Elanco Animal Health Inc

Latest Results (29.09.2025):

Elanco Animal Health Inc reported its second quarter of 2025 financial results, demonstrating solid growth and enhanced financial targets. Revenue increased by 5% year-over-year to $1,241 million, supported by strong performance in both pet and farm animal segments. The company also raised its full-year 2025 outlook, reflecting confidence in continued growth and improved financial leverage.

Revenue Growth

Elanco achieved total revenue of $1,241 million in the second quarter of 2025, marking a 5% increase compared to the same period last year. On an organic constant currency basis, revenue grew by 8%, driven by robust performance in the U.S. Pet Health segment, which saw an 11% increase.

Adjusted EBITDA and Profitability

The company reported an Adjusted EBITDA of $238 million with a margin of 19.2%. Reported Net Income stood at $11 million, while Adjusted Net Income was $131 million. Earnings per share were $0.02 on a reported basis and $0.26 on an adjusted basis.

Full Year 2025 Guidance Raised

Elanco has increased its full-year revenue guidance to a range of $4,570 to $4,620 million, anticipating an organic constant currency revenue growth of 5% to 6%, up from 3% in 2024. The company also raised its Adjusted EBITDA guidance to $850 to $890 million.

Innovation Revenue Target Increased

The innovation revenue target for 2025 has been raised by $60 million to a range of $720 to $800 million. This increase reflects the contributions from new products such as Credelio Quattro, Experior, AdTab, and Zenrelia, which are also helping to stabilize Elanco’s existing portfolio.

Improved Net Leverage Ratio

Elanco has improved its 2025 year-end net leverage ratio target to 3.8x to 4.1x Adjusted EBITDA, up from the previous target. This improvement is supported by accelerated debt paydown and disciplined working capital management, with expected gross debt paydown increased to $500 to $550 million in 2025.