Elanco Animal Health Inc. Reports Q1 2025 Results and Raises Revenue Guidance

Elanco Animal Health Inc., a prominent player in the health care sector specializing in animal health products, has released its financial results for the first quarter of 2025. The company reported a revenue of $1,193 million, marking a slight decline of 1% year-over-year. Despite this, the company achieved 4% organic constant currency growth, indicating resilience in its core operations.

The financial performance for the quarter included a reported net income of $67 million and an adjusted net income of $184 million. Adjusted EBITDA stood at $276 million, representing 23.1% of revenue. These figures reflect the company’s strategic focus on operational efficiency and cost management.

In a significant move to strengthen its financial position, Elanco has accelerated its debt paydown efforts. The company has set a gross debt paydown target of $450-$500 million for 2025. This initiative is supported by a $295 million cash infusion from the sale of royalty and milestone rights for Lotilaner in human health to Blackstone. This transaction is expected to reduce the net leverage ratio to 3.9x-4.3x by the end of 2025 and decrease interest expenses by approximately $10 million.

Elanco’s Farm Animal segment demonstrated robust performance with a 7% organic constant currency growth. Additionally, the company has raised its revenue guidance for 2025 to $4,510-$4,580 million, reflecting confidence in its growth trajectory. The innovation revenue target has also been increased to $660-$740 million, underscoring the company’s commitment to advancing its product pipeline.

Credelio Quattro, one of Elanco’s key products, achieved a 10% market share, further solidifying its position in the market. The company’s strategic initiatives and financial discipline have been well-received by investors, as evidenced by a positive market reaction following the announcement of the Q1 results and guidance raise.

Elanco Animal Health Inc., listed on the New York Stock Exchange with a market cap of $4.7 billion, continues to focus on delivering value to its stakeholders through innovation and strategic growth initiatives. The company’s efforts to manage debt and enhance its financial health position it well for sustained success in the competitive animal health industry.