FOR IMMEDIATE RELEASE Investor Contact: Tiffany Kanaga (765) 740-0314 or tiffany.kanaga@elancoah.com Media Contact: Colleen Parr Dekker (317) 989-7011 or colleen.dekker@elancoah.com Elanco Animal Health Reports Third Quarter 2025 Results Raising Full Year Outlook and Innovation Target, Improving Year-End Net Leverage Ratio Target Indianapolis, Ind (November 5, 2025) - Elanco Animal Health Incorporated (NYSE: ELAN) today reported financial results for the third quarter of 2025, provided guidance for the four ...

Core Insights - Elanco Animal Health Incorporated reported strong financial results for Q3 2025, exceeding expectations with a focus on growth, innovation, and cash management [2][3] - The company raised its full-year revenue guidance to a range of $4,645 million to $4,670 million, reflecting an expected organic constant currency revenue growth of 6% to 6.5% [7][20] - Elanco's net leverage ratio target for year-end 2025 has been improved to 3.7x to 3.8x, demonstrating effective debt management and cash generation [3][19] Financial Performance - Total revenue for Q3 2025 was $1,137 million, a 10% increase year-over-year, with 9% organic constant currency growth [9][11] - Pet Health revenue reached $533 million, up 10% year-over-year, while Farm Animal revenue was $593 million, reflecting a 12% increase [10][11] - Adjusted EBITDA for Q3 2025 was $198 million, a 21% increase compared to Q3 2024, with an adjusted EBITDA margin of 17.5% [18] Product Innovation and Market Performance - Credelio Quattro achieved $100 million in net sales within eight months, marking it as Elanco's fastest pet health blockbuster [8] - Zenrelia's global sales nearly doubled compared to Q2 2025, with a market share of approximately 5% in launched countries [8] - Experior sales increased by approximately 70% year-over-year, and AdTab continued its growth trajectory with over 25% year-over-year sales increase [8] Cost Management and Operational Efficiency - Total operating expenses for Q3 2025 were $440 million, a 7% increase year-over-year, driven by strategic investments in new product launches [13] - Gross profit was $607 million, with a gross margin percentage of 53.4%, reflecting a 120 basis point increase compared to Q3 2024 [12] - The company successfully refinanced its $2.1 billion Term Loan B debt facility, improving its debt maturity profile and reducing interest costs [8] Guidance and Future Outlook - For the full year 2025, Elanco expects reported net loss to be between $56 million and $41 million, with adjusted EPS guidance raised to a range of $0.91 to $0.94 [7][21] - The company anticipates a revenue tailwind of approximately $30 million from favorable foreign exchange rates compared to previous guidance [21] - Elanco plans to host an investment community event on December 9, 2025, to discuss its growth strategies and long-term shareholder value creation [3][20]

Elanco Animal Health Incorporated (ELAN) is expected to deliver flat earnings compared to the year-ago quarter on higher revenues when it reports results for the quarter ended September 2025. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.The earnings report, which is expected to be released on November 5, might help the stock move higher if these ...

Core Insights - Elanco Animal Health has announced label expansions for its canine prescription parasiticides, Credelio Quattro and Credelio, to include prevention of Lyme disease and protection against the longhorned tick [1][6][11] Group 1: Product Expansion and Efficacy - The expanded labels for Credelio Quattro and Credelio now include claims for the prevention of Lyme disease in dogs by killing black-legged ticks (Ixodes scapularis) [2][6] - Both products demonstrated 100% efficacy against the longhorned tick (Haemaphysalis longicornis) within 48 hours after infestation, continuing throughout the month [5][6] - The active ingredient lotilaner in both products is effective against various tick species, including the lone star tick (Amblyomma americanum), which is known for its association with alpha-gal syndrome in humans [7][9] Group 2: Market Context and Health Concerns - There have been over 422,000 cases of Lyme disease in dogs reported this year, surpassing the total annual cases of 2019, with northeast states being particularly affected [3][6] - The Companion Animal and Parasite Council (CAPC) has noted a significant rise in canine Lyme disease cases, emphasizing the need for effective parasite protection [4][6] - The longhorned tick is an invasive species now present in 22 states, posing a significant health risk to both animals and humans due to its ability to transmit various pathogens [4][6][5] Group 3: Company Commitment and Vision - Elanco emphasizes its commitment to innovation and scientific excellence, continuously working to address emerging threats in animal health [2][8] - The company aims to provide comprehensive protection for pets, enhancing the health and well-being of dogs through its expanded product offerings [7][8]

Core Viewpoint - Elanco Animal Health has received emergency use authorization from the U.S. Food and Drug Administration for its flea and tick drug aimed at treating dogs infected with a flesh-eating parasite [1] Company Summary - Elanco Animal Health is expanding its product offerings with the new flea and tick drug, which is designed to address a significant health issue in dogs [1] Industry Summary - The approval from the FDA highlights the ongoing need for effective treatments in the veterinary pharmaceutical industry, particularly for parasitic infections in pets [1]

Core Viewpoint - The New World screwworm is identified as a significant potential public health emergency by Health and Human Services Secretary Robert F. Kennedy Jr. [1] Group 1 - The New World screwworm poses a considerable risk to public health, necessitating attention and action from health authorities [1]

Core Insights - Elanco Animal Health has received Emergency Use Authorization (EUA) from the FDA for Credelio (lotilaner) to treat New World screwworm (NWS) infestations in dogs, marking the first EUA granted for this purpose in dogs [1][10] - The authorization is a proactive measure in response to confirmed NWS cases detected near the U.S.-Mexico border, allowing veterinarians and pet owners to have a treatment option ready [1][10] Summary by Sections Emergency Use Authorization - The EUA for Credelio is based on a study showing 100% efficacy against NWS larvae within 24 hours of treatment in naturally infested dogs [2] - The study was conducted on a limited population of eleven dogs in Brazil, raising questions about its applicability to the U.S. population [3] Treatment and Prevention - Effective parasite protection is crucial, as NWS infestations begin when female flies lay eggs on open wounds, with one female capable of laying 200-300 eggs at a time [4] - The U.S. Animal Plant Health and Inspection Service (APHIS) recommends protecting pets from wound-causing parasites to prevent NWS infestations [5] Veterinary Insights - Veterinarians emphasize the importance of preventing or rapidly treating wounds to protect pets from NWS, suggesting year-round flea and tick protection as a preventive measure [6] Company Background - Elanco Animal Health is a global leader in animal health, dedicated to innovating products and services for disease prevention and treatment in animals, with a commitment to improving animal health and community impact [9]

Company Performance - Elanco Animal Health Incorporated (ELAN) has returned approximately 78.5% year-to-date, significantly outperforming the average return of 1.8% for Medical companies [4] - The Zacks Consensus Estimate for ELAN's full-year earnings has increased by 6% over the past three months, indicating improving analyst sentiment [4] Industry Ranking - Elanco Animal Health is part of the Medical - Outpatient and Home Healthcare industry, which consists of 15 companies and currently ranks 39 in the Zacks Industry Rank [6] - The Medical - Outpatient and Home Healthcare industry has gained an average of 10.5% year-to-date, with ELAN performing better than this average [6] Zacks Rank - Elanco Animal Health currently holds a Zacks Rank of 1 (Strong Buy), suggesting it is poised to outperform the broader market in the near term [3] - The Zacks Rank system emphasizes earnings estimates and revisions, highlighting stocks that may outperform the market over the next one to three months [3]

Group 1 - West Pharmaceutical Services (WST) stock's Relative Strength (RS) Rating increased from 62 to 71, indicating improved market leadership [1] - Elanco Animal Health's RS Rating moved into the 80-plus level, reflecting strong technical performance [2][4] - Elanco Animal Health has shown a rising price performance with a jump to a 92 RS Rating, suggesting a bullish trend [4] Group 2 - Elanco Animal Health experienced a significant drop due to an unexpected safety warning, highlighting potential volatility in the pet health sector [4] - The company achieved a Relative Strength Rating upgrade, indicating positive market sentiment and performance [4]

Core Insights - Elanco Animal Health, Inc. will host an Investor Day on December 9, 2025, focusing on strategic priorities, financial outlook, and innovation pipeline, marking a new era of growth for the company [1][2]. Company Overview - Elanco Animal Health is a global leader in animal health, dedicated to innovating products and services for disease prevention and treatment in farm animals and pets, with a 70-year heritage in the industry [3]. - The company's vision is centered around "Food and Companionship Enriching Life," aiming to create value for farmers, pet owners, veterinarians, and society [3]. Event Details - The Investor Day will take place in New York City from 9 a.m. to 12 p.m. Eastern Time, and registration is required for institutional investors and analysts [2]. - A live webcast and related materials will be available on Elanco's Investor Events and Presentations website, with a replay accessible after the event [2]. Upcoming Financial Results - Elanco is set to announce its third quarter 2025 financial results on November 5, 2025 [4].