Elanco (ELAN) Q4 2025 Earnings Call Transcript

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a=i._config.panel;i._panelParentNode=document.querySelector(a.parentSelector),i._badgeNode=i._config.badge.selector&&document.querySelector(i._config.badge.selector),i._indicatorNode=a.indicatorSelector&&document.querySelector(a.indicatorSelector)}return k(e,[{key:"createPanelParentNode",value:function(){this._view.createPanelParentNode(this._panelParentNode),this._notifPanelNode=document.getElementById(P)}},{key:"refreshPanelNode",value:function(e,t){var n=this;x(n._notifPanelNode,D),n._store.fetchNotifications(e,(function(e,o){var i=window.wafer&&window.wafer.base;i&&i.destroy(n._notifPanelNode),e?n._notifPanelNode.innerHTML||(n._view.render("error_panel"),x(n._notifPanelNode,D)):(n._view.render("expanded_panel"),n._view.updateBadgeNode(n._badgeNode),n._showBadge(),n._showIndicator(),n._view.addStyles(o.css)),N(n._notifPanelNode,D),i&&i.sync(n._notifPanelNode.parentNode),t&&t(e,o)}))}},{key:"resetBadge",value:function(){var e=this;e._store.resetNewCount(),e._view.updateBadgeNode(e._badgeNode),x(e._badgeNode,e._config.badge.hideClass)}},{key:"_showIndicator",value:function(){this._indicatorNode&&(this._store.getNotifications().newCount?x(this._indicatorNode,this._config.panel.indicatorClass):N(this._indicatorNode,this._config.panel.indicatorClass))}},{key:"_showBadge",value:function(){var e=this;e._store.getNotifications().newCount?N(e._badgeNode,e._config.badge.hideClass):x(e._badgeNode,e._config.badge.hideClass)}}]),e}(),Y={promos:{eligibleBodyClass:"display-push-promos",enableNotifOnboard:!0,bypassEligibleClassCheck:!1,notifOnboardBtnLabel:"Notify Me",notifOnboardMsg:"Get alerts for breaking news and top stories",promoLogo:"https://s.yimg.com/cv/apiv2/ae/news/circle_bell.png",showYahooLogo:!0,subscriptionTopic:"gondor_homerun_news"},badge:{hideClass:"",maxCount:5,selector:""},panel:{emptyPanelMsg:"You have no new 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SimmonsChief Financial Officer — Robert M. VanHimbergenHead of Investor Relations — Tiffany KanagaNeed a quote from a Motley Fool analyst? Email pr@fool.comJeffrey N. Simmons: Thanks, Tiffany. Good morning, everyone. 2025 was the year of significant delivery for Elanco Animal Health Incorporated. Across all three of our priorities, growth, innovation, and cash. As highlighted on slide 4, Elanco delivered a strong fourth quarter, with 9% organic constant currency revenue growth. We outperformed the high end of guidance for revenue, adjusted EBITDA, and adjusted EPS. Growth was led by US farm animal up 17% and US pet health up 10%. This now marks 10 consecutive quarters of underlying total growth. Revenue from innovation exceeded expectations in 2025 at $892 million for the year, as the fourth quarter was our largest quarter for innovation to date.We are raising our 2026 outlook for innovation to $1,150 million reflecting contributions across a broad set of geographies, species, and products. Our continued focus on cash, combined with strong results, improved our net leverage ratio faster than plan, to 3.6 times at year end. We now expect to finish 2026 at 3.1 to 3.3 times. With our consistent execution, we are well positioned to introduce 2026 guidance in line with our longer term algorithm. We expect full-year organic constant currency revenue growth of 4% to 6%, adjusted EBITDA of $955 to $985 million, representing growth of 8% at the midpoint, and adjusted EPS of $1.00 to $1.06, representing growth of 10% at the midpoint.This guidance continues our prudent balanced approach in a dynamic macro environment. On slide 5, let me ground today's discussion in accountability and transparency by sharing a checklist for the year in review. Elanco delivered across our full set of 2025 commitments to our customers and our shareholders. We have entered our new era of growth with a record of consistent execution. Innovation revenue cleared a bar that was raised each quarter in 2025. We brought the entire Big Six across the finish line with Bifrenna’s December approval. This is a real testament to the optimized innovation engine that Ellen’s team has built over the past few years.Organic constant currency revenue growth reached 7% for the full year, with balanced contributions across species and geographies as well as between volume and price. 2025 revenue, adjusted EBITDA, and adjusted EPS all exceeded last February's expectations with steady outperformance throughout the year. And we delevered about a half a turn faster than expected while also refinancing our Term Loan B ahead of schedule. Team Elanco, I want to extend my gratitude for an incredible year. Your level of engagement and execution has never been higher, while your unwavering dedication to transforming animal care has truly shown. Looking more closely at the fourth quarter revenue performance on slide 6, we break down the 9% underlying organic constant currency revenue growth.Terms and Privacy PolicyPrivacy & Cookie SettingsMore InfoS&P Futures6,949.25 -10.50 (-0.15%)Dow Futures49,454.00 -80.00 (-0.16%)Nasdaq Futures25,307.75 -74.25 (-0.29%)Russell 2000 Futures2,668.00 +0.30 (+0.01%)VIX17.93 -1.62 (-8.29%)Gold5,201.60 -24.60 (-0.47%)Trending tickersNVDA NVIDIA Corporation 195.56 +2.71 (+1.41%)CRM Salesforce, Inc. 191.75 +6.33 (+3.41%)IONQ IonQ, Inc. 33.59 +1.97 (+6.23%)SNOW Snowflake Inc. 169.21 +8.15 (+5.06%)TTD The Trade Desk, Inc. 25.16 +0.22 (+0.88%)PortfolioSign in to access your portfolioSign inTop gainersYOU Clear Secure, Inc. 46.51 +13.04 (+38.96%)CRCL Circle Internet Group 83.14 +21.77 (+35.47%)CAVA CAVA Group, Inc. 85.67 +17.87 (+26.36%)CCC CCC Intelligent Solutions Holdings Inc. 6.34 +1.28 (+25.30%)ECG Everus Construction Group, Inc. 130.10 +25.89 (+24.84%)Top losersIBRX ImmunityBio, Inc. 9.54 -2.01 (-17.40%)LUNR Intuitive Machines, Inc. 15.89 -3.01 (-15.93%)DEO Diageo plc 86.15 -15.99 (-15.66%)GDDY GoDaddy Inc. 79.12 -13.18 (-14.28%)FSLR First Solar, Inc. 210.12 -33.09 (-13.61%)Most activeNVDA NVIDIA Corporation 195.56 +2.71 (+1.41%)PLUG Plug Power Inc. 1.9100 0.0000 (0.00%)IBRX ImmunityBio, Inc. 9.54 -2.01 (-17.40%)INTC Intel Corporation 46.88 +0.76 (+1.65%)ONDS Ondas Inc. 10.30 -0.10 (-0.96%)Top economic eventsEarnings eventsMy earnings eventsEarnings events