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    STVN
    Earnings call· Mar 2026(Q1 FY26)

    Stevanato Group S.p.A. Q1 FY26 earnings call STVN

    May 7, 2026 Source

    Executive summary

    Stevanato Group Q1 FY26 — Strong BDS Growth Driven by GLP-1s and Capacity Expansion

    The company started FY26 with solid momentum, driven by robust demand for high-value solutions, particularly GLP-1s, within its BDS segment, supported by ongoing capacity ramp-ups in Latina and Fishers. While the Engineering segment showed margin improvement from optimization, new order intake remains slow, necessitating continued focus on sales and marketing. Management reiterated full-year guidance, confident in its market position and strategic investments.

    Highlights

    5

    • Revenue grew 10% at constant currency rates to EUR 273.6 million.

    • Biopharmaceutical and Diagnostic Solutions (BDS) segment revenue increased 16% at constant currency.

    • High-value solutions revenue increased 17% to EUR 128.6 million, accounting for 47% of total revenue.

    • Adjusted EBITDA increased 14% to EUR 65.5 million, with margin up 150 bps to 23.9%.

    • Engineering segment gross profit margin improved 460 bps to 15.3% due to optimization efforts.

    Concerns

    4

    • Engineering segment revenue decreased 31% due to low backlog and slow new order intake.

    • BDS gross profit margin decreased 300 bps to 28.3% due to higher depreciation, FX headwinds, and tariffs.

    • Tax rate increased to 28.6% from 24.5% due to the discontinuation of the IRES Premiale incentive.

    • Customer orders in Engineering are materializing slower than expected, despite sales and marketing efforts.

    Guidance & targets

    10
    CategoryTargetConfidence
    Full-year 2026 Revenue
    EUR 1.260 billion to EUR 1.290 billion
    high materiality
    High
    Full-year 2026 Adjusted EBITDA
    EUR 331.8 million and EUR 346.9 million
    high materiality
    High
    Full-year 2026 Adjusted Diluted EPS
    EUR 0.59 and EUR 0.63
    high materiality
    High
    Full-year 2026 GLP-1 Revenue Growth
    mid-teens
    medium materiality
    High
    Full-year 2026 High-Value Solutions Revenue Percentage
    47% to 48%
    medium materiality
    High
    Full-year 2026 Engineering Segment Revenue
    mid single digits to low double digits reduction
    medium materiality
    Medium
    Full-year 2026 BDS Gross Profit Margin
    in line or slightly better than last year
    medium materiality
    Medium
    Q2 FY26 BDS Segment Revenue Growth
    high single digit, low double digit
    low materiality
    Medium
    Q2 FY26 Engineering Segment Revenue Decline
    approximately 10%
    low materiality
    Medium
    Second Half 2026 Revenue
    stronger compared with the first half of the year
    low materiality
    Medium

    Segment performance

    2
    SegmentRevenueYoYQoQMargin
    Biopharmaceutical and Diagnostic Solutions (BDS)
    Driven by strong growth in high-value syringes and other product categories. Gross profit margin decreased due to higher depreciation, FX headwinds, tariffs, and a strong pilot project in Q1 2025 not repeated.
    Constant currency growth: 16%High-value solutions revenue: EUR 128.6 millionHigh-value solutions % of segment revenue: 52%Other containment and delivery solutions revenue: EUR 120.3 millionOther containment and delivery solutions growth: 9%Operating profit margin: 17.7%
    		EUR 249 million13%—28.3% Gross Profit Margin
    Engineering
    Revenue decline due to lower sales from assembly and glass conversion. Margin improved due to optimization plan actions, right-sizing operations, and better labor cost structure in Denmark.
    Sales from assembly and glass conversion: declinedSales from pharmaceutical visual inspection: grewOperating profit margin: 6.6%
    		EUR 24.6 million-31%—15.3% Gross Profit Margin

    Operational metrics

    21
    High-value solutions revenue
    EUR 128.6 million17% growth YoY
    Q1 FY26

    High-value solutions revenue as a percentage of total company revenue.

    GLP-1 revenue
    21% to 22%>20% growth YoY
    Q1 FY26

    GLP-1 related revenue as a percentage of total company revenue, showing strong year-over-year growth.

    Non-GLP-1 biologics growth
    6%YoY
    Q1 FY26

    Growth rate for biologics revenue excluding GLP-1s.

    Gross profit margin
    27.5%+30 bps YoY
    Q1 FY26

    Overall company gross profit margin.

    Operating profit margin
    14.2%+70 bps YoY
    Q1 FY26

    Overall company operating profit margin.

    Adjusted operating profit margin
    14.9%+60 bps YoY
    Q1 FY26

    Overall company adjusted operating profit margin.

    Tax rate
    28.6%vs 24.5% in Q1 FY25
    Q1 FY26

    Increased tax rate due to the discontinuation of the IRES Premiale incentive in Italy.

    Adjusted net profit
    EUR 29.6 million+5% YoY
    Q1 FY26

    Adjusted net profit for the quarter.

    Adjusted diluted EPS
    EUR 0.11+10% YoY
    Q1 FY26

    Adjusted diluted earnings per share for the quarter.

    Adjusted EBITDA
    EUR 65.5 million+14% YoY
    Q1 FY26

    Adjusted EBITDA for the quarter.

    Adjusted EBITDA margin
    23.9%+150 bps YoY
    Q1 FY26

    Adjusted EBITDA margin for the quarter.

    Cash and cash equivalents
    EUR 111.7 million
    Q1 FY26

    Balance of cash and cash equivalents at the end of the quarter.

    Net debt
    EUR 337.7 million
    Q1 FY26

    Net debt balance at the end of the quarter.

    Capital expenditures
    EUR 67.6 million
    Q1 FY26

    Capital expenditures for the quarter, with over 90% allocated to growth investments in Fishers and Latina.

    Cash used in property, plant, and equipment, and intangible assets
    EUR 70.7 million
    Q1 FY26

    Cash outflow for property, plant, equipment, and intangible assets during the quarter.

    Tariff impact
    EUR 1.7 million
    Q1 FY26

    Temporary tariff impact in the Middle East, expected to be recovered in future periods.

    FX headwind
    EUR 8 million
    Q1 FY26

    Foreign currency headwind impacting the top line, with a larger full-year estimate.

    Depreciation impact
    EUR 4 millionYoY
    Q1 FY26

    Higher depreciation compared to the prior year, impacting gross profit margin, particularly strong in Q1.

    Underutilized vial line conversion
    —
    Q1 FY26

    An underutilized ready-to-use vial line is being converted to a ready-to-use cartridge line to meet demand.

    Cartridge demand
    fully booked
    FY26

    The company is fully booked for cartridges for the entire fiscal year 2026.

    Inflationary pressure mitigation
    —
    Q1 FY26

    Actions taken to mitigate rising gas, energy, logistics, and supplier costs through price increases with customers.

    Industry KPIs

    2
    MetricValueDetails
    Revenue EPS guidanceRevenue: EUR 1.260 billion to EUR 1.290 billion; Adjusted EPS: EUR 0.59 to EUR 0.63EUR
    Segment organic revenue growthBDS: 16%; Engineering: -31%%

    Product announcements

    2
    ProductTypeDetails
    Large batch Not for Human Use fill and finish serviceslaunch
    Converted RTU cartridge linelaunch

    Risks & headwinds

    6
    Engineering Segment Backlog and Order IntakeOngoing

    Revenue declined 31% in Q1; customer orders materializing slower than expected.

    Mitigation: Focused sales and marketing efforts, strengthening commercial organization with new talent in U.S. and Europe, increasing business development activities.

    Higher DepreciationOngoing, particularly strong in Q1

    Approximately EUR 4 million impact in Q1 compared to prior year.

    Mitigation: Expected to be offset by growing revenues in coming quarters as capacity ramps up.

    Foreign Currency HeadwindQ1 FY26 and full year FY26

    EUR 8 million impact on top line in Q1; anticipated EUR 18 million for the full year.

    Mitigation: None explicitly stated beyond noting the impact.

    TariffsQ1 FY26, temporary

    EUR 1.7 million impact in Q1.

    Mitigation: Expected to be recovered in future periods by shifting from cost to revenue.

    Increased Tax RateStarting FY26

    28.6% in Q1 FY26 compared to 24.5% in Q1 FY25.

    Mitigation: None, due to discontinuation of Italian statutory corporate income tax incentive (IRES Premiale).

    Inflationary PressuresOngoing

    Not quantified directly, but noted as impacting P&L (gas price, energy, logistics, supplier costs).

    Mitigation: Immediately talking with customers to transfer pressure in price increases; monitoring and working with suppliers and customers.

    What to watch in Q2 FY26

    5

    Engineering Segment Order Intake

    next quarter
    Currentslow pace
    Targetimproved order intake and backlog rebuild

    Why it matters

    Essential for sustainable financial performance and recovery of the Engineering segment.

    However, we still have work to do to secure new orders and rebuild the backlog to drive sustainable improvements in the segment's financial performance.

    Q&A highlights

    7

    How do you view GLP-1 volume visibility and durability, and what is the risk from oral GLP-1s over time?

    The GLP-1 market is expected to grow for several years with predictable volumes, largely covered by contractual commitments. 70% of the market opportunity remains in injectables, and orals are seen as market expansion rather than cannibalization, with early signs indicating new patient starts. Biosimilars are also gaining traction.

    “We believe the GLP market will continue to grow over the next several years... Overall, for us, it's a growing trend with predictable volumes, and we expect it to stay for many years for Stevanato.”

    asked by Alexa Chan · answered by Marco Dal Lago

    2 min read5 chapters

    Detailed Narrative

    01

    GLP-1 and Biologics Demand

    GLP-1s accounted for 21-22% of total Q1 revenue, driving a 15% increase in biologics revenue. The company expects continued growth in GLP-1s, with 70% of the market opportunity remaining in injectables; orals are seen as market expansion rather than cannibalization. Stevanato has secured significant business in this area, primarily for cartridges, and anticipates it will remain a long-term tailwind.

    02

    Cartridge Capacity Expansion

    Due to demand outpacing expectations, Stevanato converted an underutilized ready-to-use (RTU) vial line at Piombino Dese to an RTU cartridge line, expected to begin commercial production in the coming weeks. This conversion helps bridge the gap until new RTU 400 EZ-fill cartridge lines in Latina launch in early 2027, which are designed for significantly higher production output and operational efficiency. The company is currently fully booked on cartridges for 2026.

    03

    Engineering Segment Optimization

    The Engineering segment saw an initial improvement in gross profit margins, up 460 bps to 15.3%, attributed to operational efficiency improvements, right-sizing operations, and a better project mix, particularly in Denmark. However, revenue declined 31% due to low backlog and slow new order intake. Management is prioritizing sales and marketing efforts, including strengthening the commercial organization, to rebuild the backlog and return the segment to historical performance levels.

    04

    Growth Projects Update (Fishers & Latina)

    At the Fishers, U.S. facility, customer validations and audits are ongoing, with commercial production expected to begin at the end of 2026 or early 2027. The Latina, Italy facility is ramping up high-value syringe capacity and preparing for the next phase of EZ-fill cartridge expansion, with commercial production of RTU cartridges on new lines set for early 2027. These investments are disciplined and demand-driven.

    05

    Q1 Financial Highlights

    Total revenue grew 10% at constant currency to EUR 273.6 million. Adjusted EBITDA increased 14% to EUR 65.5 million, with the adjusted EBITDA margin rising 150 bps to 23.9%. Adjusted diluted EPS grew 10% to EUR 0.11. Gross profit margin increased 30 bps to 27.5%, despite headwinds from higher depreciation (EUR 4 million), foreign currency (EUR 8 million impact on top line), and temporary tariffs (EUR 1.7 million), which were partially offset by improved Engineering margins and a favorable mix shift towards high-value solutions.

    AI-generated summary of the company’s earnings call. Not investment advice.