Elanco Animal Health Incorporated · NYSE:ELAN
Elanco Animal Health — Q3 2025 Earnings Presentation
39 slides from Elanco Animal Health's earnings presentation, Nov 5, 2025
Slide 1: 2025 Earnings – Third Quarter
2025 Earnings – Third Quarter D November 5, 2025
Slide 2: Notices and Disclaimers
2025 | Q3 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 2025 full year and
Slide 3: On Today's Call
2025 | Q3 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: Accelerating Growth Through Delivering Our Diverse Portfolio
2025 | Q3 Earnings Accelerating Growth Through Delivering Strong Q3 Exceeding Expectations Revenue, Adj. EBITDA, and Adj. EPS all above guidance ranges; 9% Our Diverse Portfolio organic CC3 revenue growth led by U.S. Farm Animal up 20% and U.S. Pet Health up 9%; 9th consecutive quarter of underlying
Slide 5: 9% Organic CC Revenue Growth
2025 | Q3 Earnings Q3 2024 to Q3 2025 Revenue Bridge 9% Organic CC1 Revenue Growth 9% Revenue Growth $ millions 8% 10% Growth Growth 5% 20% Growth Growth 8% $1,137 9% Growth Growth $(1) $13 $1,030 Q3 2024 Aqua FX Rates, CMO, Q3 2025 Actual Divestiture & Other US Int’l US Int’l Actual Numbers may not
Slide 6: 2025 Innovation Sales Target Raised
2025 | Q3 Earnings 2025 Innovation $840-$880M Sales Target Raised: +$100M at midpoint Now Expected to YTD Actuals Deliver an Incremental $655M $840-$880 Million YTD Pet $461M Health Major innovation early in launch $275M curve with portfolio $133M exceeding the Farm $72M YTD Animal corporate gross m
Slide 7: Updates on Select Major Innovation Products
2025 | Q3 Earnings Updates on Select Major Innovation Products • Global sales nearly doubled vs. Q2 • Continued to gain dollar share of broad- • Continued robust growth trajectory with • Estimated market share ~5% in countries spectrum sales out of U.S. vet clinics in Q33 Q3 sales up over 25% where
Slide 8: Deliver Consistent, High-Impact Innovation
2025 | Q3 Earnings Deliver Consistent, High-Impact Innovation IL-31 Zenrelia Credelio Quattro H1 2026 expected 8 global approvals in Blockbuster status launch; cautiously 1.5 years; revised achieved; market optimistic for Q4 U.S. label language share gains ahead approval subject to implemented of ex
Slide 9: Financial Results
Financial Results Third Quarter 2025 9
Slide 10: Impact of Price, Rate, and Volume on Revenue
2025 | Q3 Earnings Third Quarter 2025 Impact of Price, Rate, and Volume on Revenue Organic Aqua Organic CC1 $ Millions Revenue Price FX Rate Volume Volume Total Change Pet Health $533 (1)% 1% 9% 10% 8% Cattle $289 1% 14% 13% Poultry $217 2% 15% 13% Swine $87 2% (1)% (3)% Farm Animal $593 1% 2% 9% 0%
Slide 11: Revenue by Geography and Species
2025 | Q3 Earnings Third Quarter 2025 Revenue by Geography and Species Organic CC1 $ Millions 2025 2024 Change (%) Change (%) US Pet Health $314 $289 9% 9% Int’l Pet Health $219 $197 11% 8% Total Pet Health $533 $486 10% 8% US Farm Animal $233 $194 20% 20% Int’l Farm Animal $360 $336 7% 5% Total Far
Slide 12: Adjusted Income Statement Highlights
2025 | Q3 Earnings Third Quarter 2025 Adjusted1 Income Statement Highlights $ millions, except per share values 2025 2024 Change ($)2 Change (%)2 Revenue $1,137 $1,030 $107 10% Adjusted Gross Profit $601 $538 $63 12% Adjusted Gross Margin 53.1% 52.2% NM +90 bps Operating Expense $440 $410 $30 7% Int
Slide 13: Adjusted EBITDA and Adjusted EPS Drivers
2025 | Q3 Earnings Third Quarter 2025 Adjusted EBITDA1 and Adjusted EPS1 Drivers Q3 Adjusted EBITDA Q3 Adjusted EPS $ millions $0.02 $(0.02) $0.06 $57 $(26) $0.19 ~$4 $198 ~Flat $163 $0.13 Q3 2024 FX Gross Operating Q3 2025 Q3 2024 FX EBITDA Interest Tax Q3 2025 Actual Profit Expenses Actual Actual
Slide 14: Key Balance Sheet and Cash Flow Metrics
2025 | Q3 Earnings Key Balance Sheet and Cash Flow Metrics Debt Balances $ millions Q3 Net Leverage Ratio3 3.7x as of September 30, 2025 Net debt decreased by $153M in the quarter $3,786 $505 Operating Cash Flow of $219M Reflects continued focus on working capital discipline and strong business perf
Slide 15: Consistent Capital Allocation Strategy
2025 | Q3 Earnings Consistent Capital Allocation Strategy Capital Allocation Priorities Strengthening Balance Sheet Substantial Improvement to Net Leverage Ratio Primary use of free cash flow 6 5.6x 5.5 Targeting below 3x over time Adj. Net Leverage Ratio Debt Paydown 5 4.5 4.3x 4 3.7-3.8x1 3.5 R&D,
Slide 16: Successful Debt Refinancing Extends Maturities and Reduces Interest
2025 | Q3 Earnings Successful Debt Refinancing Extends Maturities and Reduces Interest Maturity Schedule $ Billions $2.1B Term Loan B refinanced on October Post-Refinancing 31, 2025 $1.6 New facilities as of 10/31/2025 3 new debt facilities extend 2027 maturity EURIBOR $1.2 to 2029 and 2032 and redu
Slide 17: Financial Guidance
Financial Guidance Fourth Quarter and Full Year 2025 17
Slide 18: Full Year Financial Guidance
2025 | Q3 Earnings 2025 Full Year Financial August November Comments Guidance Revenue $4,570 - $4,620 $4,645 - $4,670 Expect 6%-6.5% organic CC2 growth Reported Net Loss $(38) - $(14) $(56) - $(41) $ millions, except Adjusted EBITDA1 $850 - $890 $880 - $900 Includes estimate for net tariff impact pe
Slide 19: Raising Adj. EBITDA and Adj. EPS Guidance
2025 | Q3 Earnings August Guidance to November Guidance Bridge Raising Adj. EBITDA1 and Adj. EPS1 Guidance 2025 Adj. EBITDA FX update includes flow through 2025 Adj. EPS of previously held $15M benefit, to support incremental growth investments $0.02 $0.03 $7 $0.91- $28 $0.94 ~$(10) $0.85- ~$(5) $0.
Slide 20: Balanced Approach to Guidance
2025 | Q3 Earnings Balanced Approach to Guidance Intervention Actions, FX & Business Execution Mitigating Potential Tariff Impacts Mitigating Actions Current State Potential Risk Scenarios Being Implemented Expect ~$10M-$14M impact to 2025 2025 tariffs related to Supply chain optimization Adj. EBI
Slide 21: Fourth Quarter 2025 Financial Guidance
2025 | Q3 Earnings Fourth Quarter 2025 Financial Q4 Guidance Comments Guidance Revenue $1,085 - $1,110 Expect 4%-6% organic CC2 growth; FX rates reflect end of October; slight tailwind expected Reported Net Loss $(100) - $(86) $ millions, except Adjusted EBITDA1 $168 - $188 Includes operating expens
Slide 22: Early Considerations for 2026
2025 | Q3 Earnings Early Considerations for 2026 Tailwinds Headwinds Diverse portfolio of innovation continuing to scale Competitive pressure and innovation globally, on a stabilizing base Price growth Consumer/macro pressure and U.S. vet visit volume declines More complete portfolio enhancing our c
Slide 23: Elanco's Strategic Trajectory
Elanco’s Strategic Trajectory: Powerful 2025 & Beyond Momentum into 2025 2021-2024 Poised for Sustainable Revenue Growth Innovation Delivered & Multiple potential blockbusters Enhanced in market and a stabilizing base 2019-2021 Capabilities to drive growth Balanced Mix & Accelerating contribution fr
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 (YTD)
2025 | Q3 Earnings Year to Date Impact of Price, Rate, and Volume on Revenue Organic Aqua Organic CC1 Revenue Price FX Rate Volume Volume Total Change Pet Health $1,811 2% 0% 4% 6% 6% Cattle $829 0% 10% 10% Poultry $621 0% 7% 7% Swine $272 0% 4% 4% Farm Animal $1,722 2% 0% 6% (5)% 3% 8% Contract Man
Slide 26: Revenue by Geography and Species (YTD)
2025 | Q3 Earnings Year to Date Revenue by Geography and Species Organic CC1 2025 2024 Change Change US Pet Health $1,014 $960 $54 6% Int’l Pet Health $797 $744 $53 6% Total Pet Health $1,811 $1,704 $107 6% US Farm Animal $678 $596 $82 14% Int’l Farm Animal $1,044 $1,084 $(40) 4% Total Farm Animal $
Slide 27: Adjusted Income Statement Highlights (YTD)
2025 | Q3 Earnings Year to Date Adjusted1 Income Statement Highlights Including Impact from Aqua Divestiture $ millions, except per share values 2025 2024 Change ($)2 Change (%)2 Revenue $3,571 $3,419 $152 4% Adjusted Gross Profit $1,995 $1,917 $78 4% Adjusted Gross Margin 56.0% 56.1% NM (10) bps Op
Slide 28: Financial Guidance Full Year 2025
2025 | Q3 Earnings Full Year 2025 Financial August November Guidance Total Revenue $4,570 – $4,620 $4,645 – $4,670 & Additional Adjusted Gross Margin1 54.5% – 55.0% 54.9% – 55.2% Assumptions Operating Expenses $1,760 – $1,770 $1,790 – $1,800 Adjusted EBITDA1 $850 – $890 $880 – $900 $ millions, excep
Slide 29: Adjusted EBITDA Reconciliation
2025 | Q3 Earnings Third Quarter 2025 Adjusted 2025 2024 EBITDA Reported Net (Loss) Income $(34) $364 Reconciliation Net Interest Expense $52 $58 Income Tax (Benefit) Expense $(16) $195 $ millions Depreciation and Amortization $176 $169 EBITDA $178 $786 Non-GAAP Adjustments Asset Impairment, Restruc
Slide 30: Reconciliation of GAAP Reported to Non-GAAP Adjusted
2025 | Q3 Earnings Third Quarter 2025 Reconciliation 2025 2024 of GAAP Net Income EPS Net Income EPS Reported to GAAP Reported Net (Loss) Non-GAAP Income $(34) $(0.07) $364 $73 Adjusted Amortization of Intangible $140 $0.28 $133 $0.27 Assets Income Asset Impairment, Statement Items Restructuring, an
Slide 31: Details of Adjustments to Certain GAAP Reported Measures
2025 | Q3 Earnings Third Quarter 2025 Details of For the three months ended September 31, 2025 and 2024: Adjustments to (1) Adjustments of $25 million for the three months ended September 30, 2025, primarily related to two early-stage capital Certain GAAP projects totaling $16 million that were inde
Slide 32: Adjusted EBITDA Reconciliation (YTD)
2025 | Q3 Earnings Year to Date 2025 Adjusted 2025 2024 EBITDA Reported Net Income $44 $346 Reconciliation Net Interest Expense $140 $189 Income Tax (Benefit) Expense $(9) $193 $ millions Depreciation and Amortization $506 $489 EBITDA $681 $1,226 Non-GAAP Adjustments Cost of Sales $1 - Asset Impairm
Slide 33: Reconciliation of GAAP Reported to Non-GAAP Adjusted (YTD)
2025 | Q3 Earnings Year to Date 2025 Reconciliation 2025 2024 of GAAP Net Income EPS Net Income EPS Reported to GAAP Reported Net Income $44 $0.09 $346 $0.70 Non-GAAP Adjusted Cost of Sales $1 $0.00 - - Income Amortization of Intangible Assets $404 $0.81 $397 $0.80 Statement Items Asset Impairment,
Slide 34: Details of Adjustments to Certain GAAP Reported Measures (YTD)
2025 | Q3 Earnings Year to Date 2025 Details of For the nine months ended September 31, 2025 and 2024: Adjustments to (1) Adjustments of $35 million for the nine months ended September 30, 2025, included two early-stage capital projects Certain GAAP totaling $16 million that were indefinitely suspen
Slide 35: EBITDA Guidance Reconciliation Full Year 2025
2025 | Q3 Earnings Full Year 2025 EBITDA Reported Net Loss $(56) - $(41) Guidance Approx. $215 w/ Royalty Reconciliation Net Interest Expense Monetization Liability Income Tax Expense $9 - $19 $ millions Depreciation and Amortization Approx. $680 EBITDA $849 - $873 Non-GAAP Adjustments Cost of Sales
Slide 36: EPS Guidance Reconciliation Full Year 2025
2025 | Q3 Earnings Full Year 2025 EPS Guidance Reported Loss per Share $(0.11) - $(0.08) Reconciliation Cost of Sales Approx. $0.00 Amortization of Intangible Assets Approx. $1.08 Asset Impairment, Restructuring, and Other Special Charges $0.07 - $0.08 Other Expense, Net Approx. $0.05 Royalty Moneti
Slide 37: EBITDA Guidance Reconciliation Fourth Quarter 2025
2025 | Q3 Earnings Fourth Quarter 2025 EBITDA Guidance Reported Net Loss $(100) - $(86) Reconciliation Net Interest Expense Approx. $75 $ millions Income Tax Expense $17 - $27 Depreciation and Amortization Approx. $175 EBITDA $168 - $193 Non-GAAP Adjustments Asset Impairment, Restructuring, and Othe
Slide 38: EPS Guidance Reconciliation Fourth Quarter 2025
2025 | Q3 Earnings Fourth Quarter 2025 EPS Guidance Reported Loss per Share $(0.20) - $(0.17) Reconciliation Amortization of Intangible Assets Approx. $0.28 Asset Impairment, Restructuring, and Other Special Charges $0.00 - $0.01 Other Expense, Net Approx. $0.03 Royalty Monetization Approx. $0.01 Su
Slide 39: © 2025 Elanco or its affiliates
© 2025 Elanco or its affiliates