Elanco Animal Health Reports Q1 2025 Results

Elanco Animal Health ( (ELAN) ) has released its Q1 earnings. Here is a breakdown of the information Elanco Animal Health presented to its investors.

Elanco Animal Health Incorporated is a global leader in animal health, specializing in products and services for disease prevention and treatment in farm animals and pets, with a commitment to improving animal health and creating value for stakeholders.

In its first quarter of 2025, Elanco reported revenue of $1,193 million, marking a slight decline of 1% year-over-year, although it achieved a 4% organic constant currency growth. The company posted a reported net income of $67 million and an adjusted net income of $184 million, with an adjusted EBITDA of $276 million, representing 23.1% of revenue.

Key financial highlights include a raised full-year revenue guidance to between $4,510 and $4,580 million, driven by favorable foreign exchange rates. The company also increased its innovation revenue target to $660 to $740 million. Despite a reported net loss forecast for the full year, Elanco maintains its adjusted EBITDA guidance of $830 to $870 million and adjusted EPS of $0.80 to $0.86. The company is also focusing on debt reduction, targeting a gross debt paydown of $450 to $500 million by year-end.

Elanco’s strategic initiatives are underscored by its diverse product portfolio, which saw significant contributions from new product sales and strong demand for parasiticide products in Europe. The company continues to focus on productivity and deleveraging, with an improved net leverage target for the year-end.

Looking ahead, Elanco remains cautiously optimistic, balancing strong first-quarter performance and favorable currency rates against potential macroeconomic volatility. The company is poised to achieve its 2025 goals, leveraging its durable portfolio and strategic investments to drive long-term shareholder value.