Envista received a $12.6 million tariff refund benefit during the second quarter of 2026 as stronger demand for dental equipment and consumables, operational improvements, and margin expansion pushed Adjusted EBITDA up 28% year-over-year.
The $12.6 million benefit resulted from refunds of tariffs previously imposed under the International Emergency Economic Powers Act. Envista’s reconciliation identifies the adjustment as resulting from the U.S. Supreme Court’s ruling to refund IEEPA tariffs.
The tariff benefit was concentrated primarily in Specialty Products & Technologies, which recorded $12.2 million of the refund, while Equipment & Consumables accounted for approximately $400,000. Envista excludes the tariff refunds from its adjusted operating metrics.
Q2 sales reached approximately $731 million, with core sales increasing 5% year-over-year. Specialty Products & Technologies generated 3.1% core growth, while Equipment & Consumables delivered substantially faster core growth of 8.5%.
Adjusted EBITDA increased to $107.7 million from $84.3 million, or approximately 28%, while Adjusted EBITDA margin expanded 230 basis points to 14.7%.
Envista attributed a meaningful portion of the margin improvement to its Envista Business System. The operating system contributed approximately 70 basis points of adjusted gross-margin expansion and 230 basis points of Adjusted EBITDA-margin expansion during Q2.
GAAP net income more than doubled to $53.7 million from $26.4 million. Adjusted net income increased to $66.5 million from $43.7 million, while adjusted diluted EPS rose 58% to $0.41 from $0.26.
Cash generation strengthened as well. Operating cash flow increased to $119.2 million from $88.7 million, while free cash flow rose to $105.1 million from $76.4 million. Q2 free cash flow represented 158% of adjusted net income.
Envista repurchased 2.4 million shares for approximately $59 million during the quarter and ended Q2 with another $283 million of capacity under its share repurchase authorization.
Following the stronger first-half performance, Envista raised its full-year outlook. The company now expects core sales growth of 3.5% to 4.5%, compared with its previous 2% to 4% range. Adjusted EBITDA growth is expected between 11% and 14%, up from 7% to 13%, while adjusted diluted EPS is expected between $1.50 and $1.55 versus the previous $1.35 to $1.45 outlook.
KEY QUOTES:
“We built on our fast start in Q1 with continued good performance in Q2. 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.”
Paul Keel, Chief Executive Officer Of Envista
