Stevanato Q3 Revenue Rises 8% as GLP-1 Outlook Weighs on 2027 Growth

Stevanato Group (NYSE: STVN) reported higher third-quarter revenue and wider adjusted margins as growth in its Biopharmaceutical and Diagnostic Solutions business offset weaker Engineering sales. The company reiterated its fiscal 2026 guidance but said lower anticipated GLP-1 volumes are expected to temporarily moderate growth in 2027, with broader biologics demand supporting a low-single-digit growth outlook.

Revenue for the quarter ended September 30 rose 8% year over year to €326.1 million, or 8.2% on an organic basis. Adjusted EBITDA increased 14% to €88.8 million, lifting the adjusted EBITDA margin by 150 basis points to 27.2%. Reported operating profit rose 14.5% to €60.3 million, while the operating margin increased to 18.5% from 17.4%.

Net profit was €41.8 million, or €0.15 per diluted share, compared with €36.1 million and €0.13 per share a year earlier. Adjusted net profit reached €44.0 million, equivalent to adjusted diluted earnings of €0.16 per share.

The gross profit margin edged down 10 basis points to 29.1%, reflecting higher utility expenses, increased depreciation and lower profitability in the Engineering segment. Those pressures were partly offset by a better product mix and operating improvements at the company’s newer facilities in Latina, Italy, and Fishers, Indiana, which remained margin-dilutive but gained operating leverage.

Biologics demand supports BDS growth

Revenue in the Biopharmaceutical and Diagnostic Solutions segment increased 10% to €294.0 million and rose 11% organically. The segment’s operating margin expanded by 90 basis points to 23%, while its gross margin increased slightly to 32.1%.

High-Value Solutions generated €149.4 million, representing about 51% of BDS revenue and 46% of group revenue. Demand was led by EZ-fill syringes and cartridges. Revenue from biologics excluding GLP-1 products grew more than 30% year over year, offsetting a decline in GLP-1 revenue. GLP-1 products accounted for approximately 17% to 18% of total third-quarter revenue.

Other containment and delivery solutions revenue rose 22% to €144.6 million, or 23% organically, supported by standard syringes and cartridges. The result also included variable compensation associated with lower GLP-1 volumes, which Stevanato recorded in the second and third quarters.

Engineering segment revenue fell 12% to €32.0 million as lower sales of pharmaceutical visual-inspection and assembly-and-packaging equipment outweighed growth in after-sales activities. Its gross margin declined 20 basis points to 10.2%, but cost optimization helped lift the segment’s operating margin by 220 basis points to 1.1%.

Capacity expansion continues

Stevanato said commercial production of EZ-fill prefilled syringes at its Latina site was progressing alongside customer audits and validations. The next expansion phase will focus on EZ-fill cartridges, where the company described demand as elevated.

At Fishers, customer audits, validations and new production-line installations continued as planned. The facility reached breakeven at the gross-profit level during the quarter and shipped its first commercial EZ-fill vial order. Stevanato also completed a cleanroom for device manufacturing and expects to begin commercial volumes within the next few months.

Third-quarter cash from operating activities totaled €57.6 million, while free cash flow was €21.7 million. Capital expenditure amounted to €44.8 million. At September 30, Stevanato held €114.9 million in cash and cash equivalents and reported net debt of €353.7 million.

Fiscal 2026 guidance maintained; slower 2027 growth expected

Stevanato reiterated its fiscal 2026 revenue guidance of €1.26 billion to €1.28 billion, implying organic growth of 8% to 10%. It continues to expect adjusted EBITDA of €335.0 million to €345.2 million, an adjusted EBITDA margin of about 26.8% at the midpoint, and adjusted diluted earnings of €0.60 to €0.62 per share.

The company now expects stronger BDS performance to fully offset the Engineering decline. BDS is projected to deliver low-double-digit organic growth at the midpoint of group guidance, while Engineering revenue is expected to range from €124 million to €134 million, slightly below the company’s original assumption. Full-year capital expenditure is expected to be €230 million to €240 million, or €215 million to €225 million after customer contributions.

For 2027, management expects lower GLP-1 volumes than previously anticipated. Stevanato said demand across the broader High-Value Solutions portfolio and continued strength in injectable biologics should replace most of the associated revenue shortfall, allowing the company to grow at a low-single-digit rate. It also expects High-Value Solutions revenue and margins to expand and free cash flow to remain positive.

The outlook remains subject to customer inventory adjustments, demand for GLP-1 and other injectable products, execution of capacity expansions, input and energy costs, supply-chain disruptions and trade restrictions. The company also identified product quality, regulatory compliance, cybersecurity, intellectual property protection and the effectiveness of internal controls over financial reporting as material risks.