Elanco Animal Health Incorporated · NYSE:ELAN
Elanco Animal Health — Q2 2026 Earnings Presentation
35 slides from Elanco Animal Health's earnings presentation, Aug 5, 2026
Slide 1: 2026 Earnings – Second Quarter
2026 Earnings – Second Quarter D August 5, 2026
Slide 2: Notices and Disclaimers
2026 | Q2 Earnings Notices and Disclaimers Forward-Looking Statements. This presentation contains forward-looking statements within the meaning of the federal securities laws, including, without limitation, statements concerning product launches and revenue from such products, our 2026 full year and
Slide 3: On Today’s Call
2026 | Q2 Earnings On Today’s Call Jeff Simmons Bob VanHimbergen Elanco Animal Health Elanco Animal Health President and Executive Vice President, Chief Executive Officer Chief Financial Officer 3
Slide 4: Elanco as a Consistent, Strong Reliable Growth Company: Q2 Exceeding Expectations
2026 | Q2 Earnings Elanco as a Consistent, Strong Q2 Exceeding Expectations Reliable Growth Company Revenue, Adj. EBITDA, and Adj. EPS all above guidance; 8% organic CC3 revenue growth led by U.S. Pet Health and U.S. Farm Animal each up 11%; Delivering Our Diverse strong contributions from price (+2
Slide 5: 8% Organic CC Revenue Growth
2026 | Q2 Earnings Q2 2025 to Q2 2026 Revenue Bridge 8% Organic CC1 Revenue Growth 8% Revenue 11% Growth 5% $ millions Growth Growth 11% 2% 9% Growth Growth 11% Growth Growth $1,368 $16 $10 $1,241 Q2 2025 FX CMO, Royalty, & Q2 2026 Actual Acquisition U.S. Int’l U.S. Int’l Actual Numbers may not add
Slide 6: Raising 2026 Innovation Revenue Target to $1.25B
2026 | Q2 Earnings Q2 Innovation Revenue Contribution of $340M Raising 2026 Innovation Revenue Target to $1.25B Prior Guidance: $1.2B $1.25B Pet Health $892M Big 6 Farm Animal $461M $275M Remaining Innovation 2023 2024 2025 2026E Note: Innovation revenue is incremental in reference to 2020 sales and
Slide 7: Updates on Big 6 Major Innovation Products
2026 | Q2 Earnings Updates on Big 6 Major Innovation Products • Achieved blockbuster status with July YTD sales • Share up 4 points vs Q11, represents • Continued robust growth trajectory >$100M accelerating share gains of broad-spectrum with Q2 sales up over 30% • U.S. JAK market share up 9 points
Slide 8: Deliver Consistent, High-Impact Innovation
2026 | Q2 Earnings Deliver Consistent, High-Impact Innovation No Attrition in Next Establishing Elanco OTC & Vaccines Wave Ventures U.S. OTC innovation 5-6 blockbuster- Corporate venture under Advantage potential innovations platform to accelerate brand; three U.S. expected through innovation; $25M
Slide 9: Financial Results
Financial Results Second Quarter 2026 9
Slide 10: Impact of Price, Rate, and Volume on Revenue
2026 | Q2 Earnings Second Quarter 2026 Impact of Price, Rate, and Volume on Revenue Organic Organic CC1 $ Millions Revenue Price FX Rate Volume Acquisition Total Change Pet Health $718 2% 1% 9% 12% 11% Cattle $313 2% 3% 17% 12% Poultry $223 2% 4% 2% Swine $97 1% (3)% (4)% Farm Animal $633 2% 2% 3% 1
Slide 11: Revenue by Geography and Species
2026 | Q2 Earnings Second Quarter 2026 Revenue by Geography and Species Organic CC1 $ Millions 2026 2025 Change (%) Change (%) US Pet Health $420 $377 11% 11% Int’l Pet Health $298 $266 12% 9% Total Pet Health $718 $643 12% 11% US Farm Animal $243 $215 13% 11% Int’l Farm Animal $390 $368 6% 2% Total
Slide 12: Adjusted Income Statement Highlights
2026 | Q2 Earnings Second Quarter 2026 Adjusted1 Income Statement Highlights $ millions, except per share values 2026 2025 Change ($)4 Change (%)4 Revenue $1,368 $1,241 $127 10% Adjusted Gross Profit $789 $709 $80 11% Adjusted Gross Margin2 58.1% 57.3% NM 80 bps Operating Expense $541 $492 $49 10% I
Slide 13: Adjusted EBITDA and Adjusted EPS Drivers
2026 | Q2 Earnings Second Quarter 2026 Adjusted EBITDA1 and Adjusted EPS1 Drivers Q2 Adjusted EBITDA Q2 Adjusted EPS $ millions +$46 vs. Prior Year Excluding FX $0.01 $0.06 $288 $0.34 ~$4 ~$0.01 $238 $0.26 Q2 2025 FX Gross Operating Q2 2026 Q2 2025 FX EBITDA Interest & Q2 2026 Actual Profit Expenses
Slide 14: Key Balance Sheet and Cash Flow Metrics
2026 | Q2 Earnings Key Balance Sheet and Cash Flow Metrics Cash and Debt Balances Capital Allocation Priorities as of June 30, 2026 $ millions Primary use of free cash flow $3,689 $530 Debt Targeting <3.0x in 2027 and Paydown 2.0x-2.5x over time $3,159 R&D, manufacturing capex, commercial launches,
Slide 15: Financial Guidance
Financial Guidance Third Quarter and Full Year 2026 15
Slide 16: Full Year Financial Guidance
2026 | Q2 Earnings 2026 Full Year Financial Guidance May August Comments Revenue1 $5,010 - $5,085 $5,090 - $5,140 6%-7% organic CC2 growth $ millions, except Adjusted EBITDA3 $975 - $1,005 $1,010 - $1,035 13% growth at midpoint per share values Adjusted Diluted EPS3 $1.03 - $1.09 $1.10 - $1.16 20% g
Slide 17: Raising Adj. EBITDA and Adj. EPS Guidance
2026 | Q2 Earnings May Guidance to August Guidance Bridge Raising Adj. EBITDA1 and Adj. EPS1 Guidance 2026 Adj. EBITDA 2026 Adj. EPS ~$38 ~$(6) ~$0.07 ~Flat ~Flat $1,010- $1,035 $1.10- $1.16 $1.03- $975- $1.09 $1,005 Business Launch Adj EBITDA Interest Tax May Performance August May August Investmen
Slide 18: Considerations for 2026 Guidance Range
2026 | Q2 Earnings Considerations for 2026 Guidance Range Potential Drivers to the High-End of Guidance • Accelerating innovation-led growth • Base business growth • Ability to leverage our diverse portfolio • Favorable macroeconomic backdrop • Rapid progress on Elanco Ascend initiatives Potential D
Slide 19: Third Quarter 2026 Financial Guidance
2026 | Q2 Earnings Third Quarter 2026 Financial Guidance Q3 Guidance Comments Revenue1 $1,195 - $1,220 5%-7% organic CC2 growth Includes opex up ~11% CC with incremental Adjusted EBITDA3 $200 - $215 $ millions, except support for innovation products per share values Effective tax rate expected in li
Slide 20: Drivers of U.S. Pet Health Revenue Acceleration
2026 | Q2 Earnings Drivers of U.S. Pet Health Revenue Acceleration HSD-LDD Q2 +11% Growth Key H2 Revenue Growth Drivers • Continued momentum for Zenrelia and Credelio Quattro Q1 +6% • Befrena launch • Corporate account growth • Does not assume improving vet visit volumes, given continued consumer sp
Slide 21: Shifting Consumer Behaviors in the Omnichannel U.S. Pet Health Industry
2026 | Q2 Earnings Shifting Consumer Behaviors in the Attractive & Growing Omnichannel U.S. Pet Health Industry ✓Industry Growth ✓Resilient Pet Owner Spend ✓Durable Price 5% industry growth in 20251 Pets at the center of the family Strong willingness to pay for “best medicine” blockbuster innovation
Slide 22: Animal Health Is a Compelling, Durable Growth Sector
2026 | Q2 Earnings Animal Health Is a Compelling, Durable Growth Sector Sustainable growth through fundamental drivers in pets & protein $60B Projected Industry Value Into the $40B Next Decade, Reflecting Consistent MSD Annual Growth 1 Industry Value Today 7% Growth in 2025 5% 20-Year CAGR Consisten
Slide 23: Elanco: Key drivers of long-term value creation
2026 | Q2 Earnings Elanco: Key drivers of long-term value creation A compelling investment opportunity Early-Stage Big 6 Increasing Pipeline Accelerating Balanced Globalization Confidence Cash and Margins Business Profile Innovation engine Accelerating cash flow Pet Health stronger than ever 49% Run
Slide 24: Appendix
Appendix Reference slides and GAAP reported to non-GAAP adjusted reconciliations 24
Slide 25: Impact of Price, Rate, and Volume on Revenue – First Half 2026
2026 | Q2 Earnings First Half 2026 Impact of Price, Rate, and Volume on Revenue Organic Organic CC1 Revenue Price FX Rate Volume Acquisition Total Change Pet Health $1,428 2% 3% 7% 12% 9% Cattle $629 2% 1% 16% 13% Poultry $453 4% 12% 8% Swine $193 2% 4% 2% Farm Animal $1,275 2% 3% 7% 1% 13% 9% Contr
Slide 26: Revenue by Geography and Species – First Half 2026
2026 | Q2 Earnings First Half 2026 Revenue by Geography and Species Organic CC1 2026 2025 Change (%) Change US Pet Health $761 $700 9% 9% Int’l Pet Health $667 $578 15% 9% Total Pet Health $1,428 $1,278 12% 9% US Farm Animal $507 $446 14% 13% Int’l Farm Animal $768 $683 12% 7% Total Farm Animal $1,2
Slide 27: Adjusted Income Statement Highlights – First Half 2026
2026 | Q2 Earnings First Half 2026 Adjusted1 Income Statement Highlights $ millions, except per share values 2026 2025 Change ($)4 Change (%)4 Revenue $2,739 $2,434 $305 13% Adjusted Gross Profit $1,565 $1,394 $171 12% Adjusted Gross Margin2 57.5% 57.4% NM 10 bps Operating Expense $1,019 $927 $92 10
Slide 28: Financial Guidance – Full Year 2026
2026 | Q2 Earnings Full Year 2026 Financial May August Guidance Total Revenue1 $5,010 – $5,085 $5,090 – $5,140 & Additional Adjusted Gross Margin2 55.1% – 55.5% 55.2% – 55.6% Assumptions Operating Expenses $1,925 – $1,945 $1,950 – $1,965 Adjusted EBITDA2 $975 – $1,005 $1,010 – $1,035 $ millions, exc
Slide 29: Adjusted EBITDA Reconciliation – Second Quarter 2026
2026 | Q2 Earnings Second Quarter 2026 Adjusted 2026 2025 EBITDA Reported Net Income $54 $11 Reconciliation Net Interest Expense $59 $48 Income Tax Expense $2 $14 $ millions $171 $169 Depreciation and Amortization EBITDA $286 $242 Non-GAAP Adjustments Asset Impairment, Restructuring, and Other Speci
Slide 30: Reconciliation of GAAP Reported to Non-GAAP Adjusted Income Statement Items
2026 | Q2 Earnings Second Quarter 2026 Reconciliation 2026 2025 of GAAP Net Income EPS Net Income EPS Reported to GAAP Reported Net Income Non-GAAP and EPS $54 $0.11 $11 $0.02 Adjusted Amortization of Intangible $139 $0.27 $136 $0.27 Assets Income Asset Impairment, Statement Items Restructuring, and
Slide 31: Details of Adjustments to Certain GAAP Reported Measures
2026 | Q2 Earnings Second Quarter 2026 Details of For the three months ended June 30, 2026 and 2025: Adjustments to (1) Adjustments of $9 million for the three months ended June 30, 2026, primarily related to our 2025 restructuring plan Certain GAAP ($3 million) as well as costs associated with our
Slide 32: Adjusted EBITDA Reconciliation – First Half 2026
2026 | Q2 Earnings First Half 2026 Adjusted 2026 2025 EBITDA Reported Net Income $111 $78 Reconciliation Net Interest Expense $116 $88 Income Tax Expense $32 $7 $ millions $341 $330 Depreciation and Amortization EBITDA $600 $503 Non-GAAP Adjustments Cost of Sales $0 $1 Asset Impairment, Restructurin
Slide 33: Reconciliation of GAAP Reported to Non-GAAP Adjusted Income Statement Items
2026 | Q2 Earnings First Half 2026 Reconciliation 2026 2025 of GAAP Net Income EPS Net Income EPS Reported to GAAP Reported Net Income Non-GAAP and EPS $111 $0.22 $78 $0.16 Adjusted Cost of Sales Adjustments - - $1 $0.00 Income Amortization of Intangible $277 $0.55 $264 $0.53 Statement Items Assets
Slide 34: Details of Adjustments to Certain GAAP Reported Measures
2026 | Q2 Earnings First Half 2026 Details of For the six months ended June 30, 2026 and 2025: Adjustments to (1) Adjustments of $25 million for the six months ended June 30, 2026, primarily related to $18 million of restructuring Certain GAAP charges ($15 million of which was non-cash shut-down cos
Slide 35: © 2025 Elanco or its affiliates
© 2025 Elanco or its affiliates