Operating margins remain constrained in the single digits, with 2026Q1 operating income of $62.5 million failing to scale effectively against $390.1 million in gross profit.
| Sales/Revenue | 2.81B | 2.72B | 2.51B | 2.57B | 2.57B | 2.51B | 1.93B | 2.28B | 2.84B | 2.81B |
| Revenue Growth % | 12.15% | 8.32% | -2.18% | -0.1% | 2.4% | 30.06% | -15.57% | -19.68% | 1.2% | - |
| Cost of Goods Sold | 1.26B | 1.22B | 1.12B | 1.12B | 1.08B | 1.05B | 856M | 933.1M | 1.23B | 1.18B |
| COGS % of Revenue | - | 44.98% | 44.57% | 43.48% | 42.07% | 41.71% | 44.37% | 40.84% | 43.41% | 42.1% |
| Gross Profit | 1.55B | 1.5B | 1.39B | 1.45B | 1.49B | 1.46B | 1.07B | 1.35B | 1.61B | 1.63B |
| Gross Margin % | 55.14% | 55.02% | 55.43% | 56.52% | 57.93% | 58.29% | 55.63% | 59.16% | 56.59% | 57.9% |
| Gross Profit Growth % | - | 7.52% | -4.06% | -2.55% | 1.78% | 36.28% | -20.61% | -16.02% | -1.1% | - |
| Operating Expenses | 1.29B | 1.27B | 2.43B | 1.42B | 1.17B | 1.16B | 1.03B | 1.12B | 1.31B | 1.24B |
| OpEx % of Revenue | - | 46.72% | 96.78% | 55.29% | 45.51% | 46.08% | 53.37% | 48.84% | 46.1% | 44.15% |
| Selling, General & Admin | 1.18B | 1.16B | 1.14B | 1.03B | 1.03B | 989.5M | 858.8M | 970.1M | 1.11B | 1.03B |
| SG&A % of Revenue | - | 42.53% | 45.25% | 40.11% | 40.03% | 39.44% | 44.52% | 42.46% | 39.12% | 36.74% |
| Research & Development | 118.7M | 114M | 99.1M | 93.8M | 100.1M | 100.5M | 86.7M | 133.1M | 172M | 172.4M |
| R&D % of Revenue | - | 4.19% | 3.95% | 3.65% | 3.9% | 4.01% | 4.49% | 5.83% | 6.05% | 6.13% |
| Other Operating Expenses | 0 | 0 | 1.19B | 295.9M | 40.7M | 66.2M | 84.1M | 12.8M | 26.4M | 35.9M |
| Operating Income | 253.9M | 225.7M | -1.04B | 31.5M | 319.2M | 306.2M | 43.5M | 235.7M | 298.4M | 386.6M |
| Operating Margin % | 9.04% | 8.3% | -41.35% | 1.23% | 12.42% | 12.2% | 2.25% | 10.32% | 10.49% | 13.75% |
| Operating Income Growth % | - | 121.74% | -3395.87% | -90.13% | 4.25% | 603.91% | -81.54% | -21.01% | -22.81% | - |
| EBITDA | 342M | 341.7M | -915.1M | 167.1M | 457M | 429.8M | 176.1M | 364.2M | 428.4M | 508M |
| EBITDA Margin % | 12.18% | 12.56% | -36.45% | 6.51% | 17.79% | 17.13% | 9.13% | 15.94% | 15.06% | 18.07% |
| EBITDA Growth % | 137.17% | 137.34% | -647.64% | -63.44% | 6.33% | 144.07% | -51.65% | -14.99% | -15.67% | - |
| D&A (Non-Cash Add-back) | 88.1M | 116M | 123.1M | 135.6M | 137.8M | 123.6M | 132.6M | 128.5M | 130M | 121.4M |
| EBIT | 253.9M | 225.7M | 156.4M | 327.4M | 359.9M | 372.4M | 127.6M | 248.5M | 324.8M | 422.5M |
| Net Interest Income | -19.9M | -36.6M | -46.4M | -63.4M | -38.4M | -54.1M | -62.5M | -3.5M | 0 | 0 |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 19.9M | 36.6M | 46.4M | 63.4M | 38.4M | 54.1M | 62.5M | 3.5M | 0 | 0 |
| Other Income/Expense | -53.5M | -48.5M | -46.5M | -86.4M | -35.3M | -51.7M | -63.5M | -2M | 2.7M | 100K |
| Pretax Income | 200.4M | 177.2M | -1.08B | -54.9M | 283.9M | 254.5M | -20M | 233.7M | 301.1M | 386.7M |
| Pretax Margin % | 7.14% | 6.52% | -43.2% | -2.14% | 11.05% | 10.14% | -1.04% | 10.23% | 10.59% | 13.76% |
| Income Tax | 132.7M | 130.2M | 33.9M | 45.3M | 45.9M | -9M | -62.5M | 49.6M | 70.4M | 85.6M |
| Effective Tax Rate % | 66.22% | 73.48% | -3.13% | -82.51% | 16.17% | -3.54% | 312.5% | 21.22% | 23.38% | 22.14% |
| Net Income | 67.7M | 47M | -1.12B | -100.2M | 243.1M | 340.5M | 33.3M | 217.6M | 230.7M | 301.1M |
| Net Margin % | 2.41% | 1.73% | -44.56% | -3.9% | 9.46% | 13.57% | 1.73% | 9.52% | 8.11% | 10.71% |
| Net Income Growth % | 106.02% | 104.2% | -1016.37% | -141.22% | -28.61% | 922.52% | -84.7% | -5.68% | -23.38% | - |
| Net Income (Continuing) | 67.7M | 47M | -1.12B | -100.2M | 238M | 263.5M | 42.5M | 184.1M | 230.7M | 301.1M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 5.1M | 77M | -9.2M | 33.5M | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 400K | 400K | 2.6M | 3.3M | 4.1M |
| EPS (Diluted) | 0.41 | 0.28 | -6.50 | -0.60 | 1.34 | 1.48 | 0.26 | 1.35 | 1.80 | 2.35 |
| EPS Growth % | 106.27% | 104.31% | -983.33% | -144.78% | -9.46% | 469.23% | -80.74% | -25% | -23.4% | - |
| EPS (Basic) | - | 0.28 | -6.50 | -0.60 | 1.46 | 1.63 | 0.27 | 1.35 | 1.80 | 2.35 |
| Diluted Shares Outstanding | 166.4M | 169.2M | 172.2M | 166.9M | 177.6M | 177.6M | 164.1M | 136.4M | 154.6M | 154.6M |
| Basic Shares Outstanding | 163.9M | 168M | 172.2M | 166.9M | 162.9M | 161.2M | 159.6M | 136.2M | 154.6M | 154.6M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - |
Margin compression and cyclicality
According to recent quarterly filings, Envista's revenue growth has exhibited significant volatility, oscillating from a 4.8% contraction in 2024Q3 to a 15.0% expansion by 2025Q4, suggesting that top-line performance remains highly sensitive to both macroeconomic conditions and the timing of large equipment installations.
The recent acceleration in revenue growth appears to be driven by a recovery in volume, yet the inconsistency across periods warrants caution regarding the durability of this trend. Investors should monitor whether this growth is sustainable or merely a reflection of lumpy capital equipment sales cycles that may face headwinds in a high-interest-rate environment.
As reported in financial statements, Envista maintains a gross margin profile hovering near 55%, yet operating margins remain constrained, frequently dipping into single digits, which suggests that the company struggles to convert its premium product mix into consistent bottom-line profitability due to heavy overhead requirements.
The persistent gap between gross and operating margins indicates that the firm's cost structure is heavily burdened by SG&A expenses, likely tied to its consultative sales model. This structural inefficiency suggests that management has yet to achieve the necessary operating leverage to offset the costs of its specialized clinical education and direct sales force.
Based on the provided income statement data, Envista's operating income has failed to scale proportionally with gross profit, as evidenced by the 2024Q2 period where significant non-operating charges led to a massive operating loss, highlighting a lack of operational discipline in managing fixed costs.
The inability to consistently expand operating margins despite a stable gross margin profile suggests that the company's overhead is not sufficiently flexible. This lack of operating leverage may indicate that the firm is over-investing in SG&A relative to the revenue growth it is currently able to generate.
Analysis of the cost structure reveals that SG&A remains the primary drag on earnings, with quarterly expenditures frequently exceeding $280 million, a figure that consistently consumes the majority of the gross profit generated by the firm's specialty dental and equipment segments.
The high level of SG&A spending appears to be a structural necessity of the company's high-touch, consultative sales model, yet it leaves little room for margin expansion. Unless management can demonstrate a shift toward more efficient digital sales channels, these costs may continue to act as a permanent ceiling on profitability.
While recent growth figures appear positive, a critical review of the income statement suggests that Envista remains highly vulnerable to elective procedure demand, as evidenced by the sharp margin compression and net losses observed during periods of reduced capital expenditure in the dental equipment market.
Short-term growth spikes may be masking underlying risks related to the elective nature of the company's specialty products and the financing-dependent nature of its equipment sales. Investors should be wary that the current recovery could be easily derailed by further interest rate volatility or increased competitive pricing pressure in the clear aligner space.
Quick answers to the most common questions about buying NVST stock.
For fiscal year 2025, Envista Holdings Corp (NVST) reported total revenue of $2.72B. This represents a 3.3% decline compared to $2.81B in 2017.
Envista Holdings Corp (NVST) is profitable, generating $47.0M in net income for the fiscal year ending 2025 with a net profit margin of 1.7%.
Envista Holdings Corp (NVST) reported an operating income of $225.7M, resulting in an operating profit margin of 8.3%. This margin reflects the operational efficiency of the business before interest and taxes.
Envista Holdings Corp (NVST) generated $1.50B in gross profit for the year, representing a gross profit margin of 55.0%. This demonstrates the company's core pricing power and production efficiency.