Elanco Animal Health Incorporated (NYSE: ELAN): Corporate Profile & Financials
Source: Form 10-K For the year ended December 31, 2025
Quick Facts / Company Snapshot
| Company Name | Elanco Animal Health Incorporated |
| Headquarters | 450 Elanco Circle, Indianapolis, Indiana 46221 |
| Country of Incorporation | Indiana |
| Founded | 1954 |
| What the Company Does | Global leader in animal health, dedicated to innovating and delivering products and services to prevent and treat disease in farm animals and pets. |
| Exchange and Ticker | New York Stock Exchange: ELAN |
| Business Segments | Operates as a single segment within the animal health industry |
| Products & Services | Pet health products (parasiticides, dermatology, vaccines, pain/other therapeutics) and farm animal products (efficiency and performance, disease prevention and treatment, food safety, and sustainability) |
| Employees | Approximately 9,400 full-time employees and approximately 500 fixed-duration employees |
| Countries & Regions Served | More than 90 countries |
| CEO & Board Chairperson | Jeffrey N. Simmons (President and Chief Executive Officer), Lawrence E. Kurzius (Chairman of the Board) |
| Annual Revenue | $4,715 million +6.2% |
| Operating Income | Not separately disclosed as a line item on the consolidated statement of operations (Loss before income taxes is $(224) million N/M) |
| Net Income | $(232) million N/M |
| Total Assets | $13,358 million |
| Total Liabilities | $6,811 million |
Company Overview
Elanco Animal Health Incorporated is a global leader in animal health, dedicated to innovating and delivering products and services to prevent and treat disease in farm animals and pets. The company partners with farmers, pet owners, veterinarians, and society to create value and help customers improve the health of animals in their care, while also making a meaningful impact on communities served. Elanco’s diverse, durable product portfolio is sold in more than 90 countries and serves animals across many species, primarily dogs and cats (pet health) and cattle, poultry, swine, and sheep (farm animal).
With a heritage dating back to 1954, Elanco was formerly a business unit of Eli Lilly and Company (Lilly), becoming an independently incorporated company on September 18, 2018, and finalizing its separation from Lilly in March 2019. In August 2020, the company acquired Bayer Animal Health, marking the largest acquisition in industry history and expanding its portfolio, geographic reach, and scale. Elanco operates its business as a single segment within the animal health industry, offering an omnichannel presence that sells into both the veterinary clinic and retail markets, including e-commerce. Products are generally sold worldwide to third-party distributors and independent retailers and directly to farm animal producers and veterinarians.
Business Segments
Elanco operates its business as a single segment within the animal health industry, offering a comprehensive portfolio of pet health and farm animal products. Strategic and resource allocation decisions are managed globally by the Chief Executive Officer as the chief operating decision maker, with global functional leaders responsible for determining significant costs and investments and regional leaders responsible for overseeing execution.
History and Evolution
Elanco’s heritage dates back to 1954 as a business unit of Eli Lilly and Company. It became an independently incorporated company on September 18, 2018, and finalized its separation from Lilly in March 2019. In August 2020, Elanco acquired Bayer Animal Health. In July 2024, the company closed the sale of its aqua business to a subsidiary of Merck Animal Health for $1,294 million in cash proceeds. In November 2024, Elanco acquired a manufacturing site in Speke, U.K., from its former contract manufacturing supply partner, TriRx Speke Ltd, for approximately $36 million. In May 2025, Elanco executed a Purchase and Sale Agreement with affiliates of Blackstone, receiving $295 million in proceeds in exchange for rights to certain future royalties and sales milestone payments related to Tarsus Pharmaceuticals, Inc.’s XDEMVY product. In October 2025, the company refinanced its previously outstanding Term Loan B due 2027 with three new debt facilities and cash on hand. In December 2025, the Board of Directors authorized the 2025 Restructuring Plan to support margin expansion, optimize global footprint, and further invest in innovation.
Products and Services
Elanco offers a diverse portfolio of products marketed under approximately 200 brands for both pets and farm animals.
- Pet Health: Focuses on parasiticides, dermatology, vaccines, and pain/other therapeutics. Key brands and product families include the Advantage Family, Seresto, the Credelio Family (including Credelio Quattro), Zenrelia, Atopica, the Drontal Family, Galliprant, Interceptor Plus, Milbemax, Onsior, and the Tru Family.
- Farm Animal: Focuses on efficiency and performance, disease prevention and treatment, food safety, and sustainability for cattle, poultry, swine, and sheep. Key products and product families include Rumensin, Experior, Maxiban, Monteban, the AviPro vaccine family, Baytril, Catosal, Denagard, Hemicell, Pulmotil, and Surmax.
- Contract Manufacturing and Other: Includes revenue from arrangements in which Elanco manufactures products on behalf of third parties and royalty revenue.
Brand Portfolio
Elanco’s portfolio includes approximately 200 brands. Principal pet health and farm animal brands and product families identified in the source include Advantage, K-9 Advantix, Advocate, AdTab, Seresto, Credelio, Credelio Cat, Credelio Plus, Credelio Quattro, Zenrelia, TruCan, Trufel, Trutect, Galliprant, Atopica, Drontal, Interceptor Plus, Milbemax, Onsior, Rumensin, Experior, Maxiban, Monteban, AviPro, Baytril, Catosal, Denagard, Hemicell, Pulmotil, Surmax, and Befrena.
Geographical Presence
Elanco conducts operations globally in more than 90 countries. The United States is its largest market, accounting for 47% of total revenue in 2025. Outside the U.S., Brazil, the United Kingdom, and China are the largest markets. Elanco operates a global manufacturing network of 16 sites across nine countries (Barueri, Brazil; Chengdu, China; Wusi, China; Huningue, France; Cuxhaven, Germany; Kiel, Germany; Santa Clara, Mexico; Banwol, South Korea; Chungli, Taiwan; Speke, United Kingdom; Clinton, Indiana; Terre Haute, Indiana; Fort Dodge, Iowa; Elwood, Kansas; Kansas City, Kansas; and Winslow, Maine), supplemented by a network of approximately 140 contract manufacturing organizations. R&D operations and major regional centers are located in Kemps Creek, Australia; Monheim, Germany; Bangalore, India; Basel, Switzerland; Speke, U.K.; Fort Dodge, Iowa; Indianapolis, Indiana; Sao Paulo, Brazil; and Shanghai, China. Elanco employed approximately 9,400 full-time employees and approximately 500 fixed-duration employees as of December 31, 2025, with approximately 30% of the global workforce based in the U.S.
Competitor Analysis
Elanco faces intense competition globally, varying by region, species, product category, and individual product. Competitors include standalone animal health businesses, animal health divisions of large pharmaceutical companies, specialty animal health businesses, nutritional health product producers, start-up companies, and manufacturers of generic drugs. Primary competitors named in the filing include Zoetis Inc., Boehringer Ingelheim Animal Health GmbH (the animal health division of Boehringer Ingelheim GmbH), and Merck Animal Health (the animal health division of Merck & Co., Inc.). Competition is based principally on product quality, price, cost-effectiveness, promotional effectiveness, new product development, and product differentiation.
Operating Performance and Business Drivers
For the year ended December 31, 2025, revenue was $4,715 million compared to $4,439 million in 2024, representing an increase of 6%. Gross profit was $2,593 million (55.0% gross margin) compared to $2,436 million (54.9% gross margin) in 2024. Net loss for 2025 was $232 million, compared to net income of $338 million in 2024 (which included a pre-tax gain on divestiture of the aqua business of $640 million). Pet health revenue increased 7% to $2,300 million, driven by higher volumes and pricing, led by new product launches such as Credelio Quattro, Zenrelia, and AdTab. Farm animal revenue increased 5% to $2,362 million, driven by higher volumes, pricing, and foreign exchange rates, partially offset by the divestiture of the aqua business. Research and development expenses were $368 million, marketing, selling, and administrative expenses were $1,430 million, and amortization of intangible assets was $543 million.
Board of Directors and Leadership Team
Executive officers and directors identified in the source include:
- Jeffrey N. Simmons – President, Chief Executive Officer, and Director
- Robert M. VanHimbergen – Executive Vice President, Chief Financial Officer
- James M. Meer – Senior Vice President, Chief Accounting Officer
- Lawrence E. Kurzius – Chairman of the Board
- Kapila Kapur Anand – Director
- Art A. Garcia – Director
- Michael J. Harrington – Director
- Paul Herendeen – Director
- R. David Hoover – Director
- Deborah T. Kochevar Ph.D., DVM – Director
- Stacey Ma Ph.D. – Director
- Kirk McDonald – Director
- Denise Scots-Knight Ph.D. – Director
Future Strategy and Business Priorities
Elanco’s foundation for sustained growth and profitability consists of a three-pronged strategy: Innovation, Portfolio, and Productivity. The company aims to achieve revenue growth and improved profitability by delivering consistent, high-impact innovation and prioritizing large market opportunities in major geographies. Priorities include late-stage potential blockbusters, maximizing life cycle management, refilling the early-stage pipeline, optimizing the diverse portfolio, expanding geographic and channel reach, and executing strategic productivity initiatives to improve earnings and cash flows.
Key Strengths
Elanco’s strengths include a diverse, durable product portfolio sold in more than 90 countries with approximately 200 brands; an established heritage dating back to 1954; global reach and scale enhanced by the Bayer Animal Health acquisition; a robust R&D organization with a track record of product innovation and commercialization; a global manufacturing and supply chain network; and direct customer relationships supported by sales representatives and veterinary consultants.
Key Challenges and Risks
Operating in a highly competitive industry; success of R&D, regulatory approval, and licensing efforts; risks from disruptive innovations, veterinary practices, and alternatives to animal-derived protein; competition from generic products; regulatory restrictions and bans on antibiotics in farm animals; outbreaks of infectious disease carried by farm animals; consolidation of customers and distributors; shifts to alternative distribution channels such as e-commerce; dependence on top products; risks related to acquisitions, divestitures, and restructuring activities; manufacturing challenges and capacity imbalances at internal sites and contract manufacturers; fluctuations in distribution channel inventory levels; reliance on IT systems and cybersecurity risks; weather conditions, seasonality, and natural resource availability; substantial indebtedness and restrictive debt covenants; foreign currency exchange rate fluctuations; underfunded pension plan liabilities; tax exposures and regulatory investigations; and intellectual property and litigation risks.
Conclusion and Strategic Outlook
Elanco operates as a global leader in animal health with a robust portfolio and a clear three-pronged strategy focused on Innovation, Portfolio, and Productivity. While navigating competitive pressures, regulatory complexities, macroeconomic factors, and substantial indebtedness, the company continues to advance its product pipeline, optimize its manufacturing and operational footprints through restructuring initiatives, and expand its market reach across pet health and farm animal sectors.
Official Site
Financial Statements
The consolidated financial statements are presented in millions of U.S. dollars, except per-share data, for the years ended December 31, 2025, 2024, and 2023, as reported in the official Form 10-K filing.
Summary Consolidated Statements of Operations
| Line item | Year Ended December 31, 2025 | Year Ended December 31, 2024 | Year Ended December 31, 2023 |
|---|---|---|---|
| Revenue | $4,715 | $4,439 | $4,417 |
| Cost of sales | 2,122 | 2,003 | 1,931 |
| Gross Profit | 2,593 | 2,436 | 2,486 |
| Research and development | 368 | 344 | 327 |
| Marketing, selling and administrative | 1,430 | 1,314 | 1,285 |
| Amortization of intangible assets | 543 | 527 | 548 |
| Asset impairment, restructuring and other special charges | 237 | 150 | 127 |
| Goodwill impairment | — | — | 1,042 |
| Gain on divestiture | — | (640) | — |
| Interest expense, net of capitalized interest | 220 | 235 | 277 |
| Other expense, net | 19 | 18 | 75 |
| (Loss) income before income taxes | (224) | 488 | (1,195) |
| Income tax expense | 8 | 150 | 36 |
| Net (loss) income | $(232) | $338 | $(1,231) |
| Basic (loss) earnings per share | $(0.47) | $0.68 | $(2.50) |
| Diluted (loss) earnings per share | $(0.47) | $0.68 | $(2.50) |
Balance Sheet
| Line item | December 31, 2025 | December 31, 2024 | YoY Growth (%) |
|---|---|---|---|
| Current Assets | – | ||
| Cash and cash equivalents | $545 | $468 | +16.45% |
| Accounts receivable, net | 873 | 805 | +8.45% |
| Other receivables | 67 | 81 | -17.28% |
| Inventories | 1,737 | 1,574 | +10.36% |
| Prepaid expenses and other | 236 | 287 | -17.77% |
| Total current assets | 3,458 | 3,215 | +7.56% |
| Noncurrent Assets | – | ||
| Property and equipment, net | 1,409 | 993 | +41.89% |
| Goodwill | 4,779 | 4,414 | +8.27% |
| Other intangibles, net | 3,408 | 3,681 | -7.42% |
| Other noncurrent assets | 304 | 311 | -2.25% |
| Total assets | $13,358 | $12,614 | +5.90% |
| Current Liabilities | – | ||
| Accounts payable | $368 | $296 | +24.32% |
| Employee compensation | 206 | 177 | +16.38% |
| Sales rebates and discounts | 416 | 332 | +25.30% |
| Current portion of long-term debt and finance lease liability | 74 | 44 | +68.18% |
| Other current liabilities | 533 | 466 | +14.38% |
| Total current liabilities | 1,597 | 1,315 | +21.44% |
| Noncurrent Liabilities | – | ||
| Long-term debt and finance lease liability | 3,943 | 4,277 | -7.81% |
| Liability for sale of future revenue | 304 | — | – |
| Accrued retirement benefits | 158 | 175 | -9.71% |
| Deferred taxes | 382 | 449 | -14.92% |
| Other noncurrent liabilities | 427 | 302 | +41.39% |
| Total liabilities | 6,811 | 6,518 | +4.50% |
| Equity | – | ||
| Preferred stock | — | — | – |
| Common stock | — | — | – |
| Additional paid-in capital | 8,870 | 8,817 | +0.60% |
| Accumulated deficit | (2,182) | (1,950) | +11.90% |
| Accumulated other comprehensive loss | (141) | (771) | -81.71% |
| Total equity | 6,547 | 6,096 | +7.40% |
| Total liabilities and equity | $13,358 | $12,614 | +5.90% |
Cash Flow Statement
| Line item | Year Ended December 31, 2025 | Year Ended December 31, 2024 | Year Ended December 31, 2023 |
|---|---|---|---|
| Cash Flows from Operating Activities | |||
| Net (loss) income | $(232) | $338 | $(1,231) |
| Depreciation and amortization | 680 | 662 | 694 |
| Goodwill impairment | — | — | 1,042 |
| Deferred income taxes | (134) | (112) | (80) |
| Stock-based compensation expense | 68 | 55 | 46 |
| Asset impairment and write-down charges | 71 | 81 | 32 |
| Gain on divestiture | — | (640) | — |
| Proceeds from interest rate swap settlements | — | 5 | 57 |
| Sold portion of royalty revenue | (19) | — | — |
| Interest on liability for sale of future revenue | 33 | — | — |
| Other non-cash operating activities, net | (6) | 3 | 11 |
| Receivables | (12) | 12 | (40) |
| Inventories | (57) | 44 | (160) |
| Other assets | 21 | 11 | (6) |
| Accounts payable and other liabilities | 147 | 82 | (94) |
| Net Cash Provided by Operating Activities | 560 | 541 | 271 |
| Cash Flows from Investing Activities | |||
| Net purchases of property and equipment and software | (276) | (147) | (140) |
| Cash paid for acquisitions | — | (41) | (19) |
| Proceeds from divestitures | 9 | 1,360 | — |
| Other investing activities, net | (12) | (14) | (10) |
| Net Cash (Used for) Provided by Investing Activities | (279) | 1,158 | (169) |
| Cash Flows from Financing Activities | |||
| Proceeds from Revolving Credit Facility | 125 | 50 | 350 |
| Repayments of Revolving Credit Facility | (125) | (250) | (150) |
| Proceeds from Securitization Facility | 125 | 170 | 250 |
| Repayments of Securitization Facility | (125) | (195) | (125) |
| Proceeds from issuance of long-term debt | 2,106 | 350 | — |
| Repayments of long-term borrowings | (2,669) | (1,600) | (402) |
| Proceeds from sale of future revenue, net of transaction costs | 290 | — | — |
| Other financing activities, net | (2) | (17) | (6) |
| Net Cash Used for Financing Activities | (275) | (1,492) | (83) |
| Effect of exchange rate changes on cash and cash equivalents | 71 | (91) | (12) |
| Net increase in cash and cash equivalents | 77 | 116 | 7 |
| Cash and cash equivalents at January 1 | 468 | 352 | 345 |
| Cash and cash equivalents at December 31 | $545 | $468 | $352 |
Subsidiaries & Joint Ventures
The filing does not provide a comprehensive tabular list of all subsidiaries and joint ventures, but mentions select entities and affiliates such as:
- Elanco US Inc. (Subsidiary)
- Elanco Financing (Netherlands) B.V. (Subsidiary)
- Elanco SPEAR LLC (Subsidiary)
- AHV International B.V. (Subsequent event acquisition target)
- Intervet International B.V. (Divestiture buyer)
Other Investments & Holdings
No material associate investments, minority interests, or strategic equity holdings separate from consolidated subsidiaries and ordinary commercial relationships are individually detailed as equity investments in the disclosures.
Physical Properties
| Facility / Location | Type / Status | Details |
|---|---|---|
| Indianapolis, Indiana | Global Headquarters & R&D Headquarters (Leased/Owned) | Includes new corporate headquarters facility under a 5-year finance lease commenced in June 2025. |
| Clinton, Indiana | Manufacturing Site (Operating) | Largest manufacturing site operated by the company. |
| Elwood, Kansas | Manufacturing Site (Operating) | Biologicals manufacturing facility undergoing significant capital expansion investments throughout 2025. |
| Kansas City, Kansas | Manufacturing Site (Planned Closure) | Scheduled for closure by the end of 2026 under the 2025 Restructuring Plan. |
| Monheim, Germany | R&D / Animal Study Facility (Planned Closure) | Animal study portion of the R&D facility scheduled for closure by the end of 2026 under the 2025 Restructuring Plan. |
| Global Manufacturing Network | 16 Manufacturing Sites | Comprises sites in Barueri (Brazil), Chengdu (China), Wusi (China), Huningue (France), Cuxhaven (Germany), Kiel (Germany), Santa Clara (Mexico), Banwol (South Korea), Chungli (Taiwan), Speke (U.K.), Clinton (Indiana), Terre Haute (Indiana), Fort Dodge (Iowa), Elwood (Kansas), Kansas City (Kansas), and Winslow (Maine). |
Investments and Capital Expenditure
| Expenditure Category | Reporting Period / Details |
|---|---|
| Research and Development Expenses | $368 million (2025); $344 million (2024); $327 million (2023) |
| Capital Expenditures (Cash paid for property and equipment and software) | $276 million (2025); $147 million (2024); $140 million (2023) |
| Planned Capital Expenditures | Expected to be approximately $175 million to $200 million in 2026. |
Share Capital and Outstanding Shares
| Share Class or Item | Reported Amount / Number | Reporting Date / Basis |
|---|---|---|
| Preferred Stock Authorized | 1,000,000,000 shares, no par value (none issued) | December 31, 2025 |
| Common Stock Authorized | 5,000,000,000 shares, no par value | December 31, 2025 |
| Common Stock Issued and Outstanding | 496,975,154 shares | December 31, 2025 |
| Common Stock Issued and Outstanding | 494,445,839 shares | December 31, 2024 |
| Common Stock Outstanding (subsequent) | 497,168,077 shares | February 19, 2026 |
| Weighted-Average Shares Outstanding – Basic | 496.4 million | Year Ended December 31, 2025 |
| Weighted-Average Shares Outstanding – Diluted | 496.4 million | Year Ended December 31, 2025 |
| Weighted-Average Shares Outstanding – Basic | 494.0 million | Year Ended December 31, 2024 |
| Weighted-Average Shares Outstanding – Diluted | 497.3 million | Year Ended December 31, 2024 |
| Weighted-Average Shares Outstanding – Basic | 492.3 million | Year Ended December 31, 2023 |
| Weighted-Average Shares Outstanding – Diluted | 492.3 million | Year Ended December 31, 2023 |
Frequently Asked Questions
What is Elanco’s primary business?
Elanco is a global leader in animal health dedicated to innovating and delivering products and services to prevent and treat disease in farm animals and pets, operating across pet health and farm animal species.
When was Elanco founded and when did it become independent?
Elanco’s heritage dates back to 1954. It was incorporated in Indiana on September 18, 2018, as a business unit of Eli Lilly and Company, and finalized its separation from Lilly in March 2019.
What were Elanco’s revenue and net income for fiscal year 2025?
For the year ended December 31, 2025, Elanco reported revenue of $4,715 million and a net loss of $232 million.
What are Elanco’s primary product categories?
Elanco’s product categories include Pet Health (parasiticides, dermatology, vaccines, and pain/other therapeutics) and Farm Animal (cattle, poultry, swine, and sheep products focused on efficiency, performance, disease prevention, food safety, and sustainability).
Where are Elanco’s global headquarters located?
Elanco’s global headquarters are located at 450 Elanco Circle, Indianapolis, Indiana 46221.