Dentsply Sirona at Stifel Jaws & Paws Conference: Strategic Growth Amid Challenges

On Wednesday, 28 May 2025, Dentsply Sirona (NASDAQ:XRAY) presented at the Stifel Jaws & Paws Conference 2025, highlighting its Q1 2025 performance and strategic initiatives. CEO Simon Campion discussed both positive outcomes, such as exceeding earnings expectations, and challenges, including revenue declines due to the Byte business. The company is focused on cost management and innovation to foster growth.

Key Takeaways

• Q1 2025 results exceeded expectations, with notable EPS performance.
• Revenue decline was mainly due to Byte; excluding it, the decline was minimal.
• Cost management has reduced expenses significantly over the past two years.
• DS Core platform and virtual sales team are key to enhancing customer engagement.
• Dentsply Sirona aims to revitalize growth in CTS and orthodontics divisions.

Financial Results

• Revenue: Q1 2025 saw a mid-single-digit revenue decline year-over-year, largely due to Byte. Excluding Byte, the decline was fractional.
• Earnings Per Share (EPS): EPS surpassed guidance for Q1 2025.
• Gross Margin: All divisions experienced year-over-year margin improvement in Q1 2025.
• Operating Expenses (OpEx): OpEx fell by 14% year-over-year in Q1 2025, with a projected 9% decrease for the full year.
• Tariffs: A $0.10 per share impact from tariffs is expected in 2025.
• Expense Reduction: Expenses have been cut by several hundred million dollars over the past two years.

Operational Updates

• Customer Sentiment: Slight global degradation, with minor concerns in the U.S., but no significant change in footfall or purchase intent.
• DS Core Platform: User numbers increased by 14% quarter-over-quarter in Q1 2025, with a 25% rise in connected devices and a 58% increase in order utilization.
• Virtual Sales Team: Based in Charlotte, this team of 100 representatives makes 2,000 calls daily, engaging 21,000 accounts and generating nearly $1 million in sales.
• Distributor Relationships: Strengthened ties with Patterson and restored connections with key European and U.K. distributors.
• Supply Chain and Manufacturing: Reduced network and distribution center footprint by 10 in the past two years.

Future Outlook

• Overall Growth: Dentsply Sirona is committed to becoming a growth company, focusing on CTS and orthodontics.
• Orthodontics (SureSmile): Expected to grow significantly, with plans to reengage with the orthodontist community.
• DS Core Expansion: Anticipated to benefit the entire portfolio.
• Expense Management: Continued diligence, with benefits expected from ERP and SKU rationalization by 2026.
• Capital Allocation: Selective investments, notably in SureSmile and implants.

Q&A Highlights

• COVID Impact: Patient traffic remains below pre-COVID levels due to factors like oral health awareness and pricing sensitivity.
• CTS and Implants: Challenges include interest rates and dentist sentiment. The company is addressing these with product and sales force improvements.
• Tariffs: Minimal impact from China-U.S. tariffs, with proactive measures to mitigate risks.

For a detailed understanding, refer to the full transcript below.

Full transcript - Stifel Jaws & Paws Conference 2025:

John Block, Analyst, Stifel: We’re on the clock. We’re gonna get started. John Block with Stifel. And next up, we have Dentsply Sirona, one of the world’s leaders in the dental market. And joining us is Simon Campion, Chief Executive Officer.

I’ll go ahead and run through a bunch of questions. And guys, as always, if you have any stuff for Simon, just throw up your hand and feel free to ask him a question. So I’m going to start off, Simon, maybe just an overall update. 1Q twenty twenty five results were well ahead of guidance. Revenue is still down mid single digits year over year, almost all of that was attributable to Byte and then EPS was well above guidance.

Just help us out. I mean, you’re a global company. You have a huge reach throughout a ton of international markets. Can you speak to the current landscape and how the overall market is faring amidst what I’ll categorize as a turbulent macro backdrop?

Simon Campion, Chief Executive Officer, Dentsply Sirona: Yes, sure. Thanks, John, and thanks for the invite. So you’re right. Q1 was better. Most of that mid single digits was due to the comp with bytes.

So when we take that out, we’re actually declined just in the partial decimal points. The macro and we do this survey every quarter with about 1,100 customers around the world. Macro has not changed meaningfully, I would say, on a global basis. Patient traffic continues to be relatively stable, although back but still not at pre COVID levels, hard to believe after five years, but that’s where we are. In terms of customer sentiment, we saw a slight degradation in customer sentiment, but just very slight.

And that’s more of a numerical thing than anything else. For example, in The U. S, the sentiment numerical sentiment dropped a little bit, but that was people moving from we’re not concerned to we’re a little bit concerned. So it’s just a numerical value. We also leveraged our relatively new virtual sales team and they conducted about 1,000 interviews.

And it was pretty similar to our normal survey. And then we’re tracking that virtual survey every week. We continue to talk to customers about what they’re seeing. And no meaningful change week to week either with that survey. The last couple of weeks, John, I probably met with certainly in excess of 20 customers, and we’ve asked them similar questions.

And they are not seeing a change in footfall. They are not seeing a change in purchase intent either. So I think it’s pretty much par for the course of what we’ve seen for the last several quarters. I think Germany, we’ve seen decent performance in Germany the last couple of quarters. So our impression of the German market based on some customer feedback too is it’s improving slightly.

John Block, Analyst, Stifel: Okay. So Germany ongoing improvement slightly and you’ve experienced that for a couple of quarters. Now how about if I tried to push on The U. S. A bit and I think it was on the 1Q twenty twenty five earnings call you talked about survey feedback that sort of straddled Liberation Day and there were survey results post Liberation Day coming back with dentist sentiment somewhat concerned.

And has that sentiment translated into more purchasing concerns among the dentists? Has it hit patient traffic? Or do you believe it was just, hey, more of that knee jerk reaction to the tariffs at the time?

Simon Campion, Chief Executive Officer, Dentsply Sirona: Yes. I think it was more of a knee jerk reaction. And again, it’s back to that we get a numerical value from the data we gather. And people were the main move was people were not concerned before Liberation Day and they shifted into I’m a little bit concerned. And so when you assign a numerical value to that, that’s how that shakes out.

And again, these customers bar two or three last week in The U. K, about 20 of them are U. S.-based customers. And they have said to me in person, no change in footfall that they’re detecting and no change in customers’ intent to purchase a treatment proposal, for Okay.

John Block, Analyst, Stifel: That was very helpful. Thanks, Simon. That’s great color. I think I’m going to push on throughout answering one of the first couple of questions you said, however, not back to pre COVID and almost hard to believe here five years later and it is pretty amazing. And if I challenged you and sort of said, what do you think is behind that?

Those challenges that we went through, hey, there was a pull forward in demand, but now we’re so far removed from that and arguably normalized. What are some of the variables that you think are preventing dentistry more broadly from getting back to some of those pre COVID levels?

Simon Campion, Chief Executive Officer, Dentsply Sirona: Yes. I just think it’s an awareness around oral health. It’s continued sensitivity about pricing. I mean since COVID, we’ve had, I think, fluctuations in sentiment in the broader markets, high interest rates, which definitely impacts CTS. We saw a slight improvement in that over the past year or so and now more recently.

We’ll see what happens in the future. But I think interest rates have constrained capital equipment in the last several quarters. And we called that out first in Germany in 2023. And I think it’s just a general, what should we say, malaise about the importance of oral health.

John Block, Analyst, Stifel: Okay. I’m going to focus on various divisions now. And you mentioned CTS. When you look at CTS and implants prosthetics divisions, both of those I believe are expected to be down in 2025. They’re very important divisions collectively, a little less than 50% of revenue.

Talk to us about the roadmap to return these divisions to growth and maybe the timing. And if you want to take them one at a time, because I’m guessing they have unique attributes, right? CTS might be an interest rate thing. But if you could break down those two and that time line to return to growth, that would be great.

Simon Campion, Chief Executive Officer, Dentsply Sirona: Yes. So on the CTS piece, think that is heavily impacted by interest rates and customer and when I say customer, I mean dentist sentiment because they’re obviously impacted by patient footfall. The general practitioner, a significant portion of their revenue comes from, let’s say, the consumables part of their of the business, restorative and preventative, and that’s highly dependent on patient footfall. So if they’re not seeing an improvement in that, I think they take a double look at investing heavily in capital equipment. We do know that above 20,000 or $25,000 they tend to finance those pieces of capital equipment.

So I think that’s been a handbrake, so to speak, on CTS. We continue to invest in it. Again, we feel that our CTS business, you can improve the efficiency of a dental practice, improves the outcomes for that dental practice, helps them improve treatment acceptance rates, particularly with DS CORE. Again, it’s anecdotal, but I heard it as recently as yesterday when I was with some customers that the inclusion of patients in their treatment planning, so to speak, improves the likelihood that the patient will accept that proposed plan. On we have been driving for a number of years now our DS core platform, the ecosystem that we call it.

And we have I think we have meaningfully increased the penetration of DS core certainly in The U. S. Market but also globally. Globally, we increased the number of users by 14% quarter over quarter in Q1. We increased the number of connected devices by 25% in the first quarter quarter over quarter.

And we improved we increased the utilization of DS Core to send orders to labs by 58%. So I think we’re getting meaningful traction with that. We’ve invested heavily in it. And so as you think of an ecosystem and think of many of you out there probably have iPhones and iPads and AirPods and MacBooks, we are now in the process of installing the apps, so to speak, on DS Core. And when I say an app, mean a dental workflow.

So aligners, implants, endo, resto, they are beginning to appear on DS Core now. And so that is where we feel we will get the benefit of DS core pulling through other parts of our business in the consumable side. On implants and prosthetics, this has been a continued challenge for us for the past two and a half years or so since I arrived at the company. I would say that I underestimated the importance of the sales rep in the implant community. It is arguably more important than the product.

We had a lot of transition of sales of the sales force in the last several years. We’ve rebuilt that. We have recently retrained them because they need to be super experts at the clinical outcomes. Basically, they’re an extension to the implant practice. And so I think we underestimated that.

I underestimated that. So we’ve been taking measures to resolve that. We will be putting implants, the first phase of implants on DS CORE later this year. We feel that will help us too. We’re going more local with our clinical education and partnerships with customers.

So our portfolio, while it has probably modest gaps, I don’t think those gaps are big enough to preclude us from being competitive in the marketplace. I think it’s the sales rep and it’s the challenges that some customers have in doing business with our company that we’re now in the process of remediating that has held us back implants.

John Block, Analyst, Stifel: And if I tried to push on those two a little bit, it seems like on implants, some of that is my wording, but a little bit more in your control. You talked about improving the sales force and a couple of other things. CTS, a little bit of an interest rate environment, etcetera. Do you see the return to growth in either of those divisions as likely as soon as 2026? Or do you think that might take some more time to build?

Simon Campion, Chief Executive Officer, Dentsply Sirona: I don’t want to abdicate responsibility for CTS to the environment. Some of its challenges that we’ve had too, to be fair. And we addressed those in certain areas. We brought out a more competitive scanner a couple of years ago that certainly helped. And we addressed the gap in our portfolio in Imaging.

Several years ago, we discontinued a mid range CBCT. We brought that back in the middle of last year, and that has helped us globally, but particularly in Germany. So it’s macro has an impact, but Company specific. But it’s also some company specific things that we have been remediating. On the implant side, I think we have to take responsibility for that.

The market is reasonably robust. And we have simply made some footfalls in that space that we’re trying to resolve. One of those, I would say, well, some footfalls have been recent footfalls. But as we speak to customers about what is the value proposition to do business with us, we are a complex company. And so we have been moving down the simplification path over the past couple of years.

We have been engaging with all these customers in the more recent past. We’re in the midst of a very robust data acquisition with, I think it’s six fifty customers around The U. S. About the challenges they face, e commerce, ordering, phones, etcetera. And so we have set up a small group to get that data and then we will go and remediate those.

So we want to eliminate all the reasons for a customer not to engage with us or do business with us. And that’s where we’re focused now in addition to improving the skill set of our commercial team, aligning our business units and commercial teams more closely to drive meaningful messages to our customers and continuing to innovate. We just hired a new head of R and D for our implants business. Putting it on DS Core is going to help increase the value proposition of engaging with us.

John Block, Analyst, Stifel: Okay. Couple more divisions that I want to hit on and then we’ll go over to margins. For orthodontics, a lot of moving parts. I would think what growth reenters the equation once the BiTE headwind is lapped, which will be another two to three quarters. Specific to SureSmile, I think it was modestly down in the most recent quarter.

Can growth reappear as soon as this or next quarter once that DSO loss is lapped, which I think is imminent?

Simon Campion, Chief Executive Officer, Dentsply Sirona: Yes. So the DSO loss is imminent and that has impacted the U. S. Team for sure. We would have had modest growth ex that DSO loss I think in Q1.

In Europe, we grew double digits again for SureSmile, that’s now becoming a rather meaningful number to us. As we’ve discussed before, the software that we utilize for SureSmile is rooted in our legacy kind of wires and brackets core orthodontic business. So the back end works very well. The front end needs work. So again, when you think about a customer, we need to broaden the aperture in how we define a customer.

It’s not just the clinician. It’s also members of staff who engage with us and engage with our software. And so again, the value proposition, why would I shift from company A to U when I got to retrain all my staff on a more complex system? So we are simplifying that. We expect to complete that.

We have been modestly reengaging with the orthodontic specialist community more recently, and that is our trajectory there. We expect as we called out two or three years ago, we expect orthodontics to be a meaningful grower for us. I think we have, apart from that localized headwind, I think it has meaningfully grown. We expect that to continue and indeed accelerate as we reengage with the orthodontist community rather and fix the front end of our software.

John Block, Analyst, Stifel: And that orthodontist initiative, call it for SureSmile, think about that more ’26 and ’25, fair as you fix the front end of the software? Or can you start pushing in later this year?

Simon Campion, Chief Executive Officer, Dentsply Sirona: We think we can start pushing later this year again. Our European business has done very well. That is more orthodontist focused than our U. S. Business.

So we’ve been gathering the learnings from the experience we’ve had in Europe to see if we can accelerate prior to a software upgrade

John Block, Analyst, Stifel: in The U. started off the conversation. I said, hey, you beat the revenue and you did in the quarter, but the EPS was well ahead. So despite the negative revenue growth in the quarter, all four divisions and you guys gave some great details were up year over year on a margin basis. It hasn’t happened since you started providing that level of information.

Maybe if you could just talk about what allowed that to occur. I know the OIS got a little bit of a help from the 8,000,000 byte refund adjustment. But how do we think about continued margin expansion going forward?

Simon Campion, Chief Executive Officer, Dentsply Sirona: Yes. So I think certainly the byte adjustment helped. But also some our volumes were better than we expected in the first quarter. But I think arguably the meaningful thing for us as we consider the work that we’ve done in the past two point five years has been the improvement or the reduction in expenditure. We had a high expense base.

We took out we’ve taken out, I would say, several hundred million dollars over the past couple of years of expenses, and that’s now beginning to appear in the P and L. I think that if we can if we even get to modest levels of growth that the impact in the P and L will be meaningful. Moving forward, throughout the rest of the year, obviously, there are certain quarters around the world that have got higher revenue impact and that will affect the margins. Also some of the transformational work that we have done and continue to do will continue to improve the middle of the P and L. I would say our discipline around expenditure is very, very high.

And I think we gave the example of our presence at IDS in Q1 where I think we significantly reduced expenses and improved our sales from that event. We don’t need to be the big shiny penny all of the dime. We need to be very diligent about how we spend and we have been so and we’ll continue to be so.

John Block, Analyst, Stifel: So let me hit on I’ll still focus on margins maybe a little bit longer term. So when I was going through the model and trying to prep some questions, was thinking let me take a close look at the OpEx. And so from an OpEx perspective, OpEx was down 14% year over year in the first quarter of twenty twenty five. I’ve got it down 9% for 2025. Can this even move lower into 2026?

You still have some projects around ERP, plant consolidation, SKU rationalization. Or do we think about the 2025 as sort of the new OpEx base to grow from off that level?

Simon Campion, Chief Executive Officer, Dentsply Sirona: Well, wouldn’t say I’m going to give guidance here about what we’re going do for 2026. I would say that the diligence we’ve put in around how and where we spend has been very heightened since we got here, and that will continue into 2026. We would expect to begin to see benefits throughout 2026 and beyond around ERP, around SKU, around network. And we have reduced our network footprint and distribution center footprint by 10 in the past two years. So we would expect to continue to see benefits from that in the medium to long term.

In parallel with some investments that we want to make, we have invested selectively in SureSmile. We’ve seen a benefit. We’ve elected to invest in implants. We’ve yet to see a benefit as we discussed earlier on. But those markets are areas where we have good portfolios.

In one area, we are competing very well. We should be competing even more robustly. And in another area, we have failed to turn the tide at this point in time. So once we get that, we should see the flow through into the P and L.

John Block, Analyst, Stifel: Okay. And just sticking with a little bit more of a long term thought or focus for the time being. Let’s look at 2025, the constant currency growth is expected to be down 2% to 4% year over year. But again, that bite headwind is roughly 200 bps and you’ll lap that. So call it close to flat on a normalized basis.

You talked about maybe orthodontics getting a kicker from moving into the orthodontist community, some other initiatives that you have in implants. Can we think about that flat normalized in 2025 when you look forward? Do you think that will accelerate going into 2026?

Simon Campion, Chief Executive Officer, Dentsply Sirona: Yes. We should be a growth company. That’s very clear. We believe we have the technology to be a growth company. We’ve invested a whole lot in our CTS business from an innovation perspective over the past several years.

And as I noted to one of your earlier questions, we’re now in the process of putting the apps on the ecosystem where we should begin to see to realize some benefit in other parts of our business aside from just CTS. We should be growing very robustly in SureSmile, in ortho. We need to just stem the tide on implants and get that back moving in the right direction. In CTS, we feel we have a right to win there. The ecosystem that we have developed and continue to expand, I mentioned 14%, twenty five % and fifty eight % growth quarter over quarter in some of the key metrics.

As we begin to expand that, I think that ecosystem will benefit our entire portfolio. So again, for a company as broad as ours, we should be winning. That’s what we’re focused on. We’ve been very diligent with our costs. And we’re not here to be second or third.

We’re here to win, and we have failed to ignite that so far. But the promise of this company is very good. And the vehicle through which we believe we can fulfill that promise is DS Core and is reengaging with the specialist communities that we’ve ignored for many, many

John Block, Analyst, Stifel: I think that’s very encouraging. When you look forward and again, it’s not specific 2026 guidance in any shape, way or form, but intention of, hey, we should be a growth company and don’t think about that OpEx basis, you have to grow from there. There’s still other opportunities around some of those past initiatives that you’ve discussed?

Simon Campion, Chief Executive Officer, Dentsply Sirona: Yes. I mean, listen, I mentioned ERP, I mentioned SKU, I mentioned network. I spoke about on I think it was the Q4 call about third parties helping us with our expense base to take some of the back office stuff off our shoulders. We think there’s an opportunity there. We’re in the process of quantifying what that may look like.

We are again, I’ve said it a few times now, the diligence with which we view the our expenses is very, very high and will continue to be. But we don’t want to we know we can’t cut our way to growth, so we’re being selective about it.

John Block, Analyst, Stifel: Understood. So I’m going to shift gears and talk about how you’re selling and I’ll hit on distributors. Simon, you don’t mind, maybe just an update of where you currently stand with Patterson. I think I might have the months off a little bit, but I believe you put them on, call it, on notice roughly eleven months ago. Is there a new agreement in place?

Of course, the transparency isn’t quite as great with them being bought recently, but is there a new agreement in place? And were the economics altered, if you would?

Simon Campion, Chief Executive Officer, Dentsply Sirona: I would say since their change in ownership in February or so, I think we’ve I think the extent of our discussions with them has deepened and accelerated. So that we continue to be very important to them as they continue to be very important to us. The talks or discussions are ongoing and they’re I would say they’re positive and have deepened in the past eight or so weeks. I would say in general too, last week I noted before we went live here I was in The U. K.

We met with a couple of our very important distributors in The U. K. The European distributor market is more fragmented than The U. S. Market I would say.

And we have been what should we say restoring our relationships with some key distributors in Europe and in The U. K. In particular. And again, similarly in The U. S.

We have two very important distributors in The U. S. And I think we have over the past two or so years, we have improved relationships notwithstanding our difference of opinion with Patterson historically. I think we’ve improved our relationships with them. And hopefully when we collaborate better together, I think we perform better together.

John Block, Analyst, Stifel: And just so I understand it, you said the pace of conversations or talks have picked up over the past eight weeks. If we get to month 12, I don’t think anything technically changes. It still continues to run off the prior deal, if I have that right, until a new deal is put in place and then the structure would change. Is that correct?

Simon Campion, Chief Executive Officer, Dentsply Sirona: Yes. Mean, listen, we don’t have an equipment deal with one of the main distributors, and they continue to sell our products. They continue to service our products. We continue to work together and educate together. So it’s not a precursor to anything.

But as I said, the talks have accelerated, deepened. And we have I would say we have more common ground now than we had in January. Okay.

John Block, Analyst, Stifel: Very helpful. And how about the other side or and this might be standing on its own two feet, but you’ve of kicked off a virtual sales force initiative that I don’t know, I think through the earnings calls you seem to feel very strongly about. Maybe if you could bring us current, where that currently stands in terms of the number of reps, where they’re spending most of their time, are you starting to see orders come out of that initiative? And then I’m guessing that’s dilutive. When do you think that actually can turn accretive for you guys?

Simon Campion, Chief Executive Officer, Dentsply Sirona: Five questions in there. Yes, that’s all right. I’ll forget some of them. But the I’m a big believer in virtual sales. I think it’s a great vehicle to increase your reach to customers.

As we know in The U. S, there are 155,000 GPs and another 20,000, 30 thousand specialists. A lot of them some of them would be high value accounts to us, others would be lower value accounts to us and higher value accounts to others. And so the value proposition to send in a field based sales rep in his car, his or her car is lower for those accounts, but we will phone them up. And so these reps and there’s approximately 100 of them now based in Charlotte, they are making about 2,000 phone calls a day.

They have already engaged meaningfully with 21,000 accounts. We’re using them, as I noted in your first question, to drive more survey awareness or sentiment awareness in the marketplace. They have sold themselves almost $1,000,000 of product. But importantly, the funnel of potential orders is in the several million dollars range. And so we have seen, as we expected and demanded, good partnership and collaboration between the virtual sales team and the field based sales team to maximize the return from that business.

So whether it sits in the virtual sales or the field based sales, I’m not so concerned as long as someone sells something to someone. And so far, it’s on track. We’re about where we expect it to be. Some of the customers that we’re speaking to haven’t heard, haven’t seen a rep for several months because their value just isn’t big enough. The very first sale I think I noted this on the Q4 call.

The very first sale was to a customer that had bought $1,800 worth of product in 2023. And the first sale was for $1,600 And it’s agnostic to whether it’s a direct business like Endo, Resto or sorry, Endo implants or aligners or a distributor based sale. So the very first sale was a distributor account. So we connected with distributor and the process went ahead in its usual way. I’m a big believer.

I think it’s a great reticle. We’ve got really good feedback from customers. And the data they’re providing is helping us to make some decisions.

John Block, Analyst, Stifel: Is that a little bit behind the scenes what’s going on with Patterson is if you’re going to take this on and have a virtual sales force that’s going to generate some sales that are direct but also that are augmenting distributors? And going to that channel, it’s like, look guys, if we’re going to take this on and shoulder this burden, we’d also want a little bit of better economics on your side.

Simon Campion, Chief Executive Officer, Dentsply Sirona: No. It was the consideration of virtual sales was separate to anything with respect to dealers. We have said from the get go here that we need to create our own demand, that we can’t rely on our distributors we shouldn’t rely on our distributors to create demand. And we’ve been driving that with our field based sales team. And that’s why we created the virtual sales team to reach those customers that would not normally be reached by us and to have our message rather than a distributor message into those customers.

So as I noted, the first sale was a distributor based sale. So we’re agnostic to where it goes. Just as long as revenue line moves north, I’m not so concerned with how it works.

John Block, Analyst, Stifel: Okay. Last one or two minutes. I do want to quickly hit on tariffs. You detailed $0.10 this year. It seems like closer to $0.20 on an annual basis.

Simon, did anything get better with the China U. S. News post quarter? I know things are seemingly always evolving, but I and maybe a little bit, I believe you only have a small amount of exposure there when I say China U. S.

And in terms of Dentsply Sirona, should we be more sort of have our ears perked up in terms of any additional news flow in terms of what’s going on potential tariffs U. S, EU?

Simon Campion, Chief Executive Officer, Dentsply Sirona: So I would say there are two answers to the first part of your question. The impact of China U. S. On us is nominal. It is less than a couple of percentage points of our revenue, and our suppliers are very low percentage there too.

So it doesn’t really move the needle a whole lot one way or the other. I would say the bigger impact for arguably the dental market, the general market in general is has an improved sentiment in the marketplace. And I think the stock market certainly reacted more favorably to that news. So I think it’s more general positivity that a deal was struck. And in relation to the impact of tariffs on us, you said $0.10 which is correct.

And so for the rest of the year, have contemplated that remaining the way it is. As you know, about 50% of our U. S. Sales are come from our manufacturing sites outside of The U. S.

So any further degradation of or increase of those tariff numbers would have to be contemplated by us. And as I noted on the Q1 call, we have options. We are building some extra products selectively. We are redistributing some of our some of the product that’s in our distribution sites around the world to locate them in The U. S.

In advance of any tariffs. So we are taking action to mitigate the potential risk of

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