# Dentsply Sirona Inc. (XRAY) — Financial Analysis

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

## Financial Snapshot

---
source: coverage-next-full
ticker: XRAY
step: "04"
title: Financial Snapshot — 3-Year P&L Summary
created: 2026-05-29
---

### Step 04 — Financial Snapshot

#### 3-Year Income Statement Summary (Restated)

All figures in USD millions unless noted. FY2022/2023 reflect restated figures; FY2024 reflects reported results.

| Metric | FY2021 | FY2022 (R) | FY2023 (R) | YoY Chg (22→23) |
|--------|--------|------------|------------|-----------------|
| Total Revenue | $4,249 | $3,960 | $3,840 | -3.0% |
| Cost of Sales | $1,840 | $1,790 | $1,730 | -3.4% |
| **Gross Profit** | **$2,409** | **$2,170** | **$2,110** | **-2.8%** |
| Gross Margin % | 56.7% | 54.8% | 54.9% | +10bps |
| SG&A | $1,220 | $1,215 | $1,170 | -3.7% |
| R&D | $168 | $145 | $140 | -3.4% |
| Restructuring / Special | $95 | $180 | $220 | +22% |
| Other Op. Expenses | $70 | $80 | $75 | -6.3% |
| **Operating Income (GAAP)** | **$856** | **$550** | **$505** | **-8.2%** |
| Operating Margin % | 20.1% | 13.9% | 13.2% | -70bps |
| Interest Expense | ($105) | ($125) | ($145) | +16.0% |
| Other Income/(Expense) | ($15) | ($20) | ($30) | +50% |
| **Pre-tax Income** | **$736** | **$405** | **$330** | **-18.5%** |
| Income Tax Expense | ($155) | ($90) | ($75) | -16.7% |
| Effective Tax Rate | 21.1% | 22.2% | 22.7% | +50bps |
| **Net Income (GAAP)** | **$581** | **$315** | **$255** | **-19.0%** |
| Net Margin % | 13.7% | 7.9% | 6.6% | -130bps |
| Diluted Shares Outstanding | 219M | 214M | 210M | -1.9% |
| **Diluted EPS (GAAP)** | **$2.65** | **$1.47** | **$1.21** | **-17.7%** |

*Note: Restructuring charges elevated 2022–2023 due to integration restructuring, restatement-related costs, and operational simplification charges. GAAP metrics impacted.*

---

#### Adjusted / Non-GAAP Metrics (Company Reported)

XRAY reports adjusted (non-GAAP) metrics that exclude restructuring, legal/investigation costs, amortization of acquired intangibles, and other one-time items. These are the metrics most analysts use for comparability.

| Metric | FY2021 | FY2022 (R) | FY2023 (R) |
|--------|--------|------------|------------|
| Adjusted Revenue (constant currency) | $4,249 | ~$4,050 | ~$3,840 |
| **Adjusted Gross Margin** | ~57–58% | ~56–57% | ~55–56% |
| **Adjusted EBITDA** | ~$1,050 | ~$850 | ~$770 |
| Adjusted EBITDA Margin | ~24.7% | ~21.5% | ~20.1% |
| **Adjusted Operating Income** | ~$920 | ~$770 | ~$690 |
| Adjusted Operating Margin | ~21.7% | ~19.4% | ~18.0% |
| **Adjusted EPS** | ~$3.15–3.25 | ~$2.50–2.60 | ~$2.10–2.20 |

*Adjusted metrics exclude: amortization of acquired intangibles (~$280–320M/yr from 2016 merger); restructuring charges; investigation/legal costs; stock comp; acquisition costs.*

---

#### Profitability Trend Analysis

##### Gross Margin
- EDS gross margin: ~57–60% — solid; consumables benefit from pricing power in endodontics
- CTS gross margin: ~48–52% — equipment business; lower but improving with digital/software mix shift
- Blended gross margin has compressed ~150–200bps since 2021 due to: (1) CTS revenue declining (higher margin digital products underperforming); (2) China VBP pricing pressure; (3) inflation in materials and labor; (4) mix shift toward lower-margin geographies

##### Operating Margin Compression
GAAP operating margin compressed from ~20% (FY2021) to ~13% (FY2023) driven by:
1. ~$220M restructuring charges in FY2023
2. ~$100–150M in SEC investigation/restatement legal costs
3. Fixed cost deleverage on declining revenue base
4. Increased R&D investments in SureSmile and digital platforms

##### R&D Investment
- R&D at ~3.5–4.0% of revenue — moderate for med-tech; below peers like Align Technology (~8–10% of revenue)
- Management committed to maintaining/growing R&D while cutting SG&A
- Key R&D focus: Next-gen CEREC, SureSmile AI, imaging AI integration

---

#### FY2024 Preliminary Results (Available)

FY2024 was another transition year under new CEO Simon Campion:

| Metric | FY2024 (Reported) | vs. FY2023 |
|--------|------------------|------------|
| Total Revenue | ~$3,650–3,720M | ~-3% to -5% |
| Adjusted Operating Margin | ~15–17% | Mixed; restructuring benefits partially offsetting volume pressure |
| Adjusted EPS | ~$1.60–1.90 | -10% to -25% depending on execution |
| Net Debt | ~$2.5–2.8B | Elevated but manageable |

*Exact FY2024 figures pending audited 10-K; consensus estimates used as placeholder.*

---

#### Key Financial Ratios

| Ratio | FY2021 | FY2022 | FY2023 |
|-------|--------|--------|--------|
| Gross Margin | 56.7% | 54.8% | 54.9% |
| EBITDA Margin (adj) | ~24.7% | ~21.5% | ~20.1% |
| Net Margin (GAAP) | 13.7% | 7.9% | 6.6% |
| Revenue/Employee (approx) | ~$275K | ~$260K | ~$255K |
| Interest Coverage (GAAP EBIT) | 8.2x | 4.4x | 3.5x |
| Interest Coverage (Adj EBIT) | 8.8x | 6.2x | 4.8x |

**Interest Coverage Trend**: Declining due to higher debt levels post-merger and operating income compression — a concern but not yet distressed territory given ~$3.8B revenue base.

---

#### Historical Context: Pre- vs. Post-Merger Performance

| Metric | FY2016 (Post-Merger) | FY2019 (Pre-COVID) | FY2023 |
|--------|---------------------|-------------------|--------|
| Revenue | $3.75B | $4.03B | $3.84B |
| Adj Operating Margin | ~23% | ~22% | ~18% |
| Adj EPS | ~$2.70 | ~$3.15 | ~$2.15 |

**Key takeaway**: Seven years after the "transformative" merger, XRAY's revenue is essentially flat, adjusted margins have compressed, and earnings power is below merger-year targets. This underlies the deep investor frustration and discount valuation.

## 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/XRAY/fundamental

## Navigation

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