Stevanato Group (NYSE:STVN) reported a 19% increase in annual earnings on Wednesday, as the Italian drug containment specialist successfully leveraged a record mix of high-value products to offset persistent headwinds in its engineering segment.
The Piombino Dese-based company, a critical supplier to the global pharmaceutical and biotech industries, posted full-year 2025 revenue of €1.186 billion, representing 7% growth over the prior year.
The performance was largely underpinned by the company’s "high-value solutions"—a premium portfolio including specialized syringes and vials—which accounted for 46% of total revenue for the year and reached a record 49% in the fourth quarter.
This strategic shift helped drive a 160 basis-point expansion in the adjusted EBITDA margin to 25.1%.
Fourth-quarter revenue climbed 5% to €346.5 million, with gross profit margins reaching 30.9%.
The results reflect a successful transition toward higher-margin products like the Nexa platform, which is increasingly utilized for sensitive biologics and GLP-1 obesity treatments.
While the core Biopharmaceutical and Diagnostic Solutions (BDS) segment grew 10% in the final quarter, the company’s Engineering segment continued to see anticipated declines as it undergoes a multi-year repositioning effort.
The Group also provided a detailed financial roadmap for 2026, signaling confidence in sustained demand for its injectable drug delivery solutions.
For the coming fiscal year, Stevanato expects revenue between €1.26 billion and €1.29 billion, alongside adjusted diluted earnings per share in the range of €0.59 to €0.63.
The guidance assumes a continued ramp-up of new manufacturing facilities in Indiana and Italy, which are expected to transition from being margin-dilutive to profit contributors by the end of 2026.
Despite the capital-intensive nature of its expansion, the company reported diluted earnings per share of €0.51 for the full year 2025.
Management noted that the gradual stabilization of the global vial market and the resolution of industry-wide destocking trends have provided a more predictable environment for the year ahead.