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Yahoo
30 minutes ago
- Yahoo
Onity Group Announces Second Quarter 2025 Results
WEST PALM BEACH, Fla., Aug. 05, 2025 (GLOBE NEWSWIRE) -- Onity Group Inc. (NYSE: ONIT) ('Onity' or the 'Company') today announced its second quarter 2025 results and provided a business update. Second Quarter 2025: Net income attributable to common stockholders of $20 million; diluted EPS of $2.40; ROE of 17% Adjusted pre-tax income* of $16 million, resulting in annualized adjusted ROE* of 14% Book value per share improved to $60 as of June 30, 2025, up $2.94 YoY Originations volume of $9.4 billion, up 35% YoY, exceeding 23% industry growth Average servicing UPB of $307 billion, up $2 billion YoY 2025 Outlook: Confirmed previous guidance including 2025 adjusted ROE* range of 16% - 18% (ROE and adjusted ROE* at 18% for first half of 2025) Some or all of $180 million deferred tax valuation allowance (US) as of December 31, 2024, could be released by year-end 2025 * See 'Note Regarding Non-GAAP Financial Measures' below "We reported another strong quarter with sustained profitability and steady growth, demonstrating the resilience of our business model, sound strategy and high-caliber execution,' said Onity Group Chair, President and CEO Glen Messina. 'Despite market challenges, we continue to achieve results in Servicing and Originations, with a growing servicing portfolio, originations volume that is exceeding the industry growth rate, and a high-performing recapture platform. We remain committed to delivering strong shareholder returns as we navigate the future with agility. We believe our balanced and diversified business is built to perform through market cycles, driven by our technology-enabled, low-cost, award-winning platform." Additional Second Quarter 2025 Operating and Business Highlights Funded recapture volume up 2.4x YoY; refinance recapture rate is 1.5x industry average based on ICE Mortgage Monitor report as of June 2025 Average owned servicing UPB of $153 billion, up 16% YoY Effective MSR hedge strategy resulting in minimal MSR fair value volatility in the quarter and continued alignment with operating and financial performance Fitch Ratings upgraded all of the Company's residential primary servicer ratings and affirmed its commercial small balance servicer ratings Total liquidity (unrestricted cash plus available credit) at $218 million as of June 30, 2025 Webcast and Conference Call Onity will hold a conference call on Tuesday, August 5, 2025, at 8:30 a.m. (ET) to review the Company's second quarter 2025 operating results and to provide a business update. All interested parties are welcome to participate. You can access the conference call by dialing (800) 245-3047 or (203) 518-9765 approximately 10 minutes prior to the call; please reference the conference ID 'Onity.' Participants can also access the conference call through a live audio webcast available from the Shareholder Relations page at under Events and Presentations. An investor presentation will accompany the conference call and be available by visiting the Shareholder Relations page at prior to the call. A replay of the conference call will be available via the website approximately two hours after the conclusion of the call. A telephonic replay will also be available approximately three hours following the call's completion through August 19, 2025, by dialing (844) 512-2921 or (412) 317-6671; please reference access code 11159308. About Onity Group Onity Group Inc. (NYSE: ONIT) is a leading non-bank financial services company providing mortgage servicing and originations solutions through its primary brands, PHH Mortgage and Liberty Reverse Mortgage. PHH Mortgage is one of the largest servicers in the country, focused on delivering a variety of servicing and lending programs to consumers and business clients. Liberty is one of the nation's largest reverse mortgage lenders dedicated to providing loans that help customers meet their personal and financial needs. We are headquartered in West Palm Beach, Florida, with offices and operations in the United States, the U.S. Virgin Islands, India and the Philippines, and have been serving our customers since 1988. For additional information, please visit Forward Looking Statements This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements may be identified by a reference to a future period or by the use of forward-looking terminology. Forward-looking statements are typically identified by words such as 'expect', 'believe', 'foresee', 'anticipate', 'intend', 'estimate', 'goal', 'strategy', 'plan' 'target' and 'project' or conditional verbs such as 'will', 'may', 'should', 'could' or 'would' or the negative of these terms, although not all forward-looking statements contain these words, and includes statements in this press release regarding our 2025 outlook and guidance, our expectation of releasing our deferred tax valuation allowance by year-end 2025, our ability to drive growth, and navigate interest volatility and economic uncertainties. Forward-looking statements by their nature address matters that are, to different degrees, uncertain. Readers should bear these factors in mind when considering such statements and should not place undue reliance on such statements. Forward-looking statements involve a number of assumptions, risks and uncertainties that could cause actual results to differ materially. In the past, actual results have differed from those suggested by forward looking statements and this may happen again. Important factors that could cause actual results to differ materially from those suggested by the forward-looking statements include, but are not limited to, the potential for ongoing disruption in the financial markets and in commercial activity generally as a result of U.S. and global political events, changes in monetary and fiscal policy, and other sources of instability; the impacts of inflation, employment disruption, and other financial difficulties facing our borrowers; whether we will release some or all of the valuation allowance offsetting our net U.S. deferred tax asset, and the timing and amount of such release; the adequacy of our financial resources, including our sources of liquidity and ability to sell, fund and recover servicing advances, forward and reverse whole loans, future draws on existing reverse loans, and HECM and forward loan buyouts and put backs, as well as repay, renew and extend borrowings, borrow additional amounts as and when required, meet our MSR or other asset investment objectives and comply with our debt agreements, including the financial and other covenants contained in them; our ability to interpret correctly and comply with current or future liquidity, net worth and other financial and other requirements of regulators, the Federal National Mortgage Association (Fannie Mae), and Federal Home Loan Mortgage Corporation (Freddie Mac) (together, the GSEs), and the Government National Mortgage Association (Ginnie Mae); the impact of cost-reduction initiatives on our business and operations; the impact of our rebranding initiative; the amount of senior debt or common stock that we may repurchase under any repurchase programs, the timing of such repurchases, and the long-term impact, if any, of repurchases on the trading price of our securities or our financial condition; breach or failure of Onity's, our contractual counterparties', or our vendors' information technology or other security systems or privacy protections, including any failure to protect customers' data, resulting in disruption to our operations, loss of income, reputational damage, costly litigation and regulatory penalties; our reliance on our technology vendors to adequately maintain and support our systems, including our servicing systems, loan originations and financial reporting systems, and uncertainty relating to our ability to transition to alternative vendors, if necessary, without incurring significant cost or disruption to our operations; the future of our long-term relationship with Rithm Capital Corp. (Rithm); the extent to which MSR Asset Vehicle LLC (MAV) will exercise its rights to sell MSRs subserviced by PHH and the impact to our subservicing portfolio; our ability to close acquisitions of MSRs and other transactions, including the ability to obtain regulatory approvals; our ability to grow our reverse servicing business; our ability to retain clients and employees of acquired businesses, and the extent to which acquisitions and our other strategic initiatives will contribute to achieving our growth objectives; increased servicing costs based on increased borrower delinquency levels or other factors; uncertainty related to past, present or future claims, litigation, cease and desist orders and investigations regarding our servicing, foreclosure, modification, origination and other practices brought by government agencies and private parties, including state regulators, the Consumer Financial Protection Bureau (CFPB), State Attorneys General, the Securities and Exchange Commission (SEC), the Department of Justice or the Department of Housing and Urban Development (HUD); the reactions of key counterparties, including lenders, the GSEs and Ginnie Mae, to our regulatory engagements and litigation matters; increased regulatory scrutiny and media attention; any adverse developments in existing legal proceedings or the initiation of new legal proceedings; our ability to effectively manage our regulatory and contractual compliance obligations; our ability to comply with our servicing agreements, including our ability to comply with the requirements of the GSEs and Ginnie Mae and maintain our seller/servicer and other statuses with them; our ability to fund future draws on existing loans in our reverse mortgage portfolio; our servicer and credit ratings as well as other actions from various rating agencies, including any future downgrades; as well as other risks and uncertainties detailed in our reports and filings with the SEC, including our annual report on Form 10-K for the year ended December 31, 2024. Anyone wishing to understand Onity's business should review our SEC filings. Our forward-looking statements speak only as of the date they are made and, we disclaim any obligation to update or revise forward-looking statements whether as a result of new information, future events or otherwise. Note Regarding Non-GAAP Financial Measures This press release contains references to adjusted pre-tax income (loss) and adjusted ROE, both non-GAAP financial measures. We believe these non-GAAP financial measures provide a useful supplement to discussions and analysis of our financial condition, because they are measures that management uses to assess the financial performance of our operations and allocate resources. In addition, management believes that this presentation may assist investors with understanding and evaluating our initiatives to drive improved financial performance. Management believes, specifically, that the removal of fair value changes of our net MSR exposure due to changes in market interest rates and assumptions provides a useful, supplemental financial measure as it enables an assessment of our ability to generate earnings regardless of market conditions and the trends in our underlying businesses by removing the impact of fair value changes due to market interest rates and assumptions, which can vary significantly between periods. However, these measures should not be analyzed in isolation or as a substitute to analysis of our GAAP pre-tax income (loss) or GAAP pre-tax ROE nor a substitute for cash flows from operations. There are certain limitations to the analytical usefulness of the adjustments we make to GAAP pre-tax income (loss) and GAAP pre-tax ROE and, accordingly, we use these adjustments only for purposes of supplemental analysis. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, Onity's reported results under accounting principles generally accepted in the United States. Other companies may use non-GAAP financial measures with the same or similar titles that are calculated differently to our non-GAAP financial measures. As a result, comparability may be limited. Readers are cautioned not to place undue reliance on analysis of the adjustments we make to GAAP pre-tax income (loss) and GAAP pre-tax ROE. The Company has not provided reconciliations of guidance for adjusted ROE, in reliance on the unreasonable efforts exception provided under Item 10(e)(1)(i)(B) of Regulation S-K. The Company is unable, without unreasonable efforts, to forecast certain items required to develop meaningful comparable GAAP financial measures. These items include the change in fair value of our net MSR exposure due to changes in market interest rates and assumptions which can vary significantly between periods and are difficult to predict in advance in order to include in a GAAP estimate. Notables In the table below, we adjust GAAP pre-tax income for the following factors: MSR valuation adjustments, expense notables, and other income statement notables. MSR valuation adjustments are comprised of changes to Forward MSR and Reverse mortgage valuations due to rates and assumption changes. Expense notables include significant legal and regulatory settlement expenses, severance and retention costs, LTIP stock price changes, consolidation of office facilities and other expenses (such as costs associated with strategic transactions). Other income statement notables include non-routine transactions that are not categorized in the above. Beginning with the three months ended December 31, 2024, for purposes of calculating Income Statement Notables and Adjusted Pre-Tax Income, we changed the methodology used to calculate Other Income Statement Notables to include change in fair value due to interest rates for reverse loan buyouts (previously reported in gain/loss on loans held for sale, at fair value). We made this change to align with the change to our risk management approach to include changes in fair value of reverse loan buyouts due to interest rates in our MSR hedge strategy, consistent with other notables, such as Forward MSR Valuation Adjustments due to rates and assumption changes, net and Reverse Mortgage Fair Value Change due to rates and assumption changes. Other Income Statement Notables (a component of Other Notables) for the first three quarters of 2024 have been revised from prior presentations to reflect the methodology we adopted during the fourth quarter of 2024. 1H'25 Q2'25 Q1'25 Q2'24 I Net Income (Loss) Attributable to Common Stockholders 42 20 21 11 A. Preferred Stock Dividend (2) (1) (1) - II Reported Net Income (Loss) [I – A] 44 22 22 11 B. Income Tax Benefit (Expense) 12 (1) 13 (3) III Reported Pre-Tax Income (Loss) [II – B] 32 23 9 14 Forward MSR Valuation Adjustments due to rates and assumption changes, net (a)(b) (7) 6 (12) (13) Reverse Mortgage Fair Value Change due to rates and assumption changes (b)(c) 11 1 10 (4) IV Total MSR Valuation Adjustments due to rates and assumption changes, net 4 6 (2) (17) Significant legal and regulatory settlement expenses (12) 2 (14) 2 Severance and retention (d) (0) (0) (0) (1) LTIP stock price changes (e) (1) (2) 0 1 Office facilities consolidation (0) (0) (0) 0 Other expense notables (f) 1 1 1 (1) C. Total Expense Notables (12) 1 (14) 1 D. Gain (loss) on extinguishment of debt - - - 0 E. Other Income Statement Notables (g) (1) (1) (0) (3) V Total Other Notables [C + D + E] (14) 0 (14) (2) VI Total Notables (h) [IV + V] (10) 6 (16) (19) VII Adjusted Pre-Tax Income (i) [III – VI] 42 16 25 32 a) MSR valuation adjustments that are due to changes in market interest rates, valuation inputs or other assumptions, net of overall fair value gains / (losses) on MSR hedge, including FV changes of Pledged MSR liabilities associated with MSR transferred to MAV, Rithm and others and ESS financing liabilities that are due to changes in market interest rates, valuation inputs or other assumptions, a component of MSR valuation adjustments, net b) The changes in fair value due to market interest rates were measured by isolating the impact of market interest rate changes on the valuation model output as provided by our third-party valuation expert c) FV changes of loans HFI and HMBS related borrowings due to market interest rates and assumptions, a component of gain on reverse loans held for investment and HMBS-related borrowings, net d) Severance and retention due to organizational rightsizing or reorganization e) Long-term incentive program (LTIP) compensation expense changes attributable to stock price changes during the period f) Contains costs associated with but not limited to rebranding and other strategic initiatives and transactions g) Contains other non-routine transactions h) Certain previously presented notable categories with nil numbers for each period shown have been omitted i) Effective in Q4'24, change in fair value due to interest rates for reverse loan buyouts is now recognized as a notable (previously reported in gain/loss on loans held for sale, at fair value); presentation of past periods has been conformed to the current presentation; without this change, adjusted PTI would still have been $32M in Q2'24; see note titled 'Note Regarding Non-GAAP Financial Measures' for more informationAdjusted ROE Calculation1H'25 Q2'25 Q1'25 Q2'24 GAAP ROE (after tax) 18% 17% 19% 10% I Reported Net Income (Loss) 44 22 22 11 II Notable Items (10) 6 (16) (19) III Income Tax Benefit (Expense) 12 (1) 13 (3) IV Adjusted Pre-Tax Income (Loss) [I – II – III] 42 16 25 32 V Annualized Adjusted Pre-tax Income [IV * 4for qtr.] 84 66 102 128 Equity A Beginning Period Equity 443 460 443 432 C Ending Period Equity 482 482 460 446 D Equity Impact of Notables 10 (6) 16 19 B Adjusted Ending Period Equity [C + D] 492 475 477 465 VI Average Adjusted Equity [(A + B) / 2] 467 468 460 448 VII Adjusted ROE(a)[V / VI] 18% 14% 22% 29%a) Effective in Q4'24, change in fair value due to interest rates for reverse loan buyouts is now recognized as a notable (previously reported in gain/loss on loans held for sale, at fair value); presentation of past periods has been conformed to the current presentation; without this change, adjusted pre-tax income would still have been $32M in Q2'24; without this change, adjusted ROE would be 28% in Q2'24; see note titled 'Note Regarding Non-GAAP Financial Measures' for more informationCondensed Consolidated Balance Sheets (Unaudited) Assets June 30,2025 March 31,2025 June 30,2024 Cash and cash equivalents 194.3 178.0 203.1 Restricted cash 62.3 58.9 46.3 Mortgage servicing rights (MSRs), at fair value 2,632.6 2,547.4 2,327.7 Advances, net 461.4 514.0 550.6 Loans held for sale, at fair value 2,048.3 1,402.2 1,107.0 Loans held for investment, at fair value 10,470.8 10,812.5 8,227.8 Receivables, net 204.6 222.3 153.4 Investment in equity method investee - - 31.3 Premises and equipment, net 9.7 10.8 12.3 Other assets 129.1 106.0 84.3 Contingent loan repurchase asset 318.2 407.2 341.0 Total Assets 16,531.3 16,259.3 13,084.7 Liabilities, Mezzanine & Stockholders' Equity June 30,2025 March 31,2025 June 30,2024 Home Equity Conversion Mortgage-Backed Securities (HMBS) related borrowings, at fair value 10,253.1 10,587.6 8,035.4 Other financing liabilities, at fair value 818.1 835.5 845.9 Advance match funded liabilities 342.5 377.5 405.0 Mortgage loan financing facilities, net 2,195.5 1,577.4 1,190.5 MSR financing facilities, net 1,218.6 1,136.0 927.7 Senior notes, net 488.5 488.0 555.2 Other liabilities 365.0 340.0 337.9 Contingent loan repurchase liability 318.2 407.2 341.0 Total Liabilities 15,999.5 15,749.2 12,638.4 Mezzanine Equity 49.9 49.9 - Stockholders' Equity 481.9 460.2 446.2 Total Liabilities, Mezzanine and Stockholders' Equity 16,531.3 16,259.3 13,084.7 Condensed Consolidated Statements of Operations (Unaudited) For the Quarter EndingJune 30, 2025 March 31, 2025 June 30, 2024 Revenue Servicing and subservicing fees 211.3 203.3 210.8 Gain on reverse loans held for investment and HMBS-related borrowings, net 11.9 23.8 8.5 Gain on loans held for sale, net 10.4 11.8 16.5 Other revenue, net 13.0 10.9 10.6 Total revenue 246.6 249.8 246.4 MSR valuation adjustments, net (27.3) (38.9) (32.7) Operating expenses Compensation and benefits 60.9 57.4 55.0 Servicing and origination 13.0 13.0 13.9 Technology and communications 15.5 15.0 13.0 Professional services 8.4 22.6 10.7 Occupancy, equipment and mailing 8.1 8.2 7.5 Other expenses 3.7 3.6 3.9 Total operating expenses 109.5 119.9 104.0 Other income (expense) Interest income 32.1 26.2 22.5 Interest expense (75.6) (67.0) (73.1) Pledged MSR liability expense (43.0) (41.9) (46.1) Gain (loss) on extinguishment of debt - - - Earnings of equity method investee - - 3.1 Other, net (0.4) 0.9 (2.7) Other income (expense), net (87.0) (81.9) (96.2) Income before income taxes 22.8 9.1 13.5 Income tax expense 1.3 (13.0) 3.0 Net Income (Loss) 21.5 22.1 10.5 Preferred stock dividend (1.0) (1.0) - Net Income (Loss) attributable to common stockholders 20.5 21.1 10.5 Basic EPS $2.55 $2.68 $1.34 Diluted EPS $2.40 $2.50 $1.33 For Further Information Contact: Investors: Valerie Haertel, VP, Investor Relations(561) 570-2969shareholderrelations@ Media: Dico Akseraylian, SVP, Corporate Communications(856) 917-0066mediarelations@ in to access your portfolio
Yahoo
30 minutes ago
- Yahoo
Zoetis Announces Second Quarter 2025 Results, Raises Full Year 2025 Outlook
Reports Revenue of $2.5 Billion, Growing 4%, and Net Income of $718 Million, or $1.61 per Diluted Share, Increasing 15% and 18%, Respectively, on a Reported Basis for Second Quarter 2025 Delivers 8% Organic Operational Growth in Revenue and 10% Organic Operational Growth in Adjusted Net Income for Second Quarter 2025 Reports Adjusted Net Income of $783 Million, or Adjusted Diluted EPS of $1.76, for Second Quarter 2025 Raises Full Year 2025 Revenue Guidance to $9.450 - $9.600 Billion with Organic Operational Revenue Growth of 6.5% to 8.0% Following Strong First-Half Performance Raises Full Year 2025 Guidance for Organic Operational Growth in Adjusted Net Income to 5.5% to 7.5% to Reflect Disciplined Execution and Cost Management Raises Guidance for Diluted EPS on an Adjusted Basis to $6.30 to $6.40 PARSIPPANY, N.J., August 05, 2025--(BUSINESS WIRE)--Zoetis Inc. (NYSE:ZTS) today reported its financial results for the second quarter of 2025 and raised its full year 2025 guidance. The company reported revenue of $2.5 billion for the second quarter of 2025, an increase of 4% compared with the second quarter of 2024. On an organic operational1 basis, revenue for the second quarter of 2025 increased 8% compared with the second quarter of 2024. Net income for the second quarter of 2025 was $718 million, or $1.61 per diluted share, an increase of 15% and 18%, respectively, on a reported basis. Adjusted net income2 for the second quarter of 2025 was $783 million, or $1.76 per diluted share, an increase of 10% and 13%, respectively, on both a reported and an organic operational basis. Adjusted net income for the second quarter of 2025 excludes the net impact of $65 million for purchase accounting adjustments, acquisition and divestiture-related costs and certain significant items. EXECUTIVE COMMENTARY"Zoetis delivered a strong broad-based performance in the second quarter of 2025, with 8% organic operational revenue growth," said Kristin Peck, Chief Executive Officer of Zoetis. "Our consistent results across economic and competitive cycles reflect the strength of our innovation engine, the breadth of our diversified portfolio and the discipline of our execution in what remains one of the most compelling long-term growth sectors. As we look to the second half of the year, our focus remains clear: execute with discipline, advance meaningful innovation and stay deeply connected to our customers." QUARTERLY HIGHLIGHTSZoetis organizes and manages its commercial operations across two segments: United States (U.S.) and International. Within these segments, the company delivers a diverse portfolio of products for companion animals and livestock, tailored to local trends and customer needs. In the second quarter of 2025: Revenue in the U.S. segment was $1.4 billion, an increase of 4% compared with the second quarter of 2024 and an increase of 7% on an organic operational basis. Sales of the company's innovative companion animal products increased 9%, driven primarily by Simparica Trio®, the company's flea, tick and heartworm combination product, as well as its key dermatology portfolio including Apoquel®, Apoquel Chewable and Cytopoint®. Broad-based growth across the remainder of the companion animal portfolio, including vaccines and diagnostics, was partially offset by a decline in the company's monoclonal antibody (mAb) products for osteoarthritis (OA) pain, Librela® for dogs and Solensia® for cats. Sales of livestock products declined 21% in the quarter, largely due to the divestiture of the medicated feed additive (MFA) product portfolio and related assets. On an organic operational basis, sales of livestock products decreased 2% in the quarter due to the timing of supply of ceftiofur products and competition for Draxxin, partially offset by growth across the livestock portfolio, primarily in vaccines. Revenue in the International segment was $1.1 billion, a 3% increase on a reported basis and an increase of 9% on an organic operational basis compared with the second quarter of 2024. Sales of companion animal products grew 8% on a reported and an operational3 basis. Growth in the quarter was driven by the company's innovative companion animal portfolio including key dermatology products Apoquel and Cytopoint, Simparica franchise and monoclonal antibodies for OA pain, Librela and Solensia. Sales of livestock products declined 2% on a reported basis, largely due to the divestiture of the MFA product portfolio and related assets, as well as foreign exchange. On an organic operational basis, sales of livestock products increased 10%, driven by broad-based growth across core species including swine, fish, poultry and cattle. INVESTMENTS IN GROWTHZoetis continues to advance care for animals across the globe with a robust pipeline fueled by lifecycle innovation, geographic expansion and disruptive innovation. The company expects a significant approval in a major market every year for the next several years. Since its last quarterly earnings announcement, Simparica Trio gained new label indications in Japan to prevent eyeworms and to prevent Dipylidium caninum (flea tapeworm) infections by killing Ctenocephalides felis vector fleas in treated dogs. With this approval, Simparica Trio is the only canine combination parasiticide indicated to prevent flea tapeworm infections, at the source, by killing vector fleas before transmission. Revolution® Plus (selamectin/sarolaner), a topical combination product that treats ticks, fleas, ear mites, lice and gastrointestinal worms and prevents heartworm disease in cats, received approval for an additional claim related to efficacy against notoedres mange in Australia, and in the EU received approval for an additional claim for the prevention of flea tapeworm infections by controlling fleas. Geographic expansion included approval of Solensia (frunevetmab injection) in South Korea for control of pain associated with osteoarthritis in cats. Revolution Plus was approved in the Philippines to treat ticks, fleas, ear mites, lice and gastrointestinal worms and prevent heartworm disease in cats. On the livestock side of the business, Zoetis received a conditional license for its Avian Influenza Vaccine, H5N2 Subtype, Killed Virus, for use in lactating dairy cattle in the U.S. In Brazil, the company gained a new label claim for Fostera® Gold PCV MH related to swine breeding herd safety. Zoetis received approval in Australia for needle-free administration of its Fostera Gold PCV MH vaccine to help prevent infection from Mycoplasma hyopneumoniae and Porcine circovirus, and its Fostera Gold PCV Metastim vaccine to help prevent infection from Porcine circovirus. In the EU, the company received approval for a needle-free microdose of Suvaxyn® PRRS, a vaccine that helps prevent porcine respiratory and reproductive syndrome. FINANCIAL GUIDANCEZoetis is raising its full year 2025 guidance due to a strong first-half performance and continued discipline in execution and cost management. Revenue between $9.450 billion to $9.600 billion (organic operational growth of 6.5% to 8.0%) Reported net income between $2.650 billion to $2.700 billion Adjusted net income between $2.825 billion to $2.875 billion (organic operational growth of 5.5% to 7.5%) Reported diluted EPS of $5.90 to $6.00 Adjusted diluted EPS between $6.30 to $6.40 This guidance reflects foreign exchange rates as of late July and the impact of enacted and assumptions on announced tariffs. Additional details on guidance are included in the financial tables and will be discussed on the company's conference call this morning. WEBCAST & CONFERENCE CALL DETAILSZoetis will host a webcast and conference call at 8:30 a.m. (ET) today, during which company executives will review second quarter 2025 results, discuss financial guidance and respond to questions from financial analysts. Investors and the public may access the live webcast and corresponding slides by visiting the Zoetis website at A replay of the webcast will be archived and made available on August 5, 2025. About ZoetisAs the world's leading animal health company, Zoetis is driven by a singular purpose: to nurture our world and humankind by advancing care for animals. After innovating ways to predict, prevent, detect, and treat animal illness for more than 70 years, Zoetis continues to stand by those raising and caring for animals worldwide – from veterinarians and pet owners to livestock producers. The company's leading portfolio and pipeline of medicines, vaccines, diagnostics and technologies make a difference in over 100 countries. A Fortune 500 company, Zoetis generated revenue of $9.3 billion in 2024 with approximately 13,800 employees. For more information, visit 1 Organic operational results (a non-GAAP financial measure) is defined as results excluding the impact of foreign exchange and certain acquisitions and divestitures. 2 Adjusted net income and its components and adjusted diluted earnings per share (non-GAAP financial measures) are defined as reported net income and reported diluted earnings per share, excluding purchase accounting adjustments, acquisition and divestiture-related costs and certain significant items. 3 Operational results (a non-GAAP financial measure) is defined as results excluding the impact of foreign exchange. DISCLOSURE NOTICESForward-Looking Statements: This press release contains forward-looking statements, which reflect the current views of Zoetis with respect to: business plans or prospects, future operating or financial performance, future guidance, future operating models; R&D costs; timing and likelihood of success; expectations regarding products, product approvals or products under development and expected timing of product launches; expectations regarding competing products; expectations regarding financial impact of divestitures; disruptions in our global supply chain; expectations regarding the performance of acquired companies and our ability to integrate new businesses; expectations regarding the financial impact of acquisitions; future use of cash, dividend payments and share repurchases; foreign exchange rates, tax rates, tariffs, changes in tax regimes and laws and any changes thereto; and other future events. These statements are not guarantees of future performance or actions. Forward-looking statements are subject to risks and uncertainties. If one or more of these risks or uncertainties materialize, or if management's underlying assumptions prove to be incorrect, actual results may differ materially from those contemplated by a forward-looking statement. Forward-looking statements speak only as of the date on which they are made. Zoetis expressly disclaims any obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. A further list and description of risks, uncertainties and other matters can be found in our most recent Annual Report on Form 10-K, including in the sections thereof captioned "Forward-Looking Statements and Factors That May Affect Future Results" and "Item 1A. Risk Factors," in our Quarterly Reports on Form 10-Q and in our Current Reports on Form 8-K. These filings and subsequent filings are available online at or on request from Zoetis. Use of Non-GAAP Financial Measures: We use non-GAAP financial measures, such as adjusted net income, adjusted diluted earnings per share, operational results (which exclude the impact of foreign exchange) and organic operational results (which exclude the impact of foreign exchange and certain acquisitions and divestitures), to assess and analyze our results and trends and to make financial and operational decisions. We believe these non-GAAP financial measures are also useful to investors because they provide greater transparency regarding our operating performance. The non-GAAP financial measures included in this press release should not be considered alternatives to measurements required by GAAP, such as net income, operating income, and earnings per share, and should not be considered measures of liquidity. These non-GAAP financial measures are unlikely to be comparable with non-GAAP information provided by other companies. Reconciliations of non-GAAP financial measures and the most directly comparable GAAP financial measures are included in the tables accompanying this press release and are posted on our website at Internet Posting of Information: We routinely post information that may be important to investors on the 'Investor Relations' section of our website at as well as on LinkedIn, Facebook, X (formerly Twitter) and YouTube. We encourage investors and potential investors to consult our website regularly and to follow us on social media for company news and information. ZTS-CORZTS-IRZTS-FIN ZOETIS INC. CONDENSED CONSOLIDATED STATEMENTS OF INCOME(a) (UNAUDITED) (millions of dollars, except per share data) Three Months Ended Six Months Ended June 30, June 30, 2025 2024 % Change 2025 2024 % Change Revenue $ 2,460 $ 2,361 4 $ 4,680 $ 4,551 3 Costs and expenses: Cost of sales 649 668 (3 ) 1,271 1,311 (3 ) Selling, general and administrative expenses 617 581 6 1,180 1,128 5 Research and development expenses 172 171 1 329 333 (1 ) Amortization of intangible assets 33 35 (6 ) 65 72 (10 ) Restructuring charges and certain acquisition and divestiture-related costs 30 42 (29 ) 30 46 (35 ) Interest expense, net of capitalized interest 53 59 (10 ) 107 117 (9 ) Other (income)/deductions–net 4 25 (84 ) (14 ) 17 * Income before provision for taxes on income 902 780 16 1,712 1,527 12 Provision for taxes on income 184 156 18 363 304 19 Net income before allocation to noncontrolling interests 718 624 15 1,349 1,223 10 Less: Net income/(loss) attributable to noncontrolling interests — — * — — * Net income attributable to Zoetis Inc. $ 718 $ 624 15 $ 1,349 $ 1,223 10 Earnings per share attributable to Zoetis—basic $ 1.61 $ 1.37 18 $ 3.02 $ 2.68 13 Earnings per share attributable to Zoetis—diluted $ 1.61 $ 1.37 18 $ 3.02 $ 2.67 13 Weighted-average shares used to calculate earnings per share Basic 445.1 455.5 446.3 456.7 Diluted 445.5 456.0 446.7 457.4 (a) The condensed consolidated statements of income present the three and six months ended June 30, 2025 and 2024. Subsidiaries operating outside the United States are included for the three and six months ended May 31, 2025 and 2024. * Calculation not meaningful. ZOETIS INC. RECONCILIATION OF GAAP REPORTED TO NON-GAAP ADJUSTED INFORMATION CERTAIN LINE ITEMS (UNAUDITED) (millions of dollars, except per share data) Three Months Ended June 30, 2025 GAAP Reported(a) Purchase Accounting Adjustments Acquisition and Divestiture- Related Costs(1) Certain Significant Items(2) Non-GAAP Adjusted(b) Cost of sales $ 649 $ (1 ) $ — $ (1 ) $ 647 Gross profit 1,811 1 — 1 1,813 Selling, general and administrative expenses 617 (3 ) — (9 ) 605 Amortization of intangible assets 33 (28 ) — — 5 Restructuring charges and certain acquisition and divestiture-related costs 30 — (1 ) (29 ) — Other (income)/deductions–net 4 — — (8 ) (4 ) Income before provision for taxes on income 902 33 1 47 983 Provision for taxes on income 184 7 — 9 200 Net income attributable to Zoetis 718 26 1 38 783 Earnings per common share attributable to Zoetis–diluted 1.61 0.06 — 0.09 1.76 Three Months Ended June 30, 2024 GAAP Reported(a) Purchase Accounting Adjustments Acquisition and Divestiture- Related Costs(1) Certain Significant Items(2) Non-GAAP Adjusted(b) Cost of sales $ 668 $ (1 ) $ — $ — $ 667 Gross profit 1,693 1 — — 1,694 Selling, general and administrative expenses 581 (3 ) — — 578 Amortization of intangible assets 35 (31 ) — — 4 Restructuring charges and certain acquisition and divestiture-related costs 42 — (5 ) (37 ) — Other (income)/deductions–net 25 — — (33 ) (8 ) Income before provision for taxes on income 780 35 5 70 890 Provision for taxes on income 156 8 1 14 179 Net income attributable to Zoetis 624 27 4 56 711 Earnings per common share attributable to Zoetis–diluted 1.37 0.06 0.01 0.12 1.56 (a) The condensed consolidated statements of income present the three months ended June 30, 2025 and 2024. Subsidiaries operating outside the United States are included for the three months ended May 31, 2025 and 2024. (b) Non-GAAP adjusted net income and its components and non-GAAP adjusted diluted EPS are not, and should not be viewed as, substitutes for U.S. GAAP net income and its components and diluted EPS. Despite the importance of these measures to management in goal setting and performance measurement, non-GAAP adjusted net income and its components and non-GAAP adjusted diluted EPS are non-GAAP financial measures that have no standardized meaning prescribed by U.S. GAAP and, therefore, have limits in their usefulness to investors. Because of the non-standardized definitions, non-GAAP adjusted net income and its components and non-GAAP adjusted diluted EPS (unlike U.S. GAAP net income and its components and diluted EPS) may not be comparable to the calculation of similar measures of other companies. Non-GAAP adjusted net income and its components, and non-GAAP adjusted diluted EPS are presented solely to permit investors to more fully understand how management assesses performance. See Notes to Reconciliation of GAAP Reported to Non-GAAP Adjusted Information for notes (1) and (2). ZOETIS INC. RECONCILIATION OF GAAP REPORTED TO NON-GAAP ADJUSTED INFORMATION CERTAIN LINE ITEMS (UNAUDITED) (millions of dollars, except per share data) Six Months Ended June 30, 2025 GAAP Reported(a) Purchase Accounting Adjustments Acquisition and Divestiture- Related Costs(1) Certain Significant Items(2) Non-GAAP Adjusted(b) Cost of sales $ 1,271 $ (2 ) $ — $ (2 ) $ 1,267 Gross profit 3,409 2 — 2 3,413 Selling, general and administrative expenses 1,180 (6 ) — (15 ) 1,159 Research and development expenses 329 (1 ) — — 328 Amortization of intangible assets 65 (56 ) — — 9 Restructuring charges and certain acquisition and divestiture-related costs 30 — (1 ) (29 ) — Other (income)/deductions–net (14 ) — — (7 ) (21 ) Income before provision for taxes on income 1,712 65 1 53 1,831 Provision for taxes on income 363 14 — 9 386 Net income attributable to Zoetis 1,349 51 1 44 1,445 Earnings per common share attributable to Zoetis–diluted 3.02 0.11 — 0.10 3.23 Six Months Ended June 30, 2024 GAAP Reported(a) Purchase Accounting Adjustments Acquisition and Divestiture- Related Costs(1) Certain Significant Items(2) Non-GAAP Adjusted(b) Cost of sales $ 1,311 $ (2 ) $ — $ — $ 1,309 Gross profit 3,240 2 — — 3,242 Selling, general and administrative expenses 1,128 (6 ) — — 1,122 Research and development expenses 333 (1 ) — — 332 Amortization of intangible assets 72 (63 ) — — 9 Restructuring charges and certain acquisition and divestiture-related costs 46 — (5 ) (41 ) — Other (income)/deductions–net 17 — — (35 ) (18 ) Income before provision for taxes on income 1,527 72 5 76 1,680 Provision for taxes on income 304 16 1 14 335 Net income attributable to Zoetis 1,223 56 4 62 1,345 Earnings per common share attributable to Zoetis–diluted 2.67 0.12 0.01 0.14 2.94 (a) The condensed consolidated statements of income present the six months ended June 30, 2025 and 2024. Subsidiaries operating outside the United States are included for the six months ended May 31, 2025 and 2024. (b) Non-GAAP adjusted net income and its components and non-GAAP adjusted diluted EPS are not, and should not be viewed as, substitutes for U.S. GAAP net income and its components and diluted EPS. Despite the importance of these measures to management in goal setting and performance measurement, non-GAAP adjusted net income and its components and non-GAAP adjusted diluted EPS are non-GAAP financial measures that have no standardized meaning prescribed by U.S. GAAP and, therefore, have limits in their usefulness to investors. Because of the non-standardized definitions, non-GAAP adjusted net income and its components and non-GAAP adjusted diluted EPS (unlike U.S. GAAP net income and its components and diluted EPS) may not be comparable to the calculation of similar measures of other companies. Non-GAAP adjusted net income and its components, and non-GAAP adjusted diluted EPS are presented solely to permit investors to more fully understand how management assesses performance. See Notes to Reconciliation of GAAP Reported to Non-GAAP Adjusted Information for notes (1) and (2). ZOETIS INC. NOTES TO RECONCILIATION OF GAAP REPORTED TO NON-GAAP ADJUSTED INFORMATION CERTAIN LINE ITEMS (UNAUDITED) (millions of dollars) (1) Acquisition and divestiture-related costs include the following: Three Months Ended Six Months Ended June 30, June 30, 2025 2024 2025 2024 Acquisition-related costs(a) $ 1 $ 1 $ 1 $ 1 Divestiture-related costs(b) — 4 — 4 Total acquisition and divestiture-related costs—pre-tax 1 5 1 5 Income taxes(c) — 1 — 1 Total acquisition and divestiture-related costs—net of tax $ 1 $ 4 $ 1 $ 4 (a) Acquisition-related costs represent external, incremental costs that directly relate to transacting and integrating businesses, included in Restructuring charges and certain acquisition and divestiture-related costs. (b) Divestiture-related costs consisted of costs related to the sale of our medicated feed additive product portfolio, certain water soluble products and related assets, included in Restructuring charges and certain acquisition and divestiture-related costs. (c) Included in Provision for taxes on income. Income taxes include the tax effect of the associated pre-tax amounts, calculated by determining the jurisdictional location of the pre-tax amounts and applying that jurisdiction's applicable tax rate. (2) Certain significant items include the following: Three Months Ended Six Months Ended June 30, June 30, 2025 2024 2025 2024 Other restructuring charges and cost-reduction/productivity initiatives(a) $ 7 $ 37 $ 7 $ 41 Business process transformation program(b) 11 — 18 — Certain asset impairment charges(c) 27 11 27 11 Net loss on sale of business(d) 3 22 3 22 Other (1 ) — (2 ) 2 Total certain significant items—pre-tax 47 70 53 76 Income taxes(e) 9 14 9 14 Total certain significant items—net of tax $ 38 $ 56 $ 44 $ 62 (a) For the three and six months ended June 30, 2025, primarily consisted of employee termination costs related to a transition from internal to external innovation and manufacturing of certain products and the closure of a related site, included in Restructuring charges and certain acquisition and divestiture-related costs. For the three and six months ended June 30, 2024, primarily consisted of employee termination costs related to organizational structure refinements, included in Restructuring charges and certain acquisition and divestiture-related costs. For the six months ended June 30, 2024, charges were partially offset by a reversal of certain employee termination costs as a result of a change in strategy from our 2015 operational efficiency initiative. (b) Represents costs related to our multi-year business process transformation program, which includes the implementation of a new enterprise resource planning (ERP) system, related digital technology solutions and other related costs, included in Selling, general and administrative expenses and Cost of sales. This comprehensive program is a major global and cross-functional company-wide effort that we believe will transform how we work across our business and contribute to all of our strategic priorities. Due to the nature, scope and magnitude of this investment, these costs are incremental transformational costs that are far in excess of the historical normal level of spending to support operations and are not expected to recur in the foreseeable future. (c) For the three and six months ended June 30, 2025, represents certain asset impairment charges related to a transition from internal to external innovation and manufacturing of certain products and the closure of a related site, included in Restructuring charges and certain acquisition and divestiture-related costs, as well as charges related to our aquaculture product portfolio included in Other (income)/deductions–net. For the three and six months ended June 30, 2024, represents certain asset impairment charges related to our aquaculture product portfolio included in Other (income)/deductions–net. (d) Represents a net loss related to the sale of our medicated feed additive product portfolio, certain water soluble products and related assets sold in 2024, included in Other (income)/deductions–net. (e) Included in Provision for taxes on income. Income taxes include the tax effect of the associated pre-tax amounts, calculated by determining the jurisdictional location of the pre-tax amounts and applying that jurisdiction's applicable tax rate. ZOETIS INC. ADJUSTED SELECTED COSTS, EXPENSES AND INCOME(a) (UNAUDITED) (millions of dollars) Three Months Ended June 30, % Change 2025 2024 Total Foreign Exchange Operational(b) Divestitures Organic Operational(c) Adjusted cost of sales $ 647 $ 667 (3 )% (6 )% 3 % as a percent of revenue 26.3 % 28.3 % NA NA NA Adjusted SG&A expenses 605 578 5 % (1 )% 6 % Adjusted R&D expenses 171 171 — % (1 )% 1 % Adjusted net income 783 711 10 % 3 % 7 % (3 )% 10 % Six Months Ended June 30, % Change 2025 2024 Total Foreign Exchange Operational(b) Divestitures Organic Operational(c) Adjusted cost of sales $ 1,267 $ 1,309 (3 )% (8 )% 5 % as a percent of revenue 27.1 % 28.8 % NA NA NA Adjusted SG&A expenses 1,159 1,122 3 % (2 )% 5 % Adjusted R&D expenses 328 332 (1 )% — % (1 )% Adjusted net income 1,445 1,345 7 % 3 % 4 % (4 )% 8 % (a) Adjusted cost of sales, adjusted selling, general, and administrative (SG&A) expenses, adjusted research and development (R&D) expenses, and adjusted net income (non-GAAP financial measures) are defined as the corresponding reported U.S. GAAP income statement line items excluding purchase accounting adjustments, acquisition and divestiture-related costs and certain significant items. These adjusted income statement line item measures are not, and should not be viewed as, substitutes for the corresponding U.S. GAAP line items. The corresponding GAAP line items and reconciliations of reported to adjusted information are provided in Condensed Consolidated Statements of Income and Reconciliation of GAAP Reported to Non-GAAP Adjusted Information. (b) Operational results (a non-GAAP financial measure) is defined as results excluding the impact of foreign exchange. (c) Organic operational results (a non-GAAP financial measure) is defined as results excluding the impact of foreign exchange and certain acquisitions and divestitures. ZOETIS INC. 2025 GUIDANCE Selected Line Items (millions of dollars, except per share amounts) Full Year 2025 as of August 5, 2025 Full Year 2025 as of May 6, 2025 (Prior Guidance) Revenue $9,450 to $9,600 $9,425 to $9,575 Organic operational growth(a) 6.5% to 8.0% 6% to 8% Adjusted cost of sales as a percentage of revenue(b) Approximately 28.0% Approximately 28.5% Adjusted SG&A expenses(b) $2,355 to $2,405 $2,340 to $2,390 Adjusted R&D expenses(b) $690 to $700 $690 to $700 Adjusted interest expense and other (income)/deductions-net(b) Approximately $170 Approximately $180 Effective tax rate on adjusted income(b) Approximately 21% Approximately 21% Adjusted diluted EPS(b) $6.30 to $6.40 $6.20 to $6.30 Adjusted net income(b) $2,825 to $2,875 $2,775 to $2,825 Organic operational growth(a)(c) 5.5% to 7.5% 5% to 7% Certain significant items and acquisition and divestiture-related costs(d) Approximately $75 Approximately $45 The guidance as of August 5, 2025 reflects foreign exchange rates as of late July 2025. The prior guidance as of May 6, 2025 reflects foreign exchange rates as of late April 2025. Reconciliations of 2025 reported guidance to 2025 adjusted guidance follows: (millions of dollars, except per share amounts) Reported Certain significant items and acquisition and divestiture-related costs(d) Purchase accounting Adjusted(b) Cost of sales as a percentage of revenue ~ 28.2% ~ (0.1%) ~ (0.1%) ~ 28.0% SG&A expenses $2,395 to $2,445 ~ $(30) ~ $(10) $2,355 to $2,405 R&D expenses $692 to $702 ~ $(2) $690 to $700 Interest expense and other (income)/deductions-net ~ $170 ~ $170 Effective tax rate ~ 21% ~ 21% Diluted EPS $5.90 to $6.00 ~ $0.15 ~ $0.25 $6.30 to $6.40 Net income attributable to Zoetis $2,650 to $2,700 ~ $75 ~ $100 $2,825 to $2,875 (a) Organic operational results (a non-GAAP financial measure) excludes the impact of foreign exchange and certain acquisitions and divestitures. (b) Adjusted net income and its components and adjusted diluted EPS are defined as reported U.S. GAAP net income and its components and reported diluted EPS excluding purchase accounting adjustments, acquisition and divestiture-related costs and certain significant items. Adjusted cost of sales, adjusted SG&A expenses, adjusted R&D expenses, and adjusted interest expense and other (income)/deductions-net are income statement line items prepared on the same basis, and, therefore, components of the overall adjusted income measure. Despite the importance of these measures to management in goal setting and performance measurement, adjusted net income and its components and adjusted diluted EPS are non-GAAP financial measures that have no standardized meaning prescribed by U.S. GAAP and, therefore, have limits in their usefulness to investors. Because of the non-standardized definitions, adjusted net income and its components and adjusted diluted EPS (unlike U.S. GAAP net income and its components and diluted EPS) may not be comparable to the calculation of similar measures of other companies. Adjusted net income and its components and adjusted diluted EPS are presented solely to permit investors to more fully understand how management assesses performance. Adjusted net income and its components and adjusted diluted EPS are not, and should not be viewed as, substitutes for U.S. GAAP net income and its components and diluted EPS. (c) We do not provide a reconciliation of forward-looking non-GAAP adjusted net income operational results to the most directly comparable U.S. GAAP reported financial measure because we are unable to calculate with reasonable certainty the foreign exchange impact of unusual gains and losses, acquisition and divestiture-related expenses, potential future asset impairments and other certain significant items, without unreasonable effort. The foreign exchange impacts of these items are uncertain, depend on various factors, and could have a material impact on U.S. GAAP reported results for the guidance period. (d) Primarily includes certain nonrecurring costs related to acquisitions, divestitures and other charges. ZOETIS INC. CONSOLIDATED REVENUE BY SEGMENT(a) AND SPECIES (UNAUDITED) (millions of dollars) Three Months Ended June 30, % Change 2025 2024 Total Foreign Exchange Operational(b) Divestitures Organic Operational(c) Revenue: Companion Animal $ 1,788 $ 1,649 8 % — % 8 % — % 8 % Livestock 638 694 (8 )% (2 )% (6 )% (12 )% 6 % Contract Manufacturing & Human Health 34 18 89 % (2 )% 91 % — % 91 % Total Revenue $ 2,460 $ 2,361 4 % (1 )% 5 % (3 )% 8 % U.S.: Companion Animal $ 1,176 $ 1,080 9 % — % 9 % — % 9 % Livestock 180 228 (21 )% — % (21 )% (19 )% (2 )% Total U.S. Revenue $ 1,356 $ 1,308 4 % — % 4 % (3 )% 7 % International: Companion Animal $ 612 $ 569 8 % — % 8 % — % 8 % Livestock 458 466 (2 )% (3 )% 1 % (9 )% 10 % Total International Revenue $ 1,070 $ 1,035 3 % (2 )% 5 % (4 )% 9 % Companion Animal: Dogs and Cats $ 1,716 $ 1,581 9 % — % 9 % Horses 72 68 6 % — % 6 % Total Companion Animal Revenue $ 1,788 $ 1,649 8 % — % 8 % Livestock: Cattle $ 320 $ 350 (9 )% (3 )% (6 )% Swine 119 130 (8 )% (1 )% (7 )% Poultry 103 132 (22 )% (1 )% (21 )% Fish 74 62 19 % 1 % 18 % Sheep and other 22 20 10 % 1 % 9 % Total Livestock Revenue $ 638 $ 694 (8 )% (2 )% (6 )% (a) For a description of each segment, see Zoetis' most recent Annual Report on Form 10-K. (b) Operational revenue results (a non-GAAP financial measure) is defined as revenue results excluding the impact of foreign exchange. (c) Organic operational revenue results (a non-GAAP financial measure) is defined as revenue results excluding the impact of foreign exchange and certain acquisitions and divestitures. ZOETIS INC. CONSOLIDATED REVENUE BY SEGMENT(a) AND SPECIES (UNAUDITED) (millions of dollars) Six Months Ended June 30, % Change 2025 2024 Total Foreign Exchange Operational(b) Divestitures Organic Operational(c) Revenue: Companion Animal $ 3,334 $ 3,099 8 % (1 )% 9 % — % 9 % Livestock 1,283 1,414 (9 )% (3 )% (6 )% (13 )% 7 % Contract Manufacturing & Human Health 63 38 66 % (4 )% 70 % — % 70 % Total Revenue $ 4,680 $ 4,551 3 % (2 )% 5 % (4 )% 9 % U.S.: Companion Animal $ 2,149 $ 1,978 9 % — % 9 % — % 9 % Livestock 390 493 (21 )% — % (21 )% (19 )% (2 )% Total U.S. Revenue $ 2,539 $ 2,471 3 % — % 3 % (4 )% 7 % International: Companion Animal $ 1,185 $ 1,121 6 % (3 )% 9 % — % 9 % Livestock 893 921 (3 )% (5 )% 2 % (9 )% 11 % Total International Revenue $ 2,078 $ 2,042 2 % (4 )% 6 % (4 )% 10 % Companion Animal: Dogs and Cats $ 3,197 $ 2,965 8 % (1 )% 9 % Horses 137 134 2 % (2 )% 4 % Total Companion Animal Revenue $ 3,334 $ 3,099 8 % (1 )% 9 % Livestock: Cattle $ 678 $ 741 (9 )% (5 )% (4 )% Swine 230 257 (11 )% (4 )% (7 )% Poultry 209 271 (23 )% (3 )% (20 )% Fish 127 107 19 % (1 )% 20 % Sheep and other 39 38 3 % (1 )% 4 % Total Livestock Revenue $ 1,283 $ 1,414 (9 )% (3 )% (6 )% (a) For a description of each segment, see Zoetis' most recent Annual Report on Form 10-K. (b) Operational revenue results (a non-GAAP financial measure) is defined as revenue results excluding the impact of foreign exchange. (c) Organic operational revenue results (a non-GAAP financial measure) is defined as revenue results excluding the impact of foreign exchange and certain acquisitions and divestitures. ZOETIS INC. CONSOLIDATED REVENUE BY KEY INTERNATIONAL MARKETS (UNAUDITED) (millions of dollars) Three Months Ended June 30, % Change 2025 2024 Total Foreign Exchange Operational(a) Total International $ 1,070 $ 1,035 3 % (2 )% 5 % Australia 83 83 — % (4 )% 4 % Brazil 93 99 (6 )% (11 )% 5 % Canada 73 75 (3 )% (3 )% — % Chile 36 31 16 % (3 )% 19 % China 72 68 6 % — % 6 % France 33 34 (3 )% 3 % (6 )% Germany 58 58 — % 1 % (1 )% Italy 38 36 6 % 4 % 2 % Japan 45 39 15 % 5 % 10 % Mexico 38 46 (17 )% (17 )% — % Spain 37 33 12 % 4 % 8 % United Kingdom 77 73 5 % 4 % 1 % Other developed markets 162 138 17 % 2 % 15 % Other emerging markets 225 222 1 % (1 )% 2 % Six Months Ended June 30, % Change 2025 2024 Total Foreign Exchange Operational(a) Total International $ 2,078 $ 2,042 2 % (4 )% 6 % Australia 158 156 1 % (5 )% 6 % Brazil 181 200 (10 )% (16 )% 6 % Canada 140 136 3 % (5 )% 8 % Chile 70 62 13 % (2 )% 15 % China 132 144 (8 )% — % (8 )% France 73 75 (3 )% (2 )% (1 )% Germany 109 109 — % (1 )% 1 % Italy 67 64 5 % — % 5 % Japan 81 76 7 % 1 % 6 % Mexico 75 90 (17 )% (16 )% (1 )% Spain 70 65 8 % 1 % 7 % United Kingdom 154 150 3 % 2 % 1 % Other developed markets 295 265 11 % (2 )% 13 % Other emerging markets 473 450 5 % (5 )% 10 % (a) Operational revenue results (a non-GAAP financial measure) is defined as revenue results excluding the impact of foreign exchange. Note: operational revenue results are not reflective of organic operational results. ZOETIS INC. SEGMENT(a) EARNINGS (UNAUDITED) (millions of dollars) Three Months Ended June 30, % Change 2025 2024 Total Foreign Exchange Operational(b) U.S.: Revenue $ 1,356 $ 1,308 4 % — % 4 % Cost of Sales 208 232 (10 )% — % (10 )% Gross Profit 1,148 1,076 7 % — % 7 % Gross Margin 84.7 % 82.3 % Operating Expenses 218 204 7 % — % 7 % Other (income)/deductions-net — — * * * U.S. Earnings $ 930 $ 872 7 % — % 7 % International: Revenue $ 1,070 $ 1,035 3 % (2 )% 5 % Cost of Sales 314 342 (8 )% (9 )% 1 % Gross Profit 756 693 9 % 2 % 7 % Gross Margin 70.7 % 67.0 % Operating Expenses 173 175 (1 )% (3 )% 2 % Other (income)/deductions-net — — * * * International Earnings $ 583 $ 518 13 % 5 % 8 % Total Reportable Segments $ 1,513 $ 1,390 9 % 2 % 7 % Other business activities(c) (134 ) (142 ) (6 )% Reconciling Items: Corporate(d) (321 ) (299 ) 7 % Purchase accounting adjustments(e) (33 ) (35 ) (6 )% Acquisition and divestiture-related costs(f) (1 ) (5 ) (80 )% Certain significant items(g) (47 ) (70 ) (33 )% Other unallocated(h) (75 ) (59 ) 27 % Total Earnings(i) $ 902 $ 780 16 % (a) For a description of each segment, see Zoetis' most recent Annual Report on Form 10-K. (b) Operational results (a non-GAAP financial measure) is defined as results excluding the impact of foreign exchange. (c) Other business activities includes the research and development costs managed by our research and development organization, as well as our contract manufacturing business and human health business. (d) Corporate includes, among other things, certain costs associated with information technology, administration expenses, interest income and expense, certain compensation costs and other costs not charged to our operating segments. (e) Purchase accounting adjustments include certain charges related to the amortization of fair value adjustments to inventory, intangible assets and property, plant and equipment not charged to our operating segments. (f) Acquisition and divestiture-related costs include costs associated with acquiring and integrating newly acquired businesses, such as transaction costs and integration costs, as well as costs associated with divesting and disintegrating a portion of our business. (g) Certain significant items includes substantive, unusual items that, either as a result of their nature or size, would not be expected to occur as part of our normal business on a regular basis. Such items primarily include certain asset impairment charges, restructuring charges and implementation costs associated with cost-reduction/productivity initiatives that are not associated with an acquisition, costs related to our business process transformation program, as well as the impact of divestiture gains and losses. (h) Includes overhead expenses associated with our global manufacturing and supply operations not directly attributable to an operating segment, as well as certain procurement costs. (i) Defined as income before provision for taxes on income. * Calculation not meaningful. ZOETIS INC. SEGMENT(a) EARNINGS (UNAUDITED) (millions of dollars) Six Months Ended June 30, % Change 2025 2024 Total Foreign Exchange Operational(b) U.S.: Revenue $ 2,539 $ 2,471 3 % — % 3 % Cost of Sales 407 449 (9 )% — % (9 )% Gross Profit 2,132 2,022 5 % — % 5 % Gross Margin 84.0 % 81.8 % Operating Expenses 423 394 7 % — % 7 % Other (income)/deductions-net — — * * * U.S. Earnings $ 1,709 $ 1,628 5 % — % 5 % International: Revenue $ 2,078 $ 2,042 2 % (4 )% 6 % Cost of Sales 616 655 (6 )% (11 )% 5 % Gross Profit 1,462 1,387 5 % (1 )% 6 % Gross Margin 70.4 % 67.9 % Operating Expenses 327 334 (2 )% (5 )% 3 % Other (income)/deductions-net 1 — * * * International Earnings $ 1,134 $ 1,053 8 % 1 % 7 % Total Reportable Segments $ 2,843 $ 2,681 6 % — % 6 % Other business activities(c) (263 ) (274 ) (4 )% Reconciling Items: Corporate(d) (592 ) (587 ) 1 % Purchase accounting adjustments(e) (65 ) (72 ) (10 )% Acquisition and divestiture-related costs(f) (1 ) (5 ) (80 )% Certain significant items(g) (53 ) (76 ) (30 )% Other unallocated(h) (157 ) (140 ) 12 % Total Earnings(i) $ 1,712 $ 1,527 12 % (a) For a description of each segment, see Zoetis' most recent Annual Report on Form 10-K. (b) Operational results (a non-GAAP financial measure) is defined as results excluding the impact of foreign exchange. (c) Other business activities includes the research and development costs managed by our research and development organization, as well as our contract manufacturing business and human health business. (d) Corporate includes, among other things, certain costs associated with information technology, administration expenses, interest income and expense, certain compensation costs and other costs not charged to our operating segments. (e) Purchase accounting adjustments include certain charges related to the amortization of fair value adjustments to inventory, intangible assets and property, plant and equipment not charged to our operating segments. (f) Acquisition and divestiture-related costs include costs associated with acquiring and integrating newly acquired businesses, such as transaction costs and integration costs, as well as costs associated with divesting and disintegrating a portion of our business. (g) Certain significant items includes substantive, unusual items that, either as a result of their nature or size, would not be expected to occur as part of our normal business on a regular basis. Such items primarily include certain asset impairment charges, restructuring charges and implementation costs associated with cost-reduction/productivity initiatives that are not associated with an acquisition, costs related to our business process transformation program, as well as the impact of divestiture gains and losses. (h) Includes overhead expenses associated with our global manufacturing and supply operations not directly attributable to an operating segment, as well as certain procurement costs. (i) Defined as income before provision for taxes on income. * Calculation not meaningful. View source version on Contacts Media:Jennifer Albano1-862-399-0810 (o) Laura Panza1-973-975-5176 (o) Investor:Steve Frank1-973-822-7141 (o) Nick Soonthornchai1-973-443-2792 (o) Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
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ScaleReady Announces a G-Rex® Grant has been awarded to Sidra Medicine
ST. PAUL, Minn., Aug. 5, 2025 /PRNewswire/ -- ScaleReady, in collaboration with Wilson Wolf Manufacturing, Bio-Techne Corporation and CellReady, today announced that Sidra Medicine, a women and children's hospital in Qatar, has been awarded a $100,000 G-Rex® Grant. Sidra Medicine's G-Rex® Grant will enable expeditious development, validation, and implementation of a G-Rex® centric CAR-T cell production platform. The G-Rex Grant will allow Sidra Medicine to perform the processes and preclinical development for a CD19 CAR-T cell therapy product that will initially be used in pediatric oncology settings. Sidra Medicine will also receive early access to the G-CART™ process currently in development at Cell Ready, the world's first and only G-Rex centric contract development and manufacturing organization (CDMO). The Grant will also support the implementation of fully closed system, semi-automated G-Rex production compliant with current Good Manufacturing Practices (cGMPs). Lastly, the Grant will support the technology transfer to Sidra Medicine's newly established GMP facility for qualification and implementation. "Sidra Medicine is a pioneering healthcare institution that has innovation weaved into the very core of its precision medicine program. Our GMP facility has been specifically set up to develop better treatment protocols for pediatric diseases including cancers, genetic and rare diseases. The G-Rex® Grant will play a key role in accelerating the readiness of our protocols, particularly for Sidra Medicine's pediatric oncology program. Our preliminary findings have already shown us that the G-Rex® method is outstanding in its simplicity and the unique T cell phenotype resulting from the cell culture. This methodology will allow us to implement an affordable, highly efficient G-Rex based cell manufacturing platform with the most suitable T cell phenotype, ultimately having a positive impact on pediatric patient care and cure," said Sara Deola, M.D., Ph.D., Research Investigator at Sidra Medicine. "We're eager to support the emerging Cell & Gene Therapy (CGT) industry in Qatar and the Middle East. By entering the field of CAR-T without any preconceived manufacturing notions and quickly gathering and reviewing G-Rex manufacturing data, Sidra Medicine quickly recognized the full array of advantages that our G-Rex centric manufacturing process offers relative to alternatives. Sidra Medicine's quick grasp of the technical and economic advantages of G-Rex relative to alternatives gives us confidence that this grant will set the stage for low cost and fully scalable CAR-T manufacturing in Qatar and the Middle East." said John Wilson, CEO of Wilson Wolf and co-inventor of G-Rex. ScaleReady's G-Rex Grant Program has now surpassed $40M of no-cost product commitments to grant recipients with the goal of advancing the state of cell and gene-modified cell therapy (CGT) development and manufacturing. Individual Grant Awards are worth up to $300,000. G-Rex Grant Recipients also gain access to exclusive support from ScaleReady's growing consortium of G-Rex Grant Partners who bring best-in-class tools and technologies as well as unparalleled knowledge and expertise in the areas of cGMP manufacturing, quality and regulatory affairs, CGT business operations, and more. Importantly, ScaleReady has just introduced yet another FREE program to accelerate the universal presence of highly efficient and scalable CGT manufacturing. Under this program ScaleReady has partnered with Hanson Wade to launch an event series called LEAN Cell & Gene™. All CGT entities are invited to attend and will learn how to systematically identify and eliminate waste, stabilize business operations, increase drug product quality and supply, and develop a LEAN approach to cell and gene therapy development and manufacturing. For more information about the G-Rex® Grant Program, please contact info@ For more information about LEAN Cell & Gene™, please use this link to register for the free event series. About ScaleReadyScaleReady provides the field of cell and gene-modified cell therapy (CGT) with a G-Rex centric manufacturing platform that enables the world's most practical, flexible, scalable, and affordable CGT drug product development and manufacturing. The G-Rex manufacturing platform is currently used by a rapidly growing list of over 800 organizations and is producing drug products for approximately 50% of CGT clinical trials as well as 5 commercially approved CGT drugs. CGT entities relying on the breadth and scope of ScaleReady's expertise can expect to save years of time and millions of dollars on the path to CGT commercialization. For more information about the ScaleReady G-Rex® Grant Program, please contact info@ About Wilson Wolf ManufacturingWilson Wolf ( is dedicated to simplifying cell and gene-modified cell (CGT) therapy research, process development, and manufacturing. This is being accomplished through its scalable G-Rex technology, which is used throughout the world in CGT applications ranging from basic research to commercial drug production. Wilson Wolf's mission is to create hope for cancer patients, one G-Rex® device at a time. About Bio-Techne CorporationBio-Techne Corporation (NASDAQ: TECH) is a global life sciences company providing innovative tools and bioactive reagents for the research and clinical diagnostic communities. Bio-Techne, in partnership with Wilson Wolf, is creating products such as media and cytokines that are specifically tailored to G-Rex® Bioreactors, including right-sized reagent quantities in containers that are tailored to high throughput closed-system manufacturing. For more information on Bio-Techne and its brands, please visit or follow the Company on social media at: Facebook, LinkedIn, Twitter or YouTube. Contact: David Clair, Vice President, Investor Relations & Corporate About CellReady LLCCellReady is the world's first and only G-Rex centric contract development and manufacturing organization (CDMO) specializing in G-Rex based cell and gene-modified cell therapy development and manufacturing. The company offers a wide range of services to support the development and commercialization of these therapies. CellReady's mission is to create hope for cancer patients, one G-Rex® process at a time. About Sidra Medicine Innovating Care. Transforming Lives From the heart of Qatar, Sidra Medicine, is a private, not-for-profit academic healthcare and research institution for women, children, and young people. Established by the Qatar Foundation for Education, Science, and Community Development, Sidra Medicine is committed to delivering exceptional patient and family-focused care, conducting innovative biomedical and clinical research, and providing a personalized journey of care and cure and precision medicine specifically for rare and genetic diseases. To access our specialised healthcare or international patient services, including pediatric care, women's health, and rare disease treatment or to book a consultation at one of our private clinics, please call +974 40033333 or visit our website at For more information, follow us on Facebook, Instagram, X and LinkedIn. View original content to download multimedia: SOURCE Bio-Techne Corporation
