Stevanato Group’s 2026 GLP-1 Growth and HVS Drivers Don’t Match Prior Guidance

Date of Call: Aug 4, 2026

Financials Results

• Revenue: $302 million, up 8% YOY
• EPS: $0.08 diluted earnings per share; adjusted diluted earnings per share $0.14, up 20% YOY
• Gross Margin: 28.7%, up 60 basis points YOY
• Operating Margin: 18% adjusted operating profit margin, up 250 basis points YOY

Guidance:

• Revenue for fiscal 2026 expected in the range of €1.26B to €1.28B, reflecting a reduction of approximately $15M due to divestiture, partially offset by better currency translation and higher organic growth.
• Adjusted EBITDA expected between €335M to €345.2M.
• Adjusted diluted EPS expected between €0.60 to €0.62.
• BDS segment revenue expected to grow low single digits; Engineering segment expected to decline mid-single digits to low double digits.
• High-value solutions expected to represent 47% to 48% of total company revenue.
• Free cash flow expected from break-even to positive €20M.
• Tax rate for 2026 expected approximately 28.2%.

Business Commentary:

Revenue Growth and Segment Performance:

• Stevanato Group reported revenue of $302 million for Q2 2026, up 8% year over year.
• Growth was driven by a 9% revenue increase in the biopharmaceutical and diagnostics solutions segment, offsetting a 2% decline in the engineering segment.

High-Value Solutions Expansion:

• Revenue from high-value solutions grew 16% to $135.9 million, representing 45% of total revenue.
• This increase was driven by a focus on more complex, differentiated, and integrated drug delivery systems and a 30% increase in revenue from biologics.

Impact of Divestiture and Margins:

• The divestiture of the California-based subsidiary, Baldassi Brewer, resulted in a $12.2 million one-time expense.
• Despite this, adjusted EBITDA increased 21% to $78.7 million, with adjusted EBITDA margin expanding by 280 basis points to 26%.

Engineering Segment Challenges and Optimizations:

• The engineering segment saw a 2% decline in revenue to $35.8 million.
• The company is focused on sales and marketing efforts to expand opportunities, with ongoing optimization initiatives showing positive results in margins.

GLP-1 Therapies and Biologics Focus:

• Revenue from biologics represented approximately 42% of the BDS segment.
• The growth in GLP-1 therapies and the increasing patient adoption of self-administered medicines are driving demand for integrated drug delivery systems.

Sentiment Analysis:

Overall Tone: Positive

• Management expressed being "pleased with our performance" and stated results were "largely in line with our expectations." They highlighted "solid revenue growth," "expanded margins," and "strong demand for integrated solutions." The Alina platform received regulatory approval, described as "an important commercial milestone." The company is "consciously optimistic" and sees "strong customer demand."

Q&A:

• Question from Avantika (Bank of America): You updated your BDS growth outlook from high single digit to low double digits to now high single digits. Can you walk us through what drove that change and whether it reflects only the divestiture or any other changes in the underlying business?
  Response: The updated guidance to high single digit growth on a reported basis reflects the divestiture reduction of ~$15M, partially offset by ~$8M lower currency headwinds and increased organic growth in the core business.

• Question from Avantika (Bank of America): As your GLP-1 exposure continues to increase, are you seeing growth broaden across the non-GLP-1 biologics as well, or is still GLP-1 the primary growth driver for HVS?
  Response: While GLP-1s are a strong near-term tailwind, the company's strategic focus is on the broader biologics market, which represents ~42% of BDS segment revenue and is expected to be larger in the next 5-10 years.

• Question from David Windley (Jefferies): Which products in your portfolio you consider to be the premium products within high-value solutions, and... what is the size of the opportunity with this recent approval of Alina for liraglutide?
  Response: Premium products include Alina and Alba syringes. The Alina approval is a major milestone, with revenue already captured in 2026 guidance, expecting double-digit revenue growth next year, and it is expected to boost traction for other biosimilar clients.

• Question from Paul Knight (KBank Capital Markets): What capacity utilization will Fishers and Latina operate this year?
  Response: Demand is strong, but the company maintains some free capacity for flexibility and future validation. Full ramp-up at Fishers is planned by end of 2028.

• Question from Larry Solo (CJS Securities): Can you give us any idea [of] GLPs versus non-GLPs in the high-value products or biologics growth?
  Response: GLP-1s are a visible revenue contributor within biologics, but the company's goal is to maximize penetration across the entire biologics market, which is larger and more diverse.

• Question from Questioner (CJS Securities): Is it fair to say [the Alina approval]... opens the door for several other approvals?
  Response: Yes, the European registration is expected to boost traction and open a big opportunity, particularly in the biosimilar space for weight loss management, with additional validations planned for North America.

• Question from Questioner (CJS Securities): Could you unpack [engineering performance] and... what kind of the backlog looks like as we head into the second half of the year?
  Response: The pipeline is healthy and progressing step-by-step into orders, with strong progress in winning new orders in Europe, Asia, and the US, indicating a positive trend.

• Question from Mark Atok (Staff Funds, Inc.): The variable compensation that you highlighted... how much was that and how much of a benefit was that to Q2 margins?
  Response: The variable compensation is tied to a specific contract and provides fair compensation for cost overruns due to lower volumes; it did not significantly impact the quarter.

• Question from Jason (Morgan Stanley): Could you just walk us through the strategic rationale for divesting [Baldassi Brewer]... and what was the growth profile of that business?
  Response: The divestiture aligns with the strategy to focus on biologics and integrated drug delivery systems. The business was non-strategic for this focus and had ~$30M annual revenue with slightly positive margin.

• Question from Chad Witaworowski (TD Cowen): Beyond the Balded Divestment, are there other segments or SKUs that you view as non-core and could potentially be under strategic review currently?
  Response: No other relevant divestment initiatives are currently under review, though the company gradually aims to reallocate capacity to higher-value solutions.

• Question from Curtis Miles (BNP Paribas): How are you seeing [GLP-1] progress through the year and whether you're sort of mid-teens broke and it remains intact there.
  Response: GLP-1 is expected to continue as a strong long-term tailwind, but the company's primary strategic focus is on the broader biologics market for sustainable growth.

• Question from Matt Laro (William Blair): What these approvals mean for you in terms of long-term aspirations in the device space.
  Response: The Alina approval marks the beginning of revenue generation for the proprietary device platform and supports the company's long-term goal of delivering integrated, premium drug delivery solutions.

Contradiction Point 1

GLP-1 Growth Expectation for 2026

Guidance shifts from mid-teens to double-digit growth for GLP-1s in 2026.

"Curtis Miles (BNP Paribas), what factors do you believe will impact the company's earnings in the near term?" - Curtis Miles (BNP Paribas)

2026Q2: GLP-1 growth is expected to remain double-digit in 2026. - [Franco Stevanato](CEO)

Can you discuss the progress of GLP-1 through the year and whether the mid-teens metric remains intact? - Michael Ryskin (Bank of America)

20260304-2025 Q4: For 2026, GLP-1 growth is expected in the mid-teens. - [Franco Stevanato](CEO)

Contradiction Point 2

Primary Growth Drivers for High-Value Solutions (HVS)

Shifts focus from Nexa syringes as the primary driver to a broader biologics-based strategy.

Avantika (Bank of America) - Avantika (Bank of America)

2026Q2: The strategic goal is to capitalize on the broader biologics opportunity... biologics growth is 6%, with revenue currently representing ~42% of BDS segment revenue. - [Franco Stevanato](CEO)

With increased GLP-1 exposure, is growth broadening to non-GLP-1 biologics or is GLP-1 still the primary driver for HVS? - David Windley (Unknown Company)

20260304-2025 Q4: Nexa syringes will continue to be a primary driver in 2026. - [Franco Stevanato](CEO) & [Marco Dal Lago](CFO)

Contradiction Point 3

Biologics Growth Outlook

Different stated growth rates for biologics within the BDS segment.

Avantika (Bank of America) - Avantika (Bank of America)

2026Q2: In 2026, biologics growth is 6%, with revenue currently representing ~42% of BDS segment revenue. - [Franco Stevanato](CEO)

Is growth broadening across non-GLP-1 biologics as GLP-1 exposure increases, or is GLP-1 still the primary growth driver for HVS? - Paul Knight (KeyBanc)

2026Q1: The biologics business is growing 15% vs. a market growth of 10%. - [Lisa Miles](CFO)

Contradiction Point 4

GLP-1 Growth Rate and Visibility

Contradiction on the level of detail and confidence in GLP-1 growth guidance.

Larry Solo (CJS Securities) - Larry Solo (CJS Securities)

2026Q2: GLP-1s are a strong long-term tailwind... The long-term goal is focused on the broader biologics market. - [Franco Stevanato](CEO)

Can you provide details on the growth rate of GLPs versus non-GLPs in high-value products or biologics and how GLP growth compares to overall growth? - Alexa Chan (Bank of America)

2026Q1: Volumes for 2026 are largely covered by contractual commitments, with predictable trends; customer demand varies... Reiterated mid-teens growth guidance for GLP-1s in 2026. - [Marco Dal Lago](CFO)

Contradiction Point 5

Capacity Utilization and Ramp Timeline for Facilities

Contradiction on the timeline for fully ramping new facilities.

Paul Knight (KBank Capital Markets) - Paul Knight (KBank Capital Markets)

2026Q2: Demand for syringes, Nexa Alba, and cartridges at both plants is strong... The plan is to fully ramp up Fishers by the end of 2028. - [Franco Stevanato](CEO) & [Marco Dal Lago](CFO)

What capacity utilization rates will Fishers and Latina achieve this year? - Patrick Donnelly (Citi)

20260304-2025 Q4: In 2025, production ran at approximately full capacity... Capacity will remain a factor in 2026 as demand is robust. - [Franco Stevanato](CEO) & [Marco Dal Lago](CFO)