Elanco Animal Health Reports Fourth Quarter 2025 Results

Raising 2026 Innovation Target; Full Year 2026 Guidance of 4%-6% Organic Constant Currency Revenue Growth, 6%-9% Adjusted EBITDA Growth In Line with Investor Day Outlook

• Fourth Quarter 2025 Financial Results:
  • Revenue of $1,144 million, increased 12% on a reported basis; 9% in organic constant currency
  • Reported Net Loss of $276 million, Adjusted Net Income of $64 million
  • Adjusted EBITDA of $189 million; Adjusted EBITDA Margin of 16.7%
  • Reported EPS of $(0.56), Adjusted EPS of $0.13
• Full Year 2025 Financial Results:
  • Exceeded innovation revenue target at $892 million; delivered all 'Big 6' blockbuster potential products by the end of 2025 with Befrena approval in Q4 2025
  • Revenue of $4,715 million, increased 6% on a reported basis and 7% in organic constant currency
  • Reported Net Loss of $232 million, Adjusted Net Income of $473 million
  • Adjusted EBITDA of $901 million; Adjusted EBITDA Margin of 19.2%
  • Reported EPS of $(0.47), Adjusted EPS of $0.94
  • Net leverage ratio of 3.6x Adjusted EBITDA
• Full Year 2026 Guidance:
  • Raising innovation revenue target to $1.15 billion
  • Revenue of $4,950 million to $5,020 million, or 4% to 6% organic constant currency growth
  • Adjusted EBITDA of $955 million to $985 million, an increase of 8% at midpoint
  • Adjusted EPS of $1.00 to $1.06, an increase of 10% at midpoint
  • Year-end net leverage ratio target of 3.1x to 3.3x
  • In line with three-year outlook introduced at December Investor Day, outlining mid-single digit top-line organic constant currency growth, high-single digit Adjusted EBITDA growth, and low double-digit Adjusted EPS growth

Indianapolis, IN (February 24, 2026) - Elanco Animal Health Incorporated (NYSE: ELAN) today reported its financial results for the fourth quarter and full year 2025 and provided initial guidance for both the first quarter and full year 2026.

"Elanco delivered significant progress across our strategic priorities of growth, innovation, and cash in 2025," said Jeff Simmons, President and CEO of Elanco. "We achieved a strong fourth quarter with 9% organic constant currency revenue growth, marking our 10th consecutive quarter of underlying growth. Importantly, 2025 growth was high quality, spanning all four business quadrants, with contributions from price and volume, and with nine of our top 10 largest countries growing. Our innovation continues to exceed expectations, and we're raising our outlook for this basket to $1.15 billion in 2026 given the strong momentum, market share gains, and positive customer response. Our relentless focus on cash generation has allowed us to improve our net leverage ratio faster than planned, ending the year at 3.6x, well on our way to under 3x in 2027. Elanco is excited about our new era of growth built on a proven track record of consistent execution, with a robust pipeline and a highly engaged team to continue transforming animal care and delivering long-term value for our shareholders."

Select Business Highlights Since the Last Earnings Call

• Received USDA approval for Befrena™, a new anti-IL31 monoclonal antibody (mAb) injection targeting canine allergic and atopic dermatitis; recommended at a dosing interval of 6 to 8 weeks post-treatment vs. 4 to 8 weeks for the current market competitor
• Credelio Quattro™ achieved continued dollar share gains of broad-spectrum sales out of U.S. vet clinics in Q4, at the same pace as in Q3**; Australian approval received in February as Advocate™ Ultra Chew
• Achieved Zenrelia™ use in approximately 50% of U.S. clinics and double-digit share of the U.S. JAK market exiting December**; efficacy driving global momentum and share gains, with approximately 40% share of JAK market in Brazil, over 30% share in Japan, over 10% share in the U.K., and double-digit share in France, Italy, and Spain, outperforming the competitive entrant***
• Experior® 2025 sales over $200 million, up nearly 80% year over year; AdTab™ continued robust growth trajectory with Q4 sales up over 50% year over year

**Per Kynetec Q3 and Q4 data

***Internal estimates based on multiple data sources