Elanco (ELAN) launches $175M restructuring plan and reaffirms 2025 guidance

Rhea-AI Filing Summary

Elanco Animal Health announced a new restructuring plan focused on expanding profit margins, reshaping its global footprint, and funding more innovation. The plan includes a global headcount reduction of approximately 300 employees, along with about 300 additional roles that will be replaced by positions in growth areas or lower-cost geographies.

The company expects pretax charges of about $175 million, with roughly $130 million in cash-based costs, most to be paid over the next two years, and around $45 million in non-cash asset impairment charges. These impairments are mainly tied to closing its Kansas City, Missouri implant facility and exiting part of its Monheim, Germany facility.

In connection with its 2025 Investor Day, Elanco issued a press release reaffirming its fourth quarter and full-year 2025 guidance and discussing its innovation and financial outlook, as well as the restructuring actions.

Insights

Equity analyst focused on restructurings and cost actions

Elanco launches a sizable restructuring with $175M charges while reaffirming 2025 guidance.

Elanco approved a restructuring plan that reduces global headcount by about 300 employees and replaces roughly 300 more roles in growth areas or lower-cost regions. This is intended to support margin expansion, adjust the company’s geographic and operational footprint, and free resources to invest in innovation.

The company expects pretax charges of about $175 million, most in 2025. That includes approximately $130 million of cash-based costs, largely paid over the next two years, and about $45 million of non-cash asset impairment charges linked mainly to closing its Kansas City implant facility and exiting part of its Monheim, Germany site.

Elanco also stated in its Investor Day press release that it is reaffirming its fourth quarter and full-year 2025 guidance. This suggests the restructuring charges and operational changes are being managed within its existing outlook, though the ultimate effect on margins and growth will depend on execution and how quickly savings and innovation investments translate into financial results.

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D. C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of Earliest Event Reported): December 5, 2025

Elanco Animal Health Incorporated

(Exact name of registrant as specified in its charter)

Indiana		001-38661		82-5497352
(State or other jurisdiction of incorporation)		(Commission File Number)		(I.R.S. Employer Identification No.)

450 Elanco Circle Indianapolis, Indiana (Address of principal executive offices) 46221 (Zip Code)

Registrant’s telephone number, including area code: (877) 352-6261

Not Applicable

(Former Name or Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class		Trading Symbol(s)		Name of each exchange on which registered
Common stock, no par value		ELAN		New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

¨  Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Item 2.05 Costs Associated with Exit or Disposal Activities.

On December 5, 2025, the Board of Directors of Elanco Animal Health Incorporated (the “Company”) authorized a restructuring plan with respect to its workforce (the “Restructuring Plan”) to support margin expansion, optimize the Company’s footprint, and further invest in innovation. The Restructuring Plan will result in a global headcount reduction of approximately 300 employees, plus an approximate 300 employees whose positions will be replaced with positions in growth areas or in lower-cost geographies. Expected pretax charges associated with the Restructuring Plan total approximately $175 million, the majority of which will be incurred in 2025, including an estimated $130 million of cash-based costs, most of which is expected to be paid in the next 2 years, and an estimated $45 million of non-cash asset impairment charges primarily related to the Company’s closure of its Kansas City, Missouri implant facility and exit from a portion of its Monheim, Germany facility.

Item 7.01 Regulation FD Disclosure.

On December 9, 2025, the Company issued a press release in connection with its 2025 Investor Day announcing the Company’s innovation and financial outlook, including reaffirming its fourth quarter and full year 2025 guidance, and describing other matters including the Restructuring Plan. A copy of the press release is attached hereto as Exhibit 99.1.

The information in this Item 7.01, including Exhibit 99.1 attached hereto, is being furnished and shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that Section and shall not be incorporated by reference into any registration statement or other document pursuant to the Securities Act of 1933, as amended, or the Exchange Act, except as otherwise expressly stated in such filing.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits

Exhibit No.		Description
99.1		Press Release issued by Elanco Animal Health Incorporated, dated as of December 9, 2025.
104.1		Cover Page Interactive Data File (embedded within the Inline XBRL document).

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	Elanco Animal Health Incorporated
Date: December 9, 2025	By:	/s/ Robert M. VanHimbergen
		Name: Robert M. VanHimbergen
		Title: Executive Vice President, Chief Financial Officer

FAQ

What restructuring did Elanco Animal Health (ELAN) announce?

Elanco Animal Health announced a restructuring plan aimed at margin expansion, optimizing its footprint, and increasing investment in innovation. The plan includes a global workforce reduction and facility changes.

How many jobs are affected by Elanco’s new restructuring plan?

The restructuring will reduce Elanco’s global headcount by approximately 300 employees, and about 300 additional positions will be replaced with roles in growth areas or lower-cost geographies.

What financial charges will Elanco (ELAN) incur from the restructuring?

Elanco expects total pretax charges of about $175 million, including roughly $130 million of cash-based costs, most to be paid over the next two years, and around $45 million of non-cash asset impairment charges.

Which Elanco facilities are impacted by the restructuring?

The non-cash impairment charges are primarily related to closing Elanco’s Kansas City, Missouri implant facility and exiting from a portion of its Monheim, Germany facility.

Did Elanco change its 2025 financial guidance with this announcement?

No. In a press release issued for its 2025 Investor Day, Elanco reaffirmed its fourth quarter and full-year 2025 guidance while outlining its innovation and financial outlook and describing the restructuring plan.

Over what period will Elanco’s restructuring cash costs be paid?

Of the expected $130 million in cash-based restructuring costs, Elanco states that most is expected to be paid in the next two years.