Elanco provides three-year financial outlook

Elanco (ELAN) provided a three-year financial outlook beginning in 2026. The company expects: adjusted EPS growth in the low double digits; organic constant currency revenue growth in mid-single digits; adjusted EBITDA growth in the high single digits; free cash flow of at least $1B over the period from 2026 through 2028; net leverage ratio achieving less than3x in 2027, with a long-term target of 2.0x to 2.5x. Elanco now expects innovation to generate approximately $1.1B in revenue in 2026, an increase of over $200M from $840M-$880M expected in 2025. Elanco also announced organizational changes designed to generate $25M and $60M in savings in 2026 and 2027, respectively. Approximately 600 roles will be impacted across Elanco with 300 eliminated positions and 300 shifted to other areas or locations. The company expects a charge of approximately $175M, of which about $130M is expected to be cash based. Elanco reaffirms its Q4 and FY25 outlook provided on November 5, 2025, other than reported net loss and net loss per share, which will be impacted by the restructuring charges.