Elanco Animal Health (NYSE:ELAN) executives said the company closed 2025 with “significant delivery” across its priorities of growth, innovation and cash generation, highlighting a strong fourth quarter and issuing 2026 guidance they said aligns with the company’s longer-term financial framework.
Fourth-quarter performance and full-year results
CEO Jeff Simmons said Elanco posted 9% organic constant-currency revenue growth in the fourth quarter, led by U.S. Farm Animal up 17% and U.S. Pet Health up 10%. Simmons added that the company outperformed the high end of its guidance for revenue, adjusted EBITDA and adjusted EPS, and noted Elanco has now delivered 10 consecutive quarters of underlying total growth.
Adjusted EBITDA was $189 million, up 7% year over year. Adjusted EPS was $0.13, down 7%, which Van Hembergen attributed to an anticipated higher tax rate due mainly to timing of one-time benefits.
For the full year, Van Hembergen reported $4.715 billion in revenue (6% reported growth) and said organic constant-currency revenue growth was 7% for 2025. Full-year adjusted EBITDA was $901 million and adjusted EPS was $0.94, up from $0.91 in 2024. Full-year adjusted gross margin of 54.9% was flat versus 2024, as price and volume benefits were offset by inflation and higher manufacturing costs.
Innovation engine and “Big Six” progress
Simmons said 2025 innovation revenue totaled $892 million, exceeding expectations, with the fourth quarter described as the company’s largest quarter for innovation to date. Elanco raised its 2026 outlook for innovation to $1.15 billion, which management framed as at least $250 million of growth year over year.
Management highlighted several major products:
- Credelio Quattro: Simmons called it the “fastest blockbuster” in company history and said it was the only product to gain share in U.S. vet clinics in the quarter within the broad-spectrum endectocide category. He said the product enters 2026 with momentum in the $1.4 billion U.S. broad-spectrum parasiticide market, with about one-third of clinics penetrated. He also said Quattro’s global rollout is beginning, citing approval in Australia.
- Zenrelia: Simmons said Zenrelia exited December with double-digit share of the U.S. JAK market, is in about half of U.S. clinics, and has a reorder rate above 80%. Internationally, he cited rapid share gains, including 40% JAK market share in Brazil and over 30% in Japan, and said sell-out data supports double-digit JAK market share in France, Italy and Spain and more than 10% share in the U.K.
- Befrena: Elanco received USDA approval on December 31 and expects to launch in the second quarter of 2026 following a manufacturing ramp-up. Simmons said Befrena is recommended at a six- to eight-week dosing interval post-treatment and cited feedback from a survey of roughly 350 veterinarians where 83% said they were likely to use it.
- AdTab: Management said sales were up more than 50%, and described AdTab as the fastest-growing brand in Europe’s OTC ectoparasiticide market, reaching more than 50% oral OTC share.
- Experior: Simmons said Experior was up 35% in the fourth quarter and surpassed $200 million in 2025 revenue, up nearly 80% for the year.
- Bovaer: Management said it continues to see demand from CPG companies, with farmer retention over 90%, but described near-term growth as measured in a dynamic market backdrop.
Pricing, portfolio effects, and distributor dynamics
Executives repeatedly pointed to an expectation for accelerating price contribution in 2026 versus 2025. Van Hembergen said 2025 price growth was about 2% and that Elanco implemented its “highest price increase to vets in the last five years” in U.S. pet health. He also noted that in 2025, the company had many launches that were “not a contributor to price,” but that it will begin lapping those launches in 2026, adding to the pricing component year over year.
On product “halo” effects, Simmons said Credelio Quattro has boosted broader clinic performance and cited that 2,600 clinics purchasing Quattro are “now adding on additional products.” He also said corporate accounts improved, noting that 90% of Elanco’s corporates grew in 2025 versus 13% in 2024, and that the company has already contracted with major EU corporate accounts for Zenrelia.
Asked about stocking or destocking, Simmons said Elanco saw “no change,” with distributors ordering multiple times per quarter and strong dispensing trends, and said the company did not see stocking affecting spring demand.
In response to a question about distributor consolidation, Simmons said Elanco has strong relationships with major distributors and said Elanco’s comprehensive portfolio is in a buy-sell agreement with them, while other companies have “retracted.” He said the company will continue to focus on value as the distribution structure evolves.
Balance sheet, acquisition, and 2026 guidance
Elanco said its focus on cash and results improved the net leverage ratio faster than planned to 3.6x at year-end 2025, with Simmons expecting 2026 to finish at 3.1x to 3.3x. Van Hembergen reported net debt of approximately $3.2 billion and said the company is prioritizing debt paydown alongside strategic investments.
Simmons also announced an agreement to acquire AHV International, a Dutch-based farm animal health company focused on cattle products. Van Hembergen said the acquisition is not included in guidance, is expected to close in the second quarter, and should provide a modest contribution to revenue and adjusted EBITDA in 2026 with greater benefit in 2027, without changing the deleveraging timeline.
For 2026, management guided to:
- Organic constant-currency revenue growth: 4% to 6% (revenue of $4.95 billion to $5.02 billion)
- Adjusted EBITDA: $955 million to $985 million
- Adjusted EPS: $1.00 to $1.06
For the first quarter, the company guided to revenue of $1.28 billion to $1.305 billion, adjusted EBITDA of $290 million to $310 million, and adjusted EPS of $0.33 to $0.36. Van Hembergen said first-quarter gross margin is expected to decline year over year due to the timing of inflation and higher inventory costs, particularly in the first half, with margin performance improving as 2026 progresses.
Management also discussed Elanco Ascend, a company-wide productivity initiative focused on G&A savings and manufacturing efficiencies. Van Hembergen said restructuring is on track to generate $25 million in savings in 2026, with additional initiatives in AI, operations and procurement expected to benefit both the P&L and cash flow.
In closing remarks, Simmons said the company is taking a “balanced and prudent” approach heading into 2026, with continued delivery, growth, innovation and cash as top priorities.
About Elanco Animal Health (NYSE:ELAN)
Elanco Animal Health Inc is a global leader in animal health dedicated to improving food and companion animal well-being. The company develops, manufactures and markets a range of products, including parasiticides, vaccines, antibiotics and feed additives designed to prevent and treat disease in livestock and pets. Elanco’s portfolio spans both food-producing animals—such as cattle, swine, poultry and aquaculture—and companion animals, with offerings that support parasite control, pain management and infectious disease prevention.
Originally founded as the animal health division of Eli Lilly and Company in the mid-20th century, Elanco was spun off into an independent publicly traded company in 2018.
