ECO Animal Health (LSE:EAH) reported a strong performance for the 2026 financial year, with revenue increasing 10 percent to 87.5 million pounds and adjusted EBITDA rising 16 percent to 8.5 million pounds, both exceeding market expectations. Growth across North America and Latin America, together with improved pricing, a more favourable product mix and disciplined cost management, helped lift gross margins to 49 percent. Profit before tax increased 35 percent, while the company maintained a net cash position of 25.4 million pounds, highlighting the strength of its balance sheet.
Strong trading and product pipeline support growth
Demand for Aivlosin remained resilient despite increasing generic competition, continuing to underpin the group’s financial performance. ECO Animal Health also achieved important research and development milestones during the year, including early European Union approval and the commercial launch of its ECOVAXXIN MS poultry vaccine.
The company believes its expanding development pipeline could result in as many as nine products receiving approval in either the United States or European Union over the next five to six years. Combined with renewed banking facilities and improving margins at the start of the 2027 financial year, management believes the business is well positioned to strengthen its presence in preventative animal healthcare.
Preventative medicine strategy gathers pace
The successful launch of ECOVAXXIN MS represents an important milestone in ECO Animal Health’s strategy to diversify beyond antimicrobial medicines into vaccines and preventative animal health products. The company expects this transition to support long-term growth while broadening its portfolio across global livestock markets.
Management also highlighted continued operational discipline and healthy cash generation as key strengths supporting future investment and shareholder returns.
Valuation remains a consideration
ECO Animal Health continues to benefit from positive technical momentum and a series of favourable corporate developments that support confidence in its long-term growth prospects. However, the company’s valuation remains relatively demanding, while its financial performance has historically been uneven, leaving expectations for continued growth at elevated levels.
About ECO Animal Health Group
ECO Animal Health Group is a UK-based global animal health company listed on AIM that develops and markets branded veterinary medicines designed to improve the health and productivity of livestock.
Its flagship product, Aivlosin, is widely used to treat respiratory and intestinal diseases in pigs and poultry and is sold in more than 70 countries. Alongside its established pharmaceutical business, the company is expanding into preventative animal healthcare through its internally funded research and development programme.
The launch of ECOVAXXIN MS in the European Union marked ECO Animal Health’s entry into the poultry vaccine market and forms part of a broader strategy to diversify its product portfolio beyond antibiotics.
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