Stevanato Group NYSE: STVN reported third-quarter 2026 revenue growth of 8% to €326.1 million, supported by continued expansion in its biopharmaceutical and diagnostic solutions business despite weaker demand tied to GLP-1 therapies and a decline in its engineering segment.
Chairman and Chief Executive Officer Franco Stevanato said the company’s results were in line with expectations. Organic revenue also rose 8%, while adjusted EBITDA increased 14% to €88.8 million. Adjusted EBITDA margin expanded 150 basis points from the prior-year quarter to 27.2%.
Net profit increased 16% to €41.8 million, or €0.15 per diluted share. On an adjusted basis, net profit rose 14% to €44 million and adjusted diluted earnings per share were €0.16.
Biopharma Growth Offsets Engineering Weakness
Revenue in the company’s Biopharmaceutical and Diagnostic Solutions, or BDS, segment increased 10% to €294 million, representing 11% organic growth. The performance offset a 12% decline in engineering-segment revenue to €32 million.
High-value solutions revenue rose 1% to €149.4 million and accounted for 46% of total company revenue, or about 51% of BDS segment revenue. The company said growth in EZ-fill syringes and cartridges supported the high-value portfolio.
Revenue from other containment and delivery solutions increased 22%, or 23% organically, to €144.6 million. Chief Financial Officer Marco Dal Lago said the category benefited from demand for standard syringes and bulk cartridges, early contract manufacturing activity for delivery systems at the Fishers, Indiana, facility, and variable compensation linked to GLP therapies.
Stevanato said revenue related to GLP-1 therapies declined during the quarter and represented approximately 17% to 18% of company revenue. However, revenue from non-GLP biologics increased more than 30% during the quarter and was up 13% year to date.
“The overall demand environment for injectable biologics remains structurally strong,” Franco Stevanato said, citing customer programs across biosimilars, oncology, immunology, endocrinology and other therapeutic areas.
GLP-1 Customer Forecasts to Moderate 2027 Growth
The company said it expects lower GLP-1 volumes than previously anticipated in 2027 from one customer. Management characterized the change as a temporary headwind tied primarily to Nexa syringes rather than a loss of market share.
Stevanato said it had begun several months ago to shift capacity and pursue other customer programs, and expects to backfill the majority of the affected revenue. Still, the company expects the change to moderate its growth rate in 2027 to the low-single-digit range.
Without the GLP-1-related headwind, management said it believes revenue growth in 2027 would have been in line with its long-range plan of high-single-digit to low-double-digit growth. The company expects growth to normalize beyond 2027, supported by its broader biologics pipeline and additional GLP-1 programs.
Franco Stevanato said the company is working with more than 30 global customers on more than 50 GLP-1-related programs at varying stages of development. He also said GLP-1 patient penetration globally remains below 10%.
During the call, management noted that the same customer affecting BDS forecasts is also contributing to delays in orders within the engineering segment. The engineering business has made operational progress, Stevanato said, but its order pipeline has been slower to convert into signed orders than anticipated.
The company said it continues to evaluate the best strategic path for its engineering operations, distinguishing between internal engineering capabilities that support proprietary manufacturing technologies and the visual inspection and assembly business, which management said is dilutive to corporate margins.
Manufacturing Investments Continue to Ramp
Stevanato highlighted progress at its manufacturing sites in Italy and the U.S. In Latina, commercial production of EZ-fill syringes is operating smoothly, while the facility prepares for an expansion into ready-to-use EZ-fill cartridges. The company said demand for cartridges remains strong and that its LT400 cartridge lines are designed to support high-value production.
At Fishers, the company reached breakeven at the gross-profit level during the third quarter. The site shipped its first commercial EZ-fill vial order and completed the build-out of a device-manufacturing clean room. Management said commercial device volumes are expected to begin in the coming months.
Stevanato said it plans to continue ramping its proprietary Alina pen injector and Aidaptus delivery-device platform, as well as contract manufacturing operations. Fishers and the company’s German operations are expected to support a significant commercial scale-up over the next 18 months.
The company also qualified its first high-volume Alba syringe line at its Piombino Dese facility. Management said customer interest in the Alba platform is growing, while EZ-fill cartridge production remains at full utilization.
Full-Year Guidance Reaffirmed
Stevanato reaffirmed its full-year 2026 consolidated outlook, forecasting:
- Revenue of €1.26 billion to €1.28 billion.
- Adjusted EBITDA of €335 million to €345.2 million.
- Adjusted diluted EPS of €0.60 to €0.62.
The company adjusted certain underlying assumptions, now expecting double-digit organic growth in BDS at the midpoint of its guidance. That improvement is expected to fully offset a modest revenue decline in engineering relative to its prior outlook. Engineering revenue is now expected to be between €124 million and €134 million.
Stevanato also forecast capital expenditures of €230 million to €240 million, or €215 million to €225 million net of customer contributions.
The company ended the quarter with €114.9 million in cash and cash equivalents and net debt of €353.7 million. Third-quarter capital expenditures totaled €44.8 million, while free cash flow was €21.7 million.
Dal Lago said the company expects margins to benefit over time from greater utilization and high-value product production at Fishers and Latina. He said Fishers is expected to reach full capacity at the end of 2028, with much of its installed capacity focused on products carrying gross profit margins of 40% to 70%, depending on the product category.
About Stevanato Group (NYSE:STVN)
Stevanato Group S.p.A. is an Italy-based provider of drug-containment and drug-delivery solutions for the pharmaceutical, biotechnology and healthcare industries. Founded in 1949, the company has developed from a glass-packaging manufacturer into an integrated supplier serving customers throughout the global pharmaceutical supply chain.
The company manufactures primary packaging products, including glass vials, syringes, cartridges and ampoules, as well as components and systems used to contain and administer injectable medicines.
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