Jeff Johnson: Appreciate that. Thank you.
Operator: Thank you. Our next question will come from Jon Block with Stifel. Your line is open.
Jon Block: Thanks, guys. Good evening. Maybe the first one it sounds like the expectations for modest growth for revenue and EBITDA expansion in 2024 Stephen if I heard you correctly. So what do we think about the LRP EBITDA margin of 22.5% for 2026? And that implies greater than 100 bps off the new 18.5% this year. And next year doesn’t seem like that’s teed up for 100 bps. So it would be wildly back-end weighted. So let me maybe start there. Do we take that off the table which arguably was on the table only nine or 10 months ago? And then I’ll ask the follow-up.
Amir Aghdaei: Yes. Happy to answer that Jon. We put a guidance out there and said that in the long run we want to get to about high single digit in 2026 to 22.5%. So what assumptions were we made when we make those what has changed? We just meant we just communicated that our intention is to double the size of our Spark business. That plays such an important role in reaching that core milestone in the long run. To do that calculation you’ll find out in the next three years we have significant opportunity for expansion or growth in that area one. Two, the margin on our Spark is below fleet average. And what we have — if we look at it in the last seven quarters, specifically in the last quarters, every quarter we have better margin than the previous one.
While we continue to make investment, we’ll continue to do automation, EBS network try to improve the margin in order to get this to be fleet average as we get in outer years such. As significant investment and growth and portion of our portfolio getting to more fleet average really make that equation work. So that’s the first element of this. Second, our implant business has been operating been performing below market proxies. The plan that — we have to go execute it. But the plan that is in place to get that to the market proxies over the next couple of years start improving that in 2024. It’s such a high-margin business. That by itself is going to make a huge difference. The third piece of this equation is around diagnostics. We course correct and deemphasize some of the product categories region, that’s going to be behind us.
We’re going to see a better performance. You have seen that in the past three quarters our Equipment & Consumable has better margins and continued to deliver. Now imagine getting to market proxies to single-digit market improvement higher margin in that area. That is going to add to the proxy add to that long-term view. We’re not counting on any radical changes. We do that math. We execute the program that we have in place we deliver on what we have in our long-term view without any acquisition we think that long-term goal is achievable. We need to go on and execute it in the short-term. We have to make some trade-off between growth and margin in order to build the foundation for the long run. This organization has proven that they have tracked record of confidence in building credibility and operational excellence.
450 basis point of operating margin improvement we have done that. We can do that again moving forward.
Jon Block: Okay. That was great. That was very helpful. I mean, the second question might just be a little bit more straightforward, and I apologize in advance for it. But I just really don’t understand the implant commentary. So it seems like you’ve been the main share donor in the industry of late. You’re poorly weighted in terms of call it premium versus value. How do you expect to get back to market growth as early as 2024? Maybe if you can detail how you do that so quickly. And then I feel like getting back to market growth in 2024 is actually an odd with modest revenue growth because it’s such a big chunk of your portfolio, Amir. 40% of your biz is going to grow mid single-digit and Spark is still doing really well it’s hard not to land at mid single-digit growth for you guys when you sort of weight everything out.
So I find them at odds maybe if you can talk to that. And then that’s a really quick turn to get back to market growth considering your starting point with mix against you? Any details would be great. Thanks guys.
Amir Aghdaei: Thank you so much for your confidence, Jon. I really appreciate it. But let me tell you what is — let me break this down for. You said 40% absolutely correct. 50% of that is this 20% of business the operating and market proxies. So this is not a wholesale transformation. It’s about 50% of business, which is North America operating below market proxies as it stands today. And we can sit down and do all the math about what the market proxies in the last nine months in each one of the segments look like we think about 80% of our business today is operating on market proxies. 20% of the business which is North America impact is below what those proxies are in North America. And again, you have a very good view of all the announcement that’s coming up to what is taking place in North America.
