Stevanato Group (STVN) Q1 2025 earnings summary

Executive summary

• Achieved 9% year-over-year revenue growth in Q1 2025 to €256.6 million, driven by strong Biopharmaceutical and Diagnostic Solutions (BDS) segment performance and high-value solutions accounting for 43% of total revenue.

• Margin expansion supported by operational improvements and capacity expansion at Fishers (U.S.) and Latina (Italy) facilities.

• Engineering segment performance was soft due to legacy projects in Denmark, but optimization efforts are on track for completion by mid-2025.

• Tariff-related costs are expected to be largely passed to customers, with mitigation strategies in place and minimal impact on competitive positioning.

• High-value solutions demand remains robust, especially for pre-filled syringes and vials, supporting long-term growth.

Financial highlights

• Q1 2025 revenue rose 9% year-over-year to €256.6 million; BDS segment up 11% to €220.8 million, Engineering segment down 4% to €35.7 million.

• Gross profit margin increased 80 basis points to 27.2%; operating profit margin up 280 basis points to 13.5% (adjusted: 14.3%).

• Net profit was €26.5 million (adjusted: €28.1 million); diluted EPS €0.10; adjusted EBITDA €57.4 million, margin 22.4%.

• Free cash flow for Q1 was €29.7 million, a significant improvement from negative €30.6 million in Q1 2024; net cash from operating activities €99.8 million.

• Cash and cash equivalents stood at €90.7 million, with net debt at €300.2 million as of March 31, 2025.

Outlook and guidance

• FY 2025 revenue expected at €1,160–€1,190 million; adjusted EBITDA €288.5–€301.8 million; adjusted diluted EPS €0.50–€0.54.

• Tariff impact estimated at €4.5 million operating profit and €0.01 EPS for 2025, with mitigation efforts ongoing.

• Revenue and margin growth expected to accelerate in the second half of 2025, with BDS segment mid- to high-single-digit growth and Engineering segment neutral to low-single-digit growth.

• High-value solutions projected to comprise 39–41% of total 2025 revenue.

• Gross profit margin expected to increase by ~100 basis points for FY 2025.