot build trustworthy AI unreliable ones. More than 70 years of imaging leadership, more than 450,000 deployed devices and workstation and integrated modalities give us the foundation to turn our ecosystem into a durable advantage. We continue to strengthen that foundation through a robust cadence of innovation. Over the past 4 years, looking across to reinforcing layers, driving diagnostic hardware and the AI powered solutions that run on it. Here are the things that we've done. On diagnostic hardware, we have advanced every imaging modality. That includes Imprevo, our new intraoral scanner, Ti2, our new 2D X-ray sensor, the OP 3D EX, our new CBCT with automated x-ray dose control. And coming later this month, CBCT motion correction across all our OP 3D CBCT models and the NOMAD Pro 3, our handheld to the X-ray generator. On AI-powered software, we have introduced DEXassit for 2D AI diagnostics, 3D AI-driven surgical guide design, Scanflow 2.0 with GPU support, the DTX 2D clinic implant module, and this year, DTX Studio Clinic 4.7 with 14 2D AI diagnostic detections. And in the coming months, we will launch DTX Studio clinic Endo Module, Dexis Cloud 2D imaging and iOS cloud. Noticed the 2 rows moved together. Every hardware release opens capabilities that the software complements offering an unparalleled platform for imaging and diagnostics in dentistry. This innovation has also been recognized externally, including Cellerant, best-of-class, Dental Townie Awards from 2023 to 2025. And most recently, in 2025, most improved iOS and People's Choice Award. Let me go deeper on how hardware and AI come together to create diagnostic confidence. The organizing concept is the Dexis digital patient model. High clinical fidelity 2D X-ray, 3D X-ray intraoral scan data combined with intelligent software and AI in one model of the patient to support downstream clinical decisions. We talked about the criticality of our hardware image quality across all modalities. Our latest hardware breakthrough innovations include the OP 3D LX and EX for next-generation 3D imaging. Imprevo for GPU-powered intraoral scanning and the NOMAD Pro 3 for improved handheld 2D image quality with an unwavering focus on clinician safety. This product has 10x less rare directed radiation leakage than the leading competitor, unique to our offering on top of that hardware foundation, FDA-cleared 2D and 3D AI diagnostics are built directly into the platform. Our solution does format AI detection of an entire extra series in less than 5 seconds. That is industry-leading in workflow efficiency with about 18 images processed in less than 5 seconds. We automatically detect 14 FDA-cleared dental findings on every intraoral radiograph enabling clinicians to review cases quickly. We do one click period analysis that measures bone high levels and compared to previous exams. And finally, with 2D AI, we do 2 segmentation that allows clinicians to present cases in color, turning clinical terms into visuals that help patients understand why they should act now. For example, showing how carriers progress from enamel to Denton and to pulp. With 3D AI, we segment various landmarks on the CBCT volume, including the upper and lower jaw, teeth, airway and nerve canal. AI also automatically to suspend curves from 3D volumes. This AI capability enable clinicians to automate previously manual cases, particularly the setup steps and quickly moved into chairside treatment planning. Ultimately, we have a comprehensive imaging and diagnostics platform that integrates all modalities of imaging into one Dexis digital patient model with AI running across all of it. When we apply that intelligence to complex treatment planning, we have the following example of workflows. At Dexis, we believe we have the most comprehensive suite of clinical AI in dentistry. On the left is our AI-powered implant workflow. MagicAssist automates CBCT setup. SmartVision aligned CBCT and intraoral scans, clinicians can virtually extract teeth and generate a surgical guide then place the implant in one click. From an extensive virtual library of implants and abutment libraries, they can connect the treatment plant to 3 printing robotic surgery and labs, scan to plan for implants in under 3 minutes versus more than 90 minutes using traditional methods. This is a massive productivity gain for specialists and generalists alike. On the right and new this year, we have AI-powered endodontic workflow in DTX Clinic Studio. It combines advanced 3D visualization and AI-assisted canal mapping with trajectory and length calculation in a single click. Endodontic is the highest variability procedure in dentistry, and we're taking the guesswork out of it. These practical examples of AI embedded in the clinical workflow, turning high quality data diagnostics into faster and more confident treatment planning. Let's talk about EBS, and let me connect the strategy to the operating system that helps us execute. EBS is how we run that business. This is our return strategy into results. I'll walk through a couple of examples in R&D, operations and commercial execution. In R&D, EBS is helping us build better products faster, fewer parts, more efficient manufacturing and stronger quality outcomes from day 1. We've had a 25% improvement in new product interaction, velocity and cycle time improvements of more than 75%. In operations, EBS is helping us eliminate waste, standardizing processes and creating more value for customers. We have had more than a 19% improvement in global factory productivity. And year-to-date, improve working capital turns in the Envista management system. Commercial execution, EBS drives disciplined execution, stronger customer engagement and market share gains. Ultimately, it starts with our people, and it's the way we work, creating a network that scales continuous improvement across the business and compounds year-over-year. In closing, 3 things to take away. First, the category; second, our position; and third, our strategy. The category, a $3.5 billion category, growing low to mid-single digit through the cycle with service and software outpacing hardware and customers increasingly wanting fewer vendors and integrated workflow. That consolidation favors incumbents who have scale, and that is us. We hold the #1 share in dental imaging in North America. Globally, we have more than 450,000 devices in our workstations across more than 50,000 clinics in 128 countries. And we have the leading 2D and 3D AI diagnostics and treatment planning software in use globally. Third, our strategy. We will continue hardware innovation across every modality. Capture recurring revenue from the installed base with services and subscription and scale AI-powered software on the cloud. We have the installed base, the innovation, the plan to capture profitable growth. And rather than take my word for it, I would like you to hear from a clinician. So Dr. Gillespie is a key opinion leader that works with us. He owns Gillespie Dentistry, and he runs the Dexis ecosystem in his practice every day. Let's roll the video.

My name is Dr. Greg Gillespie, and I work here at Gillespie Dentistry. DTX Studio Clinic is amazing because it's essentially everything imaging in one platform. It's so easy. It's seamless. It looks like, I know what I'm doing. Just today, I had a patient come in. She was coming in for a cosmetic console, and she knew that she didn't like a tooth that was dark. But she didn't know why. I pulled up all of our images and so quickly, you could see on a 2D periapical image because it was colorized, and there was an apical lesion up there. You can see it on the 3D image clearly. And on the 2D image, you could see it everywhere so easily. And guess what the patient said to me. She said, "I never knew why there was a problem with my tooth. But now I can see it so clearly on these images, what's going on." She was diagnosing for me the problem with her too. And that's why I love about DTX Studio Clinic, it actually delivers what it says it can do.

Thank you for your time. Now let me hand it over to Eric, who will walk through our financial performance and opportunities.

It's great to get out of the front row seat of the movie theater. So Robert, let me just say thank you. It's wonderful to see the value that our Dexis business is generating for customers and also about the integration of comprehensive digital solutions across all of Envista. I hope you all see that. Good morning, everyone. I'll take a moment to wrap this up, take us through the financial portion of our day which will mostly be a continuation of the journey that we've been on for the last few years. In short, I think what you'll see is we continue to turn our recent investments into strong business performance, but always with an opportunity to go further, as you heard earlier from Paul. So let's just start with a quick look back at the foundation that we've built over the last few years. As you all well know, our first capital allocation priority is organic growth. That's given the strong margins across our portfolio. And over the last 2 years, we've fed that growth engine in several different ways by investing at R&D levels with double-digit growth, coupled with high single-digit increases in commercial front end, while elevating our manufacturing capability and regional self-sufficiency through strong double-digit growth in CapEx. As a result of all of this, our core growth has performed at or above market, while building momentum for a sustainable future growth, as you heard earlier from Paul. All of these investments, importantly were enabled in large part by the space and productivity that we delivered within our business. That's thanks to things like manufacturing automation, G&A efficiencies and most recently, pricing execution. Our overall financial performance over the last few years has been equally strong. we've been able to deliver consistently at or above our guidance expectations. But importantly, we've been able to drive profit growth and earnings growth above the rate of sales growth. All in, based on our 2026 guide, our adjusted EBITDA is projected to improve approximately 40% over the last 2 years, with EPS growing even faster and our cash position remains flexible and strong at over $1.1 billion. As you've also seen, we've strengthened our balance sheet and begun to deploy capital more effectively and actively. Our net leverage ratio reflects the health of our operations. We've rebuilt our M&A pipeline, and we've recently deployed capital towards a few smaller but important acquisitions in the implant space that's helped Stefan's business to improve its geographic reach and also accelerate its growth. And lastly, we've added a third leg to our capital allocation strategy over the past few years and returned over $280 million of cash to shareholders over just the last 6 quarters through our share repurchase program. If you put it all together, we've invested in the business. We've delivered on our growth agenda, and we're positioned well for the future. When we introduced our medium-term outlook in March of last year, we emphasized a couple of points within the overall financial framework. First was the assumption of a modestly growing dental market. The second was that we estimated our ability to outgrow the market given the strength of our portfolio and the targeted reinvestments that we made in 2024 and early 2025. We also reinforced a very important point, which was the shift in our financial strategy, putting more emphasis on growing profit dollars and growing earnings per share dollars. And lastly, we elevated free cash flow conversion to a primary metric that was simply to reflect the increased focus that we wanted to put into translating profits into cash which we see as only strengthening our balance sheet and our capital allocation playbook going forward. Since then, we've consistently performed, exceeded initial medium-term expectations. And more specifically, as you can see on the bottom of the slide, core growth was strong in 2025 at 6.5% growth. And this year, our guidance around the top end of our medium-term range at 3.5% to 4.5% growth. EBITDA growth has also overperformed with strong double-digit growth in 2025 and estimated for 2026, while continuing to invest for the future. Earnings growth has been very strong double-digit growth each year, backed by the structural improvement in our tax rate and as mentioned, the most recently repurchased authorization. And free cash flow conversion has also helped us build an even stronger cash position for Envista. Again, if you add it all up, the business is performing better, the quality of execution through EBS is improving and we have a stronger base from which to work from going forward. Given the progress that we've made, and as you heard earlier today from Paul, we're updating our medium-term outlook. We now expect core growth of 2% to 5%, adjusted EBITDA growth of 5% to 8%, adjusted EPS growth of 7% to 11% and free cash flow conversion of approximately 100%. Important that our financial outlook reflects both the work that we've already completed, but the opportunities that were outlined today, and then I'll talk about further that are still ahead of us. But we see it also as grounded in the factors that we can directly influence, namely continued investment in innovation, disciplined commercial execution, continued rigor within our operations via EBS investment in the people strategies that Paul and each of the businesses laid out and active capital deployment. Overall, the Envista team and our EBS engine can create an attractive return for shareholders while building on a sustainable future. Let me now take a couple of minutes to talk through each of the primary financial metrics, where I'll give you a view of the insight that got us to where we are. and of course, what can continue to move the business forward. Throughout the morning, I think you've gotten a good, strong sense for our core growth momentum and importantly, how each of our businesses will continue to outgrow their markets, which translates to our outlook of 2% to 5%. We're operating in a stable and resilient dental market that we continue to believe will return to its long-term growth rate over time. But in the meantime, as mentioned, we're focused on the pieces that we can control and delivering results through our growth initiatives. As you heard today, our R&D commercial investments are collectively aimed at reaching our customers globally, while providing solutions that simplify dental procedures and enhance workflows, delivering clinically backed outcomes and, most importantly, improving lives. The recent launch of new products from Envista is a strong testament to our innovation and growth strategy. You saw compelling examples today from each of our business leaders, which will transform the markets across their categories. Our implant brands via SmileGrid, which you'll have a moment to see or to see in a moment, aims to digitize and simplify case collaboration. Ormco is focused on delivering one orthodontic platform for the best treatment solution in the market. Consumables is focused on clinical performance, and enduring brands. An Dexis continues to create collaborative solutions to simplify digital dentistry. Pricing also continues to be an EBS priority for us and a durable contributor to growth which I'll talk about in just a moment. Before we go into our price execution, let's just take a step back for a moment and take an outside look at inflation, pricing within the marketplace. The chart here reflects the 25-year trend of 2 publicly available sets of data, CPI and dental service inflation. There's 3 important takeaways from this chart. The first is the dental procedure prices over time outpaced CPI. The second is that you can clearly see that COVID injected a period of uncertainty or disruption, where this longer-term trend didn't hold up. But most importantly and notably, the longer-term trend has returned in recent quarters. We expect not only will the long-term trend continue forward, but that our pricing strategies will be similar, where pricing offsets or even outstrips our net rate of inflation, even though historically, those product price increases have been below our customers' procedure price increases. If you take a look at our business, and Paul mentioned it earlier, our focus on pricing is a great example of stronger operating discipline translates into natural performance. Over the last 3 years, Envista's delivered approximately $100 million of price realization. That change in trajectory required a change in our approach, which started in 2024, better analytics, tighter coordination between our finance teams and our commercial teams and as noted earlier, improved accountability. Important to note that we don't view pricing as just a onetime macro inflation response. We view it as a core commercial capability in each of our businesses. We have brands with strong clinical credibility, innovation and differentiated value propositions that improve outcomes and practice productivity which gives us the ability to have price power within the marketplace. Additional focus and discipline in pricing can also be a durable contributor to our annual growth. That's exactly the kind of repeatable capability-based improvement that we want investors to see enabled by our EBS engine. Turning to adjusted EBITDA growth. We expect 5% to 8% annual growth over the medium term. Our core growth is an important starting point due to the strength of our strong gross margins, but importantly, we're not dependent on volume leverage, but we want to continue to leverage productivity in the next few years as we have in the past few years. We expect EBS to continue to support operational initiatives like factory productivity, line automation, procurement and G&A efficiency. You saw examples from each of our businesses as to what they've been doing in the past and still opportunities going forward in each of these areas. And as Paul outlined earlier in his presentation, we've progressed over the past few years in each of these areas, but at differing speeds, right? Some with the full circle, some sort of partial implying that we have more to go. Manufacturing automation in Spark as well as G&A efficiencies were 2 great examples over the past few years that drove significant value. It enabled us to invest in growth, but importantly, we have many opportunities that remain to improve on this base, replicating good examples in one place is in other areas of the company while making sure that we continue to add new capability. Procurement is one of the most recent tangible examples of where we've delivered recently and where further opportunities exist. During the second half of 2025, we completed an assessment across our global direct and indirect procurement spend, which represents nearly $1 billion in addressable annual spend. In 2026 alone, we'll generate $10 million of savings with a pipeline of opportunities ahead. We've also strengthened our procurement leadership and organizational model, including improved coordination globally across all of our indirect categories, and also targeted strategies for several of our direct categories. We'll continue to strengthen our capabilities over the next few years and leverage procurement teams to help fund the business growth but also drive profit improvement. In March of last year, we elevated EPS as a primary financial metric. That change helped us to better align and prioritize our efforts internally but also to drive a broader set of shareholder value creation levers. We now expect medium-term adjusted EPS growth of 7% to 11%. Beyond growing our profits, we focused the last 2 years on additional levers for value creation. The first and where it started was creating a more efficient access to our international cash. That improvement enabled us 2 other significant benefits. The first was optimization of our interest income, and the second was the addition of our share repurchase program, where we deployed over $280 million of cash to shareholders in the last several quarters. The last area, which I'll talk about in a moment is our tax rate. All of these efforts have been a great example of a single financial strategy coming together collectively, helping to deliver earnings leverage but importantly, supporting our capital allocation plan. Please also note that our EPS outlook does contain capital deployment aligned with our capital allocation priorities to offset likely headwinds from increased net interest expense from likely refresh of our debt stack, which I'll cover in just a moment. On the tax front, we've delivered a significant improvement recently. Over the past 2 years, our tax rate was reduced by roughly 13 points driven by improved U.S. earnings and strategic tax planning. We've also worked through prior structural and legal entity constraints, including the legacy intercompany loans that we've talked about several times. Looking forward there are opportunities that we have, which can be unlocked through legal entity simplification and geographic mix. Our tax and treasury organizations are also working very closely together to deliver a more efficient flow of global cash, which is aimed at enhancing returns from our capital deployment plans. Our debt strategy also supports our longer-term capital allocation plan. Our current capital structure includes a mix of convertible debt, term loans and revolving credit. And while it has been interest rate efficient, it's also relatively short term in nature. As we consider the debt structure, our objectives moving forward are straightforward: length and duration, diversify our instruments, stagger our maturities and most importantly, preserve efficient access to capital for our capital allocation priorities. At a similar level of gross debt, we're likely to see higher interest expense, net interest expense which will create some EPS headwinds to our organic plan. This includes -- or is included in our outlook ranges, but the strength of our balance sheet and improved debt structure will also benefit longer longer-term capital allocation and the value that results from that. Free cash flow conversion is another primary metric that we elevated in our March 2025 Capital Markets Day, as it's foundational to our long-term value creation plan. We continue to expect approximately 100% free cash flow conversion over the medium term. There are several reasons for both strong cash generation and conversion at Envista. The first is that our capital expenditure model is efficient, and we're very disciplined about prioritizing high-returning investments. You've seen this play out in the last couple of years relative to our investment in smart automation, manifesting in both growth and margin opportunity. Second, as we invest in manufacturing footprint optimization, those investments are largely aimed at improving growth, improving cost, improving quality, which all helped generate strong profits and again, efficient conversion for Envista. And working capital also remains a core strength. Envista has historically operated with strong working capital turns and EBS gives us the process to keep improving and working on our velocities. When you combine our cash position, annual free cash flow generation and attractive leverage, Envista is positioned with capital deployment flexibility, which can create additional shareholder value. Our priorities for capital deployment remain very much the same. First, investing organically in the business; second, leveraging M&A to expand geographically and to strengthen our portfolio and lastly, to return cash to shareholders. We hope that you agree that Envista is well positioned for continued success. So with that, that wraps up the morning and the planned presentation of our day. We'll now take about 10 minutes to set up on stage here where we'll prepare for about an hour of Q&A. And for those of you that are in the room, there's refreshments outside, if you be back within 10 minutes, that would be fantastic. Thank you. [Break]

All right. We're going to get going with Q&A here. So we have our presenters and speakers upfront, and we will take questions from in the room. So Elizabeth, we'll start there.

I guess this guidance range change seems at least in line with our expectations and what makes sense for the business. If we think about your performance obviously done much better than your previous long-term guide. So if we think about the upside potential drivers to this guidance or potentially some areas of weakness on the downside, what would you call out as the biggest upside potential drivers there?

All right. Well, Bob, thanks for kicking us off, Elizabeth. I tell why don't I cover the first 2 metrics, so I'll do core growth and EBITDA growth, and then Eric, I'll ask you to do EPS and free cash flow. So core growth, again, the heightened outlook moving forward is 2% to 5%. As you saw in the presentation sort of our proven process capability has been around 3% to 4% so right in the center of the range. For us, around $30 million of incremental revenue is a point of growth. So across this morning's presentation presentations, you've seen multiple examples of initiatives that are underway that could get you $30 million of incremental growth. either as an individual initiative or certainly collectively. But I'd probably categorize them into 3 groups. So the first big emphasis on new products. Many of us kind of grew up in a new product culture. And when we came to Envista, we instilled that increased investment and it's starting to pay off. several of those programs that the presidents talked about are of that magnitude, $30 million-ish type new products or better. Second category I would talk about is specific either product categories, geographic categories or customer categories that are growing faster than the overall market. and where we're still under-indexed. So the best product example of those, you heard from Stefan and Robert, we'd like to be bigger in challenger implants, grows a little more quickly than premium. And we're a strong market leader in diagnostic hardware. The diagnostic software category is small right now, but very fast-growing and we're very well positioned to succeed in that. So those are 2 product categories where we could grow even more quickly. Geographically, developing markets, of course, grow more quickly than developed markets. We have very strong positions in 2 of the bigger developing market. We're strong in Russia, strong in China, as we've talked about. We'd like to be even stronger in markets like India or Brazil. And then on the customer front, the obvious one there is DSOs. We know in most big dental market DSOs grow more quickly than the overall category. We're strong, but we could be even stronger in DSOs. So let's see that covers the core growth piece. Let's go on to EBITDA. For us, we moved that whole range up from 4% to 7% to 5% to 8%. Over the past 2 years, we had very strong EBITDA growth, much more than vice as fast as the top line growth that helped get that extra profitability. We also did very well on the G&A front. We took about $35 million out of G&A. Moving forward, as you saw in the presentations, we have a particular focus on COGS. We've started to bend the curve on COGS after several years of gross margin compression. We've now had 2 great quarters of gross margin expansion. And we have very explicit programs underway, procurement footprint, factory automation to claw back some of that position in -- on the COGS line. The third I would talk about, and you'll probably counterintuitive for dental is, I would say macro is another potential accelerant to the top end of that range. And what I mean by that is on the pricing front. So Eric has showed very good data over time, dental inflation outrun CPI by about 1 point over the last couple of quarters, it's been even greater than that. if that inflationary delta between dental and CPI persisted, that, of course, would be helpful to us. So that takes you through the growth and the EBITDA front. In terms of what could tip us to the low end of that range, I guess I'd go back to macro again. Four main indicators describe most of what happens in underlying dental. You guys know them well, GDP growth, unemployment, consumer confidence and interest rates. In the back half of '24, all 4 of those were headed in the right direction. Then beginning in '25, one of them turned yellow is red. That was consumer confidence and now a second one is flash and yellow, that being interest rates. So were those to get worse or if either of the remaining 2 were to start flashing yellow that, of course, wouldn't be helpful for the dental market would be helpful for us either. You want to talk about EPS and cash flow?

Yes, it would be great. So let me just start with EPS. Maybe the place to start would be just reinforcing what I mentioned in the preread remarks and what's effectively in our earnings outlook. So I won't repeat the adjusted EBITDA growth. You see that clearly from the range, and you heard from Paul on the sort of the variability, the 5% to 8%. In our earnings per share growth, we're assuming things. We're assuming a continued reduction of our tax rate. Obviously, a lot has happened in the last few years. Some of that is more structural. But we still have improvement opportunity to get back to or slightly below our, call it, long term or early years as we spun out of the company tax rate which is like mid- to lower 20%. So that's sort of baked in. We have ideas around that. I mentioned geographic mix as well as just some structural things that we can continue to do in tax planning. . We're assuming that we're deploying capital towards share repurchases, dependent on other capital allocation priorities at roughly 1/3 of annual free cash flow. So that's sort of the base assumption that we have within our model. I think really the biggest opportunity as we think about more of the top end of the range is capital deployment. You saw it feathered quite a bit throughout the day to day. We've done a lot to position ourselves well, whether it's our cash balance, whether it's what we're looking at in terms of a potential future debt structure, but also where all of our global cash sits. And you guys all know for a good earnings generating company, for a good 100% free cash flow conversion company with a good starting point, we have a lot of opportunities, whether it's organic, inorganic or maybe a share repurchase program extension that we can do more there. M&A is probably the #1 lever, I would say, can be a differentiator to the plan. Our plan is largely an organic plan, as you would expect. And I think we have a good position to be able to lever up on that. Free cash flow, just in terms of variability, I'd say it's less interesting, right? For starters, we just want to always reinforce internally and externally that we have a very efficient capital model today. There's a few things we have as opportunities. As I mentioned on the procurement side, we're also leaning in hard on the term side of procurement. That's what good companies do. We run today around 55 days. We know we can make improvements there. And there's a lot of simple, innovative ways for suppliers to also access more efficient rate models that we have not deployed to date. So that's a good example of an opportunity in working capital. I would just say on the automation front, that may be more on the low side, if you want to call it that or the moderate side of free cash conversion the more opportunities we see in automation to replicate opportunities like we've accessed in Spark. That's probably going to be a little bit more CapEx than what runs in our historic model. but we can still generate around 100% free cash flow conversion with that. And then there's one last piece I'll just mention, which I think everybody here probably understands and that's that the more we grow our Spark business, the more we have a sustained, solid above 100% capability for free cash conversion. That's because we revenue recognize over a period of time. we bill upfront, we collect upfront. So it's a natural benefit, if you will, to our free cash conversion. That's just one other reason among many that we want to continue to grow well in our Spark platform and business.

Great. Steve, and if you can identify yourself and your company affiliation.

It's Steven Valiquette from Mizuho Securities. Just a quick question really on the market sizes in the slide deck. If you compare today's slide deck to the March '25 slide deck from 18 months ago, the dental implant market size of $12 billion was unchanged, orthodontic market size was unchanged at $7 billion, consumables went from -- increased from $8 billion to $10 billion, diagnostics from $3.2 billion to $3.5 billion. So really the question is, can you just provide us with a quick headline summary to reinforce the drivers of the increase in the consumables and diagnostics market sizes? And then is there anything to read into the lack of increase in the faster-growing implant nor the market sizes in the slides? Or am I just overthinking it?

Why don't I take why ortho and implants didn't increase, and I'll ask Filippo and Robert talk about their specific segments. You get better data on ortho and implants and you triangulate across all the available data. It says the same numbers. Consumables is more fragmented and diagnostics is smaller. So not as much data availability, but you guys know the markets better.

Yes. I can comment on consumables specifically. As I mentioned, our point of view, we have a strong position in North America. We know that market very well. We have opportunity internationally over a recent period, we have done more research around consumable business globally. And we think that $10 billion is a good actually assessment of the total market opportunity around categories where we play in. So I think it's linked specifically to our renewed focus as well around the category.

Robert, diagnostics?

On Diagnostics, the expansion on software and services is the biggest driver a lot more software value we generated in the industry today than there was been 2 years ago. Jeff, you want to pick up here?

Thanks for all the information today. So 2 questions, if I could. Paul, I wanted to pull on 2 strings maybe of things you said in your answer to Elizabeth's question. First, just on the EBITDA side, maybe this is a question, I guess, for Eric. Margins fell from 18%. I think a few years ago, you had been trending in kind of that upper teens to 12% you've improved EBITDA, 40% here off those 12% troughs. As I think about kind of the arc of investor maybe one of your bigger competitors there seems like there's always a cycling from upper teens EBITDA down to low double-digit EBITDA margins, you're on a path on the way back up, which is good. But how do we think about instead of over the medium range longer term, what's the right EBITDA margin for a well-run dental manufacturer. Can it be upper teens again? Does that mean you cut back on too much? But you're 14% now, how do we think about maybe the next 5 years?

[indiscernible] set the frame and then you can give the details.

So March '25, our first Capital Markets event, we moved away from guiding EBITDA margin to guiding EBITDA growth. We did that very intentionally for 2 reasons. One, we think it's EBITDA growth that creates value, not a percentage. The second is we had seen when we came into the business that decisions were made that in support of a percentage that we thought were not supportive of total value creation. So that would be point number one. Point number two is, I mean, you guys run the math if you grow the top line at 2% to 5%, take the middle of that, you grow EBITDA, 5% to 8% take the midpoint of that, you get about 50 basis points of margin expansion year. So whatever you want to call medium term, you can just run that math out.

Yes. No, I think that's right. Maybe 2 points I would mix Jeff. One would be -- there's never an end point, right? But if your question is more about an endpoint, yes, hot teens is the way that we think about the healthy landing place over time for our business. I think the important point relative to the profit growth piece I like to think about the bridges that we've shown in the last 2 years. For me, that's like -- that's how we look at running the business, right? So we estimate what our growth can be. We look hard at our productivity we consider how all of that can impact the bottom line and then we're just consistently making decisions on how much we can invest in the business to continue to try to consistently improved the profile of the business, right? Our bridges in the last 2 years have shown sort of that same propensity, right, getting volume growth, having that be part of our margin expansion story getting price. Sometimes it's offsetting inflation, sometimes it's peer margin expansion, investing in the business, having underlying productivity, net productivity offsetting inflation, right? But we are consistently looking at that formula, right? What investments do we have to be able to make? How do we continue to grow profit dollars. We're also very conscientious of the fact that the margin rate of any company is a signal of the health of the company, a signal of its kind of growth potential, pricing power, innovation in the marketplace.

Fair enough. A follow-up question. Paul, I'm not sure for you or Robert, maybe -- how big can maybe a services get as a percentage of Diagnostics revenue over time? How much of that today is subscription-based versus maybe an on-prem single sale? How competitive are you guys to some of the stand-alones out there, the over jets, the pearls, things like that? And maybe -- yes, do we get to a point where you can connect all of that to then the insurers, the insurers can kick back and chairside. You can talk about a patient we know that these 3 things would be reimbursed today. Here's what your co-pay would be, let's structure organize or prioritize this procedure over this one because of your co-pays or something? I mean that to me is where AI could really drive an increase in utilization of dental over time. How close are we to get into all of that?

Yes. Maybe I'll give the Envista view and then you drill in just the diagnostic and the workflow piece of that. I mean, of course, AI software is helpful to across the spectrum. So it's very interesting to us just as a stand-alone product, what you're asking about. Robert will go more deeply into what we're doing in that regard. AI software is very interesting to us in how we improve the efficiencies of both our manufacturing as well as running the business. And you've seen it -- you heard a couple of examples of that. Probably most visible is the AI software we use to drive efficiency in the design stage of making clear aligners. And then the third piece of that puzzle, of course, is we use software to help drive appliance sales. So an easier user interface from an iOS makes an easier job for Veronica to provide clear aligners for that example. You saw Robert talked about the software he's developing for AI-driven treatment planning. That's very good for Stefan's business. So another example, AI treatment planning for Endo very good for the product that Filippo provide. So AI software is interesting for us across the enterprise. But yes, there is a specific piece of that in Robert's world, that is also quite interesting.

Yes. So with respect to what mix is going to look like. So I think in the preferred materials, we talked about 23% of revenue coming from Software Services, I think disclosures beyond that, I'd refer you back to Jim for those conversations. But strategically, right, there are a couple of things to consider. A number of companies who play in AI and dentistry are looking at both administrative tasks as well as clinical tasks. We are very focused on diagnostics, which is predominantly clinical. And so we're not looking to build RCM, which is where you're going with the thing, right? But if you consider our footprint and our installed base, and you can see there our share of hardware that happens in -- that happens to be used in practices. There are 2 places where all treatments start, either start a PMS or sat on a device, and we lead the device category. And so we anticipate that as we scale our tools off the desktop on-prem version to cloud versions, we will convert the majority of those customers to what that's going to look like going forward. on the back of our hardware installed base and our existing software on-prem base. And that's going to play out over the next, call it, 36 months or so, right? The replacement cycle is not as rapid with dentists, but we're excited about it. But an very clinical. Jon, and then Mike.

Great. Jon Block with Stifel. Maybe Paul, for you, the first one, what are the assumptions behind the LRP were going to the market growth. I think you used to sort of say stable with green shoots. I did hear Eric in one of his slides, say resilient. So maybe if you can get a little bit more granular what LRP assumes and then in the near term, have you seen any change of late? And then I'll just ask the follow-up.

Yes, that would be 2 good questions. First, our guidance doesn't assume any market help to deliver those rigs. We think those are within our control consistent with Elizabeth's question, the macro could be both friend or headwind here, depending upon what plays out. The second part of your question was around...

Just in the near term, if you've seen any change in the rate of growth of the market.

I mean, the first couple of earnings calls when Eric, and I joined, we said that the market was slow. And then we moved into the phrase we slow but stable in the last 2 earnings calls, we said stable with green shoots. And so yes, we believe it is getting better. I would point to a couple of things in evidence of that. So the first most visible is the diagnostic category. As Robert showed, that category was in compression for 2-plus years. It's now growing. That clearly is improvement for overall dental. Second thing I'd point you to is the data that I showed, you can get great data for total dental expenditure. You can get it very easily in the U.S. Other big markets, you can get it. You can compare it to the overall economy. And once again, dental is outgrowing the overall economy. I think that's another clear green shoot. And then the third relates to dental again being able to capture price in a predictable way. I really liked Eric's data. Because of that air pocket after COVID, people thought that dental wasn't a category, was thought of it as a category that was price elastic. It's just not statistically the case. I mean you can pull a 25-year data set. You see it's typically not a very price elastic category. The way it plays out is procedure prices go up at about that 3%. And looking back, most manufacturers have priced below that 3%, which structurally is a very healthy way for an industry to behave. If the customers are raising 3%, happens to go in line with what insurance reimbursement growth is, that's about 3%. And then the suppliers 1% to 1.5% price increases structurally very stable market in that regard.

And just a second question, the follow-up, maybe for you or Stefan. For implants, the S-Series, I believe you gave a metric 18% of the revenue was S-Series, maybe 1/4 was from competitive wins. Where do you expect that to go? I mean, does that go to 40%, 70%? Eric, is that margin accretive? And the tack on within plants challenges growing faster, I would suspect you don't expect that to change over the coming years. Maybe if we could just get an update on the M&A landscape there, where prices are or asks are at in terms of your interest in bringing in an additional challenger franchise.