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Elanco Animal Health Reports Second Quarter 2025 Results

Raising Full Year Outlook and Innovation Target, Improving Year-End Net Leverage Ratio Target

  • Second Quarter 2025 Financial Results:
    • Revenue of $1,241 million, an increase of 5% year-over-year; 8% organic constant currency growth
    • Reported Net Income of $11 million, Adjusted Net Income of $131 million
    • Adjusted EBITDA of $238 million; Adjusted EBITDA Margin of 19.2% 
    • Reported EPS of $0.02, Adjusted EPS of $0.26
    • Net leverage ratio of 4.0x Adjusted EBITDA
  • Full Year 2025 Guidance:
    • Raising revenue guidance to $4,570 to $4,620 million; expect accelerating organic constant currency revenue growth of 5% to 6% vs. 3% in 2024
    • Raising 2025 innovation revenue target by $60 million to $720 to $800 million
    • Reported Net Loss of $(38) to $(14) million, raising guidance for Adjusted EBITDA to $850 to $890 million
    • Reported Loss Per Share of $(0.08) to $(0.03), raising guidance for Adjusted EPS to $0.85 to $0.91 
    • Outlook incorporates current estimate for net tariff impact and dynamic landscape, more than offset by a strong first half performance and foreign exchange tailwinds to revenue versus prior expectations 
    • Increasing expected gross debt paydown range to $500 to $550 million in 2025
    • 2025 year-end net leverage ratio target improved to 3.8x to 4.1x, enabled by year-to-date execution and disciplined working capital management

GREENFIELD, Ind., Aug. 7, 2025 /PRNewswire/ -- Elanco Animal Health Incorporated (NYSE: ELAN) today reported financial results for the second quarter of 2025, provided guidance for the third quarter of 2025, and updated guidance for the full year 2025.

"I'd like to thank our global Elanco team for delivering our 8th straight quarter of growth, driving results beyond expectations," said Jeff Simmons, President and CEO of Elanco. "Our diverse portfolio of innovation fueled accelerating organic constant currency revenue growth of 8%, led by U.S. Pet Health at 11%. We have once again increased our innovation revenue target, reflecting contributions by Credelio Quattro, Experior, AdTab, and Zenrelia, which also are stabilizing our base portfolio. We are delevering faster than expected, reaching 4.0x at quarter-end, and have improved our 2025 net leverage ratio target. With our strong first half performance and consistent execution, we are raising our full-year outlook, even while recognizing a highly dynamic landscape with a mix of opportunities and challenges. We enter the balance of the year well-positioned to deliver our commitments, transform animal care, and create long-term shareholder value. Elanco is focused on executing with high engagement and discipline, which we expect to drive sustained growth, innovation, and cash."

Select Business Highlights Since the Last Earnings Call

  • Credelio Quattro™ achieved approximately 14% dollar share of broad-spectrum sales out of U.S. vet clinics in June**, with sell-in and sell-out rates at relatively consistent levels to each other at quarter-end
  • Zenrelia™ approved by the European Commission and launching in EU countries in Q3 2025, with a label consistent with other markets outside the U.S. where the product has already been approved; received notification from FDA for revised U.S. label language in Q4 2025, removing risk language of fatal vaccine-induced disease
  • Experior® Q2 sales up more than 80% year over year; AdTab™ continued robust growth trajectory with Q2 sales up over 60% year over year
  • Cows on Bovaer®  quadrupled since February
  • TruCan™ Ultra CIV, approved by the USDA in July, enhancing Elanco's extensive line of Tru Portfolio vaccines; launched in the U.S. in July
  • Monetization of certain lotilaner U.S. royalties and milestones from Q2 2025 through Q3 2033 for $295 million, with proceeds used for debt paydown
  • Launch of Elanco Ascend, a company-wide productivity and capability initiative expected to drive added value in 2026 and beyond
  • Robert (Bob) VanHimbergen appointed Executive Vice President and Chief Financial Officer, effective July 7, following an extensive and competitive search, to guide the continuation of sustainable value creation
  • The company released its 2024 Impact Report, introducing a new strategic framework and celebrating Elanco's culture of 'Going Beyond' for animals, customers, society and its people