Elanco (ELAN) Q4 2025 Earnings Call Transcript

Motley Fool Transcribing, The Motley Fool

Tue, February 24, 2026 astatine 9:16 AM CST 48 min read

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Feb. 24, 2026, 8 a.m. ET

• President and Chief Executive Officer — Jeffrey N. Simmons

• Chief Financial Officer — Robert M. VanHimbergen

• Head of Investor Relations — Tiffany Kanaga

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Jeffrey N. Simmons: Thanks, Tiffany. Good morning, everyone. 2025 was the twelvemonth of important transportation for Elanco Animal Health Incorporated. Across each 3 of our priorities, growth, innovation, and cash. As highlighted connected descent 4, Elanco delivered a beardown 4th quarter, with 9% integrated changeless currency gross growth. We outperformed the precocious extremity of guidance for revenue, adjusted EBITDA, and adjusted EPS. Growth was led by US workplace carnal up 17% and US favored wellness up 10%. This present marks 10 consecutive quarters of underlying full growth. Revenue from innovation exceeded expectations successful 2025 astatine $892 cardinal for the year, arsenic the 4th fourth was our largest 4th for innovation to date.

We are raising our 2026 outlook for innovation to $1,150 cardinal reflecting contributions crossed a wide acceptable of geographies, species, and products. Our continued absorption connected cash, combined with beardown results, improved our nett leverage ratio faster than plan, to 3.6 times astatine twelvemonth end. We present expect to decorativeness 2026 astatine 3.1 to 3.3 times. With our accordant execution, we are good positioned to present 2026 guidance successful enactment with our longer word algorithm. We expect full-year integrated changeless currency gross maturation of 4% to 6%, adjusted EBITDA of $955 to $985 million, representing maturation of 8% astatine the midpoint, and adjusted EPS of $1.00 to $1.06, representing maturation of 10% astatine the midpoint.

This guidance continues our prudent balanced attack successful a dynamic macro environment. On descent 5, fto maine crushed today's treatment successful accountability and transparency by sharing a checklist for the twelvemonth successful review. Elanco delivered crossed our afloat acceptable of 2025 commitments to our customers and our shareholders. We person entered our caller epoch of maturation with a grounds of accordant execution. Innovation gross cleared a barroom that was raised each 4th successful 2025. We brought the full Big Six crossed the decorativeness enactment with Bifrenna’s December approval. This is simply a existent testament to the optimized innovation motor that Ellen’s squad has built implicit the past fewer years.

Organic changeless currency gross maturation reached 7% for the afloat year, with balanced contributions crossed taxon and geographies arsenic good arsenic betwixt measurement and price. 2025 revenue, adjusted EBITDA, and adjusted EPS each exceeded past February's expectations with dependable outperformance passim the year. And we delevered astir a fractional a crook faster than expected portion besides refinancing our Term Loan B up of schedule. Team Elanco, I privation to widen my gratitude for an unthinkable year. Your level of engagement and execution has ne'er been higher, portion your unwavering dedication to transforming carnal attraction has genuinely shown. Looking much intimately astatine the 4th fourth gross show connected descent 6, we interruption down the 9% underlying integrated changeless currency gross growth.