Elanco (ELAN) Q1 2026 Earnings Transcript

Motley Fool Transcribing, The Motley Fool

Wed, May 6, 2026 astatine 11:21 AM CDT 50 min read

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Date

Wednesday, May 6, 2026 astatine 8:00 a.m. ET

Call participants

• President & CEO — Jeffrey N. Simmons

• Executive Vice President & CFO — Robert VanHimbergen

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Full Conference Call Transcript

Jeffrey Simmons: Thanks, Tiffany. Good morning, everyone. Elanco's archetypal 4th represents increasing strength, momentum and value. The company's coagulated archetypal 4th results and raised afloat twelvemonth guidance show continued advancement connected our priorities of growth, innovation and cash. As highlighted connected Slide 4, we delivered 10% integrated changeless currency gross maturation successful the quarter, outperforming the precocious extremity of guidance for revenue, adjusted EBITDA and adjusted EPS. This high-quality show was driven by some terms and volume, with maturation crossed each large geographies and each species. Thank you to the full Elanco squad for the execution for precocious levels of engagement and unified attack that person created a sustained, accordant transportation crossed the company.

Elanco is successful a presumption of spot with a basal concern that grew successful Q1 and a handbasket of important innovation, each wrong a durable carnal wellness industry. Our momentum successful each of our 4 businesses is evident successful marketplace stock gains crossed our planetary portfolio. We drove stock gains crossed each of our U.S. favored wellness large categories: parasiticides, osteoarthritis pain, dermatology and vaccines. Elanco's starring stock maturation successful the largest categories, Para and derm, with accelerating gains for Zenrelia and Credelio Quattro. Internationally, some Zenrelia trust and AdTab continued their maturation trajectories and captured marketplace share. We besides bolster our enactment successful U.S. workplace carnal and achieved beardown maturation successful planetary workplace animal, peculiarly successful poultry and ruminants.

Our divers handbasket of important innovation is simply a cardinal operator for this planetary momentum. After delivering $287 cardinal of archetypal 4th gross from our innovation products, we are raising our afloat twelvemonth innovation people to $1.2 billion. Our large 6 products are performing highly well, and they are providing portfolio benefits that supported our basal concern maturation successful Q1. Robust apical enactment and adjusted EBITDA maturation combined to alteration continued deleveraging successful the quarter. We are improving our nett leverage people for year-end to 3.0 to 3.2x from the erstwhile guidance of 3.1x to 3.3x.

With our coagulated commencement to the twelvemonth and accelerating trends into March and April, we are good positioned to rise our apical and bottommost enactment outlook. For the afloat year, we present expect integrated changeless currency maturation of 5% to 7%. Adjusted EBITDA of $975 cardinal to $1.005 billion, representing 10% astatine the midpoint, and adjusted EPS of $1.03 to $1.09, representing 13% maturation astatine the midpoint. This guidance continues our prudent, balanced attack successful a dynamic macro environment. Our assurance comes from the accordant outperformance of our divers handbasket of innovation, a increasing basal concern successful Q1 and the mega trends supporting durable maturation successful today's planetary carnal wellness industry.