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7 May 2025

Elanco Animal Health Reports First Quarter 2025 Results

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Accelerating Debt Paydown in 2025

  • First Quarter 2025 Financial Results:
    • Revenue of $1,193 million, a decline of 1% year-over-year; 4% organic constant currency growth
    • Reported Net Income of $67 million, Adjusted Net Income of $184 million
    • Adjusted EBITDA of $276 million, or 23.1% of Revenue
    • Reported EPS of $0.13, Adjusted EPS of $0.37
    • Net leverage ratio of 4.4x Adjusted EBITDA
  • Full Year 2025 Guidance:
    • Raising revenue guidance to $4,510 to $4,580 million, with $65 to $70 million increase since February driven by foreign exchange tailwind; continue to expect accelerating organic constant currency revenue growth to mid-single digits
    • Raising 2025 innovation revenue target to $660 to $740 million
    • Reported Net Loss of $(35) to $(7) million, maintaining guidance for Adjusted EBITDA of $830 to $870 million
    • Reported Loss Per Share of $(0.07) to $(0.01), maintaining guidance for Adjusted EPS of $0.80 to $0.86
    • Outlook incorporates current estimate for tariff net impact of $16 to $20 million to Adjusted EBITDA and expected continued macro volatility, offset by a strong first quarter performance
    • Expecting gross debt paydown of $450 to $500 million in 2025
    • 2025 year-end net leverage ratio target improved to 3.9x to 4.3x, enabled by disciplined working capital management, more favorable foreign exchange rates, and lotilaner U.S. royalty monetization

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

"Elanco exceeded first quarter guidance for revenue, adjusted EBITDA, and adjusted EPS,” said Jeff Simmons, President and CEO of Elanco. “Our diverse portfolio delivered 4% organic constant currency revenue growth, with accelerating Pet Health trends in March and April, and consistently strong execution in Farm Animal. We have raised our 2025 revenue guidance given the FX tailwind, and we have increased our innovation revenue target, led by the commercialization of our potential blockbuster products which also enhance our stable base business. We continue to drive greater productivity and deleveraging, and have improved our net leverage target for year-end to reflect disciplined working capital management, favorable currency rates, and our non-core asset monetization of certain lotilaner U.S. royalties. While we are taking a prudent approach to the balance of the year given the dynamic macroeconomic backdrop, our durable portfolio and solid momentum bolster our confidence in sequential acceleration of revenue growth to deliver our 2025 goals while creating long-term value for shareholders and society."

Select Business Highlights Since the Last Earnings Call

  • Credelio Quattro™ achieved approximately 10% dollar share of broad-spectrum sales into U.S. vet clinics in Q1**
  • Zenrelia™ use in approximately 11,000 U.S. clinics, representing penetration of over 35%; performing on or ahead of expectations in Brazil, Canada, and Japan; Australia, EU, and UK approvals on track for 2025
  • AdTab™ approved and launched in the United Kingdom in April 2025; sales doubled in the first quarter of 2025 compared to the prior year
  • Cows on Bovaer® doubled since February; data submitted for expanded claim, enhancing value and user flexibility
  • Agreement to monetize certain lotilaner U.S. royalties and milestones from Q2 2025 through Q3 2033 for $295 million

To view full Press Release, click here.


Media Contact

Colleen Parr Dekker

+1.317.989.7011

colleen.dekker@elancoah.com

Investor Contact

Tiffany Kanaga

+1.765.740.0314

tiffany.kanaga@elancoah.com

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