Envista Holdings (NYSE: NVST) boosts 2026 guidance on Q2 profit surge
Rhea-AI Filing Summary
Envista Holdings Corporation reported higher results for the quarter ended July 3, 2026. Sales reached $730.5 million, with core sales growth of 5.0% versus the prior-year quarter. GAAP net income was $53.7 million, or $0.33 per diluted share, and adjusted diluted EPS was $0.41. Adjusted EBITDA was $107.7 million, representing a 14.7% margin.
Both reporting segments delivered positive core growth, including 3.1% in Specialty Products & Technologies and 8.5% in Equipment & Consumables. Operating cash flow for the quarter was $119.2 million and free cash flow was $105.1 million. Envista repurchased 2.4 million shares for approximately $59 million and ended the quarter with $1,125.6 million of cash. Based on first-half performance, the company raised its 2026 outlook, now expecting core sales growth of 3.5%–4.5% and adjusted diluted EPS of $1.50–$1.55.
Positive
- GAAP diluted EPS rose to $0.33 and adjusted diluted EPS to $0.41, a 58% year-on-year increase versus the second quarter of 2025.
- Adjusted EBITDA increased to $107.7 million with margin expanding to 14.7%, up 230 bps from the prior-year quarter.
- Envista raised its 2026 outlook, guiding to core sales growth of 3.5%–4.5% and adjusted diluted EPS of $1.50–$1.55, above prior guidance ranges.
Negative
- None.
Filing Explained
At July 3, 2026, Envista reported 160.6 million shares outstanding versus 163.8 million at year-end, while the results release was furnished, not filed.
This Form 8-K reports Envista’s second-quarter results for the quarter ended
An 8-K reports specified material events, and this filing furnishes the results release under Items 2.02 and 7.01. The filing states that those sections are furnished information and are not deemed filed under the cited securities-law provisions.
At
Additional issued shares can reduce an existing holder’s percentage ownership absent offsetting changes, but this filing’s reported quarter-end share counts do not by themselves identify the cause of the change in issued shares or establish a holder-specific ownership effect.
8-K Event Classification
3 items: 2.02, 7.01, 9.01
3 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 7.01
Regulation FD Disclosure
Disclosure
Material non-public information disclosed under Regulation Fair Disclosure, often investor presentations or guidance.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
Q2 2026 Sales: $730.5 million
Core Sales Growth: 5.0%
Q2 GAAP Net Income: $53.7 million
+5 more
8 metrics
Q2 2026 Sales
$730.5 million
Sales for the quarter ended July 3, 2026
Core Sales Growth
5.0%
Core sales growth vs the second quarter of 2025
Q2 GAAP Net Income
$53.7 million
Net income for the quarter ended July 3, 2026
Q2 GAAP Diluted EPS
$0.33
Diluted earnings per share for the quarter ended July 3, 2026
Q2 Adjusted Diluted EPS
$0.41
Adjusted diluted EPS; 58% year-on-year increase vs $0.26
Q2 Adjusted EBITDA
$107.7 million
Adjusted EBITDA for Q2 2026; 14.7% of sales
Q2 Operating Cash Flow
$119.2 million
Net cash provided by operating activities in the second quarter of 2026
Q2 Share Repurchases
2.4 million shares; ~$59 million
Shares repurchased and cash spent during the quarter ended July 3, 2026
Key Terms
core sales growth, Adjusted EBITDA, free cash flow, Envista Business System, +1 more
5 terms
core sales growth financial
"Core Sales Growth | 5.0 % | | 7.1 %"
Core sales growth measures how a company’s regular, ongoing revenue changes over time after removing one-off or temporary effects such as large acquisitions, divestitures, major currency swings, or discontinued product lines. Think of it as the temperature of the business itself rather than the weather — it shows whether underlying customer demand is rising or falling, which helps investors judge the durability of revenue and compare performance across periods or peers.
Adjusted EBITDA financial
"Adjusted EBITDA | $ | 107.7 | | | $ | 84.3"
Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.
free cash flow financial
"Free Cash Flow (FCF) | $ | 105.1 | | | $ | 76.4"
Free cash flow is the amount of money a company has left over after paying all its expenses and investing in its business, like buying equipment or updating facilities. It shows how much cash is available to reward shareholders, pay down debt, or save for future growth. This helps investors understand if a company is financially healthy and able to grow.
Envista Business System other
"operational excellence, underpinned by the Envista Business System"
tariff refunds financial
"Tariff refunds C | (12.6) | | | —"
Earnings Snapshot
Sales: $730.5 million · Guidance included
quarter ended July 3, 2026
Sales
$730.5 million
Total sales growth of 7.1% vs the second quarter of 2025
GAAP net income
$53.7 million
up from $26.4 million in the second quarter of 2025
GAAP diluted EPS
$0.33
up from $0.16 in the second quarter of 2025
Adjusted diluted EPS
$0.41
58% year-on-year increase vs $0.26
Adjusted EBITDA
$107.7 million
up from $84.3 million; margin expanded to 14.7% from 12.4%
Operating cash flow
$119.2 million
up from $88.7 million in the prior-year quarter
Guidance
Envista now expects 2026 core sales growth of 3.5%–4.5%, adjusted EBITDA growth of 11%–14%, adjusted diluted EPS of $1.50–$1.55, and free cash flow conversion of approximately 100%.
AI-generated analysis. How Rhea-AI works. Not financial advice.
FAQ
What were Envista (NVST) Q2 2026 sales and earnings?
Envista reported Q2 2026 sales of $730.5 million and GAAP net income of $53.7 million, or $0.33 per diluted share. Adjusted diluted EPS was $0.41, reflecting higher profitability versus the same quarter in 2025.
How did Envista (NVST) Q2 2026 results compare with Q2 2025?
Total sales grew 7.1% year-on-year, while core sales grew 5.0%. GAAP diluted EPS increased from $0.16 to $0.33, and adjusted diluted EPS rose from $0.26 to $0.41, a 58% increase.
What is Envista (NVST)'s updated full-year 2026 guidance?
Envista now expects 2026 core sales growth of 3.5%–4.5%, adjusted EBITDA growth of 11%–14%, and adjusted diluted EPS of $1.50–$1.55. The company continues to target free cash flow conversion of approximately 100% for the year.
How much free cash flow did Envista (NVST) generate in Q2 2026?
In Q2 2026 Envista generated operating cash flow of $119.2 million and free cash flow of $105.1 million. This compares with free cash flow of $76.4 million in the second quarter of 2025, reflecting stronger cash generation.
How did Envista (NVST)'s business segments perform in Q2 2026?
Both segments showed positive core growth. Specialty Products & Technologies delivered 3.1% core growth, while Equipment & Consumables achieved 8.5% core growth. Segment operating margins improved versus the prior-year quarter.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_____________________________________________
FORM 8-K
_____________________________________________
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D)
OF THE SECURITIES EXCHANGE ACT OF 1934
Date of report (Date of earliest event reported): August 5, 2026
_____________________________________________
(Exact Name of Registrant as Specified in Its Charter)
_____________________________________________
(State or Other Jurisdiction of Incorporation)
| (Commission File Number) | (IRS Employer Identification No.) | ||||
| (Address of Principal Executive Offices) | (Zip Code) | |||||||
(714 ) 817-7000
(Registrant’s Telephone Number, Including Area Code)
Not applicable
(Former Name or Former Address, if Changed Since Last Report)
_____________________________________________
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |||||
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
ITEM 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION
On August 5, 2026, Envista Holdings Corporation (“Envista” or the “Company”) issued a press release announcing financial results for the quarter ended July 3, 2026. A copy of the release is furnished herewith as Exhibit 99.1 and incorporated by reference herein.
The information contained in the accompanying Exhibit 99.1 is being furnished pursuant to Item 2.02 of Form 8-K and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under the Securities Act of 1933, as amended (the "Securities Act"), or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.
ITEM 7.01 REGULATION FD
The Company intends to reference a slide deck (the “Presentation”) during the Company’s conference call to discuss its financial results for the quarter ended July 3, 2026. A copy of the Presentation can be accessed on the “Investors” section of the Company’s website, www.envistaco.com.
The information included or incorporated by reference in this Item 7.01 is being furnished to the SEC and shall not be deemed “filed” for purposes of Section 18 of the Exchange Act or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.
ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS
(d) Exhibits.
| Exhibit No. | Description | |||||||
99.1 | Press Release dated August 5, 2026 | |||||||
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) | |||||||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| ENVISTA HOLDINGS CORPORATION | ||||||||
| Date: August 5, 2026 | By: | /s/ Eric Hammes | ||||||
| Eric Hammes | ||||||||
| Senior Vice President and Chief Financial Officer (Principal Financial Officer) | ||||||||
Exhibit 99.1
Envista Reports Second Quarter 2026 Results
BREA, Calif., August 5, 2026 /PRNewswire/ -- Envista Holdings Corporation (NYSE: NVST) today announced results for the quarter ended July 3, 2026.
“We built on our fast start in Q1 with continued good performance in Q2,” said Paul Keel, CEO. “We delivered growth across both our reporting segments and all major geographies. Our focus on operational excellence, underpinned by the Envista Business System, contributed to further margin expansion. Based on our strong first-half performance and continued momentum, we are raising our full year outlook for core sales growth, adjusted EBITDA, and adjusted EPS. We are well-positioned to deliver another year of progress and performance.”
Second Quarter Financial Highlights
•Sales were $731 million, with core sales growth of 5.0% over the second quarter of 2025.
•GAAP diluted EPS of $0.33 and adjusted diluted EPS of $0.41 (+58% year-on-year)
•GAAP Net Income of $54 million and adjusted EBITDA of $108 million (+28% year-on-year), with an adjusted EBITDA margin of 14.7% (+230 bps year-on-year)
Second Quarter Business Highlights
•Growth: In the context of macro uncertainty, both reporting segments delivered positive growth, with 3.1% core growth in Specialty Products & Technologies and 8.5% core growth in Equipment and Consumables.
•Operations: Ongoing contributions from the Envista Business System (EBS) supporting 70 bps of adjusted gross margin and 230 bps of adjusted EBITDA margin expansion.
•People: Continued to advance our high-performing, continuous improvement culture through numerous customer, employee, and charitable events around the world.
Net Income, EBITDA, and EPS (in millions, except per share amounts):
| Three Months Ended | Six Months Ended | ||||||||||||||||||||||
| July 3, 2026 | June 27, 2025 | July 3, 2026 | June 27, 2025 | ||||||||||||||||||||
| GAAP Net Income | $ | 54 | $ | 26 | $ | 92 | $ | 44 | |||||||||||||||
| Adjusted Net Income | $ | 67 | $ | 44 | $ | 126 | $ | 85 | |||||||||||||||
| Adjusted EBITDA | $ | 108 | $ | 84 | $ | 207 | $ | 163 | |||||||||||||||
| GAAP Diluted Earnings Per Share | $ | 0.33 | $ | 0.16 | $ | 0.56 | $ | 0.26 | |||||||||||||||
| Adjusted Diluted Earnings Per Share | $ | 0.41 | $ | 0.26 | $ | 0.77 | $ | 0.50 | |||||||||||||||
Cash Flow:
Operating cash flow for the second quarter of 2026 was $119 million and free cash flow was $105 million, compared to $89 million and $76 million in the second quarter of 2025, respectively.
Share Repurchases:
During the quarter ended July 3, 2026, we repurchased 2.4 million shares for approximately $59 million. At the end of the quarter, we had approximately $283 million remaining repurchase capacity under our stock repurchase program.
1
Outlook:
We are updating our guidance for the full year 2026:
| Current 2026 Guidance | Prior 2026 Guidance | |||||||
| Core Sales Growth | 3.5% to 4.5% | 2% to 4% | ||||||
| Adjusted EBITDA Growth | 11% to 14% | 7% to 13% | ||||||
| Adjusted Diluted Earnings Per Share | $1.50 to $1.55 | $1.35 to $1.45 | ||||||
| Free Cash Flow Conversion | ~100% | ~100% | ||||||
Please note, we do not provide forward-looking estimates on a GAAP basis as certain information is not available and cannot be reasonably estimated.
We will discuss our quarterly results and provide details on our outlook for 2026 during an investor conference call on August 5, 2026, starting at 2:00 P.M. PT. The call and an accompanying slide presentation will be webcast on the "Investors" section of our website,www.envistaco.com, under the subheading "Events & Presentations." A replay of the webcast will be available in the same section of our website shortly after the conclusion of the presentation and will remain available until the next quarterly earnings call.
The conference call can be accessed by dialing 800-836-8184 within the U.S. or +1 646-357-8785 outside the U.S. a few minutes before 2:00 PM PT and referencing conference ID #73468. A replay of the conference call will be available shortly after the conclusion of the call. You can access the replay dial-in information on the "Investors" section of our website under the subheading "Events & Presentations." Presentation materials relating to our results have been posted to the "Investors" section of our website under the subheading "Quarterly Earnings".
ABOUT ENVISTA
Envista is a global leader in the dental industry, uniting more than 30 trusted brands—including DEXIS, Kerr, Nobel Biocare, and Ormco—under one mission: partnering with dental professionals to improve patients’ lives. With a heritage of category-defining innovation, our brands have shaped modern dentistry: Nobel Biocare introduced the first dental implant, Ormco is a pioneer in both traditional and digital orthodontics, DEXIS has long been at the forefront of 2D, 3D and intraoral imaging, and Kerr has supported clinicians for over 135 years. Our high-performing culture is underpinned by our CIRCLe Values and the Envista Business System. Guided by these, we deliver a comprehensive portfolio of technologies, consumables, and services that empower clinicians to provide confident, efficient care—today and for the future. Learn more at http://envistaco.com.
2
NON-GAAP MEASURES
All "Adjusted" amounts including core sales growth and free cash flow are non-GAAP items. Calculations of these measures, the reasons why we believe these measures provide useful information to investors, a reconciliation of these measures to the most directly comparable GAAP measures, and other information relating to these non-GAAP measures are included in the attached supplemental schedules. We do not reconcile forward looking non-GAAP measures to the comparable GAAP measures because of the inherent difficulty in predicting and estimating the future impact and timing of currency translation, acquisitions, discontinued products, and any other potential adjustments which would be reflected in any forecasted GAAP measure.
FORWARD-LOOKING STATEMENTS
Certain statements in this press release are "forward-looking" statements within the meaning of the federal securities laws. There are a number of important factors that could cause actual results, developments and business decisions to differ materially from those suggested or indicated by such forward-looking statements and you should not place undue reliance on any such forward-looking statements. These factors include, among other things, the conditions in the U.S. and global economy, the impact of inflation and increasing interest rates, slower economic growth or recession, international economic, political, legal, compliance and business factors, the markets served by us and the financial markets, the impact of our debt obligations on our operations and liquidity, developments and uncertainties in trade policies and regulations including tariffs or other impositions on imported goods, contractions or growth rates and cyclicality of markets we serve, risks relating to product manufacturing, commodity costs and surcharges, our ability to adjust purchases and manufacturing capacity to reflect market conditions, reliance on sole or limited sources of supply, disruptions relating to war (including supply chain disruptions), terrorism, climate change, widespread protests and civil unrest, man-made and natural disasters, public health issues and other events, security breaches or other disruptions of our information technology systems or violations of data privacy laws, security breaches or other disruptions affecting our external information technology contractors, vendors or other service providers, our growing use of artificial intelligence systems to automate processes and analyze data, fluctuations in inventory of our distributors and customers, loss of a key distributor, our relationships with and the performance of our channel partners, competition, our ability to develop and successfully market new products and services, our ability to attract, develop and retain our key personnel, the potential for improper conduct by our employees, agents or business partners, our compliance with applicable laws and regulations (including regulations relating to medical devices and the health care industry), the results of our clinical trials and perceptions thereof, penalties associated with any off-label marketing of our products, modifications to our products that require new marketing clearances or authorizations, our ability to effectively address cost reductions and other changes in the health care industry, our ability to successfully identify and consummate appropriate acquisitions and strategic investments, our ability to integrate the businesses we acquire and achieve the anticipated benefits of such acquisitions, contingent liabilities relating to acquisitions, investments and divestitures, our ability to adequately protect our intellectual property, the impact of our restructuring activities on our ability to grow, risks relating to impairment charges for our goodwill and intangible assets, changes in accounting standards and subjective assumptions, estimates and judgment by management, currency exchange rates, changes in tax laws applicable to multinational companies, litigation and other contingent liabilities including intellectual property and environmental, health and safety matters, risks relating to product, service or software defects, the impact of regulation on demand for our products and services, and labor matters. Additional information regarding the factors that may cause actual results to differ materially from these forward-looking statements is available in our SEC filings, including our Annual Report on Form 10-K for fiscal year 2025 and our Quarterly reports on Form 10-Q. These forward-looking statements speak only as of the date of this press release and except to the extent required by applicable law, we do not assume any obligation to update or revise any forward-looking statement, whether as a result of new information, future events and developments or otherwise.
CONTACT
Jim Gustafson
Vice President, Investor Relations
Envista Holdings Corporation
200 S. Kraemer Blvd., Building E
Brea, CA 92821
IR@envistaco.com
3
ENVISTA HOLDINGS CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
($ and shares in millions, except per share amounts)
| Three Months Ended | Six Months Ended | ||||||||||||||||||||||
| July 3, 2026 | June 27, 2025 | July 3, 2026 | June 27, 2025 | ||||||||||||||||||||
| Sales | $ | 730.5 | $ | 682.1 | $ | 1,436.0 | $ | 1,299.0 | |||||||||||||||
| Cost of sales | 323.5 | 312.2 | 638.9 | 593.1 | |||||||||||||||||||
| Gross profit | 407.0 | 369.9 | 797.1 | 705.9 | |||||||||||||||||||
| Operating expenses: | |||||||||||||||||||||||
| Selling, general and administrative | 296.3 | 295.3 | 593.9 | 567.0 | |||||||||||||||||||
| Research and development | 30.4 | 28.3 | 60.4 | 53.6 | |||||||||||||||||||
| Operating profit | 80.3 | 46.3 | 142.8 | 85.3 | |||||||||||||||||||
| Nonoperating (expense) income: | |||||||||||||||||||||||
| Other income (expense), net | 2.8 | 2.4 | (0.1) | 1.7 | |||||||||||||||||||
| Interest expense, net | (8.7) | (8.0) | (16.1) | (17.3) | |||||||||||||||||||
| Income before income taxes | 74.4 | 40.7 | 126.6 | 69.7 | |||||||||||||||||||
| Income tax expense | 20.7 | 14.3 | 34.2 | 25.3 | |||||||||||||||||||
| Net income | $ | 53.7 | $ | 26.4 | $ | 92.4 | $ | 44.4 | |||||||||||||||
| Earnings per share: | |||||||||||||||||||||||
| Earnings - basic | $ | 0.33 | $ | 0.16 | $ | 0.57 | $ | 0.26 | |||||||||||||||
| Earnings - diluted | $ | 0.33 | $ | 0.16 | $ | 0.56 | $ | 0.26 | |||||||||||||||
| Average common stock and common equivalent shares outstanding: | |||||||||||||||||||||||
| Basic | 161.9 | 169.0 | 162.9 | 170.7 | |||||||||||||||||||
| Diluted | 164.1 | 169.9 | 165.3 | 171.7 | |||||||||||||||||||
4
ENVISTA HOLDINGS CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
($ in millions, except share amounts)
| As of | |||||||||||
| July 3, 2026 | December 31, 2025 | ||||||||||
| ASSETS | |||||||||||
| Current assets: | |||||||||||
| Cash and cash equivalents | $ | 1,125.6 | $ | 1,211.7 | |||||||
Trade accounts receivable, less allowance for credit losses of $21.8 and $22.5, respectively | 436.9 | 429.6 | |||||||||
| Inventories, net | 290.9 | 288.1 | |||||||||
| Prepaid expenses and other current assets | 104.6 | 97.2 | |||||||||
| Total current assets | 1,958.0 | 2,026.6 | |||||||||
| Property, plant and equipment, net | 295.7 | 296.8 | |||||||||
| Operating lease right-of-use assets | 146.2 | 142.1 | |||||||||
| Other long-term assets | 230.4 | 228.1 | |||||||||
| Goodwill | 2,353.5 | 2,358.2 | |||||||||
| Other intangible assets, net | 613.3 | 627.2 | |||||||||
| Total assets | $ | 5,597.1 | $ | 5,679.0 | |||||||
| LIABILITIES AND EQUITY | |||||||||||
| Current liabilities: | |||||||||||
| Trade accounts payable | 190.2 | 191.6 | |||||||||
| Accrued expenses and other liabilities | 578.6 | 622.0 | |||||||||
| Operating lease liabilities | 38.5 | 39.0 | |||||||||
| Total current liabilities | 807.3 | 852.6 | |||||||||
| Operating lease liabilities | 113.2 | 110.4 | |||||||||
| Other long-term liabilities | 164.0 | 161.4 | |||||||||
| Long-term debt | 1,436.3 | 1,448.3 | |||||||||
| Commitments and contingencies | |||||||||||
| Stockholders’ equity: | |||||||||||
Preferred stock, $0.01 par value, 15.0 million shares authorized; no shares issued or outstanding at July 3, 2026 and December 31, 2025 | — | — | |||||||||
Common stock, $0.01 par value, 500.0 million shares authorized; 176.4 million shares issued and 160.6 million shares outstanding at July 3, 2026; 175.4 million shares issued and 163.8 million shares outstanding at December 31, 2025 | 1.8 | 1.8 | |||||||||
Treasury stock at cost; 15.8 million shares and 11.6 million shares at July 3, 2026 and December 31, 2025, respectively | (333.7) | (224.5) | |||||||||
| Additional paid-in capital | 3,906.1 | 3,882.6 | |||||||||
| Accumulated deficit | (348.0) | (440.4) | |||||||||
| Accumulated other comprehensive loss | (149.9) | (113.2) | |||||||||
| Total stockholders’ equity | 3,076.3 | 3,106.3 | |||||||||
| Total liabilities and stockholders’ equity | $ | 5,597.1 | $ | 5,679.0 | |||||||
5
ENVISTA HOLDINGS CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
($ in millions)
| Six Months Ended | |||||||||||
| July 3, 2026 | June 27, 2025 | ||||||||||
| Cash flows from operating activities: | |||||||||||
| Net income | $ | 92.4 | $ | 44.4 | |||||||
| Noncash items: | |||||||||||
| Depreciation | 20.8 | 19.9 | |||||||||
| Amortization | 36.2 | 37.8 | |||||||||
| Allowance for credit losses | 5.8 | 4.0 | |||||||||
| Stock-based compensation expense | 19.7 | 16.8 | |||||||||
| Gain on investments in rabbi trust, net | (1.9) | (1.6) | |||||||||
| Loss on equity investments | 2.0 | — | |||||||||
| (Gain) loss on sale of property, plant and equipment | (2.7) | 0.3 | |||||||||
| Restructuring charges | 0.9 | 0.2 | |||||||||
| Fixed assets impairments and other charges | 0.9 | 1.4 | |||||||||
| Non-cash operating lease costs | 18.5 | 17.2 | |||||||||
| Amortization of debt discount and issuance costs | 2.0 | 2.2 | |||||||||
| Deferred income taxes | — | (0.9) | |||||||||
| Change in trade accounts receivable | (14.5) | (37.2) | |||||||||
| Change in inventories | (0.9) | (23.5) | |||||||||
| Change in trade accounts payable | 0.1 | (10.0) | |||||||||
| Change in prepaid expenses and other assets | (7.3) | (4.3) | |||||||||
| Change in accrued expenses and other liabilities | (32.4) | 44.5 | |||||||||
| Change in operating lease liabilities | (23.7) | (22.2) | |||||||||
| Net cash provided by operating activities | 115.9 | 89.0 | |||||||||
| Cash flows from investing activities: | |||||||||||
| Payments for additions to property, plant and equipment | (27.4) | (18.2) | |||||||||
| Purchases of investments held in rabbi trust | (3.7) | (1.0) | |||||||||
| Proceeds from sale of investments held in rabbi trust | 1.5 | 0.9 | |||||||||
| Proceeds from sales of property, plant and equipment | 0.9 | 0.5 | |||||||||
| Acquisitions, net of cash acquired | (54.4) | — | |||||||||
| All other investing activities, net | (0.1) | (8.1) | |||||||||
| Net cash used in investing activities | (83.2) | (25.9) | |||||||||
| Cash flows from financing activities: | |||||||||||
| Proceeds from stock option exercises | 4.0 | 1.5 | |||||||||
| Cash paid for treasury stock under the stock repurchase program | (103.0) | (100.3) | |||||||||
| Treasury stock purchases related to tax withholding on equity awards | (6.9) | (4.3) | |||||||||
Principal paid related to exchange of convertible notes due 2025 | — | (116.3) | |||||||||
| Proceeds from revolving line of credit | — | 115.4 | |||||||||
| All other financing activities | (0.4) | — | |||||||||
| Net cash used in financing activities | (106.3) | (104.0) | |||||||||
| Effect of exchange rate changes on cash and cash equivalents | (12.5) | 82.4 | |||||||||
| Net change in cash and cash equivalents | (86.1) | 41.5 | |||||||||
| Beginning balance of cash and cash equivalents | 1,211.7 | 1,069.1 | |||||||||
| Ending balance of cash and cash equivalents | $ | 1,125.6 | $ | 1,110.6 | |||||||
6
ENVISTA HOLDINGS CORPORATION
SUMMARY OF FINANCIAL METRICS (Unaudited)
($ in millions, except per share amounts)
| GAAP | |||||||||||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||||||||||
| July 3, 2026 | June 27, 2025 | July 3, 2026 | June 27, 2025 | ||||||||||||||||||||
| Gross Profit | $ | 407.0 | $ | 369.9 | $ | 797.1 | $ | 705.9 | |||||||||||||||
| Operating Profit | $ | 80.3 | $ | 46.3 | $ | 142.8 | $ | 85.3 | |||||||||||||||
| Net Income | $ | 53.7 | $ | 26.4 | $ | 92.4 | $ | 44.4 | |||||||||||||||
| Diluted Earnings Per Share | $ | 0.33 | $ | 0.16 | $ | 0.56 | $ | 0.26 | |||||||||||||||
| Operating Cash Flow | $ | 119.2 | $ | 88.7 | $ | 115.9 | $ | 89.0 | |||||||||||||||
| NON-GAAP * | |||||||||||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||||||||||
| July 3, 2026 | June 27, 2025 | July 3, 2026 | June 27, 2025 | ||||||||||||||||||||
| Adjusted Gross Profit | $ | 402.2 | $ | 371.2 | $ | 795.8 | $ | 709.5 | |||||||||||||||
| Adjusted Operating Profit | $ | 94.5 | $ | 71.1 | $ | 183.9 | $ | 141.7 | |||||||||||||||
| Adjusted Net Income | $ | 66.5 | $ | 43.7 | $ | 126.5 | $ | 85.2 | |||||||||||||||
| Adjusted Diluted EPS | $ | 0.41 | $ | 0.26 | $ | 0.77 | $ | 0.50 | |||||||||||||||
| Adjusted EBITDA | $ | 107.7 | $ | 84.3 | $ | 206.6 | $ | 163.3 | |||||||||||||||
| Free Cash Flow | $ | 105.1 | $ | 76.4 | $ | 89.4 | $ | 71.3 | |||||||||||||||
* For information on non-GAAP measures see "Reconciliation of GAAP to Non-GAAP Financial Measures" below. Also see the accompanying "Notes to Reconciliation of GAAP to Non-GAAP Financial Measures."
7
ENVISTA HOLDINGS CORPORATION
SEGMENT INFORMATION (Unaudited)
($ in millions)
| Three Months Ended | Six Months Ended | ||||||||||||||||||||||
| July 3, 2026 | June 27, 2025 | July 3, 2026 | June 27, 2025 | ||||||||||||||||||||
| Sales | |||||||||||||||||||||||
| Specialty Products & Technologies | $ | 471.0 | $ | 445.1 | $ | 928.8 | $ | 845.4 | |||||||||||||||
| Equipment & Consumables | 259.5 | 237.0 | 507.2 | 453.6 | |||||||||||||||||||
| Total | $ | 730.5 | $ | 682.1 | $ | 1,436.0 | $ | 1,299.0 | |||||||||||||||
| Operating Profit (Loss) | |||||||||||||||||||||||
| Specialty Products & Technologies | $ | 60.1 | $ | 45.3 | $ | 106.6 | $ | 82.9 | |||||||||||||||
| Equipment & Consumables | 45.9 | 36.1 | 92.7 | 68.0 | |||||||||||||||||||
| Other | (25.7) | (35.1) | (56.5) | (65.6) | |||||||||||||||||||
| Total | $ | 80.3 | $ | 46.3 | $ | 142.8 | $ | 85.3 | |||||||||||||||
| Operating Margins | |||||||||||||||||||||||
| Specialty Products & Technologies | 12.8 | % | 10.2 | % | 11.5 | % | 9.8 | % | |||||||||||||||
| Equipment & Consumables | 17.7 | % | 15.2 | % | 18.3 | % | 15.0 | % | |||||||||||||||
| Total | 11.0 | % | 6.8 | % | 9.9 | % | 6.6 | % | |||||||||||||||
8
ENVISTA HOLDINGS CORPORATION
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (UNAUDITED)
($ and shares in millions, except per share amounts)
Adjusted Gross Profit and Adjusted Gross Margin
| Three Months Ended | Six Months Ended | ||||||||||||||||||||||
| July 3, 2026 | June 27, 2025 | July 3, 2026 | June 27, 2025 | ||||||||||||||||||||
| Gross Profit | $ | 407.0 | $ | 369.9 | $ | 797.1 | $ | 705.9 | |||||||||||||||
Restructuring costs and asset impairments A | 7.3 | 0.3 | 10.4 | 2.2 | |||||||||||||||||||
Fair value adjustment of acquisition-related inventory B | 0.5 | 1.0 | 0.9 | 1.4 | |||||||||||||||||||
Tariff refunds C | (12.6) | — | (12.6) | — | |||||||||||||||||||
| Adjusted Gross Profit | $ | 402.2 | $ | 371.2 | $ | 795.8 | $ | 709.5 | |||||||||||||||
| Gross Margin (Gross Profit / Sales) | 55.7 | % | 54.2 | % | 55.5 | % | 54.3 | % | |||||||||||||||
| Adjusted Gross Margin (Adjusted Gross Profit / Sales) | 55.1 | % | 54.4 | % | 55.4 | % | 54.6 | % | |||||||||||||||
9
Adjusted Operating Profit
| Three Months Ended | Six Months Ended | ||||||||||||||||||||||
| July 3, 2026 | June 27, 2025 | July 3, 2026 | June 27, 2025 | ||||||||||||||||||||
| Consolidated | |||||||||||||||||||||||
| Operating Profit | $ | 80.3 | $ | 46.3 | $ | 142.8 | $ | 85.3 | |||||||||||||||
| Amortization of acquisition-related and other intangible assets | 17.4 | 19.0 | 36.2 | 37.8 | |||||||||||||||||||
Restructuring costs and asset impairments A | 8.9 | 4.7 | 16.3 | 16.1 | |||||||||||||||||||
Fair value adjustment of acquisition-related inventory B | 0.5 | 1.0 | 0.9 | 1.4 | |||||||||||||||||||
Tariff refunds C | (12.6) | — | (12.6) | — | |||||||||||||||||||
Litigation settlement D | — | — | — | 0.8 | |||||||||||||||||||
Acquisition-related expenses E | — | 0.1 | 0.3 | 0.3 | |||||||||||||||||||
| Adjusted Operating Profit | $ | 94.5 | $ | 71.1 | $ | 183.9 | $ | 141.7 | |||||||||||||||
| Adjusted Operating Profit as a % of Sales | 12.9 | % | 10.4 | % | 12.8 | % | 10.9 | % | |||||||||||||||
| Specialty Products & Technologies | |||||||||||||||||||||||
| Operating Profit | $ | 60.1 | $ | 45.3 | $ | 106.6 | $ | 82.9 | |||||||||||||||
| Amortization of acquisition-related and other intangible assets | 15.3 | 14.8 | 30.9 | 29.4 | |||||||||||||||||||
Restructuring costs and asset impairments A | 6.1 | 0.1 | 10.5 | 4.3 | |||||||||||||||||||
Tariff refunds C | (12.2) | — | (12.2) | — | |||||||||||||||||||
| Adjusted Operating Profit | $ | 69.3 | $ | 60.2 | $ | 135.8 | $ | 116.6 | |||||||||||||||
| Adjusted Operating Profit as a % of Sales | 14.7 | % | 13.5 | % | 14.6 | % | 13.8 | % | |||||||||||||||
| Equipment & Consumables | |||||||||||||||||||||||
| Operating Profit | $ | 45.9 | $ | 36.1 | $ | 92.7 | $ | 68.0 | |||||||||||||||
| Amortization of acquisition-related and other intangible assets | 2.1 | 4.2 | 5.3 | 8.4 | |||||||||||||||||||
Restructuring costs and asset impairments A | 4.2 | 1.2 | 6.2 | 3.5 | |||||||||||||||||||
Tariff refunds C | (0.4) | — | (0.4) | — | |||||||||||||||||||
Litigation settlement D | — | — | — | 0.8 | |||||||||||||||||||
| Adjusted Operating Profit | $ | 51.8 | $ | 41.5 | $ | 103.8 | $ | 80.7 | |||||||||||||||
| Adjusted Operating Profit as a % of Sales | 20.0 | % | 17.5 | % | 20.5 | % | 17.8 | % | |||||||||||||||
See the accompanying Notes to Reconciliation of GAAP to Non-GAAP Financial Measures
10
Adjusted Net Income
| Three Months Ended | Six Months Ended | ||||||||||||||||||||||
| July 3, 2026 | June 27, 2025 | July 3, 2026 | June 27, 2025 | ||||||||||||||||||||
| Net Income | $ | 53.7 | $ | 26.4 | $ | 92.4 | $ | 44.4 | |||||||||||||||
| Amortization of acquisition-related and other intangible assets | 17.4 | 19.0 | 36.2 | 37.8 | |||||||||||||||||||
Restructuring costs and asset impairments A | 8.9 | 4.7 | 16.3 | 16.1 | |||||||||||||||||||
Fair value adjustment of acquisition-related inventory B | 0.5 | 1.0 | 0.9 | 1.4 | |||||||||||||||||||
Tariff refunds C | (12.6) | — | (12.6) | — | |||||||||||||||||||
Litigation settlement D | — | — | — | 0.8 | |||||||||||||||||||
Acquisition-related expenses E | — | 0.1 | 0.3 | 0.3 | |||||||||||||||||||
Loss on equity investments F | — | — | 2.0 | — | |||||||||||||||||||
Tax effect of adjustments reflected above G | (2.8) | (6.2) | (10.6) | (15.0) | |||||||||||||||||||
Discrete tax adjustments and other tax-related adjustments H | 1.4 | (1.3) | 1.6 | (0.6) | |||||||||||||||||||
| Adjusted Net Income | $ | 66.5 | $ | 43.7 | $ | 126.5 | $ | 85.2 | |||||||||||||||
Adjusted Diluted Earnings Per Share
| Three Months Ended | Six Months Ended | ||||||||||||||||||||||
| July 3, 2026 | June 27, 2025 | July 3, 2026 | June 27, 2025 | ||||||||||||||||||||
| Diluted Earnings Per Share | $ | 0.33 | $ | 0.16 | $ | 0.56 | $ | 0.26 | |||||||||||||||
| Amortization of acquisition-related and other intangible assets | 0.11 | 0.11 | 0.22 | 0.22 | |||||||||||||||||||
Restructuring costs and asset impairments A | 0.05 | 0.03 | 0.10 | 0.09 | |||||||||||||||||||
Fair value adjustment of acquisition-related inventory B | — | 0.01 | 0.01 | 0.01 | |||||||||||||||||||
Tariff refunds C | (0.08) | — | (0.08) | — | |||||||||||||||||||
Litigation settlement D | — | — | — | 0.01 | |||||||||||||||||||
Acquisition-related expenses E | — | — | — | — | |||||||||||||||||||
Loss on equity investments F | — | — | 0.01 | — | |||||||||||||||||||
Tax effect of adjustments reflected above G | (0.01) | (0.04) | (0.06) | (0.09) | |||||||||||||||||||
Discrete tax adjustments and other tax-related adjustments H | 0.01 | (0.01) | 0.01 | — | |||||||||||||||||||
| Adjusted Diluted Earnings Per Share | $ | 0.41 | $ | 0.26 | $ | 0.77 | $ | 0.50 | |||||||||||||||
11
Adjusted EBITDA
| Three Months Ended | Six Months Ended | ||||||||||||||||||||||
| July 3, 2026 | June 27, 2025 | July 3, 2026 | June 27, 2025 | ||||||||||||||||||||
| Net Income | $ | 53.7 | $ | 26.4 | $ | 92.4 | $ | 44.4 | |||||||||||||||
| Interest expense, net | 8.7 | 8.0 | 16.1 | 17.3 | |||||||||||||||||||
| Income tax expense | 20.7 | 14.3 | 34.2 | 25.3 | |||||||||||||||||||
| Depreciation | 10.4 | 10.8 | 20.8 | 19.9 | |||||||||||||||||||
| Amortization of acquisition-related and other intangible assets | 17.4 | 19.0 | 36.2 | 37.8 | |||||||||||||||||||
Restructuring costs and asset impairments A | 8.9 | 4.7 | 16.3 | 16.1 | |||||||||||||||||||
Fair value adjustment of acquisition-related inventory B | 0.5 | 1.0 | 0.9 | 1.4 | |||||||||||||||||||
Tariff refunds C | (12.6) | — | (12.6) | — | |||||||||||||||||||
Litigation settlement D | — | — | — | 0.8 | |||||||||||||||||||
Acquisition-related expenses E | — | 0.1 | 0.3 | 0.3 | |||||||||||||||||||
Loss on equity investments F | — | — | 2.0 | — | |||||||||||||||||||
| Adjusted EBITDA | $ | 107.7 | $ | 84.3 | $ | 206.6 | $ | 163.3 | |||||||||||||||
| Adjusted EBITDA as a % of Sales | 14.7 | % | 12.4 | % | 14.4 | % | 12.6 | % | |||||||||||||||
See the accompanying Notes to Reconciliation of GAAP to Non-GAAP Financial Measures
Core Sales Growth 1
| Consolidated | % Change Three Month Period Ended July 3, 2026 vs. Comparable 2025 Period | % Change Six Month Period Ended July 3, 2026 vs. Comparable 2025 Period | |||||||||
| Total sales growth | 7.1 | % | 10.5 | % | |||||||
| Plus the impact of: | |||||||||||
| Acquisitions | (0.5) | % | (0.6) | % | |||||||
| Currency exchange rates | (1.6) | % | (2.8) | % | |||||||
| Core Sales Growth | 5.0 | % | 7.1 | % | |||||||
| Specialty Products & Technologies | |||||||||||
| Total sales growth | 5.8 | % | 9.9 | % | |||||||
| Plus the impact of: | |||||||||||
| Acquisitions | (0.8) | % | (0.9) | % | |||||||
| Currency exchange rates | (1.9) | % | (3.4) | % | |||||||
| Core Sales Growth | 3.1 | % | 5.6 | % | |||||||
| Equipment & Consumables | |||||||||||
| Total sales growth | 9.5 | % | 11.8 | % | |||||||
| Plus the impact of: | |||||||||||
| Currency exchange rates | (1.0) | % | (1.9) | % | |||||||
| Core Sales Growth | 8.5 | % | 9.9 | % | |||||||
12
1 We use the term “core sales” to refer to GAAP revenue excluding (1) sales from acquired businesses recorded prior to the first anniversary of the acquisition (“acquisitions”), (2) sales from discontinued products and (3) the impact of currency translation. Sales from discontinued products includes major brands or products that Envista has made the decision to discontinue as part of a portfolio restructuring. Discontinued brands or products consist of those which Envista (1) is no longer manufacturing, (2) is no longer investing in the research or development of, and (3) expects to discontinue all significant sales within one year from the decision date to discontinue. The portion of sales attributable to discontinued brands or products is calculated as the net decline of the applicable discontinued brand or product from period-to-period. The portion of GAAP revenue attributable to currency exchange rates is calculated as the difference between (a) the period-to-period change in sales and (b) the period-to-period change in sales after applying current period foreign exchange rates to the prior year period. We use the term “core sales growth” to refer to the measure of comparing current period core sales with the corresponding period of the prior year.
During the first quarter of 2026, we updated our methodology for how we calculate changes in the sales price from period to period. Changes in sales prices are now calculated by comparing the current quarter sales prices to the full year sales price average from the prior year as it better reflects pricing trends over time.
13
Reconciliation of Operating Cash Flows to Free Cash Flow
| Three Months Ended | Six Months Ended | ||||||||||||||||||||||
| July 3, 2026 | June 27, 2025 | July 3, 2026 | June 27, 2025 | ||||||||||||||||||||
| Net operating cash (used in) provided by operating activities | $ | 119.2 | $ | 88.7 | $ | 115.9 | $ | 89.0 | |||||||||||||||
| Less: payments for additions to property, plant and equipment (capital expenditures) | (14.9) | (12.3) | (27.4) | (18.2) | |||||||||||||||||||
| Plus: proceeds from sales of property, plant and equipment | 0.8 | — | 0.9 | 0.5 | |||||||||||||||||||
| Free Cash Flow (FCF) | $ | 105.1 | $ | 76.4 | $ | 89.4 | $ | 71.3 | |||||||||||||||
| FCF to Adjusted Net Income Conversion Ratio | 158.0 | % | 174.8 | % | 70.7 | % | 83.7 | % | |||||||||||||||
See the accompanying Notes to Reconciliation of GAAP to Non-GAAP Financial Measures
14
ENVISTA HOLDINGS CORPORATION
NOTES TO RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (UNAUDITED)
A We exclude impairment of certain long-lived assets, executive transition costs, and cost incurred pursuant to discrete restructuring plans.
B Represents the fair value adjustment related to inventory acquired in connection with acquisitions.
C Represents the U.S. Supreme Court's ruling to refund tariffs imposed under the International Emergency Economic Powers Act.
D Represents the settlement of certain litigation matters.
E Represents acquisition-related transaction expenses and integration costs with respect to business combinations.
F Represents losses on equity investments.
G This line item represents the aggregate tax effect of all pretax adjustments reflected in the preceding line items of the table using each adjustment's applicable tax rate, including the effect of interim tax accounting requirements of Accounting Standards Codification Topic 740 Income Taxes.
H Discrete tax matters primarily relate to excess tax benefits from stock-based compensation, changes in estimates associated with prior period uncertain tax positions and audit settlements, tax benefits resulting from a change in law, and changes in determination of realization of certain deferred tax assets.
Statement Regarding Non-GAAP Measures
Each of the non-GAAP measures set forth above should be considered in addition to, and not as a replacement for or superior to, the comparable GAAP measure, and may not be comparable to similarly titled measures reported by other companies. Management believes that these measures provide useful information to investors by offering additional ways of viewing Envista Holdings Corporation's (“Envista” or the “Company”) results that, when reconciled to the corresponding GAAP measure, help our investors to:
•with respect to Core Sales, identify underlying growth trends in Envista’s business and compare Envista’s revenue performance with prior and future periods and to Envista’s peers;
•with respect to Adjusted Gross Profit, Adjusted Operating Profit, Adjusted Net Income, Adjusted Diluted Earnings Per Share and Adjusted EBITDA, understand the long-term profitability trends of Envista’s business and compare Envista’s profitability to prior and future periods and to Envista’s peers;
•with respect to Adjusted EBITDA, help investors understand operational factors associated with Envista’s financial performance because it excludes the following from consideration: interest, taxes, depreciation, amortization, and infrequent or unusual losses or gains such as goodwill impairment charges or nonrecurring and restructuring charges. Management uses Adjusted EBITDA, as a supplemental measure for assessing operating performance in conjunction with related GAAP amounts. In addition, Adjusted EBITDA is used in connection with operating decisions, strategic planning, annual budgeting, evaluating Company performance and comparing operating results with historical periods and with industry peer companies; and
•with respect to Free Cash Flow (the “FCF Measure”), understand Envista’s ability to generate cash without external financings, in order to invest and grow its business through acquisitions and other strategic opportunities. A limitation of free cash flow is that it does not take into account the Company’s debt service requirements and other non-discretionary expenditures, and as a result the entire Free Cash Flow amount is not necessarily available for discretionary expenditures.
15
Management uses these non-GAAP measures to evaluate the Company’s operating and financial performance.
The items excluded from the non-GAAP measures set forth above have been excluded for the following reasons:
•With respect to Adjusted Gross Profit, Adjusted Operating Profit, Adjusted Net Income, Adjusted Diluted Earnings Per Share and Adjusted EBITDA:
◦We exclude amortization of acquisition-related and other intangible assets because the amount and timing of such charges are significantly impacted by the timing, size, number and nature of the acquisitions we consummate. While we have a history of significant acquisition activity, we do not acquire businesses on a predictable cycle, and the amount of an acquisition’s purchase price allocated to intangible assets and related amortization term are unique to each acquisition and can vary significantly from acquisition to acquisition. Exclusion of this amortization expense facilitates more consistent comparisons of operating results over time between our newly acquired and long-held businesses, and with both acquisitive and non-acquisitive peer companies. We believe, however, that it is important for investors to understand that such intangible assets contribute to revenue generation and that intangible asset amortization related to past acquisitions will recur in future periods until such intangible assets have been fully amortized.
◦With respect to the other items excluded from Adjusted Gross Profit, Adjusted Net Income, Adjusted Operating Profit, Adjusted Diluted Earnings Per Share and Adjusted EBITDA, we exclude these items because they are of a nature and/or size that occur with inconsistent frequency, occur for reasons that may be unrelated to Envista's commercial performance during the period and/or we believe that such items may obscure underlying business trends and make comparisons of long-term performance difficult.
•With respect to core sales, we exclude (1) the effect of acquisitions and divested product lines because the timing, size, number and nature of such transactions can vary significantly from period-to-period and between us and our peers, which we believe may obscure underlying business trends and make comparisons of long-term performance difficult, (2) sales from discontinued products because discontinued products do not have a continuing contribution to operations and management believes that excluding such items provides investors with a means of evaluating our on-going operations and facilitates comparisons to our peers, and (3) the impact of currency translation because it is not under management’s control, is subject to volatility and can obscure underlying business trends.
•With respect to the FCF Measure, we adjust for payments for additions to property, plant and equipment (net of the proceeds from capital disposals) to arrive at the amount of operating cash flow for the period that remains after accounting for the Company’s capital expenditure requirements.
16