Financial Data and Key Metrics Changes - Fourth quarter revenue was $1.02 billion, representing a 1% reported decline, but organic constant currency growth was 4% [46] - Adjusted EBITDA for the fourth quarter was $177 million, an increase of $12 million on a reported basis [54] - Full year adjusted EPS came in at $0.91 compared to $0.89 in 2023, reflecting a slight growth [58] Business Line Data and Key Metrics Changes - Total Pet Health revenue increased by 6% in constant currency in the fourth quarter, with U.S. Pet Health growing by 2% and international Pet Health growing by 11% [47][48] - U.S. Farm Animal business achieved $223 million in sales, a 6% increase, driven by market expansion and increased share within the cattle business [49] - International Farm Animal revenue was flat, impacted by the Kexxtone recall and strategic changes in certain geographies [50] Market Data and Key Metrics Changes - The U.S. dermatology market is projected to surpass $2 billion, with Zenrelia capturing significant market share [80] - The global poultry demand showed sequential improvement, contributing to the overall growth despite challenges in swine economics in Asia [17][50] - The carbon market for Bovaer is estimated to be $2 billion, with strong demand from farmers and consumer product goods companies [38] Company Strategy and Development Direction - The company is focused on growth, innovation, and cash generation, with expectations of 4% to 6% organic constant currency revenue growth in 2025 [12][73] - Strategic divestiture of the aqua business has allowed for debt reduction and increased investments in product launches [10][20] - The company aims to leverage its comprehensive portfolio to enhance market share in both Pet Health and Farm Animal segments [22][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to achieve sustained growth despite macroeconomic challenges, including foreign exchange impacts [14][13] - The management highlighted the importance of innovation and commercial execution in driving future revenue growth [72] - The company anticipates a positive revenue trajectory for Bovaer and other innovative products in the second half of 2025 [39][97] Other Important Information - The company achieved a net leverage ratio of 4.3 times at the end of the year, down from 5.6 times at the start of 2024 [20] - Operating cash flow for the full year was $541 million, representing 120% of adjusted net income [60] - The company plans to increase capital expenditures to support the expansion of its monoclonal antibody manufacturing facility [66] Q&A Session Summary Question: What is the expected penetration of Zenrelia by year-end 2025? - Management is optimistic about Zenrelia's growth trajectory, with significant adoption in U.S. vet clinics and plans for aggressive sampling programs to drive further penetration [80][84] Question: What factors contribute to the accelerating revenue growth in Q1 2025? - The growth is attributed to the ramp-up of Zenrelia and Credelio Quattro, alongside the absence of headwinds faced in the previous year [88][89] Question: What gives confidence in the innovation contribution for 2025? - The momentum from successful product launches like Experior and AdTab, along with the growth potential in the dermatology market, supports this confidence [96][97] Question: How is the commercialization strategy for Credelio Quattro different? - The strategy includes a strong DTC approach and leveraging the existing Credelio franchise's growth to enhance market penetration [116] Question: What is the expected impact of competition in the dermatology market? - Competition is acknowledged as a headwind, but the company remains confident in its growth potential due to unmet needs in the market [125][126]

Core Insights - Elanco Animal Health reported fourth-quarter revenue of $1.02 billion, a decrease of 1% on a reported basis but a 4% organic constant currency growth, surpassing the consensus estimate of $1.01 billion [1] - The company reported adjusted EPS of 14 cents, an increase from 8 cents year-over-year, but fell short of the consensus estimate of 15 cents [1] Pet Health Segment - Pet Health revenue reached $439 million, reflecting a 6% year-over-year increase, with a 3% price increase contributing to this growth, driven by strong performance in the global over-the-counter retail parasiticide business and new products like Zenrelia and Credelio Plus, although competitive pressures in the U.S. veterinary channel partially offset these gains [2] Farm Animal Segment - Farm Animal revenue was $570 million, showing a 7% decrease on a reported basis but a 2% increase on an organic constant currency basis, with a 3% contribution from price in the fourth quarter; strong demand for Experior and Rumensin in the U.S. and swine across multiple geographies supported the organic growth [3] Financial Metrics - Adjusted EBITDA was $177 million, marking a 7% increase, with an adjusted EBITDA margin of 17.4%, up 150 basis points [3] Future Guidance - For 2025, Elanco expects revenues between $4.45 billion and $4.51 billion, slightly below the consensus of $4.53 billion, and adjusted EPS in the range of 80-86 cents, compared to the consensus of 90 cents; the company anticipates a revenue headwind of approximately $110 million due to unfavorable foreign exchange rates [4] Management Commentary - The company is focused on accelerating organic constant currency revenue growth for 2025 and improving earnings potential while navigating a dynamic macroeconomic environment; adjustments made were primarily for incremental currency headwinds [5] Q1 2025 Expectations - For the first quarter of 2025, Elanco projects revenues of $1.16 billion to $1.18 billion, below the consensus of $1.21 billion, and adjusted EPS of 29-34 cents, compared to the consensus of 30 cents [6] Stock Performance - Elanco's stock is down 4.68% at $10.59 as of the last check on Tuesday [7]

D 2024 Earnings – Fourth Quarter February 25, 2025 2024 | Q4 Earnings Notices and Disclaimers Forward-Looking Statements. This presentation contains forward-looking statements within the meaning of the federal securities laws, including, without limitation, statements concerning product launches and revenue from such products, our 2025 full year and first quarter guidance, long-term expectations, our expectations regarding debt levels, and expectations regarding our industry and our operations, performance ...

Elanco Animal Health Incorporated (ELAN) reported $1.02 billion in revenue for the quarter ended December 2024, representing a year-over-year decline of 1.5%. EPS of $0.14 for the same period compares to $0.08 a year ago.The reported revenue represents a surprise of +0.83% over the Zacks Consensus Estimate of $1.01 billion. With the consensus EPS estimate being $0.15, the EPS surprise was -6.67%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expe ...

Core Viewpoint - Elanco Animal Health reported quarterly earnings of $0.14 per share, missing the Zacks Consensus Estimate of $0.15 per share, but showing an improvement from $0.08 per share a year ago, indicating a -6.67% earnings surprise [1] Financial Performance - The company posted revenues of $1.02 billion for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 0.83%, although this represents a decline from year-ago revenues of $1.04 billion [2] - Over the last four quarters, Elanco has surpassed consensus EPS estimates three times and topped consensus revenue estimates three times as well [2] Stock Performance - Elanco shares have declined approximately 8.3% since the beginning of the year, contrasting with the S&P 500's gain of 1.7% [3] - The current consensus EPS estimate for the upcoming quarter is $0.31 on revenues of $1.2 billion, and for the current fiscal year, it is $0.89 on revenues of $4.51 billion [7] Industry Outlook - The Medical - Outpatient and Home Healthcare industry, to which Elanco belongs, is currently ranked in the top 22% of over 250 Zacks industries, suggesting a favorable industry outlook [8]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2024 Commission file number 001-38661 Elanco Animal Health Incorporated (Exact name of Registrant as specified in its charter) INDIANA 82-5497352 (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) 2500 INNOVATION WAY, GREENFIELD, INDIANA 46140 (Address an ...

Revenue Performance - Fourth quarter 2024 revenue was $1,020 million, a decrease of 1% on a reported basis and an increase of 4% on an organic constant currency basis[6]. - Full year 2024 revenue was $4,439 million, flat to the prior year on a reported basis and up 3% on an organic constant currency basis[3]. - Pet Health revenue for the fourth quarter was $439 million, a 6% increase on both a reported and organic constant currency basis[7]. - Farm Animal revenue for the fourth quarter was $570 million, a 7% decrease on a reported basis but a 2% increase on an organic constant currency basis[8]. - Revenue for Q4 2024 was $1,020 million, a decrease of 1.5% compared to $1,035 million in Q4 2023[36]. - Full year revenue for 2024 was $4,439 million, an increase of 0.5% from $4,417 million in 2023[36]. - Full year 2025 revenue guidance is set between $4,445 million and $4,510 million, with an estimated foreign exchange headwind of $110 million[18]. - The innovation revenue target for 2025 has been raised to between $640 million and $720 million[18]. Profitability and Loss - Adjusted EBITDA for the fourth quarter of 2024 was $177 million, representing 17.4% of revenue, an increase of 7% compared to the fourth quarter of 2023[16]. - Adjusted net income for Q4 2024 was $80 million, compared to an adjusted net income of $180 million in Q4 2023[43]. - The reported net loss for the fourth quarter of 2024 was $8 million, compared to a net loss of $141 million in the same period of 2023[15]. - Basic loss per share for Q4 2024 was $(0.02), improving from $(0.29) in Q4 2023[36]. - Adjusted EBITDA for the twelve months ended December 31, 2024, was $910 million, down from $979 million in 2023, resulting in an adjusted EBITDA margin of 20.5% compared to 22.2%[55]. - The company reported a diluted EPS of $0.68 for the year ended December 31, 2024, compared to a loss of $2.50 in 2023, marking a significant turnaround[52]. - Total adjustments to diluted EPS for the year ended December 31, 2024, amounted to $0.23, while for 2023, it was $3.39, indicating a significant reduction in adjustments year-over-year[52]. Cash Flow and Debt - The company generated over $500 million in operating cash flow for 2024, doubling from the prior year[3]. - The company reported a net debt of $2,500 million, with a net leverage ratio of 3.5x trailing twelve month adjusted EBITDA[32]. - The total gross debt as of December 31, 2024, was $4.349 billion, with a net debt of $3.881 billion after accounting for cash and cash equivalents of $468 million[57]. Future Guidance and Expectations - The company expects operating expenses to increase approximately 6% year over year in constant currency for 2025, driven by strategic investments in innovation[19]. - The company plans to continue focusing on product development and market expansion strategies to drive future growth[26]. - Elanco is committed to enhancing its research and development efforts to innovate in animal health technologies[28]. - The company expects to continue focusing on restructuring and integration efforts to improve operational efficiency and financial performance in the upcoming quarters[59]. - 2025 full year reported EPS guidance ranges from $(0.05) to $0.01, with adjusted EPS expected to be between $0.80 and $0.86[60]. - Reported net (loss) income for 2025 is projected to be between $(25) million and $7 million, with adjusted EBITDA guidance ranging from $830 million to $870 million[62]. - First quarter 2025 reported EPS guidance is between $0.03 and $0.08, while adjusted EPS is expected to be between $0.29 and $0.34[63]. - First quarter 2025 reported net income is projected to be between $13 million and $41 million, with adjusted EBITDA guidance ranging from $240 million to $260 million[65]. - Adjusted EBITDA margin for 2025 is expected to be between 18.7% and 19.3%[62]. - Adjusted EBITDA margin for the first quarter of 2025 is projected to be between 21.0% and 22.2%[65]. - Total adjustments to EPS for 2025 full year are estimated at $0.85[60]. - Non-GAAP adjustments for 2025 full year include asset impairment and restructuring charges of approximately $20 million[62]. - Amortization of intangible assets for 2025 full year is approximately $1.02 million[60]. - Tax impact of adjustments for 2025 full year is estimated to be between $(0.25) and $(0.24) million[60].

Core Insights - Elanco Animal Health reported strong financial results for Q4 and full year 2024, achieving its sixth consecutive quarter of organic constant currency revenue growth, with Q4 revenue up 4% [2][4] - The company demonstrated broad-based strength across its diverse portfolio, with growth in both Pet Health and Farm Animal segments, exceeding innovation revenue targets for 2024 and raising the goal for 2025 [2][5] - Elanco generated over $500 million in operating cash flow in 2024, doubling from the previous year, and reported a net loss of $8 million for Q4, significantly improved from a net loss of $141 million in Q4 2023 [4][18] Financial Highlights - Q4 2024 total revenue was $1,020 million, a decrease of 1% on a reported basis but an increase of 4% on an organic constant currency basis compared to Q4 2023 [4][9] - Pet Health revenue for Q4 was $439 million, up 6% year-over-year, driven by strong OTC retail parasiticide sales and key innovation products [10] - Farm Animal revenue for Q4 was $570 million, down 7% on a reported basis but up 2% on an organic constant currency basis, supported by strong demand for specific products [11] Full Year Results - For the full year 2024, Elanco reported total revenue of $4,439 million, flat compared to the prior year on a reported basis and up 3% on an organic constant currency basis [5][7] - Reported net income for 2024 was $338 million, with adjusted net income of $452 million, reflecting significant improvement from a net loss of $1,231 million in 2023 [7][54] - Adjusted EBITDA for 2024 was $910 million, representing 20.5% of revenue, with reported EPS of $0.68 and adjusted EPS of $0.91 [5][7] 2025 Guidance - Elanco provided guidance for 2025, expecting revenue between $4,445 million and $4,510 million, with a reported net loss or income ranging from $(25) million to $7 million [21][22] - The company anticipates a foreign exchange headwind of approximately $110 million to revenue and $45 million to adjusted EBITDA for 2025 [22][24] - For Q1 2025, revenue is expected to be between $1,155 million and $1,180 million, with adjusted EPS projected between $0.29 and $0.34 [25][26] Business Developments - Elanco launched Credelio Quattro™ in January 2025 and achieved significant market penetration with Zenrelia™ in the U.S. [6] - The company strengthened its leadership in the U.S. Farm Animal market, achieving blockbuster status for Experior® [6] - Elanco's strategic investments in innovation and marketing are expected to drive growth in 2025, with a focus on mid-single digit organic constant currency revenue growth [24][22]

Core Insights - Elanco Animal Health has entered into an agreement with Medgene to commercialize a highly pathogenic avian influenza (HPAI) vaccine for dairy cattle, which is in the final stages of review for conditional license approval by the USDA [1][3][4] Industry Context - The poultry industry has faced ongoing challenges in controlling HPAI, which has now affected nearly 1,000 dairy herds across the U.S. since March 2024, highlighting the urgent need for new interventions [2] - The cross-species transmission of HPAI and its zoonotic potential necessitates the development of a cattle vaccine to mitigate the spread of the virus [2] Company Strategy - Elanco's partnership with Medgene aims to provide new solutions to dairy producers, enhancing their vaccination protocols and contributing to the overall health of the dairy industry [3] - The collaboration is expected to strengthen Elanco's diverse dairy portfolio and support its One Health platform, which benefits both dairy and poultry sectors [3] Technological Advancements - Medgene's vaccine platform technology has been previously approved by the USDA, facilitating the accelerated development of the H5N1 vaccine for dairy cattle [4] - Medgene is prepared with existing vaccine manufacturing capabilities to support the U.S. dairy herd [4]

GREENFIELD, Ind., Feb. 21, 2025 /PRNewswire/ -- Elanco Animal Health Incorporated (NYSE: ELAN) today announced that the Company will participate in the following investor conferences.On Thursday, February 27, Todd Young, executive vice president and CFO, will participate in a fireside chat at the Bank of America 2025 Animal Health Summit at 12:30 p.m. ET.On Monday, March 3, Jeff Simmons, president and CEO, will participate in a fireside chat at the TD Cowen 45th Annual Health Care Conference at 3:10 p.m. ET ...