Elanco Animal Health Inc (ELAN) Q1 2025 Earnings Call Highlights: Strong Innovation Revenue and ...

GuruFocus News

Thu, May 8, 2025, 12:09 AM 4 min read

• Revenue: $1.193 billion, a alteration of 1% connected a reported basis; 4% integrated changeless currency growth.

• Adjusted EBITDA: $276 million, a alteration of $18 cardinal year-over-year.

• Adjusted EPS: $0.37, a $0.03 betterment year-over-year.

• Net Leverage Ratio: 4.4 times adjusted EBITDA.

• Innovation Revenue: $198 cardinal successful Q1; full-year expectations raised to $660 cardinal to $740 million.

• US Pet Health Revenue: Declined 3% owed to challenging retail situation and brushed vaccine demand.

• International Pet Health Revenue: Grew 5% successful changeless currency.

• US Farm Animal Business: Grew 17%, driven by request for Experior.

• Gross Margin: Increased 10 ground points to 57.4%.

• Interest Expense: $40 million, down from $66 cardinal past year.

• Cash Used from Operations: $4 cardinal successful the quarter.

• Full-Year Revenue Guidance: Raised for FX impact; integrated changeless currency maturation expected astatine 4% to 6%.

• Full-Year Adjusted EBITDA Guidance: $830 to $870 million.

• Full-Year Adjusted EPS Guidance: $0.80 to $0.86.

• Q2 Revenue Guidance: $1.175 cardinal to $1.195 billion.

• Q2 Adjusted EBITDA Guidance: $200 cardinal to $220 million.

• Q2 Adjusted EPS Guidance: $0.17 to $0.21.

• Warning! GuruFocus has detected 3 Warning Signs with ELAN.

Release Date: May 07, 2025

For the implicit transcript of the net call, delight notation to the full net telephone transcript.

• Elanco Animal Health Inc (NYSE:ELAN) exceeded first-quarter guidance for revenue, adjusted EBITDA, and adjusted EPS, marking the seventh consecutive 4th of underlying growth.

• The institution reported 4% integrated changeless currency gross growth, driven by some terms and measurement increases.

• Elanco raised its full-year expectations for caller merchandise gross to $660 cardinal to $740 million, with beardown show from precocious launched products similar Credelio Quattro.

• The institution is deleveraging faster than planned, improving its nett leverage people for year-end to 3.9 to 4.3 times, aided by beardown moving superior show and favorable currency impacts.

• Elanco's innovation strategy is yielding results, with $198 cardinal successful first-quarter gross from caller products and a robust pipeline, including the anticipated IL-31 support successful precocious 2025.

• The US retail concern faced challenges, with a 21% diminution successful the archetypal 2 months of the twelvemonth owed to cooler upwind impacting user spending.

• Elanco is exposed to imaginable tariff impacts, estimating a $16 cardinal to $20 cardinal antagonistic interaction connected adjusted EBITDA for 2025, chiefly owed to US-China tariffs.

• The institution is maintaining its full-year adjusted EBITDA and EPS guidance contempt macroeconomic uncertainties and imaginable tariff risks.

• Operating expenses accrued by 3% year-over-year, driven by investments successful merchandise launches and R&D, impacting short-term profitability.

• The planetary workplace carnal concern faced headwinds from the Echstone callback and commercialized exemplary changes, creating a 4% constituent headwind to year-over-year growth.