Elanco Animal Health Incorporated · NYSE:ELAN
Elanco Animal Health — Q1 2026 Earnings Presentation
28 slides from Elanco Animal Health's earnings presentation, May 6, 2026
Slide 1: 2026 Earnings – First Quarter
2026 Earnings – First Quarter D May 6, 2026
Slide 2: Notices and Disclaimers
2026 | Q1 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 | Q1 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: Strong Q1 Exceeding Expectations
2026 | Q1 Earnings Elanco as a Consistent, Strong Q1 Exceeding Expectations Reliable Growth Company Revenue, Adj. EBITDA, and Adj. EPS all above guidance; 10% organic CC3 Delivering Our Diverse revenue growth with contributions from price (+2%) and volume (+8%); growth across all species and major g
Slide 5: 10% Organic CC Revenue Growth
2026 | Q1 Earnings Q1 2025 to Q1 2026 Revenue Bridge 10% Organic CC1 Revenue Growth 10% Revenue 7% Growth 13% $ millions Growth Growth 13% Growth 15% 9% Growth $1,371 6% Growth Growth $51 $7 $1,193 Q1 2025 FX CMO & Royalty Q1 2026 Actual Revenue U.S. Int’l U.S. Int’l Actual Numbers may not add due t
Slide 6: Raising 2026 Innovation Revenue Target to $1.2B
2026 | Q1 Earnings Q1 Innovation Revenue Contribution of $287M Raising 2026 Innovation Revenue Target to $1.2B Prior Guidance: $1.15B Pet Health $1.2B $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 | Q1 Earnings Updates on Big 6 Major Innovation Products • Achieved trailing 4-quarter blockbuster status • Accelerating dollar share gains of broad- • Continued robust growth trajectory • Efficacy driving accelerating global momentum spectrum dispensing sales from U.S. clinics with Q1 sales up
Slide 8: Deliver Consistent, High-Impact Innovation
2026 | Q1 Earnings Deliver Consistent, High-Impact Innovation Befrena Next Wave Platforms for Commercialization in 5-6 blockbuster- Pipeline Refill the U.S. expected in potential approvals Built in house Q2; submission in expected through platforms for small IPP Po Canada 2031; >$2B peak sales poten
Slide 9: Financial Results
Financial Results First Quarter 2026 9
Slide 10: Impact of Price, Rate, and Volume on Revenue
2026 | Q1 Earnings First Quarter 2026 Impact of Price, Rate, and Volume on Revenue Organic Organic CC1 $ Millions Revenue Price FX Rate Volume Total Change Pet Health $710 2% 5% 5% 12% 7% Cattle $316 3% 16% 13% Poultry $230 6% 22% 16% Swine $96 4% 13% 9% Farm Animal $642 2% 4% 11% 18% 13% Contract M
Slide 11: Revenue by Geography and Species
2026 | Q1 Earnings First Quarter 2026 Revenue by Geography and Species Organic CC1 $ Millions 2026 2025 Change (%) Change (%) US Pet Health $341 $323 6% 6% Int’l Pet Health $369 $312 18% 9% Total Pet Health $710 $635 12% 7% US Farm Animal $264 $230 15% 15% Int’l Farm Animal $378 $316 20% 13% Total F
Slide 12: Adjusted Income Statement Highlights
2026 | Q1 Earnings First Quarter 2026 Adjusted1 Income Statement Highlights $ millions, except per share values 2026 2025 Change ($) Change (%) Revenue $1,371 $1,193 $178 15% Adjusted Gross Profit $776 $685 $91 13% Adjusted Gross Margin2 57.0% 57.4% NM (40) bps Operating Expense $478 $435 $43 10% In
Slide 13: Adjusted EBITDA and Adjusted EPS Drivers
2026 | Q1 Earnings First Quarter 2026 Adjusted EBITDA1 and Adjusted EPS1 Drivers Q1 Adjusted EBITDA Q1 Adjusted EPS $0.06 $ millions +$42 vs. Prior Year $(0.01) Excluding FX ~$0.04 $334 $(0.06) $0.40 ~$16 $0.37 $276 Q1 2025 FX Gross Operating Q1 2026 Q1 2025 FX EBITDA Interest Tax Q1 2026 Actual Pro
Slide 14: Key Balance Sheet and Cash Flow Metrics
2026 | Q1 Earnings Key Balance Sheet and Cash Flow Metrics Cash and Debt Balances Capital Allocation Priorities as of March 31, 2026 $ millions Primary use of free cash flow $3,763 $428 Debt Targeting <3.0x in 2027 and Paydown 2.0x-2.5x over time $3,335 R&D, manufacturing capex, commercial launches,
Slide 15: Financial Guidance
Financial Guidance Second Quarter and Full Year 2026 15
Slide 16: Financial Guidance
2026 | Q1 Earnings 2026 Full Year Financial Guidance February May Comments 5%-7% organic CC2 growth; Revenue1 $4,950 - $5,020 $5,010 - $5,085 expecting $60M tailwind from FX 10% growth at midpoint; $ millions, except Adjusted EBITDA3 $955 - $985 $975 - $1,005 adj. gross margin up ~40 bps per share v
Slide 17: Raising Adj. EBITDA and Adj. EPS Guidance
2026 | Q1 Earnings February Guidance to May Guidance Bridge Raising Adj. EBITDA1 and Adj. EPS1 Guidance 2026 Adj. EBITDA 2026 Adj. EPS ~$34 ~$(5) ~$0.03 ~Flat ~Flat ~$(9) $975- $1.03- $1,005 $1.00- $1.09 $955- $1.06 $985 February Business Flow Through Launch May February Adj EBITDA Interest Tax May
Slide 18: Considerations for 2026 Guidance Range
2026 | Q1 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: Financial Guidance
2026 | Q1 Earnings Second Quarter 2026 Financial Guidance Q2 Guidance Comments Revenue1 $1,300 - $1,325 4%-6% organic CC2 growth Includes opex up ~8% CC with incremental Adjusted EBITDA3 $240 - $260 $ millions, except support for innovation products per share values Effective tax rate expected in li
Slide 20: Drivers of Expected U.S. Pet Health Revenue Acceleration in H2
2026 | Q1 Earnings Drivers of Expected U.S. Pet Health Revenue Acceleration in H2 HSD-LDD Key H2 Revenue Growth Drivers Growth March +8% • Continued momentum for Zenrelia April Even Stronger and Credelio Quattro MSD-HSD • Befrena launch Growth • Corporate account growth • Does not assume improving v
Slide 21: The Trends That Matter
2026 | Q1 Earnings The Trends That Matter • Convenience driving compliance1 • Omnichannel access unlocking higher spend2 A Global Shift in • Subscriptions representing 40% of pet care Pet Owner spend3 Behavior • Proven willingness to spend on innovative products even in challenging economic times ~$
Slide 22: Elanco Today: A Different Company
2026 | Q1 Earnings Elanco Today: A Different Company – Consistent Growth, Steady Pipeline of New Products, Stronger Financial Profile Growth Innovation Cash 22
Slide 23: Appendix
Appendix Reference slides and GAAP reported to non-GAAP adjusted reconciliations 23
Slide 24: Financial Guidance Full Year 2026
2026 | Q1 Earnings Full Year 2026 Financial February May Guidance Total Revenue1 $4,950 – $5,020 $5,010 – $5,085 & Additional Adjusted Gross Margin2 55.1% – 55.5% 55.1% – 55.5% Assumptions Operating Expenses $1,915 – $1,940 $1,925 – $1,945 Adjusted EBITDA2 $955 – $985 $975 – $1,005 $ millions, excep
Slide 25: Adjusted EBITDA Reconciliation
2026 | Q1 Earnings First Quarter 2026 Adjusted 2026 2025 EBITDA Reported Net Income $57 $67 Reconciliation Net Interest Expense $57 $40 Income Tax Expense (Benefit) $30 $(7) $ millions $170 $161 Depreciation and Amortization EBITDA $314 $261 Non-GAAP Adjustments Cost of Sales $0 $1 Asset Impairment,
Slide 26: Reconciliation of GAAP Reported to Non-GAAP Adjusted
2026 | Q1 Earnings First Quarter 2026 Reconciliation 2026 2025 of GAAP Net Income EPS Net Income EPS Reported to GAAP Reported Net Income Non-GAAP and EPS $57 $0.11 $67 $0.13 Adjusted Cost of Sales Adjustments - - $1 $0.00 Income Amortization of Intangible $138 $0.27 $128 $0.26 Statement Items Asset
Slide 27: Details of Adjustments to Certain GAAP Reported Measures
2026 | Q1 Earnings First Quarter 2026 Details of For the three months ended March 31, 2026 and 2025: Adjustments to (1) Adjustments of $16 million for the three months ended March 31, 2026, primarily related to $15 million of non-cash Certain GAAP shut-down costs for the animal studies portion of ou
Slide 28: © 2025 Elanco or its affiliates
© 2025 Elanco or its affiliates