Envista Holdings Corp (NYSE:NVST) saw its stock surge 10.26% in the pre-market session on Thursday, following the release of its fourth-quarter 2024 earnings results. The dental products company reported better-than-expected earnings, announced a share buyback program, and provided optimistic guidance for 2025, despite facing challenges in certain markets.

The company reported a 2% increase in core sales for Q4 2024, adjusted for currency impact, and an adjusted EBITDA margin of 13.9%, which was 170 basis points lower than the prior year. However, Envista's adjusted gross margin improved by nearly 500 basis points year-over-year, and the company generated over $300 million in free cash flow for the full year, marking a 35% increase compared to 2023.

Envista's performance was impacted by a soft global dental market, with specific geographic markets facing headwinds and high macroeconomic volatility. The company reported a decline in its diagnostics business, with negative imaging growth in key markets like China, and saw a sharp slowdown in its orthodontics business in China due to inventory drawdowns in preparation for VBP implementation.