Dentsply Sirona Inc. ( XRAY ) shares are trading lower on Thursday.

The company reported second-quarter adjusted earnings per share of 52 cents, beating the analyst consensus estimate of 50 cents. Quarterly sales of $936 million (down 4.9% year over year) outpaced the Street view of $931.349 million.

Sales at the Connected Technology Solutions unit fell 5.9% at constant currency, while Essential Dental Solutions saw a 1.1% increase.

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Orthodontic and Implant Solutions declined 19.4%, and Wellspect Healthcare sales fell 2.5%.

In the second quarter, United States sales fell 18.3% at constant currency, Europe sales slipped 0.4%, and rest-of-world sales rose 0.5%.

Quarterly gross profit fell 4% year over year to $490 million, while gross margin expanded to 52.4% from 51.9%. Adjusted gross margin soared to 55.9% in the quarter under review, compared with 55.3% in the year-ago period.

Adjusted EBITDA in the second quarter jumped 14.6% to $197 million, compared with $173 million in the year-ago period. Adjusted EBITDA margin increased to 21.1% from 17.5% a year ago.

Operating cash flow in the second quarter was $48 million, compared to $208 million in the second quarter of 2024. The decrease was primarily due to unfavorable working capital and the receipt of a foreign tax refund in the prior year quarter. 

On July 31, the company declared a quarterly cash dividend of 16 cents per share, an indicated annual rate of 64 cents per share. The dividend is payable on October 10.

Outlook

Dentsply Sirona ( XRAY ) reaffirmed its fiscal 2025 adjusted EPS guidance at $1.80–$2.00 per share, compared with the consensus estimate of $1.90. The company also upheld its 2025 sales outlook at $3.60–$3.70 billion, compared with the analyst consensus of $3.651 billion.

Price Action: XRAY shares are trading lower by 3.33% to $13.22 at last check Thursday.

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