Envista Holdings Corporation

Hello. My name is Madison, and I will be your conference call facilitator this afternoon. At this time, I would like to welcome everyone to Invista Holdings Corporation's first quarter 2025 earnings results conference call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during that time, please press the star, then number one on your keypad. If you would like to withdraw your question, please press the star, and then number two And I will now turn the call over to Mr. Jim Gustafson, Vice President of Investor Relations at Invista Holdings. Mr. Gustafson, you may begin your conference call.

Good afternoon. Thanks for joining Invista's first quarter 2025 earnings call. We appreciate your interest in our company. With me today are Paul Keel, our President and Chief Executive Officer, and Eric Hammes, our Chief Financial Officer. Before we begin, I want to point out that our earnings release The slide presentation supplementing today's call and reconciliations and other information required by SEC Regulation G relating to any non-GAAP financial measures provided during the call are all available on the investor section of our website, www.investico.com. The audio portion of this call will be archived in the investor section of our website later today under the heading Events and Presentations. During the presentation, we will describe some of the more significant factors that impacted year-over-year performance. The supplemental materials describe additional factors that impacted year-over-year performance. Unless otherwise noted, references in these remarks to company-specific financial metrics relate to the first quarter of 2025, and references to period-to-period increases and decreases in financial metrics are year-over-year. During the call, we may describe certain products and devices that have applications submitted and pending certain regulatory approvals or are available only in certain markets. We will also make forward-looking statements within the meaning of the federal securities laws, including statements regarding events and developments that we believe anticipate or may occur in the future. These forward-looking statements are subject to a number of risks and uncertainties, including those set forth in our SEC filings, and actual results may differ materially from any forward-looking statements that we make today. These forward-looking statements speak only as of the date they are made, and we do not assume any obligation to update any forward-looking statements except as required by law. With that, I will turn the call over to Paul.

Thank you, Jim. Good afternoon and welcome, everyone. We appreciate you taking the time to join us today. We'll cover four items on today's call. I'll kick us off with some opening thoughts on our first quarter results. Next, Eric will take us through the numbers in more detail. Third, I'll close with an update on our strategic and operational progress, including how we're navigating the current environment. And then, as always, we'll open it up for your questions. Slide four summarizes three things. First quarter results, progress on the plan we laid out at our capital markets day, and the actions that we're taking to navigate the current environment. Let's begin on the left with Q1 performance. In short, it was a solid start to the year for Invista. We delivered core growth of 0.2% and adjusted EBITDA margin around 13%, both in line with our expectations, as well as adjusted EPS of $0.24, a bit ahead of our expectations. In addition to this, we made good progress on the $250 million share repurchase program that we announced on our Q4 call. Moving to the middle of the slide, we delivered growth across most of the portfolio, including consumables and Nobel Biocare, as well as Ormco, excluding China, where ortho-VBP preparations are underway. We saw broad-based progress on the operations front, with gains in areas like customer service, price, G&A productivity, and SPARC margins. And we made progress across multiple people priorities. including a four-point jump in employee engagement as we benefit from the momentum we've been building across the past few quarters. Turning to the macro environment, the global dental market was generally stable in Q1, with underlying demand similar to what we saw in the second half of 2024. As we know, dental tends to be more resilient than the overall economy. While U.S. consumer confidence indices have deteriorated since the start of the year, We did not see this manifest in our Q1 results. Geopolitical uncertainty has continued to moan, of course. As a consequence, we are ramping mitigating actions to further increase our resiliency moving forward. For example, the restructuring we announced on our last call, as well as additional cost controls throughout the quarter, is contributing to good G&A productivity across Invista. We captured price across most geographies and businesses in Q1, furthering the momentum we built in 2024. We took advantage of the flexibility embedded in our global supply chain to activate changes in source supply in response to announced or anticipated tariff activity. And as Eric will say more about shortly, we benefit from a strong balance sheet. I'll say more specifically about the tariff landscape later in the presentation, but like many global players, we launched a tariff task force early in Q1. Tightly coordinated communications coupled with strong operational capabilities have allowed us to move nimbly in response to the shifting environment. Taking into account tariff announcements made to date, balanced against the good momentum we're building and the solid start in Q1, we are maintaining our 2025 guidance of 1% to 3% core growth, roughly 14% adjusted EBITDA margins, and adjusted EPS of $0.95 to $1.05. I'll now turn it over to Eric to walk us through the numbers.