Elanco(US:ELAN) Prnewswire·2026-02-24 11:27Core Insights - Elanco Animal Health reported significant financial results for Q4 and full year 2025, with a focus on growth, innovation, and cash generation, and provided guidance for 2026 [1][2][3] Financial Performance - Q4 2025 revenue reached $1,144 million, a 12% increase year-over-year, with 9% organic constant currency growth [2][3] - Full year 2025 revenue was $4,715 million, up 6% on a reported basis and 7% in organic constant currency [1][2] - Adjusted EBITDA for Q4 2025 was $189 million, with a margin of 16.7%, while full year adjusted EBITDA was $901 million, representing a margin of 19.2% [1][2] - The company reported a net loss of $276 million for Q4 2025 and a net loss of $232 million for the full year [2][3] Business Segments - Pet Health segment revenue for Q4 2025 was $489 million, an 11% increase, driven by new products like Credelio Quattro and Zenrelia [2][3] - Farm Animal segment revenue was $640 million in Q4 2025, a 12% increase, supported by volume growth in cattle and poultry [2][3] Innovation and Growth Strategy - Elanco exceeded its innovation revenue target for 2025, achieving $892 million, and raised the target for 2026 to $1.15 billion [1][2] - The company plans to continue its focus on innovation, with expectations of five to six blockbuster-potential approvals over the next six years [1][2] Financial Guidance - For full year 2026, Elanco expects revenue between $4,950 million and $5,020 million, representing 4% to 6% organic constant currency growth [1][3] - Adjusted EBITDA guidance for 2026 is set at $955 million to $985 million, with adjusted EPS expected to be between $1.00 and $1.06 [1][3] Restructuring and Cost Management - The company recorded $155 million in restructuring costs in Q4 2025, with expected savings of approximately $25 million in 2026 and $60 million in 2027 [1][2] - Elanco's net leverage ratio improved to 3.6x adjusted EBITDA by the end of 2025, with a target of reducing it to below 3x by 2027 [1][3]