Stevanato Group Q2 Earnings Call Highlights

Q2 revenue rose 8% to €302 million, driven by 9% growth in Biopharmaceutical and Diagnostic Solutions and a 16% increase in high-value solutions. Adjusted EBITDA grew 21% to €78.7 million, expanding the margin to 26%. Stevanato completed the divestiture of Balda C. Brewer, incurring €12.2 million in one-time costs but refocusing the portfolio on higher-value biologics and integrated drug-delivery products, including its Alina pen platform and new Deora injector. The company lowered its 2026 revenue forecast to €1.260 billion–€1.280 billion to reflect the divestiture, while maintaining adjusted EBITDA guidance of €335 million–€345.2 million and adjusted EPS guidance of €0.60–€0.62.

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.

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.

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 ...