Zoetis (ZTS) Q2 2025 Earnings Call Transcript

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Tuesday, Aug. 5, 2025 astatine 8:30 a.m. ET

• Chief Executive Officer — Kristin C. Peck

• Chief Financial Officer — Wetteny N. Joseph

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Kristin Peck, our Chief Executive Officer; and Wetteny Joseph, our Chief Financial Officer. Before we begin, I'll punctual you that the slides presented connected this telephone are disposable connected the Investor Relations conception of our website and that our remarks contiguous volition see forward-looking statements and that existent results could disagree materially from those projections. For a database and statement of definite factors that could origin results to differ, I notation you to the forward-looking statements successful today's property merchandise and our SEC filings, including but not constricted to our yearly study connected Form 10-K and our reports connected Form 10-Q.

Our remarks contiguous volition besides see references to definite fiscal measures, which were not prepared successful accordance with mostly accepted accounting principles oregon U.S. GAAP. A reconciliation of these non-GAAP fiscal measures to the astir straight comparable U.S. GAAP measures is included successful the fiscal tables that travel our net property merchandise and the company's 8-K filing dated today, Tuesday, August 5, 2025. We besides mention operational results, which exclude the interaction of overseas exchange. With that, I volition crook the telephone implicit to Kristin.

Kristin C. Peck: Thank you, Steve, and bully morning, everyone. Welcome to our 2nd 4th 2025 net call. Thanks to the dedication of our colleagues astir the world, we delivered beardown broad-based 8% integrated operational gross growth, a reflection of the spot of our innovation motor and the excellence of our customer-focused execution. We besides grew adjusted nett income 10% connected an integrated operational basis, underscoring our absorption connected operational efficiency. Our International conception grew integrated operational gross 9%, demonstrating our quality to capitalize connected cardinal trends that are expanding determination markets. The U.S. grew 7%, excluding the interaction of the MFA divestiture.

Companion Animal grew 8% operationally, portion livestock delivered 6% integrated operational growth, driven by sustained request for our trusted, market-leading solutions. This quarter's show highlights the spot of our diversified portfolio, with maturation crossed markets, species, franchises and channels and balanced contributions from terms and volume, a testament to our strategy. With integrated operational gross of 9% successful the archetypal half, we are delivering successful enactment with our program and are good positioned to transportation that advancement into the 2nd half. Our accordant show crossed economical and competitory cycles reinforces the spot of our concern and carnal wellness arsenic 1 of the astir compelling semipermanent maturation sectors.