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Sep 30
Elanco Q3 2025 Earnings Report
Elanco reported strong third quarter 2025 results, exceeding expectations with significant revenue growth and improved profitability, driven by new product launches and disciplined financial management.
Key Takeaways
Elanco Animal Health delivered robust third-quarter 2025 financial results, with total revenue reaching $1,137 million, marking a 10% year-over-year increase. The company achieved 9% organic constant currency revenue growth, primarily fueled by strong performance in its Pet Health and Farm Animal segments, particularly from new product innovations like Credelio Quattro and Zenrelia. Adjusted EBITDA increased by 21% to $198 million, and adjusted EPS rose by 46% to $0.19, demonstrating improved operational efficiency and profitability. Elanco also improved its year-end net leverage ratio target to 3.7x, reflecting strong cash generation and debt reduction efforts.
Total revenue increased by 10% year-over-year to $1,137 million, with organic constant currency growth of 9%.
Adjusted EBITDA grew by 21% to $198 million, resulting in an adjusted EBITDA margin of 17.5%.
Adjusted EPS significantly increased by 46% to $0.19, while reported EPS was $(0.07).
Net leverage ratio improved to 3.7x Adjusted EBITDA, ahead of schedule, due to strong cash flow and debt paydown.
Elanco
Elanco
Elanco Revenue by Segment
Revenue by Segment
Pet Health Revenue
CapyFin.comFarm Animal Revenue
CapyFin.comCattle Revenue
CapyFin.comPoultry Revenue
CapyFin.comSwine Revenue
CapyFin.comContract Manufacturing & Other Revenue
CapyFin.com Forward Guidance
Elanco is raising its full-year 2025 guidance across revenue, Adjusted EBITDA, and Adjusted EPS, reflecting strong year-to-date performance and confidence in its innovation pipeline and operational execution. The company also improved its year-end net leverage ratio target.
Positive Outlook
- Raising full-year revenue guidance to $4,645 million to $4,670 million.
- Accelerating organic constant currency revenue growth expected to be 6% to 6.5% for the full year.
- Raising 2025 innovation revenue target by $100 million at the midpoint to $840 million to $880 million.
- Raising guidance for Adjusted EBITDA to $880 million to $900 million.
- Raising guidance for Adjusted EPS to $0.91 to $0.94.
Challenges Ahead
- Reported Net Loss guidance for full year 2025 is being raised to $(56) million to $(41) million.
- Reported Loss Per Share guidance for full year 2025 is being raised to $(0.11) to $(0.08).
- Operating expenses are expected to increase approximately 8% year over year in constant currency for the full year, up from 7% previously, due to strategic investments.
- Fourth quarter revenue guidance of $1,085 million to $1,110 million suggests a sequential decrease from Q3.
- Fourth quarter reported net loss guidance of $(100) million to $(86) million indicates continued reported losses.
Revenue & Expenses
Visualization of income flow from segment revenue to net income