Financial Performance - Elanco Animal Health reported first-quarter 2025 adjusted earnings per share of 37 cents, a 9% increase year over year, surpassing management guidance of 29 to 34 cents and consensus of 31 cents [1] - The company achieved sales of $1.19 billion, exceeding the consensus of $1.17 billion and management guidance of $1.16 billion to $1.18 billion, although sales decreased 1% on a reported basis but increased 4% on organic constant currency growth [1] Segment Performance - Pet Health revenue was $635 million, reflecting a 1% decrease on a reported basis but a 1% increase when excluding foreign exchange rates, with a 2% increase from price compared to Q1 2024 [2] - Farm Animal revenue was $546 million, a 2% decrease on a reported basis, but a 7% increase when excluding unfavorable impacts from aqua divestiture and foreign exchange rates, driven by a 3% increase from price [3] - First-quarter volumes for Farm Animal were up 4%, primarily due to strength in U.S. cattle, led by the product Experior [3] EBITDA and Leverage - Adjusted EBITDA was $276 million, a decrease of 6%, with an adjusted EBITDA margin of 23.1% compared to 24.4% a year ago [3] - As of March 31, Elanco's net leverage ratio was 4.4x adjusted EBITDA, an increase of 0.1x compared to December 31, 2024, with expectations of gross debt paydown of $450 million to $500 million in 2025 [4] Guidance and Future Outlook - The company raised its 2025 full-year revenue guidance from $4.45 billion to $4.51 billion, now expecting between $4.51 billion and $4.58 billion, compared to the consensus of $4.484 billion [7] - Elanco reaffirmed its 2025 adjusted EPS guidance of 80 to 86 cents, against the consensus of 83 cents, and expects second-quarter 2025 adjusted earnings of 17 to 21 cents, compared to the consensus of 25 cents [8] Market Context - The year-over-year volume decline in Q1 was primarily due to a challenging U.S. retail environment and decreased vaccine sales, offset by increased sales of new products and strong demand for parasiticide products in Europe [9] - The Advantage Family of products and Seresto contributed revenues of $123 million and $153 million, respectively [9]