Zoetis

Balance sheet flexibility is strong. As of 2025-06-30, cash and equivalents were 1.44 billion versus total debt principal of about 6.65 billion and long-term debt of 5.23 billion net of issuance costs; credit ratings are A3/BBB+ with stable outlooks.

First-half 2025 operating cash flow was 1.07 billion with 0.33 billion capex, yielding 0.75 billion FCF. Using H2 2024 plus H1 2025, we estimate TTM FCF near 2.22 billion. Debt maturities are laddered, with 1.35 billion due in 2025 well covered by liquidity and cash generation.

We see low refinancing risk and ample capacity to fund R&D, capacity expansions, buybacks, and dividends through cycles.