On Tuesday, Elanco Animal Health Incorporated (NYSE:ELAN) used its first Investor Day in five years to signal a turning point for the company, outlining a more focused strategy aimed at sustainable growth, margin expansion, and a stronger balance sheet.

CEO Jeff Simmons said the company is entering a new phase built on consistent execution of its Innovation, Portfolio, and Productivity framework, with a clear goal of becoming a reliable mid-single-digit organic grower with expanding profitability.

Financial Outlook

As part of its presentation, Elanco issued a three-year outlook beginning in 2026.

Management expects mid-single-digit organic revenue growth, high-single-digit adjusted EBITDA growth, and low-double-digit adjusted EPS growth.

Free cash flow of at least $1 billion is projected from 2026 through 2028, with net leverage falling below 3x in 2027 and targeting a longer-term range of 2.0x to 2.5x.

Also Read: Elanco Animal Health Stock Is Undervalued: Analyst

R&D Investments

The company also highlighted new U.S. investments tied to tax, tariff, and regulatory clarity.

Elanco plans to expand R&D operations in Indianapolis ...