Elanco Reports 5% Revenue Growth to $1.241 Billion in Q2 2025

Elanco Animal Health Incorporated reported a revenue of $1.241 billion for the second quarter of 2025, marking a 5% increase from $1.184 billion in the same period of 2024. For the first half of 2025, the company generated $2.434 billion in revenue, a 2% rise compared to $2.389 billion in the first half of 2024. The net income for the second quarter was $11 million, a significant recovery from a net loss of $50 million in the prior year. For the six months ending June 30, 2025, net income was $78 million, compared to a loss of $18 million in the same period of 2024. The earnings per share for the second quarter were $0.02, compared to a loss of $0.10 per share in the previous year.

The company experienced notable changes in its operational metrics, particularly in its Pet Health segment, which saw revenue increase by 11% to $643 million in the second quarter, driven by new product launches such as Credelio Quattro and Zenrelia. Conversely, Farm Animal revenue decreased by 2% to $583 million, primarily due to the divestiture of its aqua business, which had contributed $49 million in revenue during the same quarter last year. The international market also showed resilience, with a slight increase in revenue from international operations, which accounted for approximately 52% of total revenue.

Strategically, Elanco has made significant moves, including the acquisition of a manufacturing facility in Speke, U.K., for $36 million, aimed at enhancing its production capabilities. The company also executed a Purchase and Sale Agreement with Blackstone in May 2025, receiving $295 million for future royalties related to the sale of XDEMVY, a treatment for Demodex blepharitis. This transaction is expected to streamline cash flow and reduce debt, as the proceeds were utilized to pay down existing term loan obligations.

Operationally, Elanco's employee headcount increased to 496,646 as of June 30, 2025, up from 494,446 at the end of 2024. The company continues to focus on product innovation and market expansion, with several new product launches planned for the upcoming quarters. The company’s gross profit for the second quarter was $713 million, with a gross margin of 57%, slightly down from 58% in the previous year, attributed to inflationary pressures and increased manufacturing costs.

Looking ahead, Elanco remains optimistic about its growth trajectory, emphasizing its commitment to innovation and market expansion. The company is closely monitoring macroeconomic conditions, including potential impacts from trade policies and regulatory changes, which could affect its operations. Elanco's management is confident in its strategic initiatives and believes that the ongoing development of its product pipeline will drive future revenue growth and enhance its competitive position in the animal health market.