# Envista Holdings Corporation (NVST) — Financial Analysis

**Exchange:** NYSE  
**Coverage as of:** 2026-Q2  
**Updated:** 2026-05-29  
**Tier:** Free primer (step 2 of 19)  
**Sibling pages:** /stocks/NVST/thesis · /stocks/NVST/memo

## Financial Snapshot

---
source: coverage-next-full
ticker: NVST
step: "04"
title: Financial Snapshot — 5-Year P&L Summary
created: 2026-05-29
---

### Step 04 — Financial Snapshot: 5-Year P&L Summary

#### Annual Income Statement Summary (USD millions)
| Metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|--------|--------|--------|--------|--------|--------|
| Revenue | $2,509 | $2,569 | $2,567 | $2,511 | $2,720 |
| Gross Profit | $1,427 | $1,475 | $1,441 | $1,373 | $1,487 |
| Gross Margin | 56.9% | 57.4% | 56.1% | 54.7% | 54.7% |
| R&D Expense | $101 | $100 | $94 | $99 | $114 |
| Operating Income (GAAP) | $306 | $319 | $32 | -$1,038 | $216 |
| Operating Margin (GAAP) | 12.2% | 12.4% | 1.2% | -41.3% | 7.9% |
| Net Income (GAAP) | $341 | $243 | -$100 | -$1,119 | $47 |
| EPS (Diluted, GAAP) | $1.92 | $1.37 | -$0.60 | -$6.50 | $0.28 |
| Adj. EBITDA | $430 | $457 | ~$170 | ~$295* | $372 |
| Adj. EBITDA Margin | 17.1% | 17.8% | ~6.6% | ~11.7%* | 13.7% |
| Adj. EPS | ~$2.10 | ~$2.20 | ~$0.73 | ~$0.73 | $1.19 |

*FY2024 GAAP figures distorted by ~$1.15B goodwill impairment charge; adj. EBITDA excludes impairment

#### Key Observations on the P&L

##### Gross Margin Compression
Gross margins peaked at 57.4% in FY2022 and have compressed to 54.7% in FY2024–FY2025. The compression reflects:
1. **China VBP:** Nobel Biocare products subject to procurement pricing absorbed pricing cuts while fixed manufacturing costs remained; absorbed as gross margin contraction
2. **Mix shift:** Faster growth in lower-margin Spark (still in investment phase) and value-tier Implant Direct
3. **Inflationary costs:** Material and labor cost inflation in 2022–2023 passed through slower than expected in China
4. Management targets gross margin recovery toward 56–58% range through product mix improvement and manufacturing efficiencies

##### Operating Leverage Collapse (FY2023–FY2024) Then Partial Recovery (FY2025)
- FY2023: GAAP operating income collapsed to $32M (1.2% margin) from $319M in FY2022
  - Drivers: China VBP pricing impact ($75–100M revenue headwind), Spark investment ramp ($50–75M incremental OpEx), FX headwinds, dental market softness
- FY2024: GAAP operating income was -$1,038M, but this is almost entirely explained by a $1.15B non-cash goodwill impairment charge
  - Adjusted EBITDA (excl. impairment): ~$295M (11.7% margin) — still compressed but not negative
- FY2025: Meaningful recovery. GAAP operating income $216M (7.9% margin); Adj. EBITDA $372M (13.7% margin; +26% YoY)
  - Revenue recovery of +8.3% drove operating leverage; Spark investment less dilutive as scale grows

##### Non-Cash Goodwill Impairment — FY2024
- Envista took a ~$1.15B goodwill impairment in FY2024, primarily related to the Equipment & Consumables segment
- Triggered by: persistent stock price below book value, elevated interest rates raising discount rates, subdued dental equipment demand
- This was a non-cash charge that eroded book equity but did not impact cash generation
- Following the impairment, goodwill declined from $3,292M (FY2023) to $2,262M (FY2024)
- The impairment reflects real headwinds in the E&C segment but overstates the cash flow deterioration

##### Adjusted vs. GAAP — Why Adjusted Matters Here
Envista's GAAP figures are heavily distorted by: (1) goodwill impairments, (2) amortization of acquisition intangibles (~$150–175M/year), (3) restructuring charges, and (4) acquisition-related costs. Adjusted EBITDA and adjusted EPS are more relevant for ongoing cash-generative power analysis:

| Metric | FY2023 | FY2024 | FY2025 |
|--------|--------|--------|--------|
| GAAP Operating Income | $32M | -$1,038M | $216M |
| Adjusted EBITDA | ~$170M | ~$295M | $372M |
| Adj. EBITDA Margin | ~6.6% | ~11.7% | 13.7% |
| Adj. EPS | ~$0.73 | ~$0.73 | $1.19 |

Note: The FY2023 adj. EBITDA of ~$170M reflects the real operational deterioration from VBP + Spark investment; FY2024 adjusted was ~$295M (partially recovered). FY2025 accelerated to $372M.

#### Earnings Per Share Trend
| Fiscal Year | GAAP EPS (Diluted) | Adj. EPS | Shares Out. (Avg.) |
|-------------|-------------------|----------|-------------------|
| FY2021 | $1.92 | ~$2.10 | 177.5M |
| FY2022 | $1.37 | ~$2.20 | 177.2M |
| FY2023 | -$0.60 | ~$0.73 | 172.3M |
| FY2024 | -$6.50 | ~$0.73 | 172.2M |
| FY2025 | $0.28 | $1.19 | 167.5M |
| FY2026E | ~$0.95E | ~$1.40E | ~161M (est.) |

Adjusted EPS is the appropriate operating metric. The trajectory from $0.73 (FY2023/FY2024 trough) to $1.19 (FY2025) to $1.40E (FY2026E) represents a 91% improvement from trough to consensus estimate — a strong earnings recovery thesis.

#### R&D Investment
R&D spending is relatively stable at $94–114M annually (~3.7–4.2% of revenue). Key areas:
- Nobel S Series next-generation implant system
- Spark TruGEN XR aligner material and treatment planning software
- DEXIS AI imaging algorithms
- DTX Studio platform development

#### Profitability Path to Target
Management's long-term adj. EBITDA margin target of 17–20% (vs. 13.7% in FY2025) implies:
- ~$310–360M of additional annual EBITDA at current revenue scale
- Requires both revenue growth (mix shift to Specialty) AND cost efficiency (SG&A leverage as Spark investment matures)
- Comparable to Straumann's ~25%+ EBITDA margins (best-in-class) and Align's ~28–30% — Envista's target is achievable if Spark reaches scale

## Deeper Financial Analysis

The fundamental tier ($1.00) adds 8 dimensions not included here:

- Revenue Breakdown — segment revenue, geographic mix, product-line margins
- Financial Trends — QoQ momentum, leading indicators, inflection points
- Balance Sheet — debt structure, dilution risk, working capital dynamics
- Capital Allocation — ROIC, buyback cadence, reinvestment efficiency
- Earnings Analysis — beats/misses, guidance vs actuals, transcript highlights
- Competitive Positioning — market share, pricing power, peer benchmarks
- Industry Context — TAM, sector tailwinds/headwinds, regulatory backdrop

**API endpoint:** GET /api/v1/research/NVST/fundamental

## Navigation

- Overview: /stocks/NVST
- Financials (this page): /stocks/NVST/financials
- Thesis: /stocks/NVST/thesis
- Investment Memo: /stocks/NVST/memo
- Coverage universe: /stocks