Summary of Stevanato Group Conference Call Company Overview - **Company**: Stevanato Group - **Industry**: Life Sciences, specifically focusing on pharmaceutical and biologic markets Key Points and Arguments 2025 Performance and Expectations - Stevanato Group is on track to meet its 2025 targets, focusing on building capacity for bio customers, with significant investments in greenfield plants in Italy and Fishers, Indiana [2][10] - The company has installed multiple production lines and is actively training operators, ensuring high-quality systems and customer validation [2][10] Market Leadership and Product Differentiation - Stevanato Group has established itself as a leader in the injectable market, being the number one worldwide in cartridges and second in syringes [6] - The company attributes its market leadership to a focus on quality, investment in state-of-the-art facilities, and a strong research and development pipeline [5][6] Growth Drivers - The biologics market is driving growth, with significant investments from bio customers in new capacities, particularly in the U.S. [9] - Stevanato is closely collaborating with clients to align supply chain growth with their needs, aiming for a revenue target of approximately €1.2 billion [10] Inventory Normalization Post-COVID - The company anticipates a return to normal order intake levels in 2025, following a period of excess inventory due to COVID-related demand spikes [11][12] - Positive signals of normalization were noted in the second half of 2024 [11] High-Value Solutions and Product Success - Stevanato has focused investments on high-value products, such as Nexa and Alba syringes, which are designed for modern drug administration methods [15][17] - The gross margin target for high-value products is between 40% to 70%, while non-high-value products target 15% to 35% [22] GLP-1 Market Position - Stevanato is well-positioned in the GLP-1 value chain, serving major insulin customers and expanding its product offerings to include GLP-1 cartridges and syringes [28][29] - The company expects GLP-1s to provide a significant revenue boost in the coming years [28] Engineering Division and Future Growth - The engineering division is expected to grow in the high single digits, driven by increased demand for inspection machines and assembly technology [39] - Recent supply chain challenges have been addressed with a 2024 optimization plan to enhance production capabilities [40][41] Investment and Capacity Expansion - Significant investments in Fishers and Latina are aimed at increasing capacity for high-value products, with most investments secured by long-term contracts [53][55] - The Latina facility is projected to generate a few hundred million euros in revenue once fully ramped up [55] Onshoring Opportunities - The company is seeing increased interest from biopharma customers for onshoring manufacturing capabilities, with a potential $300 billion in investments announced [57][60] - Stevanato's proactive investments in the U.S. are positioning it as a domestic player for new products [60] Long-Term Strategy - Stevanato aims to be a long-term partner for pharmaceutical companies, focusing on sustainable growth and adapting to market changes over the next decades [68] Profitability Outlook - The company expects profitability to improve as demand for high-value products increases and as new technologies are installed [70][72] Additional Important Insights - The company is in the early stages of transitioning to new technologies, with a focus on enhancing product quality and sterility [46][49] - Stevanato's strategy includes a holistic approach to contracts, ensuring long-term security and stability for both the company and its investors [24][30]

[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]

Core Insights - Stevanato Group (STVN) reported quarterly earnings of $0.12 per share, exceeding the Zacks Consensus Estimate of $0.11 per share, and showing an increase from $0.10 per share a year ago, resulting in an earnings surprise of +9.09% [1] - The company achieved revenues of $317.7 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 4.91% and increasing from $279.44 million year-over-year [2] - Stevanato shares have increased approximately 17.4% year-to-date, outperforming the S&P 500's gain of 7.6% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.16 on revenues of $338.76 million, and for the current fiscal year, it is $0.57 on revenues of $1.34 billion [7] - The estimate revisions trend for Stevanato was favorable prior to the earnings release, leading to a Zacks Rank 2 (Buy) for the stock, indicating expected outperformance in the near future [6] Industry Context - The Medical - Drugs industry, to which Stevanato belongs, is currently ranked in the top 37% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8]

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]

Company Overview - Stevanato Group (STVN) shares increased by 10% to close at $27.95, with notable trading volume compared to typical sessions, contrasting with a 0.6% gain over the past four weeks [1] - The rise in stock price indicates growing investor confidence in the company's revenue outlook, particularly from its high-value solutions segment [2] Financial Performance - Stevanato is expected to report quarterly earnings of $0.11 per share, reflecting a year-over-year increase of 10%, with revenues projected at $302.83 million, an 8.4% increase from the previous year [3] - The consensus EPS estimate for the quarter has remained unchanged over the last 30 days, suggesting that stock price movements may not continue without trends in earnings estimate revisions [4] Industry Context - Stevanato operates within the Zacks Medical - Drugs industry, which includes other companies like BeOne Medicines Ltd. - Sponsored ADR, which saw a 0.6% increase in its stock price [4] - BeOne Medicines Ltd. has experienced a significant change in its EPS estimate, dropping by 51.3% over the past month, but still showing a year-over-year increase of 141.7% [5]

Group 1 - The company Stevanato (NYSE: STVN) is rated with a Buy rating, indicating a positive outlook for the upcoming years [1] - A new facility in the U.S. is expected to generate significant revenue for the company [1] Group 2 - The analyst Daniel Mellado has a background in economics and statistics, with experience in analyzing agricultural commodities and managing trading and data analysis teams [1] - The trading team under his management invested in bonds, equities, and ETFs, showcasing a diverse investment strategy [1] - Future analysis and valuation will focus on sectors including commodities, banking, technology, and pharmaceuticals [1]