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Mar 31

Elanco Q1 2025 Earnings Report

Elanco Animal Health reported financial results for the first quarter of 2025, exceeding guidance for revenue, adjusted EBITDA, and adjusted EPS.

Key Takeaways

Elanco Animal Health reported first quarter 2025 revenue of $1,193 million, a 1% decrease year-over-year but a 4% increase in organic constant currency. The company reported net income of $67 million and adjusted net income of $184 million. Reported EPS was $0.13 and adjusted EPS was $0.37. The company raised its full-year 2025 revenue guidance.

First quarter 2025 revenue was $1,193 million, a 1% decrease year-over-year but a 4% increase in organic constant currency.

Reported Net Income was $67 million, and Adjusted Net Income was $184 million.

Reported EPS was $0.13, and Adjusted EPS was $0.37.

Elanco is raising full-year 2025 revenue guidance to $4,510 to $4,580 million.

Total Revenue
$1.19B
Previous year: $1.21B
-1.0%
EPS
$0.37
Previous year: $0.34
+8.8%
Organic CC Revenue Growth
4%
Adjusted EBITDA
$276M
Previous year: $294M
-6.1%
Adjusted EBITDA Margin
23.1%
Previous year: 24.4%
-5.3%
Gross Profit
$684M
Previous year: $690M
-0.9%
Cash and Equivalents
$487M
Previous year: $345M
+41.2%

Elanco

Elanco

Elanco Revenue by Segment

Forward Guidance

Elanco is raising its full year 2025 revenue guidance to $4,510 to $4,580 million and maintaining adjusted EBITDA and adjusted EPS guidance.

Positive Outlook

  • Raising 2025 revenue guidance driven by foreign exchange tailwind and strong first quarter performance.
  • Increasing 2025 innovation revenue target to $660 to $740 million.
  • Expecting accelerating organic constant currency revenue growth to mid-single digits.
  • 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.

Challenges Ahead

  • Reported Net Loss of $(35) to $(7) million expected for the full year.
  • Reported Loss Per Share of $(0.07) to $(0.01) expected for the full year.
  • Outlook incorporates current estimate for tariff net impact of $16 to $20 million to Adjusted EBITDA.
  • Expected continued macro volatility factored into outlook.
  • Second quarter guidance anticipates approximately $5 million headwind to revenue from unfavorable foreign exchange rates.

Revenue & Expenses

Visualization of income flow from segment revenue to net income