Elanco Animal Health Inc. reported fourth‑quarter 2025 financial results on February 24, 2026. Total revenue reached $1,144 million, a 12% year‑over‑year increase and 9% organic constant‑currency growth, driven by strong performance in both pet health and farm animal segments. Adjusted earnings per share were $0.13, a 7% decline from the prior year’s $0.14, while adjusted EBITDA rose to $189 million, up 7% from the same period in 2024. The company guided 2026 revenue to $4,950 million–$5,020 million and adjusted EBITDA to $955 million–$985 million, maintaining confidence in its growth strategy.
Pet Health revenue grew 11% to $489 million, and Farm Animal revenue increased 12% to $640 million, together accounting for the quarter’s top‑line growth. Adjusted EBITDA margin contracted to 16.7% from 17.4% in the prior year, reflecting higher operating expenses associated with marketing, selling, and administrative investments to support new product launches and the Ascend productivity program. The decline in adjusted EPS was largely attributable to a higher effective tax rate.
Full‑year 2025 revenue totaled $4,715 million, up 6% from $4,415 million in 2024. Full‑year adjusted EPS was $0.94, compared with $0.91 in 2024, and full‑year adjusted EBITDA reached $955 million, a 7% increase from $890 million in 2024. Net leverage improved to 3.6× adjusted EBITDA at year‑end 2025, moving toward the company’s target range of 3.1×–3.3× for 2026.
CEO Jeff Simmons said, “Elanco delivered significant progress across our strategic priorities of growth, innovation, and cash in 2025.” He added, “We achieved a strong fourth quarter with 9% organic constant currency revenue growth, marking our 10th consecutive quarter of underlying growth.” CFO Bob VanHimbergen noted, “We are entering 2026 with positive momentum, and strong confidence in our IPP strategy to drive continued execution and value creation.” The company also highlighted its Ascend productivity program as a key driver of operational efficiency.
Guidance for 2026 reflects continued confidence in demand for new products such as Credelio Quattro and Zenrelia, and the company’s focus on expanding its pipeline. Management signals that the 2026 outlook is based on sustained organic growth, disciplined cost management, and the expected impact of the Ascend program. Headwinds include a higher tax rate that weighed on adjusted EPS, while tailwinds are the successful launch of new products and the momentum from the Ascend program.
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