China displays its global dental might

Jeremy Booth, Dental Tribune International

Thu. 20. November 2025

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LEIPZIG, Germany: In the third financial quarter of this year, hints of improvement in the US dental market were welcomed by the world’s largest dental companies; however, it was China that stole the show. Chinese health authorities began buying medicines and medical devices in bulk in 2019, leveraging volume-based procurement (VBP) to reduce the price of treatments in the country. VBP of orthodontic devices is set to begin early next year, when the second round for dental implants is also expected. As the foreshadow of these developments effectively darkened third-quarter earnings reports, it was clear that sales growth in Europe and the US is no longer enough. 

Dentsply Sirona advances its return-to-growth strategy

Dentsply Sirona, a major global manufacturer of dental equipment and technologies, continued to face challenges during the third quarter, posting a result that fell short of the management’s expectations. The company banked US$904 million (€771 million*) in net sales during the period, down by 5% year on year. A non-cash charge for goodwill impairments relating to two product segments and the impact of trade tariffs totalled US$263 million. The company lost less money than it did a year earlier, reporting a net loss of US$427 million compared with US$494 million. 

Daniel Scavilla, president and CEO, Dentsply Sirona. (Image: Dentsply Sirona)

All Dentsply Sirona’s dental business units showed negative year-on-year growth comparisons. Sales of connected technology solutions were down by 3.9% year on year, those of essential dental solutions slumped 3.4%, and orthodontic and dental implant sales decreased by 15.0%.  

The company performed well in Europe, where strong results in the UK, France, Italy and Spain drove sales of US$382 million and represented a year-on-year increase of 9.9%. At US$291 million, US sales were affected by lower sales of dental implants, supplies, consumables and CAD/CAM and imaging solutions, leading to a 22.2% decline. Cumulative sales in all other regions were flat—at US$231 million. President and CEO Daniel Scavilla told analysts that strong sales in Australia and India were offset by market softness in China and Japan. “We saw a slowdown in activity in the Chinese market in anticipation of the implementation of the second phase of the VBP programme,” Scavilla said. 

Immediately prior to releasing its earnings results, Dentsply Sirona announced the departure of its new chief financial officer, Matthew E. Garth. Since 2022, the company has undergone several management changes in its highest echelons, and Garth’s departure after only six months in the role exemplifies the pressure that the company is under to correct its course. Scavilla, himself just 90 days into his tenure, was candid with analysts, stating: “I recognise that the company has undergone change over the last few years. The change has not been fast enough for you, or the Dentsply board. That is why I stepped into this seat [when requested]. It’s time for bold change, and we’re entering a new era.” 

Dentsply Sirona has outlined broad changes as part of a new return-to-growth strategy, including measures to reinvigorate its US business. It aims to return to profitable growth within the next 24 months. The company revised its full-year guidance for net sales at constant currency rates. It now expects the metric to decline by between 4% and 5% year on year, updated from a decline in the range of 2%–4%. 

Envista Holdings raises its full-year guidance

Envista Holdings, which owns more than 30 dental brands, reported positive third-quarter growth in all its major businesses. Sales at the company totalled US$670 million, a year-on-year increase of 11.5%, or 9.4% core growth.** A one-off charge relating to tax adjustments after the settling of an intercompany loan led Envista to post a net loss of US$30 million.  

Looking at the company’s business segments, sales of specialty products and technologies reached US$432 million, a 13% year-on-year increase. Growth in orthodontic sales in several markets was offset by a dip in China as public hospitals and private practices destocked their inventories in preparation for the rollout of a new programme of VBP for orthodontic products. The programme is expected to start in the first quarter of 2026. The company’s Spark aligner system turned profitable during the third quarter, having generated US$300 million in sales over a period of six years. CEO Paul Keel told investors that sales of the aligner system were growing faster than the global aligner category. 

“On balance, underlying patient demand remains stable, albeit still below typical longer-term levels for the market”— Paul Keel, CEO, Envista

At US$238 million, sales in Envista’s equipment and consumables business increased by 8.7% year on year, helped along by modest gains in sales of diagnostic equipment in North America and Europe. The third quarter marked the second consecutive quarter of growth in sales of diagnostic equipment for Envista, effectively ending a period of contractions that spanned several quarters. 

Keel told analysts that the global dental market in the third quarter was roughly similar to that of the prior quarter, which Keel had described as incrementally better than in the first quarter. He said: “On balance, underlying patient demand remains stable, albeit still below typical longer-term levels for the market. Macro uncertainty remains high, which continues to impact some of the more discretionary procedure segments.” 

Being a major provider of dental implants through its Nobel Biocare brand, Envista has benefited from China’s VBP programme for dental implants. Commenting on China’s anticipated second round of VBP of dental implants—dubbed “VBP 2.0” by industry insiders—Keel said: “We expect that is coming, although we don’t have any official communication from either the provincial or the central government on the details.” 

Envista raised its full-year revenue growth guidance for the second time this year. It now expects sales growth of 4%, up from the previously announced range of 3%–4%. 

Align Technology returns to growth

The extent to which manufacturers will benefit from China’s volume-based procurement of aligners and other orthodontic appliances remains to be seen. (Image: gemaibarra/Adobe Stock)

The third quarter marked a return to growth for Align Technology, the company behind the leading Invisalign aligner system and exocad dental software. Net revenue at Align increased by 1.8% year on year to reach US$996 million. The company shipped 647,800 aligner cases, a 4.9% increase. In the lucrative market for younger aligner patients, the company returned a strong year-on-year volume gain of 8.3%. Total aligner sales increased by 2.4% to US$806 million, whereas income from sales of imaging systems and CAD/CAM services was flat, at US$190 million. 

The company’s president and CEO, Joseph Hogan, commented in a press release: “I am pleased to report third-quarter revenues, clear aligner volumes and non-GAAP operating margins all above our outlook.” (Non-GAAP margins are the company’s adjusted profitability figures, which exclude certain one-time or non-cash expenses. He said that the result reflected growth in aligner volumes in the Europe, Middle East and Africa (EMEA), Asia-Pacific, and Latin America regions, particularly among younger patients. Absent from this list of top performers was the company’s home region of North America, where consumer confidence continues to hamper the uptake of elective procedures.  

Hogan said: “While activity in the orthodontic and dental markets remains mixed, especially in North America, the initiatives we’re taking to drive consumer demand and patient conversion, including working with our [dental support organisation] partners, are delivering results.” Align raised its forecast of aligner volume growth for the fiscal year to mid-single digits from low single digits. 

Straumann Group records a rare dip in Asian sales

Straumann Group, a global leader in implant and digital dentistry had another strong performance in the third quarter, banking CHF 602 million (€644 million*) in sales, up by 2.9% year on year. Organic sales growth for the period was 8.3%.** 

Straumann highlighted a sequential improvement and accelerated growth in its North American business. Sales in the region reached CHF 162 million, representing a flat year-on-year comparison and an encouraging 5.7% organic sales gain. In the first nine months of the year, North American sales at Straumann were down by 0.9% and up by 3.3% on an organic basis.  

Straumann’s Asia-Pacific business has exhibited prodigious growth over consecutive quarters; however, at CHF 144 million, third-quarter sales in the region exhibited a rare year-on-year dip of 3.4%. The company said that sales growth was solid in India, Thailand, Australia and Japan, but that VBP 2.0 had led to a significant slowdown in China. CEO Guillaume Daniellot explained to analysts that anticipation of a new bidding round had led to reduced inventories and delayed treatments. A key achievement by Straumann during the period was its inauguration of a major manufacturing site in Shanghai. A cornerstone of the company’s “China for China” strategy, the facility will be leveraged to localise Straumann’s Chinese business and boost its chances of securing bulk purchases.  

In Latin America, CHF 62 million in sales represented an increase of 9.8% year on year—18.0% in organic terms. The gains were driven by strong sales of Neodent implants in regional heavyweights Brazil and Mexico and by hastening adoption of digital dentistry solutions among clinicians in the region. 

In the EMEA region, Straumann achieved a year-on-year gain of 8.2%, or 11.2% on an organic basis. 

Commenting on the forthcoming developments in China and what was essentially flat sales growth in the country, Daniellot said that the coming two quarters would be a challenge; however, he pointed out that Straumann is currently the only international company producing premium dental implants within the country. He said that pent-up demand from the fourth quarter of this year and the first quarter of next year should be released throughout 2026 and emphasised that the country remains “a very, very under-penetrated market”. Straumann confirmed its previous guidance for the full year of revenue growth in the high single digits. 

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