Stevanato Group (NYSE:STVN) executives said the company closed fiscal 2025 with “solid” results and entered 2026 with positive momentum, driven by continued strength in its Biopharmaceutical and Diagnostic Solutions (BDS) segment and accelerating demand for high-value products tied to GLP-1 therapies.
Fiscal 2025 and Q4 performance led by high-value solutions
Chairman and CEO Franco Stevanato said total company revenue increased 9% at constant currency in fiscal 2025 (7% reported) versus 2024, with double-digit growth in BDS offsetting an expected decline in the engineering segment. High-Value Solutions grew 29% for the year and represented 46% of total company revenue, which management said was the primary driver of 160 basis points of gross margin expansion versus 2024.
Dal Lago reported Q4 gross margin of 30.9%, up 120 basis points, driven mainly by favorable mix, year-over-year improvement in the company’s new Latina and Fishers facilities as they scale production (though still dilutive to corporate margins), and improved vial market utilization. He said these gains were partially offset by tariffs and foreign exchange.
Q4 operating margin was 20.2%. Net profit totaled EUR 47.6 million, or EUR 0.17 diluted EPS. On an adjusted basis, net profit was EUR 49.8 million, or EUR 0.18 adjusted diluted EPS. Adjusted EBITDA increased 7% to EUR 97.7 million, with adjusted EBITDA margin of 28.2%.
GLP-1 exposure and capacity constraints remain a central theme
Stevanato said its Nexa syringe platform was the fastest-growing product in 2025, driven primarily by GLP-1 demand. Management said GLP-1-related revenue was approximately 19%–20% of total company revenue in fiscal 2025 and grew more than 50% versus 2024.
On the outlook for 2026, Stevanato told analysts it is assuming GLP-1 revenue growth in the mid-teens. The company said it is executing forecasts shared by customers and has programs “clear” with clients for 2026, while noting that the longer-term market configuration beyond 2026 is harder to map given multiple moving parts, including pen versus auto-injector choices, cartridge demand, and biosimilar launches.
Stevanato also confirmed that its definition of “GLP-1s” includes the broader obesity category, including incretin combinations (such as GLP-1/GIP) and related mechanisms.
On oral GLP-1 therapies, the company reiterated its view—based on customer discussions and external commentary—that injectables are expected to remain the majority of the market. Stevanato said it continues to estimate a split of roughly 70% injectable formats and 30% oral, and it does not currently see oral options “cannibalizing” injectables because they may address different patient needs.
Capacity remained a constraint in 2025 and is expected to remain a factor in 2026. Stevanato said the company ran “approximately in full capacity” in 2025 for preferred syringes and ready-to-fill cartridges, and management said robust demand continues across high-value products while capacity “will play a role” again in 2026.
Broader biologics growth and mix shift beyond GLP-1s
Management emphasized that while GLP-1s were the largest top-line contributor in 2025, the company is also gaining traction in other injectable biologics. Stevanato said it realized a 40% increase in the number of customers ordering premium syringes (Alba and Nexa platforms) for biologic applications unrelated to GLP-1s, and it expects these projects to contribute to future growth.
In fiscal 2025, the company said biologics represented 41% of BDS revenues, up from 34% in 2024. In response to questions about categories beyond GLP-1s, management cited demand tied to monoclonal antibodies and biosimilars across regions, including immunology, inflammatory conditions, and rare diseases—applications requiring injections and often pairing syringes or cartridges with pen or auto-injector devices.
Facility ramp updates: Latina, Fishers, and device manufacturing timeline
Stevanato provided updates on its major capacity and technology investments in Latina, Italy, and Fishers, Indiana. In Latina, management said 2025 focused on syringe capacity installation and customer validations, continuing into 2026. The next phase is aimed at increasing capacity for EZ-fill cartridges to meet rising global demand. On a later Q&A update, management said the company plans to install a first high-speed cartridge line and target validation in 2026, with commercial revenue beginning in early 2027.
In Fishers, the company said it continued line installations and customer validations and doubled the number of customers validated at the site in 2025. Stevanato also discussed progress on contract manufacturing activities supporting “a couple of large device programs” for a key U.S. customer, noting that nearly all injection molding machines are installed, components are being produced for qualification, and the first phase of a new clean room is completed. Management reiterated expectations for commercial activities to begin at the end of 2026 or early 2027 for the first device program.
Executives also pointed to potential benefits from U.S. customers reassessing supply chains, saying Fishers is increasingly relevant as clients look to strengthen U.S.-based supply chains.
Engineering segment: execution improving, but orders slower to convert
Stevanato said it made progress in optimizing its engineering segment over the past 12 months, including right-sizing operations, standardizing processes, reinforcing its project management office, consolidating offices in Denmark, moving visual inspection activities to Italy, and acquiring a location in Bologna to access technical talent. Management said these actions drove double-digit growth in site acceptance rates, and later said site acceptance tests “more than doubled” in 2025 versus 2024.
Despite those operational improvements, Stevanato guided for lower engineering revenue in 2026 due to lower order intake in prior months. Management told analysts that the opportunity pipeline is “healthy” and “rich,” including repeat business with large historical clients, but said the sales cycle for technically complex lines is taking longer than expected, pushing order timing out by months and prompting a more prudent near-term stance.
In Q4, engineering revenue declined to EUR 39.4 million, gross margin fell to 15.8%, and operating margin was 9.1%. Dal Lago said margin pressure reflected unfavorable portfolio mix and low order intake, though he added the company expects improved engineering margins in 2026, driven by project mix shifting toward more repetitive contracts and benefits from optimization efforts completed in 2024 and 2025.
Cash flow, capital spending, and 2026 guidance
For full-year 2025, Stevanato reported cash and cash equivalents of EUR 130.6 million and net debt of EUR 337.7 million. CapEx totaled EUR 294.9 million, with approximately 89% directed toward growth projects. Operating cash flow was EUR 286.1 million, and the company posted EUR 18.4 million in positive free cash flow for the year, which management attributed to increased operating cash flow and lower CapEx.
For fiscal 2026, Stevanato guided to:
- Revenue: EUR 1.26 billion to EUR 1.29 billion (EUR 1.278 billion to EUR 1.308 billion at constant currency)
- Adjusted EBITDA: EUR 331.8 million to EUR 346.9 million
- Adjusted diluted EPS: $0.59 to $0.63
Management expects revenue to be stronger in the second half of 2026 than the first half. The company forecast foreign exchange translation as a headwind of about $80 million for fiscal 2026 (about $10 million impact in Q1). At the segment level, Stevanato expects BDS to grow high single- to low double-digits on a reported basis (double-digits at constant currency), while engineering is expected to decline mid-single to low double digits.
High-Value Solutions are expected to account for 47%–48% of total company revenue in 2026. The company expects a tax rate of approximately 26.8%. CapEx is expected to be EUR 270 million to EUR 290 million before customer contributions and prepayments, and EUR 240 million to EUR 260 million net of those items. Stevanato modeled 2026 free cash flow at breakeven to positive EUR 20 million.
On margins, Dal Lago said the company is assuming modest consolidated margin expansion in 2026, balancing headwinds such as higher depreciation—estimated at 150 to 170 basis points more on the industrial business—against benefits from continued ramp improvements in Latina and Fishers. He said the company is assuming limited impact from tariffs in 2026, after an estimated EUR 4 million headwind in 2025 that was tied mainly to supply chain timing and the process of passing tariff costs through to customers.
In closing remarks, Stevanato said it remains focused on moving up the value chain and may further deprioritize certain non-high-value categories. As examples, management cited potential deprioritization of ampoules in some markets and the decision to shift space in Germany from standard in vitro diagnostics to ramping production of its Alina pen.
About Stevanato Group (NYSE:STVN)
Stevanato Group is a global provider of primary packaging solutions and related services for the pharmaceutical and biotech industries. The company specializes in the design, development and manufacturing of glass drug containers such as vials, cartridges and pre-fillable syringes, as well as advanced inspection systems and assembly equipment. Its integrated offerings cover the entire packaging supply chain, from component production to bespoke filling lines and serialization technology.
In addition to its core glass business, Stevanato Group delivers engineering services and process validation support to pharmaceutical customers.
