What were the key takeaways from Elanco Animal Health's earnings call?

What is Elanco Animal Health's latest dividend and current dividend yield?

What is the market's earnings forecast for Elanco Animal Health next quarter?

What is the revenue and EPS growth rate for Elanco Animal Health year over year?

What does Elanco Animal Health do and what are its main business segments?

What guidance did Elanco Animal Health's management provide for the next earnings period?

What were the key takeaways from Elanco Animal Health’s earnings call?

What factors drove the changes in Elanco Animal Health's revenue and profit?

- **Revenue Beat**: 9% organic growth driven by U.S. Farm (+20%) and Pet Health (+9%), with innovation revenue up 15% YoY to $655M.
- **Blockbuster Products**: Quattro reached $100M in 8 months; Zenrelia gains 18% new patients and label clarity in U.S.
- **Financial Strength**: Net leverage 3.7x, $562M debt paydown, and 2025 EBITDA raised to $880-900M.
- **Investment Strategy**: 8-10% OpEx growth for DTC, with 2026 margin expansion via Elanco Ascend.
- **Tariff Mitigation**: $10-14M impact offset by $15M FX tailwinds, with 2026 interest expense up $15M.


**【CEO Summary Section】**
- **Revenue Growth**: Organic constant currency revenue grew 9% year-over-year, driven by U.S. Farm Animal (+20%) and U.S. Pet Health (+9%).
- **Innovation Success**: Innovation revenue reached $655 million year-to-date, with Quattro becoming a $100 million blockbuster in under 8 months. Zenrelia achieved 8% global sales growth and 18% new patient starts.
- **Guidance Raise**: Full-year organic growth updated to 6-6.5%, adjusted EBITDA to $880-900 million, and adjusted EPS to $0.91-0.94.
- **Financial Strength**: Net leverage ratio improved to 3.7x, with $562 million debt paydown year-to-date. Refinanced $2.1 billion Term Loan B to extend maturities to 2032.

**【CFO Financial Commentary】**
- **Q3 Results**: Reported revenue $1.137 billion (+10%), adjusted EBITDA $198 million (+$35 million), and adjusted EPS $0.19 (+$0.06 YoY).
- **Cost Management**: Operating expenses grew 7% YoY, below target, with $12 million interest expense reduction. Gross margin expanded 90 bps to 53.1%.
- **2025 Outlook**: Includes $10-14 million tariff impact, with FX tailwinds contributing $15 million to EBITDA. 2026 interest expense expected to increase $15 million due to swap expiration.

**【Q&A Highlights】**
- **Quattro Momentum**: Reached $100 million in 8 months, with 70% share capture from competitors. U.S. broad-spectrum endecto market growing 40%.
- **Zenrelia Label Progress**: FDA removed vaccine-induced disease warning, with 13 months of U.S. use data supporting label consistency with global approvals.
- **OpEx Strategy**: No-regrets DTC investments driving 8-10% OpEx growth, with Elanco Ascend program targeting 2026 margin expansion.
- **Farm Animal Resilience**: Experior up 70% YoY, benefiting from small U.S. cattle herd. Bovaer demand stable from CPG partners despite no government incentives.


Elanco Animal Health Incorporated (ELAN) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

ELAN

ELAN fundamentals

You can ask Aime