Elanco Animal Health reported first-quarter 2025 results showing stronger-than-expected revenue, adjusted EBITDA, and adjusted earnings per share, driven by momentum across both pet and farm animal health segments.
“Our diverse portfolio delivered 4% organic constant currency revenue growth, with accelerating Pet Health trends in March and April, and consistently strong execution in Farm Animal,” said Jeff Simmons, Elanco president and CEO. “We have raised our 2025 revenue guidance given the FX tailwind, and we have increased our innovation revenue target, led by the commercialization of our potential blockbuster products which also enhance our stable base business.”
Elanco posted Q1 revenue of $1.193 billion, a 1% decline year-over-year but a 4% increase on an organic constant currency basis. Adjusted EBITDA came in at $276 million (23.1% of revenue), and adjusted net income reached $184 million, or $0.37 per share. The company ended the quarter with a net leverage ratio of 4.4x adjusted EBITDA.
Farm animal and companion animal products both contributed to growth, with recent product launches gaining traction. Elanco reported that Credelio Quattro achieved approximately 10% share of U.S. broad-spectrum product sales into veterinary clinics. Zenrelia, Elanco’s dermatology treatment, is now in use at about 11,000 U.S. clinics and has launched in several international markets, with additional approvals expected in 2025.
AdTab, Elanco’s oral flea and tick treatment, was approved and launched in the UK in April 2025, with first-quarter sales doubling year-over-year. On the livestock side, the number of cows on Elanco’s methane-reducing feed additive Bovaer doubled since February, and the company has submitted data to support expanded claims.
Elanco also announced a $295 million agreement to monetize certain U.S. royalties and milestones associated with lotilaner beginning in Q2 2025.
For the full year, Elanco raised its revenue guidance to $4.51–$4.58 billion, up $65–$70 million from prior forecasts, and increased its innovation revenue target to $660–$740 million. The company maintained its adjusted EBITDA guidance of $830–$870 million and adjusted EPS guidance of $0.80–$0.86.
Elanco expects to pay down $450–$500 million in gross debt in 2025 and now targets a year-end net leverage ratio of 3.9x to 4.3x, reflecting improved working capital, favorable foreign exchange rates, and proceeds from the royalty monetization deal.
Despite acknowledging macroeconomic uncertainty and estimated tariffs’ net impact of $16–$20 million to adjusted EBITDA, Simmons said Elanco remains confident in its ability to accelerate growth in the coming quarters.
“Our durable portfolio and solid momentum bolster our confidence in sequential acceleration of revenue growth to deliver our 2025 goals while creating long-term value for shareholders and society,” he said.
Adapted from a press release.
