Elanco Animal Health Inc

Latest Results (02.04.2026):

Elanco Animal Health Inc — Fourth quarter of 2025: Elanco reported Q4 2025 revenue of $1,144 million (up 12% reported; +9% organic constant currency), a reported net loss of $276 million and adjusted net income of $64 million, with adjusted EBITDA of $189 million (16.7% margin). The company also reported full-year 2025 results, exceeded its innovation revenue target, and issued 2026 guidance raising its innovation target to $1.15 billion.

Revenue and growth

Q4 2025 revenue was $1,144M (+12% reported, +9% organic CC). Full-year 2025 revenue was $4,715M (+6% reported, +7% organic CC). Growth was broad-based across Pet Health ($489M Q4) and Farm Animal ($640M Q4), led by new products and volume in cattle and poultry.

Profitability and adjusted metrics

Q4 reported net loss $(276)M (EPS $(0.56)); adjusted net income $64M (adjusted EPS $0.13). Q4 adjusted EBITDA $189M (16.7% margin). Full-year adjusted EBITDA was $901M (19.2% margin) and adjusted EPS $0.94.

Innovation and product momentum

Full-year 2025 innovation revenue reached $892M, exceeding target; Elanco delivered all “Big 6” products by year-end (Befrena approval in Q4 2025). Notable commercial momentum: Credelio Quattro, Zenrelia adoption (~50% of U.S. clinics), Experior surpassed $200M in 2025 (≈+80% YoY), and AdTab growth (+50% YoY in Q4).

2026 guidance and outlook

Full-year 2026 guidance: revenue $4,950–$5,020M (4%–6% organic CC growth), adjusted EBITDA $955–$985M, adjusted EPS $1.00–$1.06. Innovation revenue target raised to $1.15B. Q1 2026 guidance: revenue $1,280–$1,305M; adjusted EBITDA $290–$310M; adjusted EPS $0.33–$0.36.

Restructuring, costs and productivity

Q4 included $202M of asset impairment, restructuring and special charges (includes $155M restructuring charges, $116M cash severance). Additional $25–$30M of costs anticipated in 2026. Elanco Ascend program targets $200–$250M of EBITDA savings by 2030, with ~30% of savings expected in 2026.

Cash flow, leverage and balance sheet

Q4 cash provided by operations was $108M (vs. $177M prior year). Net leverage at 12/31/2025 was 3.6x trailing adjusted EBITDA, improved slightly from prior quarter; management targets 3.1x–3.3x year-end 2026 and <3x in 2027, with at least $1B free cash flow expected over 2026–2028.

Key risks and drivers called out

Management emphasized continued investment behind innovation launches and strategic pricing as growth drivers, while noting restructuring charges, higher interest expense from refinancing activity, and ongoing execution and regulatory risks as potential headwinds.