Elanco reported third‑quarter 2025 results that beat consensus estimates, with revenue rising 10% to $1,137 million and adjusted earnings per share climbing to $0.19, a $0.06 or 46% beat over the $0.13 forecast. The revenue lift was driven by a 10% increase in pet‑health sales to $533 million, fueled by strong demand for new products such as Credelio Quattro and Zenrelia, and a 12% rise in farm‑animal revenue to $593 million, led by higher cattle and poultry volumes.
The company posted a net loss of $34 million, or $(0.07) per diluted share, on a reported basis. Management explained that the loss reflects the impact of acquisition costs and debt‑related expenses that were not captured in the adjusted figures. When one‑time charges are excluded, the adjusted loss disappears, underscoring the company’s underlying profitability.
Pet‑health revenue grew 10% to $533 million, with Credelio Quattro reaching $100 million in net sales in less than eight months and Zenrelia’s global sales nearly doubling from the second quarter. Farm‑animal revenue expanded 12% to $593 million, driven by higher cattle and poultry sales that offset modest pressure in the poultry‑feed segment. These segment gains illustrate the company’s balanced growth across its core markets.
Gross profit reached $607 million, a 53.4% margin that is 120 basis points higher than the prior year. The margin expansion reflects both pricing power in the pet‑health segment and cost efficiencies achieved through the company’s productivity initiatives. Adjusted gross profit of $601 million, a 53.1% margin, is 90 basis points above the previous year, indicating sustained operational leverage.
Elanco raised its full‑year 2025 revenue guidance to $4,645–$4,670 million from $4,570–$4,620 million and adjusted EBITDA guidance to $880–$900 million from $850–$890 million. The company also updated its net‑leverage target to 3.7×, signaling confidence in accelerated debt repayment and stronger cash generation. CEO Jeff Simmons said the company is “opening the door truly to the next era of growth and innovation,” while CFO Bob VanHimbergen highlighted that consistent execution is enabling the higher guidance and that the balance sheet will remain robust through 2025.
Investors’ reaction was mixed. While the earnings beat and guidance raise generated initial enthusiasm, concerns over the reported net loss and the one‑time acquisition and debt costs tempered the response. Analysts noted the $0.06 EPS beat and $47 million revenue beat, but emphasized that the company’s focus on long‑term growth and margin expansion will be key to sustaining investor confidence.
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