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Jun 30, 2025
Elanco Q2 2025 Earnings Report
Elanco Animal Health reported strong second quarter 2025 results, exceeding expectations with significant revenue growth driven by new product launches and improved financial targets for the full year.
Key Takeaways
Elanco Animal Health delivered its eighth consecutive quarter of growth in Q2 2025, with revenue increasing by 5% year-over-year to $1,241 million, driven by 8% organic constant currency growth. The company reported a net income of $11 million and adjusted EPS of $0.26. Strong performance in Pet Health, particularly from new products, and increased volumes in Farm Animal segments contributed to the positive results. Elanco also improved its full-year financial outlook and net leverage ratio target.
Achieved 8th consecutive quarter of growth with total revenue of $1,241 million, up 5% year-over-year, and 8% organic constant currency growth.
Pet Health revenue increased by 11% to $643 million, with new products like Credelio Quattro, AdTab, and Zenrelia driving volume growth.
Reported net income of $11 million and adjusted net income of $131 million, with adjusted EPS of $0.26.
Improved year-end net leverage ratio target to 3.8x to 4.1x, reaching 4.0x at quarter-end, and raised full-year revenue and Adjusted EBITDA guidance.
Revenue by Segment
Forward Guidance
Elanco is raising its full-year 2025 financial guidance for revenue, Adjusted EBITDA, and Adjusted EPS, reflecting strong first-half performance and favorable foreign exchange rates, despite a dynamic market landscape.
Positive Outlook
- Raising full-year revenue guidance to $4,570 million to $4,620 million.
- Expect accelerating organic constant currency revenue growth of 5% to 6% for the full year.
- Raising 2025 innovation revenue target by $60 million to $720 million to $800 million.
- Raising guidance for Adjusted EBITDA to $850 million to $890 million.
- Raising guidance for Adjusted EPS to $0.85 to $0.91.
Challenges Ahead
- Reported Net Loss guidance for full year is $(38) million to $(14) million.
- Reported Loss Per Share guidance for full year is $(0.08) to $(0.03).
- Full year adjusted EBITDA incorporates a current estimate for net tariff impact of $10 million to $14 million.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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