Stevanato Group (STVN) could be a solid choice for investors given its recent upgrade to a Zacks Rank #2 (Buy). This upgrade primarily reflects an upward trend in earnings estimates, which is one of the most powerful forces impacting stock prices.The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate.Since a changing earnings ...

Question-and-Answer SessionFranco, maybe just to set the stage, can you talk about how 2025 has played out so far versus your initial expectations at the start of the year? Just beyond the numbers, what are you most proud of? And maybe talk about some of the challenges that you encountered that you perhaps weren't envisioning at the start of the year?Franco StevanatoCEO & Executive Chairman So first of all, thank you, and thank you for Morgan Stanley to host Stevanato Group for this important conference. So ...

Stevanato Group (NYSE:STVN) FY Conference September 09, 2025 07:45 AM ET Company ParticipantsFranco Stevanato - CEOLisa Miles - Chief Communications and Investor Relations OfficerConference Call ParticipantsKallum Titchmarsh - Healthcare Equity AnalystKallum TitchmarshI think we can get started, everyone. Kallum Titchmarsh here from the Life Sciences team at Morgan Stanley. Really pleased today to be joined by Franco Stevanato, CEO of Stevanato, and Lisa Miles, Chief Communications and Investor Relations Of ...

[FORM 6-K Information](index=1&type=section&id=FORM%206-K%20Information) [Filing Details](index=1&type=section&id=Filing%20Details) The company filed a Form 6-K report for August 2025, identifying as a foreign private issuer under Form 20-F - Stevanato Group S.p.A. filed a **Form 6-K report for August 2025**, identifying as a foreign private issuer under Form 20-F[1](index=1&type=chunk)[2](index=2&type=chunk) [Table of Contents](index=2&type=section&id=Table%20of%20Contents) The report covers financial statements, management discussion, market risk, controls, and legal proceedings - The report includes Unaudited Interim Condensed Consolidated Financial Statements, Management's Discussion and Analysis, Quantitative and Qualitative Disclosure About Market Risk, Controls and Procedures, Legal Proceedings, and Risk Factors[4](index=4&type=chunk) [Introduction](index=3&type=section&id=INTRODUCTION) [Financial Information Presentation](index=3&type=section&id=Financial%20Information%20Presentation) This unaudited interim report presents financial information primarily in millions of Euro - Financial information is presented in Euro, with some U.S. Dollars; Management Discussion and Analysis data is in **millions of Euro**[6](index=6&type=chunk)[7](index=7&type=chunk) - The Interim Report is **unaudited**[8](index=8&type=chunk) [Cautionary Statements Regarding Forward-Looking Statements](index=4&type=section&id=CAUTIONARY%20STATEMENTS%20REGARDING%20FORWARD-LOOKING%20STATEMENTS) [Forward-Looking Statements and Risks](index=4&type=section&id=Forward-Looking%20Statements%20and%20Risks) The report contains forward-looking statements subject to numerous known and unknown risks and uncertainties - Forward-looking statements are subject to known and unknown risks and uncertainties that may cause **actual results to differ materially**[10](index=10&type=chunk) - Key risk factors include product quality, new product development, brand reputation, employee retention, supplier relationships, material/energy costs, operational interruptions, fluctuating COVID-19 product demand, capacity expansion, customer order reductions, competition, international market risks, regulatory compliance, Italian 'golden powers', U.S.-China relations, tariffs, cybersecurity, intellectual property, and internal control effectiveness[10](index=10&type=chunk) - The Company undertakes **no obligation to update forward-looking statements** to reflect future events or circumstances[11](index=11&type=chunk) [Unaudited Interim Condensed Consolidated Financial Statements](index=7&type=section&id=UNAUDITED%20INTERIM%20CONDENSED%20CONSOLIDATED%20FINANCIAL%20STATEMENTS) [Interim Consolidated Income Statement](index=7&type=section&id=Interim%20Consolidated%20Income%20Statement) The company reported significant year-over-year growth in revenue, profit, and earnings per share for Q2 and H1 2025 Interim Consolidated Income Statement Highlights (Three Months Ended June 30) | Metric (EUR thousand) | 2025 | 2024 | Change (%) | | :-------------------- | :----- | :----- | :--------- | | Revenue | 280,037 | 259,579 | 7.9% | | Gross Profit | 78,586 | 67,523 | 16.4% | | Operating Profit | 41,368 | 27,969 | 47.9% | | Profit Before Tax | 39,108 | 29,171 | 34.1% | | Net Profit | 29,702 | 20,623 | 44.0% | | Basic EPS (EUR) | 0.11 | 0.08 | 37.5% | | Diluted EPS (EUR) | 0.11 | 0.08 | 37.5% | Interim Consolidated Income Statement Highlights (Six Months Ended June 30) | Metric (EUR thousand) | 2025 | 2024 | Change (%) | | :-------------------- | :----- | :----- | :--------- | | Revenue | 536,633 | 495,573 | 8.3% | | Gross Profit | 148,477 | 129,721 | 14.5% | | Operating Profit | 75,996 | 53,259 | 42.7% | | Profit Before Tax | 74,217 | 54,847 | 35.3% | | Net Profit | 56,216 | 39,435 | 42.6% | | Basic EPS (EUR) | 0.21 | 0.15 | 40.0% | | Diluted EPS (EUR) | 0.21 | 0.15 | 40.0% | [Interim Consolidated Statement of Comprehensive Income](index=8&type=section&id=Interim%20Consolidated%20Statement%20of%20Comprehensive%20Income) Total comprehensive income decreased significantly due to negative exchange differences on foreign operations Interim Consolidated Statement of Comprehensive Income Highlights | Metric (EUR thousand) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net Profit | 29,702 | 20,623 | 56,216 | 39,435 | | Total Other Comprehensive Income, net of tax | (33,207) | (12,916) | (49,093) | (5,461) | | Total Comprehensive Income | (3,505) | 7,707 | 7,123 | 33,974 | - Exchange differences on translation of foreign operations significantly impacted other comprehensive income, resulting in a **loss of EUR 32,748 thousand for the three months** and **EUR 49,347 thousand for the six months** ended June 30, 2025[16](index=16&type=chunk) [Interim Consolidated Statement of Financial Position](index=9&type=section&id=Interim%20Consolidated%20Statement%20of%20Financial%20Position) Total assets and liabilities increased slightly, while total equity saw a minor decrease as of June 30, 2025 Interim Consolidated Statement of Financial Position Highlights (EUR thousand) | Category | At June 30, 2025 | At December 31, 2024 | Change (EUR thousand) | | :-------------------- | :--------------- | :------------------- | :-------------------- | | Total assets | 2,351,276 | 2,328,819 | 22,457 | | Non-current assets | 1,490,529 | 1,448,696 | 41,833 | | Current assets | 860,545 | 879,901 | (19,356) | | Total equity | 1,397,859 | 1,404,385 | (6,526) | | Total liabilities | 953,417 | 924,434 | 28,983 | | Non-current liabilities | 471,810 | 446,960 | 24,850 | | Current liabilities | 481,607 | 477,474 | 4,133 | - **Property, plant and equipment increased by EUR 31,903 thousand** to EUR 1,280,305 thousand at June 30, 2025, from EUR 1,248,402 thousand at December 31, 2024[18](index=18&type=chunk) - **Trade receivables decreased by EUR 53,628 thousand**, while **inventories increased by EUR 28,851 thousand**[18](index=18&type=chunk) [Interim Consolidated Statements of Changes in Equity](index=10&type=section&id=Interim%20Consolidated%20Statements%20of%20Changes%20in%20Equity) Total equity decreased slightly due to negative currency translation and dividends, partially offset by net profit Changes in Equity (Six Months Ended June 30, 2025) | Category (EUR thousand) | At January 1, 2025 | Total Comprehensive Income | Dividends | Share-based incentive plans | Other | At June 30, 2025 | | :---------------------- | :----------------- | :------------------------- | :-------- | :-------------------------- | :---- | :--------------- | | Equity attributable to equity holders of the parent | 1,404,339 | 7,126 | (14,737) | 917 | 171 | 1,397,816 | | Non-controlling interests | 46 | (3) | — | — | — | 43 | | Total equity | 1,404,385 | 7,123 | (14,737) | 917 | 171 | 1,397,859 | - **Foreign currency translation reserve decreased significantly** from EUR (12,578) thousand at December 31, 2024, to **EUR (61,925) thousand at June 30, 2025**, mainly due to the depreciation of the US Dollar and Chinese Renminbi against the Euro[20](index=20&type=chunk)[118](index=118&type=chunk) - **Dividends of EUR 14,737 thousand** (EUR 0.054 per share) were approved and paid in July 2025 for the previous financial year[20](index=20&type=chunk)[119](index=119&type=chunk) [Interim Consolidated Statements of Cash Flows](index=12&type=section&id=Interim%20Consolidated%20Statements%20of%20Cash%20Flows) Operating cash flow increased substantially, while financing activities shifted to a net outflow in H1 2025 Interim Consolidated Statements of Cash Flows Highlights (Six Months Ended June 30) | Category (EUR thousand) | 2025 | 2024 | Change (EUR thousand) | | :---------------------------------- | :-------- | :-------- | :-------------------- | | Net Cash Flows from operating activities | 144,747 | 93,845 | 50,902 | | Net Cash Flows used in investing activities | (130,372) | (171,612) | 41,240 | | Net Cash Flows (used in)/ from financing activities | (14,547) | 87,491 | (102,038) | | Net change in cash and cash equivalents | (172) | 9,724 | (9,896) | | Cash and cash equivalents at June 30 | 94,169 | 78,146 | 16,023 | - **Operating cash flow increased** due to higher profit before tax and favorable working capital changes, particularly in trade receivables and other assets[22](index=22&type=chunk)[289](index=289&type=chunk)[290](index=290&type=chunk) - Investing activities saw **reduced cash outflow**, mainly due to lower purchases of property, plant and equipment compared to the prior year[22](index=22&type=chunk)[292](index=292&type=chunk)[293](index=293&type=chunk) - **Financing activities shifted to a net outflow**, driven by higher repayments of borrowings and lower net proceeds from share offerings compared to 2024[22](index=22&type=chunk)[295](index=295&type=chunk)[296](index=296&type=chunk) [Notes to the Unaudited Interim Condensed Consolidated Financial Statements](index=13&type=section&id=Notes%20to%20the%20Unaudited%20Interim%20Condensed%20Consolidated%20Financial%20Statements) [1. Corporate information](index=13&type=section&id=1.%20Corporate%20information) Stevanato Group is a global leader in bio-pharma solutions, expanding capacity in Italy and the U.S - Stevanato Group S.p.A. is a global leader in integrated solutions for bio-pharma and healthcare, with **13 manufacturing plants** and two analytical service sites[23](index=23&type=chunk)[24](index=24&type=chunk) - The Group is expanding global capacity for high-value solutions in Latina, Italy (ready-to-use cartridges by 2026) and Fishers, Indiana, U.S. (EZ-fill® manufacturing hub, device contract manufacturing by end of 2026)[24](index=24&type=chunk) - Stevanato Group S.p.A. is controlled by Stevanato Holding S.r.l. (**73.73% stake**) and has been trading on the NYSE under 'STVN' since July 16, 2021[25](index=25&type=chunk) [2. Authorization of Unaudited Interim Condensed Consolidated Financial Statements and compliance with international financial reporting standards](index=13&type=section&id=2.%20Authorization%20of%20Unaudited%20Interim%20Condensed%20Consolidated%20Financial%20Statements%20and%20compliance%20with%20international%20financial%20reporting%20standards) The financial statements were authorized on August 4, 2025, and prepared in accordance with IAS 34 - Interim Condensed Consolidated Financial Statements authorized on **August 4, 2025**, prepared under IAS 34[26](index=26&type=chunk) - Accounting policies are consistent with December 31, 2024, IFRS statements, except for new standards effective January 1, 2025[26](index=26&type=chunk) [3. Basis of preparation for Unaudited Interim Condensed Consolidated Financial Statements](index=13&type=section&id=3.%20Basis%20of%20preparation%20for%20Unaudited%20Interim%20Condensed%20Consolidated%20Financial%20Statements) The statements involve management estimates, are presented in Euro, and reflect new IFRS standards - Management makes estimates and assumptions affecting reported amounts, which are **subject to future modification**[27](index=27&type=chunk) - The statements are condensed, presented in Euro, and prepared on a **going concern basis**[30](index=30&type=chunk)[31](index=31&type=chunk)[32](index=32&type=chunk) - Starting 2025, **foreign currency exchange gains and losses are presented on a net basis** in the income statement for more relevant information, with prior periods reclassified for comparability[33](index=33&type=chunk) - Amendments to IAS 21 (Lack of Exchangeability) effective January 1, 2025, had **no material impact**; IFRS 18 (Presentation and Disclosure in Financial Statements) and IFRS 9 (Financial Instruments) amendments, effective 2027 and 2026 respectively, are currently being assessed for impact[35](index=35&type=chunk)[36](index=36&type=chunk)[37](index=37&type=chunk)[38](index=38&type=chunk) [4. Scope of consolidation](index=16&type=section&id=4.%20Scope%20of%20consolidation) The scope of consolidation expanded to include the newly incorporated Stevanato India Private Limited - The scope of consolidation includes companies controlled directly or indirectly by Stevanato Group S.p.A[41](index=41&type=chunk) - **Stevanato India Private Limited** was incorporated on February 23, 2025, and included in the scope of consolidation[40](index=40&type=chunk)[42](index=42&type=chunk) - Non-controlling interests at June 30, 2025, relate to Medical Glass a.s., where the Group holds a **99.74% interest**[43](index=43&type=chunk) [5. Financial Risk Factors](index=17&type=section&id=5.%20Financial%20Risk%20Factors) The Group is exposed to various financial risks which are monitored and mitigated through derivatives - The Group is exposed to financial market risk (foreign currency exchange rates, interest rates), liquidity risk, credit risk, and commodity risk[44](index=44&type=chunk) - Risks are identified, monitored, and mitigated through operating/financing activities and **derivative financial instruments**[44](index=44&type=chunk)[45](index=45&type=chunk) [6. Foreign currency exchange](index=18&type=section&id=6.%20Foreign%20currency%20exchange) This section provides key foreign currency exchange rates against the Euro for H1 2025 and prior periods Principal Foreign Currency Exchange Rates to Euro | Country | ISO Code | Average (6M ended Jun 30, 2025) | At Jun 30, 2025 | Average (6M ended Jun 30, 2024) | At Jun 30, 2024 | At Dec 31, 2024 | | :------------ | :------- | :------------------------------ | :-------------- | :------------------------------ | :-------------- | :-------------- | | China | CNY | 7.9238 | 8.3970 | 7.8011 | 7.7748 | 7.5833 | | United States | USD | 1.0928 | 1.1720 | 1.0813 | 1.0705 | 1.0389 | | Mexico | MXN | 21.8035 | 22.0899 | 18.5089 | 19.5654 | 21.5504 | | Denmark | DKK | 7.4607 | 7.4609 | 7.4580 | 7.4575 | 7.4578 | | Brazil | BRL | 6.2913 | 6.4384 | 5.4922 | 5.8915 | 6.4253 | | Switzerland | CHF | 0.9414 | 0.9347 | 0.9615 | 0.9634 | 0.9412 | | Japan | JPY | 162.1195 | 169.1700 | 164.4613 | 171.9400 | 163.0600 | | India | INR | 94.0693 | 100.5605 | 89.9862 | 89.2495 | 88.9335 | [7. Seasonality of operations](index=18&type=section&id=7.%20Seasonality%20of%20operations) The Group's operations are not significantly impacted by seasonality - The Group is **not impacted by seasonality**[48](index=48&type=chunk) [8. Segment Information](index=18&type=section&id=8.%20Segment%20Information) The Biopharmaceutical segment drove profit growth, while the Engineering segment's profit declined - The Group has two operating segments: **Biopharmaceutical and Diagnostic Solutions** (drug containment, delivery, diagnostic consumables, analytical services) and **Engineering** (equipment for manufacturing processes)[49](index=49&type=chunk) Segment Operating Profit (Three Months Ended June 30) | Segment (EUR thousand) | 2025 | 2024 | Change (%) | | :--------------------- | :----- | :----- | :--------- | | Biopharmaceutical and Diagnostic Solutions | 46,789 | 32,269 | 45.0% | | Engineering | (533) | 2,090 | -125.5% | | Consolidated Operating Profit | 41,368 | 27,969 | 47.9% | Segment Operating Profit (Six Months Ended June 30) | Segment (EUR thousand) | 2025 | 2024 | Change (%) | | :--------------------- | :----- | :----- | :--------- | | Biopharmaceutical and Diagnostic Solutions | 88,328 | 60,456 | 46.1% | | Engineering | 3,118 | 7,263 | -57.0% | | Consolidated Operating Profit | 75,996 | 53,259 | 42.7% | - For the six months ended June 30, 2025, one customer constituted **10.6% of consolidated revenue** (EUR 56.9 million), primarily from the Biopharmaceutical and Diagnostic Solutions segment[55](index=55&type=chunk) [9. Revenue from contracts with customers](index=21&type=section&id=9.%20Revenue%20from%20contracts%20with%20customers) Revenue growth was driven by high-value solutions, with EMEA and North America as the largest markets Disaggregated Revenue (Three Months Ended June 30) | Category (EUR thousand) | 2025 | 2024 | Change (%) | | :---------------------- | :-------- | :-------- | :--------- | | High-value solutions | 116,776 | 103,351 | 13.0% | | Other containment and delivery solutions | 126,751 | 119,015 | 6.5% | | Engineering | 36,510 | 37,213 | -1.9% | | Total Revenue | 280,037 | 259,579 | 7.9% | Disaggregated Revenue (Six Months Ended June 30) | Category (EUR thousand) | 2025 | 2024 | Change (%) | | :---------------------- | :-------- | :-------- | :--------- | | High-value solutions | 227,076 | 191,319 | 18.7% | | Other containment and delivery solutions | 237,298 | 229,979 | 3.2% | | Engineering | 72,259 | 74,275 | -2.7% | | Total Revenue | 536,633 | 495,573 | 8.3% | Revenue by Geographical Markets (Six Months Ended June 30) | Market | 2025 (EUR thousand) | 2024 (EUR thousand) | Change (%) | | :------------ | :------------------ | :------------------ | :--------- | | EMEA | 324,551 | 299,612 | 8.3% | | APAC | 44,603 | 39,812 | 12.0% | | North America | 153,318 | 140,435 | 9.2% | | South America | 14,161 | 15,714 | -9.9% | - Contract assets increased to **EUR 175,296 thousand** at June 30, 2025, from EUR 168,515 thousand at December 31, 2024, mainly from construction contracts and in-vitro diagnostic/DDS businesses[61](index=61&type=chunk)[107](index=107&type=chunk) [10. Cost of sales](index=23&type=section&id=10.%20Cost%20of%20sales) Cost of sales as a percentage of revenue decreased, reflecting improved efficiency and lower depreciation Cost of Sales (EUR thousand) | Category | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Cost of materials | 90,119 | 93,436 | 172,176 | 177,011 | | Direct industrial labor | 43,860 | 39,396 | 86,429 | 77,152 | | Indirect industrial labor | 21,236 | 21,098 | 41,238 | 41,955 | | Industrial depreciation and amortization | 18,515 | 15,082 | 36,123 | 33,553 | | Impairment of PPE | — | 2,611 | — | 2,611 | | Other costs of sales | 27,721 | 20,433 | 52,190 | 33,570 | | Total Cost of sales | 201,451 | 192,056 | 388,156 | 365,852 | - **Cost of sales as a percentage of revenue decreased** to 71.9% for the three months and 72.3% for the six months ended June 30, 2025, from 74.0% and 73.8% respectively in 2024[63](index=63&type=chunk)[213](index=213&type=chunk)[248](index=248&type=chunk) - The Group **extended the expected useful lives of certain machinery**, resulting in a reduction of depreciation expense by approximately **EUR 1.4 million** for the first half of 2025[64](index=64&type=chunk)[90](index=90&type=chunk)[91](index=91&type=chunk)[212](index=212&type=chunk)[247](index=247&type=chunk) [11. Other operating income](index=25&type=section&id=11.%20Other%20operating%20income) Other operating income, including contributions from collaborations and grants, decreased slightly Other Operating Income (EUR thousand) | Period | 2025 | 2024 | Change (%) | | :------------------------ | :---- | :---- | :--------- | | Three months ended June 30 | 915 | 941 | -2.8% | | Six months ended June 30 | 2,053 | 2,285 | -10.1% | - Other operating income primarily consists of contributions from collaboration agreements, insurance refunds, government grants, and lease income, not considered part of ordinary revenue-generating activities[65](index=65&type=chunk)[218](index=218&type=chunk)[254](index=254&type=chunk) [12. Expenses](index=25&type=section&id=12.%20Expenses) Total expenses decreased, driven by a significant reduction in Research and Development costs Expenses (EUR thousand) | Category | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :---------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Selling and marketing expenses | 7,330 | 7,389 | 13,281 | 13,181 | | Research and development expenses | 6,045 | 8,741 | 11,976 | 19,495 | | General and administrative expenses | 24,758 | 24,365 | 49,277 | 46,071 | | Total Expenses | 38,133 | 40,495 | 74,534 | 78,747 | - **Research and development expenses decreased by 30.8%** for the three months and **38.6% for the six months**, mainly due to lower external consultants, personnel costs, and project optimization[66](index=66&type=chunk)[221](index=221&type=chunk)[258](index=258&type=chunk) - General and administrative expenses increased slightly due to higher property taxes, recruiting costs, and IT costs, partially offset by decreased personnel costs and severance payments[66](index=66&type=chunk)[225](index=225&type=chunk)[260](index=260&type=chunk)[261](index=261&type=chunk) [13. Finance income](index=27&type=section&id=13.%20Finance%20income) Finance income increased significantly, driven by substantial gains from derivatives fair value Finance Income (EUR thousand) | Category | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :---------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Interest income from banks deposits | 39 | 974 | 399 | 1,109 | | Foreign currency exchange rate net gains | — | 2,049 | — | 4,176 | | Derivatives fair value gains | 8,957 | (18) | 14,540 | 308 | | Total finance income | 9,219 | 3,588 | 15,174 | 6,257 | - **Derivatives fair value gains** were the primary driver of the increase in finance income, reaching **EUR 8,957 thousand** for the three months and **EUR 14,540 thousand** for the six months ended June 30, 2025[70](index=70&type=chunk) [14. Finance expense](index=27&type=section&id=14.%20Finance%20expense) Finance expenses increased substantially due to significant net losses from foreign currency exchange rates Finance Expense (EUR thousand) | Category | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :---------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Interest on debt and borrowings | 1,483 | 671 | 2,676 | 1,987 | | Foreign currency exchange rate net losses | 9,616 | — | 13,557 | — | | Derivatives fair value losses | — | 1,123 | 21 | 1,793 | | Total finance expense | 11,479 | 2,386 | 16,953 | 4,669 | - Net foreign currency exchange impact resulted in a **net loss of EUR 13,557 thousand** for the six months ended June 30, 2025, compared to a net gain of EUR 4,176 thousand in the prior year[72](index=72&type=chunk) - Interest on debt and borrowings increased to **EUR 2,676 thousand** for the six months ended June 30, 2025, from EUR 1,987 thousand in the prior year[71](index=71&type=chunk) [15. Income tax](index=29&type=section&id=15.%20Income%20tax) The effective tax rate decreased due to the 'IRES premiale' tax benefit in Italy Income Tax Highlights (Six Months Ended June 30) | Metric | 2025 (EUR thousand) | 2024 (EUR thousand) | Change (%) | | :------------------ | :------------------ | :------------------ | :--------- | | Income tax expense | 18,001 | 15,412 | 16.8% | | Effective tax rate | 24.3% | 28.1% | -3.8 pp | - The decrease in the effective tax rate is primarily due to the **'IRES premiale' tax benefit** in Italy, reducing the corporate income tax notional rate from 24% to 20% for fiscal year 2025, contingent on investments and labor force increases[75](index=75&type=chunk) - The Group has performed a preliminary assessment of Pillar Two 'Transitional Safe Harbours' and expects **no significant top-up tax impact**, with China being the only jurisdiction with potential exposure, though its effective tax rate is close to 15%[79](index=79&type=chunk)[80](index=80&type=chunk) [16. Earnings per Share](index=30&type=section&id=16.%20Earnings%20per%20Share) Basic and diluted earnings per share increased, reflecting higher net profit Earnings per Share (EPS) (EUR) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Basic earnings per ordinary share | 0.11 | 0.08 | 0.21 | 0.15 | | Diluted earnings per ordinary share | 0.11 | 0.08 | 0.21 | 0.15 | Profit Attributable to Equity Holders and Weighted Average Shares (EUR thousand/shares) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Profit attributable to equity holders of the parent | 29,702 | 20,625 | 56,219 | 39,439 | | Weighted average number of shares for basic EPS | 272,918,250 | 272,789,169 | 272,908,492 | 269,368,798 | | Weighted average number of shares adjusted for dilution | 272,923,002 | 272,808,616 | 272,915,772 | 269,393,680 | [17. Intangible assets](index=31&type=section&id=17.%20Intangible%20assets) Intangible assets remained stable, with additions for new packaging platforms and digitalization Intangible Assets Net Book Value (EUR thousand) | Category | At June 30, 2025 | At December 31, 2024 | | :------------------------ | :--------------- | :------------------- | | Development costs | 9,302 | 545 | | Industrial patents and intellectual property | 4,550 | 6,423 | | Concessions, licenses, trademarks and similar rights | 6,874 | 7,573 | | Intangible fixed assets in process and advances | 10,067 | 15,725 | | Other intangible assets | 2,759 | 3,324 | | Total | 33,552 | 33,590 | - Additions of **EUR 4,055 thousand** were mainly for new packaging platforms in the Engineering segment and digitalization/software platforms[84](index=84&type=chunk) - **No impairment indicators** were identified for intangible assets at June 30, 2025[85](index=85&type=chunk) [18. Property, plant, and equipment](index=32&type=section&id=18.%20Property%2C%20plant%2C%20and%20equipment) Property, plant, and equipment increased due to investments in new production lines in the U.S. and Italy Property, Plant, and Equipment Net Book Value (EUR thousand) | Category | At June 30, 2025 | At December 31, 2024 | | :------------------------ | :--------------- | :------------------- | | Land and buildings | 365,716 | 300,192 | | Plant and machinery | 417,371 | 377,492 | | Industrial and commercial equipment | 15,852 | 17,840 | | Other tangible assets | 5,627 | 5,886 | | Assets under construction and advances | 475,739 | 546,992 | | Total | 1,280,305 | 1,248,402 | - Additions of **EUR 134,715 thousand** were mainly for new production lines in Fishers, Indiana, U.S., and Latina, Italy, and investments in container in vitro diagnostic solutions and microvials/syringes/EZ-Fill® cartridges[87](index=87&type=chunk) - The Group plans to **sell its Zhangjiagang, China facility**, postponing EZ-Fill® capacity expansion there to focus on U.S. and Italy projects[88](index=88&type=chunk) - Capital expenditures associated with orders for ongoing infrastructure investments were approximately **EUR 127 million**, net of expected BARDA contribution[89](index=89&type=chunk) [19. Right of Use assets](index=33&type=section&id=19.%20Right%20of%20Use%20assets) Right of Use assets decreased due to depreciation and exchange rate differences Right of Use Assets Net Book Value (EUR thousand) | Category | At June 30, 2025 | At December 31, 2024 | | :------------------------ | :--------------- | :------------------- | | Buildings | 9,220 | 10,865 | | Plant and machinery | 856 | 1,170 | | Industrial equipment | — | — | | Other tangible assets | 3,333 | 3,701 | | Total | 13,409 | 15,736 | - Depreciation charge for the six months ended June 30, 2025, was **EUR 3,080 thousand**[93](index=93&type=chunk) [20. Other Financial assets](index=33&type=section&id=20.%20Other%20Financial%20assets) Other financial assets increased significantly due to a new rent-to-buy agreement and higher derivative values Other Financial Assets (EUR thousand) | Category | At June 30, 2025 | At December 31, 2024 | | :---------------------------------------- | :--------------- | :------------------- | | Fair value of derivatives financial instruments (Non-current) | 152 | — | | Non-current secured notes at FVTPL | 4,105 | 3,938 | | Financial receivables - rent to buy agreement (Non-current) | 7,943 | — | | Fair value of derivatives financial instruments (Current) | 11,531 | 711 | | Financial receivables - rent to buy agreement (Current) | 935 | — | | Total Other Financial Assets | 25,935 | 6,770 | - A new financial receivable of **EUR 8,878 thousand** (current and non-current portions) arose from a rent-to-buy agreement for the Zhangjiagang, China facility[95](index=95&type=chunk) - Derivative assets, including foreign exchange forward contracts and interest rate swaps, **increased significantly**, with some designated as hedging instruments and others for trading[97](index=97&type=chunk)[99](index=99&type=chunk)[100](index=100&type=chunk) [21. Inventories](index=35&type=section&id=21.%20Inventories) Inventories increased to rebuild stock for future deliveries and new plant operations Inventories (EUR thousand) | Category | At June 30, 2025 | At December 31, 2024 | | :-------------------------------- | :--------------- | :------------------- | | Raw materials | 128,011 | 115,603 | | Semifinished products | 46,051 | 53,462 | | Finished products | 120,397 | 96,178 | | Provision from slow moving and obsolescence | (20,391) | (20,026) | | Total inventories | 274,068 | 245,217 | - The increase in inventories is due to **manufacturing products for future deliveries** and establishing inventories in new plants[103](index=103&type=chunk) - The provision for slow-moving and obsolete inventories increased slightly, with a net accrual of **EUR 3,834 thousand** recognized in cost of sales for the six months ended June 30, 2025[104](index=104&type=chunk) [22. Trade receivables and contract assets](index=35&type=section&id=22.%20Trade%20receivables%20and%20contract%20assets) Trade receivables decreased while contract assets increased as of June 30, 2025 Trade Receivables and Contract Assets (EUR thousand) | Category | At June 30, 2025 | At December 31, 2024 | | :-------------------------------- | :--------------- | :------------------- | | Trade receivables | 242,323 | 295,951 | | Allowance for expected credit losses | (6,149) | (6,704) | | Contract assets | 175,296 | 168,515 | - Trade receivables generally have a term of **60 to 90 days**, and the Group is not exposed to significant concentration of third-party credit risk[105](index=105&type=chunk) - Contract assets primarily relate to the Group's right to receive payment for production from **construction contracts not yet invoiced** and from in-vitro diagnostic and DDS businesses[106](index=106&type=chunk) [23. Tax receivables and tax payables](index=37&type=section&id=23.%20Tax%20receivables%20and%20tax%20payables) The net tax payable balance increased due to accrued corporate income tax for Italian entities Tax Receivables and Payables (EUR thousand) | Category | At June 30, 2025 | At December 31, 2024 | | :-------------- | :--------------- | :------------------- | | Tax receivables | 21,393 | 17,440 | | Tax payables | 50,737 | 25,431 | | Net balance | (29,344) | (7,991) | - The increase in net tax payable is primarily due to **accrued corporate income tax for Italian legal entities** for the first six months of 2025, with advanced payments expected in the second half of the year[110](index=110&type=chunk) [24. Other receivables](index=37&type=section&id=24.%20Other%20receivables) Other receivables decreased mainly due to the collection of an investment tax credit Other Receivables (EUR thousand) | Category | At June 30, 2025 | At December 31, 2024 | | :-------------- | :--------------- | :------------------- | | Other receivables | 40,780 | 53,179 | - The decrease in other receivables is mainly due to the **collection of an investment tax credit** sold to a third party and a decrease in prepaid expenses[111](index=111&type=chunk) [25. Equity](index=37&type=section&id=25.%20Equity) Total equity decreased slightly, impacted by a negative foreign currency translation reserve and dividends - Share capital remains at **EUR 22,232 thousand**, divided into 302,842,536 shares (49,691,433 ordinary, 253,151,103 Class A multiple voting shares)[113](index=113&type=chunk) - The **foreign currency translation reserve decreased** from EUR (12,578) thousand at December 31, 2024, to **EUR (61,925) thousand** at June 30, 2025, primarily due to the depreciation of the US Dollar and Chinese Renminbi against the Euro[118](index=118&type=chunk) - **Dividends of EUR 14,737 thousand** (EUR 0.054 per share) were approved on May 23, 2025, and paid on July 17, 2025[119](index=119&type=chunk) - Other reserves increased mainly due to the allocation of prior year net profit (**EUR 18,982 thousand**) and accruals for share-based incentive plans[122](index=122&type=chunk) [26. Financial liabilities](index=38&type=section&id=26.%20Financial%20liabilities) Total financial liabilities decreased due to lower current liabilities, despite new loans for expansion Financial Liabilities (EUR thousand) | Category | At June 30, 2025 | At December 31, 2024 | | :---------------------------- | :--------------- | :------------------- | | Total current financial liabilities | 75,630 | 116,927 | | Total non-current financial liabilities | 342,633 | 317,678 | | Total Financial Liabilities | 418,263 | 434,605 | - Bank loans increased to **EUR 350,490 thousand** at June 30, 2025, from EUR 312,249 thousand at December 31, 2024, due to new loan drawdowns (**EUR 70,000 thousand**) to support growth platforms[125](index=125&type=chunk) - The Group secured two new term loans totaling **EUR 150,000 thousand** in June 2025 (from CDP and BNL) for capacity expansion in Fishers and Latina, with partial drawdown in July[126](index=126&type=chunk) - All financial covenants, including the **Net Debt on EBITDA ratio (must be ≤ 3.5)**, were complied with at June 30, 2025, and December 31, 2024[124](index=124&type=chunk)[125](index=125&type=chunk)[126](index=126&type=chunk) [27. Fair Value Measurement](index=41&type=section&id=27.%20Fair%20Value%20Measurement) Financial assets and liabilities are measured using a three-level hierarchy, with no transfers between levels Fair Value Hierarchy of Financial Assets and Liabilities (At June 30, 2025, EUR thousand) | Category | Total | Level 1 | Level 2 | Level 3 | | :---------------------------------------- | :------- | :------- | :------- | :------ | | Cash and cash equivalents | 94,169 | 94,169 | — | — | | Financial assets - investments FVTPL - traded | 35 | 35 | — | — | | Financial assets - investments FVTPL - not traded | 79 | — | — | 79 | | Non-current financial assets - derivatives | 152 | — | 152 | — | | Current financial assets - derivatives | 11,531 | — | 11,531 | — | | Non-current secured notes at FVTPL | 4,105 | — | — | 4,105 | | Current financial liabilities - derivatives | 1,007 | — | 1,007 | — | | Non-current financial liabilities - derivatives | 1,014 | — | 1,014 | — | - Fair value of foreign currency derivatives and interest rate swaps is determined using present value of future cash flows based on forward exchange rates and observable yield curves (**Level 2**)[134](index=134&type=chunk) - Non-current secured notes at FVTPL (**Level 3**) are valued as a sum of the 'naked bond' (discounted future coupon flows) and the 'embedded option' (stochastic simulation using Monte Carlo method)[135](index=135&type=chunk)[136](index=136&type=chunk)[137](index=137&type=chunk) [28. Employee benefits](index=43&type=section&id=28.%20Employee%20benefits) Total employee benefits decreased due to a reduction in employee severance indemnity Employee Benefits (EUR thousand) | Category | At June 30, 2025 | At December 31, 2024 | | :-------------------------- | :--------------- | :------------------- | | Employee severance indemnity | 5,245 | 5,571 | | Jubilee benefits | 238 | 238 | | Other post-employment plans | 1,029 | 1,074 | | Stock grant plan 2021-2027 | 160 | 280 | | Total employee benefits | 6,673 | 7,163 | [29. Share-based compensation](index=43&type=section&id=29.%20Share-based%20compensation) The Group's Long Term Incentive Plan includes RSUs and PSUs subject to presence and performance conditions - The Long Term Incentive Plan (2023-2027) includes **Restricted Shares Plan** and **Performance Shares Plan**, divided into three vesting cycles[143](index=143&type=chunk) - RSUs are subject to a presence condition, while PSUs are subject to **Revenue Growth and ROIC performance criteria**, with potential overperformance vesting up to 200%[146](index=146&type=chunk)[147](index=147&type=chunk)[148](index=148&type=chunk) - For the six months ended June 30, 2025, **EUR 797 thousand** was recognized as share-based compensation expense[158](index=158&type=chunk) Outstanding PSU and RSU Awards | Number of shares | PSUs (Outstanding) | RSUs (Outstanding) | | :--------------- | :----------------- | :----------------- | | At January 1, 2023 | — | — | | Granted | 145,670 | 145,670 | | Forfeited | (1,390) | (1,390) | | At December 31, 2023 | 144,280 | 144,280 | | Granted | 84,321 | 109,037 | | Forfeited | (42,471) | (40,794) | | Vested | — | (40,484) | | At December 31, 2024 | 186,130 | 172,039 | | Granted | 108,600 | 108,600 | | Forfeited | (107,073) | (56,060) | | Vested | — | (82,253) | | At June 30, 2025 | 187,657 | 142,326 | [30. Provisions](index=47&type=section&id=30.%20Provisions) Total provisions increased due to accruals for warranty and decommissioning Provisions (EUR thousand) | Category | At January 1, 2025 | Accrued during the period | Utilization | Releases | Exchange rate differences | At June 30, 2025 | | :---------------------------- | :----------------- | :------------------------ | :---------- | :------- | :------------------------ | :--------------- | | Provision for Warranty | 2,157 | 2,401 | (922) | — | (2) | 3,634 | | Provision for Decommissioning | 738 | 28 | — | — | (85) | 681 | | Provision for legal and sundry risks | 3,690 | 27 | (20) | (25) | (413) | 3,259 | | Provision for agents and directors severance indemnity | 347 | — | — | — | — | 347 | | Total | 6,932 | 2,456 | (942) | (25) | (500) | 7,921 | [31. Other non-current liabilities](index=47&type=section&id=31.%20Other%20non-current%20liabilities) Other non-current liabilities decreased and primarily include an advance payment from BARDA Other Non-Current Liabilities (EUR thousand) | Category | At June 30, 2025 | At December 31, 2024 | | :---------------------------- | :--------------- | :------------------- | | Other non-current liabilities | 55,598 | 62,720 | - Primary components include an advance payment from **BARDA (EUR 39,191 thousand)** for drug containment product machinery in Fishers, Indiana, and an advance from the city of Fishers (EUR 2,058 thousand)[160](index=160&type=chunk) - Deferred income for **EUR 12,313 thousand** relates to a land grant from the city of Fishers and an investment tax credit for the U.S. facility[161](index=161&type=chunk) [32. Trade payables and other current liabilities](index=47&type=section&id=32.%20Trade%20payables%20and%20other%20current%20liabilities) Trade payables decreased slightly, while other current liabilities increased due to dividend payables Trade Payables and Other Current Liabilities (EUR thousand) | Category | At June 30, 2025 | At December 31, 2024 | | :------------------------ | :--------------- | :------------------- | | Trade payables | 223,942 | 231,020 | | Other current liabilities | 90,842 | 66,790 | - Other current liabilities include payables to personnel, deferred income, tax payables on salaries, and an allowance for expected customer returns, with **EUR 14,737 thousand for unpaid dividends** at June 30, 2025[162](index=162&type=chunk) [33. Contract liabilities and advances from customers](index=48&type=section&id=33.%20Contract%20liabilities%20and%20advances%20from%20customers) Total contract liabilities and advances from customers increased, driven by higher customer advances Contract Liabilities and Advances from Customers (EUR thousand) | Category | At June 30, 2025 | At December 31, 2024 | | :-------------------------------- | :--------------- | :------------------- | | Contract liabilities | 10,208 | 16,545 | | Current advances from customers | 25,210 | 16,622 | | Non-current advances from customers | 51,099 | 44,046 | | Total | 86,517 | 77,213 | - Contract liabilities relate to ongoing customer-specific construction contracts in the **Engineering segment** and in-vitro diagnostic/DDS businesses[164](index=164&type=chunk) - Advances from customers relate to sales where revenue is recognized at a point in time[165](index=165&type=chunk) [34. Related party disclosures](index=48&type=section&id=34.%20Related%20party%20disclosures) The Group engages in transactions with related parties on commercial terms consistent with market practices - Related party transactions include rentals, product purchases/sales, consulting services, and tax/dividend payables with **Stevanato Holding S.r.l.** and other family-controlled entities[168](index=168&type=chunk) Related Party Transactions (Six Months Ended June 30, EUR thousand) | Category | Revenues (2025) | Costs (2025) | Revenues (2024) | Costs (2024) | | :------------------------ | :-------------- | :----------- | :-------------- | :----------- | | Parent company (Stevanato Holding S.r.l.) | — | — | 238 | — | | Other related parties | 1,617 | 2,289 | 882 | 5,280 | | Total | 1,617 | 2,289 | 1,120 | 5,280 | Related Party Balances (At June 30, 2025, EUR thousand) | Category | Trade receivables | Trade payables | Other assets | Contract Assets | Contract Liabilities | Other liabilities | | :------------------------ | :---------------- | :------------- | :----------- | :-------------- | :------------------- | :---------------- | | Parent company (Stevanato Holding S.r.l.) | — | — | 11,317 | — | — | 56,606 | | Other related parties | 427 | 47 | — | 185 | 1,765 | — | | Total | 427 | 47 | 11,317 | 185 | 1,765 | 56,606 | [35. Events after the reporting period](index=49&type=section&id=35.%20Events%20after%20the%20reporting%20period) No material events occurred after the reporting period up to August 5, 2025 - **No material events** occurred after the reporting period up to August 5, 2025[170](index=170&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=50&type=section&id=Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) [Overview](index=50&type=section&id=Overview) Stevanato Group is a leading global provider of integrated drug containment, delivery, and diagnostic solutions - Stevanato Group is a leading global provider of integrated drug containment, delivery, and diagnostic solutions, serving over 700 companies, including **23 of the top 25 pharmaceutical companies**[173](index=173&type=chunk)[174](index=174&type=chunk)[176](index=176&type=chunk) - The company operates in two segments: **Biopharmaceutical and Diagnostic Solutions** (including high-value EZ-Fill® products like ready-to-fill injectable products) and **Engineering** (equipment for manufacturing processes)[180](index=180&type=chunk)[181](index=181&type=chunk)[183](index=183&type=chunk)[194](index=194&type=chunk) - The total addressable market, based on current offerings, **exceeds $13 billion in 2024**, with opportunities to expand into complementary solutions and services[178](index=178&type=chunk)[179](index=179&type=chunk) [Highlights](index=53&type=section&id=Highlights) The Group reported strong growth in revenue, profit, and EPS for the first half of 2025 Interim Consolidated Income Statement Highlights (EUR million) | Metric | 3 Months Ended Jun 30, 2025 | 3 Months Ended Jun 30, 2024 | Change (%) | 6 Months Ended Jun 30, 2025 | 6 Months Ended Jun 30, 2024 | Change (%) | | :-------------------- | :-------------------------- | :-------------------------- | :--------- | :-------------------------- | :-------------------------- | :--------- | | Revenue | 280.0 | 259.6 | 7.9% | 536.6 | 495.6 | 8.3% | | Gross Profit | 78.6 | 67.5 | 16.4% | 148.5 | 129.7 | 14.5% | | Operating Profit | 41.4 | 28.0 | 47.9% | 76.0 | 53.3 | 42.7% | | Net Profit attributable to equity holders of the parent | 29.7 | 20.6 | 44.0% | 56.2 | 39.4 | 42.5% | | Basic EPS (EUR) | 0.11 | 0.08 | 37.5% | 0.21 | 0.15 | 40.0% | | Diluted EPS (EUR) | 0.11 | 0.08 | 37.5% | 0.21 | 0.15 | 40.0% | Interim Consolidated Statement of Financial Position Highlights (EUR million) | Category | At June 30, 2025 | At December 31, 2024 | Change (EUR million) | | :-------------------- | :--------------- | :------------------- | :------------------- | | Total assets | 2,351.3 | 2,328.8 | 22.5 | | Total liabilities | 953.4 | 924.4 | 29.0 | | Total Equity | 1,397.9 | 1,404.4 | (6.5) | - A dividend of **EUR 0.054 per share** (total EUR 14.7 million) was approved on May 23, 2025, and paid on July 17, 2025[184](index=184&type=chunk) [2025 first six months challenges](index=53&type=section&id=2025%20first%20six%20months%20challenges) The Group faced challenges from customer destocking, capacity ramp-up inefficiencies, and project costs - **Slowdown in demand for glass vials** due to customer inventory destocking, impacting revenue and profit margins, with a gradual recovery expected in 2025[188](index=188&type=chunk) - **Temporary inefficiencies from capacity expansion ramp-ups** in Italy and the U.S. (Latina and Fishers) are tempering gross and operating profit margins due to higher initial costs and underutilization[189](index=189&type=chunk) - The Engineering segment experienced **increased costs on highly customized projects**, particularly in Denmark, leading to a business optimization plan focused on footprint, operational structure, and industrial process harmonization[190](index=190&type=chunk) [Components of Our Results of Operations](index=55&type=section&id=Components%20of%20Our%20Results%20of%20Operations) The Group's operations are divided into the Biopharmaceutical and Engineering segments - Business operations are divided into **Biopharmaceutical and Diagnostic Solutions** (high-value and other containment/delivery solutions) and **Engineering**[194](index=194&type=chunk) - For the six months ended June 30, 2025, **87% of total revenue** came from Biopharmaceutical and Diagnostic Solutions and **13% from Engineering**[193](index=193&type=chunk) Segment Revenue and Profit Margins (Three Months Ended June 30, 2025) | Segment (EUR million) | External Customers | Inter-Segment | Revenue | Gross Profit Margin | Operating Profit Margin | | :-------------------- | :----------------- | :------------ | :------ | :------------------ | :---------------------- | | Biopharmaceutical and Diagnostic Solutions | 243.5 | 0.9 | 244.4 | 31.2% | 19.1% | | Engineering | 36.5 | 27.7 | 64.2 | 6.6% | (0.8)% | | Consolidated | 280.0 | — | 280.0 | 28.1% | 14.8% | Segment Revenue and Profit Margins (Six Months Ended June 30, 2025) | Segment (EUR million) | External Customers | Inter-Segment | Revenue | Gross Profit Margin | Operating Profit Margin | | :-------------------- | :----------------- | :------------ | :------ | :------------------ | :---------------------- | | Biopharmaceutical and Diagnostic Solutions | 464.4 | 1.3 | 465.6 | 31.2% | 19.0% | | Engineering | 72.3 | 70.1 | 142.4 | 8.8% | 2.2% | | Consolidated | 536.6 | — | 536.6 | 27.7% | 14.2% | [Results of Operations](index=57&type=section&id=Results%20of%20Operations) The Group achieved strong revenue growth and improved profitability, driven by the Biopharmaceutical segment [Three months ended June 30, 2025 versus three months ended June 30, 2024](index=57&type=section&id=Three%20months%20ended%20June%2030%2C%202025%20versus%20three%20months%20ended%20June%2030%2C%202024) In Q2 2025, revenue grew 7.9%, operating profit surged 47.9%, and net profit increased 44.0% Key Financials (Three Months Ended June 30, EUR million) | Metric | 2025 | 2024 | Change (€) | Change (%) | | :-------------------------- | :----- | :----- | :--------- | :--------- | | Revenue | 280.0 | 259.6 | 20.4 | 7.9% | | Cost of sales | 201.4 | 192.1 | 9.3 | 4.9% | | Gross Profit | 78.6 | 67.5 | 11.1 | 16.4% | | Operating Profit | 41.4 | 28.0 | 13.4 | 47.9% | | Profit Before Tax | 39.1 | 29.2 | 9.9 | 34.1% | | Net Profit | 29.7 | 20.6 | 9.1 | 44.0% | - Revenue from **high-value solutions increased by 13.0%** to EUR 116.8 million, now representing **41.7% of total revenue**[204](index=204&type=chunk)[206](index=206&type=chunk) - **Engineering segment revenue decreased by 1.9%** to EUR 36.5 million, mainly due to a decrease in glass converting manufacturing lines[208](index=208&type=chunk) - Gross profit margin for Biopharmaceutical and Diagnostic Solutions **increased to 31.2%** (from 27.7%) due to improved performance from Latina and Fishers facilities and a higher mix of high-value solutions[216](index=216&type=chunk) - Net finance expenses shifted to a **EUR 2.3 million net expense** (from EUR 1.2 million net income in 2024) due to unfavorable USD/EUR exchange rate movements and increased interest expense on loans[231](index=231&type=chunk) - **Effective tax rate decreased to 24.1%** (from 29.3%) due to the 'IRES premiale' tax benefit in Italy[233](index=233&type=chunk) [Six months ended June 30, 2025 versus six months ended June 30, 2024](index=64&type=section&id=Six%20months%20ended%20June%2030%2C%202025%20versus%20six%20months%20ended%20June%2030%2C%202024) In H1 2025, revenue grew 8.3%, operating profit increased 42.7%, and net profit rose 42.6% Key Financials (Six Months Ended June 30, EUR million) | Metric | 2025 | 2024 | Change (€) | Change (%) | | :-------------------------- | :----- | :----- | :--------- | :--------- | | Revenue | 536.6 | 495.6 | 41.0 | 8.3% | | Cost of sales | 388.2 | 365.9 | 22.3 | 6.1% | | Gross Profit | 148.5 | 129.7 | 18.8 | 14.5% | | Operating Profit | 76.0 | 53.3 | 22.7 | 42.7% | | Profit Before Tax | 74.2 | 54.8 | 19.4 | 35.3% | | Net Profit | 56.2 | 39.4 | 16.8 | 42.6% | - Revenue from **high-value solutions increased by 18.7%** to EUR 227.1 million, representing **42.3% of total revenue**[238](index=238&type=chunk)[239](index=239&type=chunk)[240](index=240&type=chunk) - **Engineering segment revenue decreased by 2.7%** to EUR 72.3 million, mainly due to lower pharmaceutical visual inspection systems and glass converting manufacturing lines[242](index=242&type=chunk) - Gross profit margin for Biopharmaceutical and Diagnostic Solutions **increased to 31.2%** (from 27.4%) due to improvements in Latina and Fishers facilities and a higher mix of high-value solutions[251](index=251&type=chunk)[252](index=252&type=chunk) - Net finance expenses resulted in a **EUR 1.8 million net expense** (from EUR 1.5 million net income in 2024) due to unfavorable USD/EUR exchange rate movements and increased interest expense on loans[267](index=267&type=chunk) - **Effective tax rate decreased to 24.3%** (from 28.1%) due to the 'IRES premiale' tax benefit in Italy[269](index=269&type=chunk) [Liquidity and Capital Resources](index=71&type=section&id=Liquidity%20and%20Capital%20Resources) The Group finances operations through cash, debt, and equity, securing new loans for capacity expansion - Primary liquidity sources include cash and cash equivalents (**EUR 94.2 million** at June 30, 2025), short-term loan facilities, and medium/long-term loans[273](index=273&type=chunk) - The Group secured **EUR 200 million in new financing** in Q2 2025 from banking partners (Banco BPM, CDP, BNL) to support capacity expansion in Fishers, Indiana, and Latina, Italy[278](index=278&type=chunk)[279](index=279&type=chunk) - Capital expenditures for the six months ended June 30, 2025, amounted to **EUR 138.8 million**, with EUR 126.6 million allocated to growth and capacity expansion[281](index=281&type=chunk)[314](index=314&type=chunk) Cash Flow Summary (EUR million) | Category | 6 Months Ended Jun 30, 2025 | 6 Months Ended Jun 30, 2024 | Change (EUR million) | | :-------------------------------- | :-------------------------- | :-------------------------- | :------------------- | | Cash flows from operating activities | 144.7 | 93.8 | 50.9 | | Cash flows used in investing activities | (130.4) | (171.6) | 41.2 | | Cash flows (used in)/ from financing activities | (14.5) | 87.5 | (102.0) | | Net change in cash and cash equivalents | (0.2) | 9.7 | (9.9) | [Financing activities](index=71&type=section&id=Financing%20activities) The Group secured new loans totaling EUR 220 million in H1 2025 to support growth - Secured a **EUR 20.0 million loan** from Banca Monte dei Paschi di Siena in February 2025, fully drawn down[277](index=277&type=chunk) - Secured a **EUR 50.0 million loan** from Banco BPM in Q2 2025, fully drawn down[278](index=278&type=chunk) - Secured two term loans totaling **EUR 150.0 million** from CDP and BNL in June 2025, with the BNL loan partially drawn in July[279](index=279&type=chunk)[280](index=280&type=chunk) - All new loans require compliance with a **net debt to consolidated EBITDA ratio covenant not exceeding 3.5**[277](index=277&type=chunk)[278](index=278&type=chunk)[280](index=280&type=chunk) [Capital Expenditures](index=73&type=section&id=Capital%20Expenditures) Capital expenditures totaled EUR 138.8 million, primarily for growth and capacity expansion in the U.S. and Italy Capital Expenditures (EUR million) | Category | 6 Months Ended Jun 30, 2025 | 6 Months Ended Jun 30, 2024 | Change (EUR million) | | :-------------------------------- | :-------------------------- | :-------------------------- | :------------------- | | Addition to Property, plant and equipment | 134.7 | 142.3 | (7.6) | | Addition to Intangible Assets | 4.1 | 5.5 | (1.4) | | Total CAPEX | 138.8 | 147.8 | (9.0) | - **EUR 126.6 million** was for growth and capacity expansion, including **EUR 95.4 million** for EZ-Fill® production lines in Fishers (EUR 34.6 million) and Latina (EUR 59.8 million)[281](index=281&type=chunk) - Committed orders for ongoing infrastructure investments were approximately **EUR 127 million**, net of expected BARDA contribution[282](index=282&type=chunk) [Cash Flow](index=73&type=section&id=Cash%20Flow) Operating cash flow increased significantly, while financing activities shifted to a net outflow Cash Flow Summary (EUR million) | Category | 6 Months Ended Jun 30, 2025 | 6 Months Ended Jun 30, 2024 | Change (EUR million) | | :-------------------------------- | :-------------------------- | :-------------------------- | :------------------- | | Cash flows from operating activities | 144.7 | 93.8 | 50.9 | | Cash flows used in investing activities | (130.4) | (171.6) | 41.2 | | Cash flows (used in)/ from financing activities | (14.5) | 87.5 | (102.0) | | Net change in cash and cash equivalents | (0.2) | 9.7 | (9.9) | - **Operating cash flow increased by EUR 50.9 million**, driven by profit before tax (EUR 74.2 million) and positive changes in trade receivables and other assets (EUR 52.4 million)[288](index=288&type=chunk)[289](index=289&type=chunk)[290](index=290&type=chunk) - **Investing cash outflow decreased by EUR 41.2 million**, mainly due to lower purchases of property, plant and equipment (EUR 128.0 million in 2025 vs. EUR 169.2 million in 2024)[292](index=292&type=chunk)[293](index=293&type=chunk)[317](index=317&type=chunk) - **Financing cash flow shifted** from a EUR 87.5 million inflow to a **EUR 14.5 million outflow**, primarily due to EUR 81.7 million in debt repayments[295](index=295&type=chunk)[296](index=296&type=chunk) [Key Indicators of Performance and Financial Condition (Non-GAAP Measures)](index=75&type=section&id=Key%20Indicators%20of%20Performance%20and%20Financial%20Condition) [Constant Currency Revenue](index=77&type=section&id=Constant%20Currency%20Revenue) Consolidated revenue increased by 9.2% on a constant currency basis for the first half of 2025 - Constant Currency Revenue excludes the impact of currency exchange rate fluctuations to aid in performance analysis and comparability[299](index=299&type=chunk) Constant Currency Revenue Growth (Three Months Ended June 30) | Segment | 2025 Constant Currency Revenue (EUR million) | 2024 Reported Revenue (EUR million) | Change (EUR million) | % Change | | :---------------------------------------- | :------------------------------------------- | :---------------------------------- | :------------------- | :------- | | Biopharmaceutical and Diagnostic Solutions | 248.4 | 222.4 | 26.0 | 11.7% | | Engineering | 36.5 | 37.2 | (0.7) | (1.9)% | | Consolidated | 284.9 | 259.6 | 25.3 | 9.8% | Constant Currency Revenue Growth (Six Months Ended June 30) | Segment | 2025 Constant Currency Revenue (EUR million) | 2024 Reported Revenue (EUR million) | Change (EUR million) | % Change | | :---------------------------------------- | :------------------------------------------- | :---------------------------------- | :------------------- | :------- | | Biopharmaceutical and Diagnostic Solutions | 468.7 | 421.3 | 47.4 | 11.2% | | Engineering | 72.3 | 74.3 | (2.0) | (2.7)% | | Consolidated | 540.9 | 495.6 | 45.3 | 9.2% | [EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin](index=78&type=section&id=EBITDA%2C%20Adjusted%20EBITDA%20and%20Adjusted%20EBITDA%20Margin) Adjusted EBITDA increased by 17.0% to EUR 122.4 million for the first half of 2025 - EBITDA and Adjusted EBITDA are non-GAAP measures used to analyze performance, with Adjusted EBITDA excluding infrequent items not reflective of ongoing operations[306](index=306&type=chunk) EBITDA and Adjusted EBITDA (EUR million) | Metric | 3 Months Ended Jun 30, 2025 | 3 Months Ended Jun 30, 2024 | Change (%) | 6 Months Ended Jun 30, 2025 | 6 Months Ended Jun 30, 2024 | Change (%) | | :-------------------------- | :-------------------------- | :-------------------------- | :--------- | :-------------------------- | :-------------------------- | :--------- | | Net Profit | 29.7 | 20.6 | 44.0% | 56.2 | 39.4 | 42.6% | | EBITDA | 62.9 | 48.8 | 28.9% | 118.2 | 95.8 | 23.4% | | Adjusting items | 2.1 | 5.2 | (59.3)% | 4.2 | 8.8 | (52.2)% | | Adjusted EBITDA | 65.1 | 54.0 | 20.4% | 122.4 | 104.6 | 17.0% | | Adjusted EBITDA Margin | 23.2% | 20.8% | | 22.8% | 21.1% | | - Adjusting items for 2025 primarily include **start-up costs for new plants** (EUR 1.3 million for 3 months, EUR 2.1 million for 6 months) and **restructuring charges** (EUR 0.9 million for 3 months, EUR 2.1 million for 6 months)[311](index=311&type=chunk) [Adjusted Operating Profit, Adjusted Operating Profit Margin, Adjusted Income Taxes, Adjusted Net Profit and Adjusted Diluted EPS](index=78&type=section&id=Adjusted%20Operating%20Profit%2C%20Adjusted%20Operating%20Profit%20Margin%2C%20Adjusted%20Income%20Taxes%2C%20Adjusted%20Net%20Profit%20and%20Adjusted%20Diluted%20EPS) Adjusted operating and net profit metrics showed strong year-over-year growth - Adjusted metrics (Operating Profit, Income Taxes, Net Profit, Diluted EPS) exclude infrequent items to reflect underlying business performance[309](index=309&type=chunk) Adjusted Financial Performance (Three Months Ended June 30, EUR million) | Metric | Reported Operating Profit | Adjusted Operating Profit | Reported Net Profit | Adjusted Net Profit | Reported Diluted EPS (EUR cents) | Adjusted Diluted EPS (EUR cents) | | :-------------------------- | :------------------------ | :------------------------ | :------------------ | :------------------ | :------------------------------- | :------------------------------- | | 2025 | 41.4 | 43.5 | 29.7 | 31.3 | 0.11 | 0.11 | | 2024 | 28.0 | 33.2 | 20.6 | 24.5 | 0.08 | 0.09 | Adjusted Financial Performance (Six Months Ended June 30, EUR million) | Metric | Reported Operating Profit | Adjusted Operating Profit | Reported Net Profit | Adjusted Net Profit | Reported Diluted EPS (EUR cents) | Adjusted Diluted EPS (EUR cents) | | :-------------------------- | :------------------------ | :------------------------ | :------------------ | :------------------ | :------------------------------- | :------------------------------- | | 2025 | 76.0 | 80.2 | 56.2 | 59.3 | 0.21 | 0.22 | | 2024 | 53.3 | 62.1 | 39.4 | 46.0 | 0.15 | 0.17 | Adjusted Operating Profit Margin | Period | 2025 | 2024 | | :-------------------------- | :------ | :------ | | Three months ended June 30 | 15.5% | 12.8% | | Six months ended June 30 | 14.9% | 12.5% | [CAPEX](index=81&type=section&id=CAPEX) CAPEX decreased to EUR 138.8 million in H1 2025, reflecting lower investments compared to the prior year - CAPEX is the sum of investments in property, plant and equipment and intangible assets, excluding right-of-use assets and non-monetary asset grants[313](index=313&type=chunk) CAPEX (EUR million) | Category | 3 Months Ended Jun 30, 2025 | 3 Months Ended Jun 30, 2024 | Change (EUR) | 6 Months Ended Jun 30, 2025 | 6 Months Ended Jun 30, 2024 | Change (EUR) | | :-------------------------------- | :-------------------------- | :-------------------------- | :----------- | :-------------------------- | :-------------------------- | :----------- | | Addition to Property, plant and equipment | 66.4 | 72.6 | (6.2) | 134.7 | 142.3 | (7.6) | | Addition to Intangible Assets | 2.7 | 3.3 | (0.6) | 4.1 | 5.5 | (1.4) | | Total CAPEX | 69.1 | 75.9 | (6.8) | 138.8 | 147.8 | (9.0) | [Free Cash Flow](index=81&type=section&id=Free%20Cash%20Flow) Free Cash Flow improved significantly, turning positive in H1 2025 due to higher operating cash and lower CAPEX - Free Cash Flow is defined as cash flows from operating activities (excluding interests paid and received) less investments in property, plant and equipment and intangible assets on a paid-out cash basis[316](index=316&type=chunk) Free Cash Flow (EUR million) | Metric | 3 Months Ended Jun 30, 2025 | 3 Months Ended Jun 30, 2024 | Change (EUR) | 6 Months Ended Jun 30, 2025 | 6 Months Ended Jun 30, 2024 | Change (EUR) | | :-------------------------------- | :-------------------------- | :-------------------------- | :----------- | :-------------------------- | :-------------------------- | :----------- | | Net cash flow from operating activities | 44.9 | 22.3 | 22.6 | 144.7 | 93.8 | 50.9 | | Purchase of property, plant and equipment | (57.6) | (68.7) | 11.1 | (128.0) | (169.2) | 41.2 | | Purchase of intangible assets | (2.7) | (3.4) | 0.7 | (4.1) | (5.5) | 1.4 | | Free Cash Flow | (13.0) | (46.1) | 33.1 | 16.6 | (76.8) | 93.4 | [Net (Debt)/ Cash](index=83&type=section&id=Net%20(Debt)%2F%20Cash) Net Debt decreased to EUR (312.4) million, indicating an improvement in the Group's financial stability - Net (Debt)/Cash is calculated as the sum of current and non-current financial liabilities, less certain current and non-current financial assets and cash and cash equivalents[318](index=318&type=chunk) Net (Debt)/ Cash (EUR million) | Category | At June 30, 2025 | At December 31, 2024 | | :---------------------------------------- | :--------------- | :------------------- | | Non-current financial liabilities | (342.6) | (317.7) | | Current financial liabilities | (75.6) | (116.9) | | Other non-current financial assets - Fair value of derivatives financial instruments | 0.1 | — | | Other current financial assets other than financial receivables for rent to buy agreement | 11.6 | 1.3 | | Cash and cash equivalents | 94.2 | 98.3 | | Net (Debt)/ Cash | (312.4) | (335.0) | [Capital Employed](index=83&type=section&id=Capital%20Employed) Capital Employed decreased, driven by a reduction in net working capital - Capita

Financial Data and Key Metrics Changes - In 2025, revenue increased by 8% to $280 million, driven by a 10% growth in the BDS segment, offsetting a 2% decline in the Engineering segment [19][20] - Adjusted EBITDA increased to $65.1 million, resulting in a 240 basis point improvement in the adjusted EBITDA margin to 23.2% for 2025 [21][22] - Net profit totaled $29.7 million with diluted earnings per share of $0.11, while adjusted net profit was $31.3 million with adjusted diluted EPS also at $0.11 [21][22] Business Line Data and Key Metrics Changes - Revenue from the BDS segment grew 10% to $243.5 million, with high value solutions accounting for 42% of total revenue, driven by strong demand for high value syringes [22][23] - High value solutions revenue grew 13% to $116.8 million, while revenue from other containment and delivery solutions increased 6% to $126.7 million [20][23] - The Engineering segment saw a 2% revenue decline to $36.5 million, with gross profit margin declining to 6.6% due to a higher mix of revenue from legacy projects [23][24] Market Data and Key Metrics Changes - Biologics represented 39% of BDS revenue in 2025, up from 25% in the same periods of fiscal 2024 and 2023 [15] - The company is experiencing stabilization in vial demand as destocking effects continue to ease, with a projected mid- to high single digit growth in vials for 2025 [40][41] Company Strategy and Development Direction - The company is focused on executing its multiyear investment optimization plans, enhancing its commercial strategy, and positioning itself to capitalize on long-term growth opportunities in high value solutions [29][30] - The strategic focus includes expanding capacity for high value syringes and ready-to-use cartridges, with ongoing capital investments to meet rising market demand [15][25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving full year guidance, citing sustained momentum driven by healthy market demand and strategic investments [29][30] - The company anticipates continued strong demand due to favorable trends such as the increase in self-administration of medicine and the rise in biologics [12][30] Other Important Information - The company announced a $200 million financing to support expansion in syringe production and capacity for ready-to-use cartridges [25][50] - The updated guidance for 2025 includes revenue expectations in the range of $1.16 billion to $1.19 billion, with adjusted EBITDA between $288 million and $301.8 million [26][28] Q&A Session Summary Question: Engineering segment delays and customer decision-making - Management clarified that delays in new orders are related to customer decision-making on CapEx and are not indicative of lost negotiations [33][36] Question: Vial demand and growth expectations - Management confirmed a 3% increase in vial demand compared to the same period last year, reiterating confidence in mid- to high single digit growth for vials in 2025 [40][41] Question: Impact of tariffs on guidance - Management indicated that they have been able to offset tariff impacts through customer conversations and leveraging their global footprint [48][49] Question: Capacity expansion in Fisher's and Latina - Management confirmed that Latina is currently profitable, while Fisher's is not yet profitable but showing improvement [73][74] Question: Future growth in the Engineering segment - Management expressed confidence in returning to profitability levels seen in 2022 and 2023, with expectations for margin recovery [78][79] Question: Pricing pressure in the biopharma industry - Management noted that securing supply chains is a priority for clients, and there is less pricing pressure for high-value products [118][119]

Financial Data and Key Metrics Changes - In Q2 2025, revenue increased by 8% to $280 million, driven by a 10% growth in the BDS segment, offsetting a 2% decline in the Engineering segment [16][19] - Adjusted EBITDA rose to $65.1 million, resulting in an adjusted EBITDA margin of 23.2% for 2025, a 240 basis point improvement [18][22] - Net profit totaled $29.7 million, with diluted earnings per share of $0.11, while adjusted net profit was $31.3 million with adjusted diluted EPS also at $0.11 [18][22] Business Line Data and Key Metrics Changes - BDS segment revenue grew 10% to $243.5 million, with high value solutions accounting for 42% of total revenue, driven by strong demand for high value syringes [19][20] - Engineering segment revenue decreased by 2% to $36.5 million, with gross profit margin declining to 6.6% due to a higher mix of legacy projects [20][21] - High value solutions revenue increased by 13% to $116.8 million, primarily from high value syringes, easy fill cartridges, and easy fill vials [17][19] Market Data and Key Metrics Changes - Biologics represented 39% of BDS revenue in 2025, up from 25% in the same periods of fiscal 2024 and 2023 [13] - The company is experiencing stabilization in vial demand as destocking effects ease, with a projected mid to high single-digit growth for vials in 2025 [36][38] - The company anticipates continued strong demand due to trends such as the increase in self-administration of medicine and the rise in biologics [10][27] Company Strategy and Development Direction - The company is focused on executing its multiyear investment optimization plans, enhancing commercial strategy, and positioning itself for long-term growth opportunities [26][27] - The company is evaluating a second location in Bologna, Italy, to support its innovation hub and optimize its footprint [9][10] - The strategic focus remains on high value solutions, with expectations of continued strong demand in the biologics market [10][27] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving full-year guidance, citing healthy market demand and operational improvements [26][27] - The company is well-positioned to benefit from onshoring initiatives announced by several pharma and biotech customers, particularly in the U.S. [100] - Management noted that the biologics market is heavily investing in new technology, indicating strong future demand [33][51] Other Important Information - The company announced a $200 million financing to support expansion in syringe production and capacity for ready-to-use cartridges [22][46] - Capital expenditures totaled $69.1 million for 2025, with a significant year-over-year improvement in free cash flow [22] - The company reiterated its fiscal 2025 guidance, expecting revenue between $1.16 billion and $1.19 billion [23] Q&A Session Summary Question: Are delays in new orders related to customer decision-making due to tariffs? - Management clarified that delays are primarily due to timing and customer CapEx decision-making, not lost negotiations [30][32] Question: Is there continued improvement in vial demand? - Management confirmed a 3% increase in vial demand compared to the same period last year, with confidence in mid to high single-digit growth for 2025 [36][38] Question: Are tariffs impacting customer behavior? - Management indicated that they have not seen significant pull-forward behavior due to tariffs and have been able to offset tariff impacts through customer conversations and leveraging their global footprint [42][45] Question: What is the expected growth trajectory for the Engineering segment? - Management expects a rebound in growth and margins in the Engineering segment as legacy projects are completed and new contracts are secured [74][76] Question: How is the company positioned to benefit from onshoring initiatives? - Management noted that they are seeing increased interest from clients in the U.S. for engineering offerings and technology sales due to onshoring strategies [100][101]

What's Next for Stevanato? Stevanato Group (STVN) came out with quarterly earnings of $0.12 per share, beating the Zacks Consensus Estimate of $0.11 per share. This compares to earnings of $0.1 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +9.09%. A quarter ago, it was expected that this maker of glass vials for COVID-19 vaccines would post earnings of $0.1 per share when it actually produced earnings of $0.11, delivering a ...

Financial Performance - Revenue grew by 8% year-over-year in Q2 2025, driven by a 10% increase in the BDS (Biopharmaceutical and Diagnostic Solutions) segment, offsetting a 2% decline in the Engineering segment[12, 30] - High-Value Solutions (HVS) accounted for 42% of total revenue in Q2 2025[12] and increased 13% year-over-year to €116.8 million[30] - Gross profit margin increased by 210 bps to 28.1%[31] - Adjusted EBITDA increased to €65.1 million, with an adjusted EBITDA margin increase of 240 bps to 23.2%[31] - Net profit was €29.7 million, or €0.11 of diluted EPS[31] Segment Performance - BDS segment revenue increased by 10% to €244 million, with a gross profit margin increase of 350 bps to 31.2%[33, 34, 35] - Engineering segment revenue decreased by 2% to €36.5 million, with a gross profit margin decrease to 6.6%[36, 37] Capacity Expansion and Investments - Capital expenditure (CAPEX) in Q2 2025 was €69.1 million[40] - Net cash generated from operations in Q2 2025 was €44.9 million[40] - Free cash flow in Q2 2025 was negative €13.0 million[40] - The company announced financing agreements totaling €200 million to support capacity expansion in Latina and Fishers facilities[40] Outlook - The company maintains its FY 2025 revenue guidance of €1.160 billion - €1.190 billion, representing a year-over-year growth of 5% to 8%[42] - The company expects HVS to account for 40% to 42% of revenue in FY 2025[42] - Adjusted diluted EPS is projected to be €0.50 - €0.54 for FY 2025[42] - Adjusted EBITDA is projected to be €288.5 million - €301.8 million for FY 2025[42]

Core Viewpoint - Stevanato Group (STVN) is anticipated to report a year-over-year increase in earnings driven by higher revenues, with the actual results being a significant factor influencing its near-term stock price [1][2]. Earnings Expectations - The upcoming earnings report is expected to be released on August 5, with a consensus estimate of quarterly earnings at $0.11 per share, reflecting a +10% year-over-year change [3]. - Revenues are projected to reach $302.83 million, representing an 8.4% increase from the same quarter last year [3]. Estimate Revisions - The consensus EPS estimate has remained unchanged over the last 30 days, indicating that analysts have not significantly altered their initial projections during this period [4]. - The Most Accurate Estimate for Stevanato is higher than the Zacks Consensus Estimate, resulting in a positive Earnings ESP of +20.93%, suggesting a bullish outlook from analysts [12]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that a positive Earnings ESP is a strong predictor of an earnings beat, especially when combined with a Zacks Rank of 1 (Strong Buy), 2 (Buy), or 3 (Hold) [10]. - Stevanato currently holds a Zacks Rank of 2, which, along with the positive Earnings ESP, suggests a high likelihood of beating the consensus EPS estimate [12]. Historical Performance - In the last reported quarter, Stevanato exceeded the expected earnings of $0.10 per share, achieving actual earnings of $0.11, resulting in a surprise of +10% [13]. - Over the past four quarters, the company has only beaten consensus EPS estimates once [14].

Core Insights - Investors are evaluating Merck KGaA (MKKGY) and Stevanato Group (STVN) for potential value opportunities in the Medical - Drugs sector [1] - Both companies currently hold a Zacks Rank of 2 (Buy), indicating a positive earnings outlook due to favorable analyst estimate revisions [3] Valuation Metrics - MKKGY has a forward P/E ratio of 13.54, significantly lower than STVN's forward P/E of 49.21, suggesting MKKGY may be undervalued [5] - The PEG ratio for MKKGY is 2.13, while STVN's PEG ratio is higher at 2.80, indicating MKKGY's expected earnings growth is more favorable relative to its valuation [5] - MKKGY's P/B ratio stands at 0.55, compared to STVN's P/B of 5.67, further supporting the notion that MKKGY is a more attractive value option [6] - Based on these valuation metrics, MKKGY is assigned a Value grade of A, while STVN receives a Value grade of C, highlighting MKKGY as the superior value investment at this time [6]