Stevanato Group S.p.A. Q4 FY2025 earnings call

• Fiscal 2025 was successful with robust top line growth, favorable mix, and ongoing margin expansion. BDS segment's double-digit growth offset Engineering's revenue reduction. High-value solutions drove revenue growth and margin expansion. • GLPs were a significant tailwind in 2025, with revenue from GLPs accounting for ~19%-20% of total company revenue, growing over 50% vs 2024. • In Latina, 2025 was dedicated to installing and producing syringe capacity and customer validations, with next phase for increasing EZ-fill cartridges capacity. In Fishers, 2025 focused on core activities like line installations, customer validations, and audits, with line installations and validations continuing in 2026. • Engineering segment made progress in optimization, rightsizing operations, streamlining processes, but 2026 guidance assumes revenue decrease due to lower order intake, with efforts ongoing to secure new orders.

For fiscal 2025, total company revenue increased by 9% at constant currency rates and 7% on a reported basis compared with 2024. The biopharmaceutical and Diagnostic Solutions (BDS) segment had double-digit top line growth, with revenue growth in BDS driven by strong market demand for high-value solutions, which increased 29% in 2025 and represented 46% of total company revenue. The Engineering segment had expected revenue decline. In Q4 2025, BDS segment revenue grew 13% at constant currency and 10% on reported basis, with high-value solutions revenue up 31% to EUR 171 million, representing ~49% of total company revenue in the quarter. Engineering segment revenue decreased 23% to EUR 39.4 million in Q4 2025.

• 2026 revenue expected in range of EUR 1.260 billion to EUR 1.290 billion, constant currency range EUR 1.278 to EUR 1.308 billion. • Adjusted EBITDA range EUR 331.8 million to EUR 346.9 million, adjusted diluted EPS range EUR 0.59 to EUR 0.63. • BDS segment expected to grow high single to low double digits on reported basis, double digits constant currency. Engineering expected to decline mid-single digit to low double digits. • High-value solutions expected to be 47%-48% of total company revenue in 2026. • CapEx range EUR 270 million to EUR 290 million before customer contributions and prepayments, net range EUR 240 million to EUR 260 million. • Free cash flow modeled to be breakeven to positive ~EUR 20 million in 2026.

Q: Comment on expectations for GLP-1s in 2026.

A: Franco Stevanato said revenue from GLP1s in 2025 was ~19%-20% of revenues, grew 50% y-o-y, and 2026 growth expected in mid-teens.

Q: On Engineering segment order intake, why the low order intake and how quickly can regain momentum?

A: Franco Stevanato said sales cycle for engineering is longer than expected due to technicality, but order intake pipeline is healthy with repetitive orders from historical clients, and medium-term outlook for engineering division is strong growth.

Q: On high-value solutions utilization capacity, are there areas where demand outpaces capacity?

A: Franco Stevanato said in 2025, capacity was practically full for high-value products, and 2026 will follow positive momentum with robust demand, capacity playing role in 2026.

Q: Margin expansion and cash flow drivers for 2026?

A: Marco Dal Lago said consolidated margin expected to expand 0-30 basis points, operating profit margin at center point of guidance, adjusted EBITDA margin expanding ~150 basis points, with drivers including new facilities' improving financial performance and project mix shift in engineering.

Q: Long-term growth outlook for GLP-1s?

A: Franco Stevanato said GLP-1 will continue to be a tailwind, but long-term beyond 2026 is early to determine final configuration.

Q: Biologic category performance and guide assumptions?

A: Franco Stevanato said biologic category includes monoclonal antibody, biosimilar, etc., with Stevanato well positioned, and guide assumptions reflect ongoing engagement in biologic market.

Q: RTU vials market outlook?

A: Marco Dal Lago said RTU vials grew ~6% in 2025, expected mid- to high single-digit growth in 2026, with double-digit higher order intake in 2025.

Q: Latina and Fishers profitability trajectory?

A: Marco Dal Lago said Latina is getting close to average gross profit margin, Fishers is progressing with steady improvement but taking longer than Latina, combined plants' gross profit margin still dilutive compared to company and segment average.

Q: GLPs and oral market metric?

A: Franco Stevanato said injection is majority in market, with Stevanato focused on building supply chain for injection products.

Q: Non-GLP biologics growth and high-value demand?

A: Franco Stevanato said non-GLP biologics have various programs, Stevanato building supply chain to serve these products.

Q: Contract manufacturing economics relative to BDS and Engineering?

A: Marco Dal Lago said CMO is taken selectively with customers, leveraging integration, and in high range of normal value solutions.

Q: High Value Solutions guidance and contribution from GLPs vs others?

A: Marco Dal Lago said High Value Solutions expected to grow double-digit low teens in 2026, growing both GLPs and other biologics.

Q: Actions around pivoting away from non-high-value solutions categories?

A: Franco Stevanato said focus is on building capacity for biologic high-value products, prioritizing new products and strategic markets, and potentially privatizing non-strategic products.