Stevanato Group NYSE: STVN reported second-quarter 2026 revenue growth of 8% as demand for higher-value drug containment and delivery products helped lift profitability, while the company updated its full-year outlook to reflect the divestiture of its California-based Balda C. Brewer subsidiary.
Revenue for the quarter reached €302 million, up 8% both on a reported and constant-currency basis. The Biopharmaceutical and Diagnostic Solutions, or BDS, segment grew 9% to €266.2 million, offsetting a 2% decline in Engineering segment revenue to €35.8 million.
Chairman and Chief Executive Officer Franco Stevanato said the results were broadly in line with the company’s expectations and reflected the continued shift toward more complex, differentiated products. Revenue from high-value solutions rose 16% to €135.9 million, representing 45% of total revenue and about 51% of BDS revenue.
“Demand for injectable biologics remains strong,” Stevanato said, pointing to more than 9,000 injectable assets in the global drug pipeline, with biologics accounting for more than 60% of those assets. The company said biologics revenue grew 30% during the quarter, while GLP-1-related revenue represented approximately 22% to 23% of company revenue.
Margins expand despite divestiture-related charges
Gross profit margin increased 60 basis points to 28.7%, supported by operational improvements at the company’s Latina, Italy, and Fishers, Indiana, facilities, as well as a greater contribution from high-value solutions and better Engineering profitability. Those gains were partly offset by higher depreciation, utility costs and currency headwinds.
Adjusted EBITDA increased 21% to €78.7 million, and adjusted EBITDA margin expanded 180 basis points to 26%. Adjusted operating profit margin rose 250 basis points to 18%.
The company completed the sale of Balda C. Brewer during the quarter, recording €12.2 million in one-time expenses related to the transaction. The California business had been expected to generate about €30 million in fiscal 2026 revenue and had slightly positive EBITDA, according to management. Stevanato said the transaction is expected to improve full-year margins.
Reported net profit totaled €23 million, or €0.08 per diluted share, reflecting the divestiture-related expenses and a higher tax rate. Adjusted net profit rose 20% to €37.6 million, while adjusted diluted earnings per share increased to €0.14.
Portfolio focus shifts toward integrated drug delivery
Stevanato said the Balda C. Brewer divestiture advances its strategy of concentrating resources on higher-value drug delivery systems and biologics-related applications. The California subsidiary primarily provided contract manufacturing for standard consumables and point-of-care diagnostic applications.
Management said it does not currently have another significant divestiture initiative under review, but expects to gradually devote less attention to certain lower-value products and bulk activities. Those may include standard ampoules and some diagnostic plastic components, as the company reallocates capacity toward EZ-fill products and drug delivery systems.
The company highlighted a regulatory approval in several European countries for a liraglutide-based therapy using its proprietary Alina variable-dose pen platform. The approval covers diabetes and weight-management applications and incorporates Stevanato’s cartridge technology.
Stevanato said Alina revenue is included in its 2026 guidance and expects the platform to deliver double-digit revenue growth in subsequent years. Additional validation is expected in North America during the second half of 2026, management said. The company is expanding manufacturing capacity for Alina at its German facility.
The company also introduced Deora, a multi-use fixed-dose pen injector compatible with pre-filled cartridges of up to 3 milliliters. Stevanato said Deora will require time to reach commercial production but represents a future opportunity in treatments requiring precise patient adherence to dosing regimens.
Engineering profitability improves as sales cycles lengthen
Engineering revenue declined as lower sales of pharmaceutical visual-inspection equipment and glass-converting equipment offset growth in assembly lines and after-sales activity. However, segment profitability improved sharply as the company continued to execute an optimization plan.
- Engineering gross profit margin increased 540 basis points to 12%.
- Engineering operating profit margin increased 370 basis points to 2.9%.
- Management cited improved operating results and a favorable project mix in its Danish operations.
Stevanato said it is seeing progress in new order wins, particularly for visual-inspection equipment in Europe and Asia and assembly technologies in Europe and the U.S. Still, executives said sales cycles remain longer than in prior years and project timing can affect results.
The company’s Engineering organization includes an Italian center focused on visual inspection and customized assembly technology, and a Danish operation focused on sophisticated high-speed assembly lines.
Capacity projects continue in Indiana and Italy
At its Fishers facility, Stevanato completed initial performance qualification for its first EZ-fill vial line and expects to begin customer validation shortly. The company remains on track to begin commercial production for its first device program at the site later in 2026.
In Latina, syringe production is continuing to ramp as the company validates new customers. Its next-generation RT400 cartridge line is expected to be installed within the next several months, with commercial production anticipated in 2027.
Chief Financial Officer Marco Dal Lago said Fishers is planned to reach full ramp-up by the end of 2028. The company is maintaining some available capacity at both facilities to support customer sampling and future validation programs.
Stevanato ended the quarter with €78.6 million in cash and cash equivalents and €360.3 million in net debt. Capital expenditures totaled €52 million, largely tied to growth investments, the Alina device program in Germany and contract manufacturing activities. Operating cash flow was €31.9 million, while free cash flow was negative €32 million.
Full-year outlook updated
Stevanato lowered its fiscal 2026 revenue outlook to a range of €1.260 billion to €1.280 billion, incorporating an approximately €15 million reduction from the Balda C. Brewer divestiture. The company said better-than-expected currency translation and stronger organic growth in its core operations partly offset the revenue reduction.
The company now expects adjusted EBITDA of €335 million to €345.2 million and adjusted diluted EPS of €0.60 to €0.62. High-value solutions are expected to account for 47% to 48% of total revenue, while free cash flow is projected in a range from breakeven to positive €20 million.
For the year, Stevanato expects reported BDS revenue to grow at a high-single-digit rate, though Dal Lago said organic BDS growth remains double digit after accounting for the divestiture and currency effects. Engineering revenue is expected to decline by a mid-single-digit to low-double-digit percentage.
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.
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