Q4 2025 Stevanato Group SpA Earnings Call

March 4, 2026

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Operator: Good afternoon. This is the Chorus Call Conference Operator. Welcome, and thank you for joining the Stevanato Group Q4 and full year 2025 Financial Results Conference Call. As a reminder, all participants are in listen-only mode, and after the presentation, there will be an opportunity to ask questions. Should anyone need assistance during the conference call, they may signal an operator by pressing star and zero on their telephone. At this time, I would like to turn the conference over to Ms. Lisa Miles, Chief Communications Officer. Please go ahead, madam.

Speaker #5: Good afternoon . This is the horoscope conference . Operator . Welcome . And thank you for joining the Stevanato Group . Fourth quarter and full year 2025 financial results .

Speaker #5: Conference call . As a reminder , all participants are in listen only mode . And after the presentation , there will be an opportunity to ask questions should anyone need assistance during the conference call , they may signal an operator by pressing star and Zero on their telephone At this time , I would like to turn the conference over to miss Lisa Miles chief Communications Officer .

Speaker #5: Please go ahead , madam

Lisa Miles: Good morning. Thank you for joining us. With me today is Franco Stevanato, Chairman and Chief Executive Officer, and Marco Dal Lago, Chief Financial Officer. You can find a presentation to accompany today's results on the investor relations page of our website, which can be located under the Financial Results tab. As a reminder, some statements being made today will be forward-looking in nature and are only predictions. Actual events and results may differ materially as a result of the risks we face, including those discussed in Item 3D entitled Risk Factors in the company's most recent annual report on Form 20-F filed with the Securities and Exchange Commission. Please read our safe harbor statement included in the front of the presentation and in today's press release.

Speaker #6: Good morning , and thank you for joining us With me today is Franco Stevanato Chairman and Chief Executive Officer . And Marco Delago , chief Financial officer .

Speaker #6: You can find a presentation to accompany today's results on the Investor Relations page of our website, which can be located under the Financial Results tab.

Speaker #6: As a reminder , some statements being made today will be forward looking in nature and are only predictions . Actual events and results may differ materially as a result of the risks we face , including those discussed in item 3D entitled Risk Factors in the company's most recent annual Report on form 20 , F filed with the Securities and Exchange Commission Please read our Safe Harbor statement included in the front of the presentation and in today's press release .

Lisa Miles: The company does not assume any obligation to revise or update these forward-looking statements to reflect subsequent events or circumstances except as required by law. Today's presentation may contain non-GAAP financial information. Management uses this information in its internal analyses and believes this information may be informative to investors in gauging the quality of our financial performance, identifying trends in our results, and providing meaningful period-to-period comparisons. For a reconciliation of these non-GAAP measures, please see the company's most recent earnings press release. With that, I will now hand the call over to Franco Stevanato.

Speaker #6: The company does not assume any obligation to revise or update these forward looking statements to reflect subsequent events or circumstances , except as required by law Today's presentation may contain non-GAAP financial information Management uses this information in its internal analyses and believes this information may be informative to investors in gauging the quality of our financial performance , identifying trends in our results , and providing meaningful period to period comparisons for reconciliation of these non-GAAP measures .

Speaker #6: Please see the company's most recent earnings press release. And with that, I will now hand the call over to Franco Stevanato.

Franco Stevanato: Thank you, Lisa, and thanks for joining us. Today, we will review our 2025 performance, address current market dynamics, discuss our Q3 results, and provide 2026 guidance. We finished fiscal 2025 with another solid quarter that led to positive full-year performance and positive momentum as we start 2026. For the fiscal 2025, total company revenue increased by 9% at constant currency rates and 7% on a reported basis compared with 2024. This growth was consistent with our expectations and reflects the execution of our strategic priorities throughout 2025. The Biopharmaceutical and Diagnostic Solutions segment delivered another solid year with double-digit top-line growth for fiscal 2025. This offset the expected revenue decline from the Engineering segment.

Speaker #7: Thank you . Lisa , and thanks for joining us today . We will review our 2025 performance . Address . Current market dynamics , discuss our first quarter results and provide 2026 guidance .

Speaker #7: We finished fiscal 2025 with another solid quarter that led to positive full year performance and positive momentum as we start 2026 . For the fiscal 2025 total , company revenue increased by 9% at constant currency rates and 7% on a reported basis , compared with 2020 .

Speaker #7: Four . This growth was consistent with our expectations and reflects the execution of our strategic priorities throughout 2025 . The Biopharmaceutical and diagnostic solution segment delivered another solid year with double digit top line growth for fiscal 2025 .

Speaker #7: This offset the expected revenue decline from the engineering segment . Revenue growth in the segment was driven primarily by strong market demand for high value solutions , which increased 29% in fiscal 2025 and represented 46% of the total company revenue for the year .

Franco Stevanato: Revenue growth in the BDS segment was driven primarily by strong market demand for high-value solutions, which increased 29% in fiscal 2025 and represented 46% of the total company revenue for the year. The strong performance in high-value solutions was also the main driver for margin expansion in the year, with gross profit margin rising by 160 basis points compared to 2024. These results demonstrate the company's ability to execute against our strategic priorities and to grow our innovative premium offerings, positioning the business for sustained success in the evolving market environment. At the same time, as we continue to move up the value chain, we are pivoting away from certain non-high-value product categories that we consider not aligned with our strategy, and we might consider additional action in the future.

Speaker #7: The strong performance in high value was also the main driver for margin expansion in the year, with gross profit margin rising by 160 basis points compared to 2024.

Speaker #7: These results demonstrate the company's ability to execute against our strategic priorities and to grow our innovative premium offerings, positioning the business for sustained success in an evolving market environment.

Speaker #7: At the same time as we continue to move up the value chain , we are pivoting away from certain non high value product categories that we consider not aligned with our strategy , and we may consider additional action in the future .

Franco Stevanato: Since our IPO in 2021, we remain committed to meeting customer demand for high-value solutions, which meant investing in key projects in Fishers, Indiana, and Latina, Italy, to expand capacity for high-value syringes. In 2025, the Nexa syringe was our fastest-growing product, driven primarily by growth from GLP-1s. This should come as no surprise, as the syringe is by far the most prevalent format for GLP-1s in the United States today. There's no doubt that we've been successful in winning our fair share of the GLP-1 market. This success is rooted in our long history of being a trusted partner to customers. Our global footprint, which provides supply chain security and the quality of our products, which have characteristics that resonate with our customers. For example, our Nexa platform feature high mechanical resistance. It can be produced at scale, and it is ideally suited for an autoinjector.

Speaker #7: Since our IPO in 2021 , we remain committed to meeting customer demand for high value solutions , which meant investing in key projects in fishers , Indiana and Latina , Italy to expand capacity for high value syringes in 2025 .

Speaker #7: The next syringe was our fastest growing product , driven primarily by growth from GLP one . This should come as no surprise as the syringe is by far the most prevalent format for GLP one in the United States today There's no doubt that we have been successful in winning our fair share of the GLP one market .

Speaker #7: This success is rooted in our long history of being a trusted partner to customers Our global footprint , which provides supply chain security and the quality of our products which have characteristics that resonate with our customers For example , our next platform featured high mechanical resistance .

Speaker #7: It can be produced at scale and it is ideally suited for an injector. In fiscal 2025, our revenue from GLP-1 accounted for approximately 19% to 20% of total company revenue, growing more than 50% compared with 2024.

Franco Stevanato: In fiscal 2025, our revenue from GLP-1s accounted for approximately 19% to 20% of total company revenue, growing more than 50% compared with 2024. We currently expect that the GLP-1s will serve as a meaningful tailwind as patient demand continues to grow in the years to come. With the launch of the Wegovy pill, patients now have more options for GLP treatments. The general consensus among industry experts and our customers is that injectables are expected to be the preferred format for treatments like obesity, while oral GLPs will enable market expansion and support patients with specific needs. We also anticipate the market for GLP-1 will continue to evolve over the next decade, primarily driven by the different commercial and supply chain strategies among the originators, biosimilar launches, the expected expansion of treatment indications, and next-generation incretins still in clinical phases.

Speaker #7: We currently expect that GLP-1 will serve as a meaningful tailwind as patient demand continues to grow in the years to come, with the launch of the Wegovy pill.

Speaker #7: Patients now have more options for GLP treatments. The general consensus among industry experts and our customers is that injectables are expected to be the preferred format for treatments like obesity, while oral GLP pills will enable market expansion and support patients with specific needs.

Speaker #7: We also anticipate the market for GLP one will continue to evolve over the next decade , primarily driven by the different commercial and supply chain strategies among the originators .

Speaker #7: Biosimilar launches . The expected expansion of treatment indications , and next generation incretins stealing clinical phases . We are already seeing some of these dynamics play out in the market today .

Franco Stevanato: We are already seeing some of these dynamics play out in the market today. As we noted on prior calls, recent demand for cartridges has outpaced our prior expectation, and we are expanding our capacity to satisfy demand. We see this trend align with the introduction of new pen injector formats with various treatment plans, as well as the expected growth of biosimilars, especially in APAC. We currently expect that we will continue to benefit from GLPs in the future. We also believe that the market will continue to evolve and mature. We see a pipeline of opportunities where we are well-positioned with a deep expertise, a global footprint, and a comprehensive portfolio of products from primary packaging to our platform drug delivery devices.

Speaker #7: As we noted on prior calls , recent demand for cartridges has outpaced our prior spectations and we are expanding our capacity to satisfy demand .

Speaker #7: We see this trend align with the introduction of new pen injector formats with various treatment plans, as well as the growth of biosimilars, especially in APAC. We currently expect that we will continue to benefit from GLP's in the future.

Speaker #7: We also believe that the market will continue to evolve and mature . We see a pipeline of opportunities where we are well positioned with a deep expertise , a global footprint and a comprehensive portfolio of products from primary packaging to our platform , drug delivery devices While GLP represented the largest topline growth contributor in 2025 , we continue to increase our participation in other injectable biologics with our premium best in class , high value product portfolio In fiscal 2025 , we realized a 40% increase in the number of customers ordering premium syringes , both Alba and Extra platforms for biological applications that were unrelated to GLP one .

Franco Stevanato: While GLPs represented the largest top-line growth contributor in 2025, we continue to increase our participation in other injectable biologics with our premium best-in-class high-value product portfolio. In fiscal 2025, we realized a 40% increase in the number of customers ordering premium syringes, both Alba and Nexa platforms, for biologic application that were unrelated to GLP-1s. These two customer projects are expected to play an important role in the future growth. We continue to expand our participation in the broader set of biologic applications, with new customer programs unlocking incremental value and setting the path for sustainable growth in the coming decade. As a result, in fiscal 2025, biologics represented 41% of BDS revenues, up from 34% in 2024. Turn to the next slide for an update on our strategic growth investments.

Speaker #7: These new customer projects are expected to play an important role in the future growth . We continue to expand our participation in the broader set of biological applications with new customers , programs unlocking incremental value and setting the path for sustainable growth in the coming decade .

Speaker #7: As a result , in fiscal 2025 , biologics represented 41% of the revenues , up from 34% in 2024 . Turn to the next slide for an update on our strategic growth investments in Latina .

Franco Stevanato: In Latina, the past year was dedicated to the installation and production of syringe capacity and customer validations, all of which will continue in 2026. The next phase in Latina is devoted to increasing capacity for EZ-fill cartridges to meet rising global demand. Turning to Fishers, throughout 2025, the teams were focused on core activities, including the ongoing line installations. In parallel, customer validations and audits continue. In 2025, we doubled the number of customers that are now validated in Fishers. Looking ahead, line installations and customer validation activities are expected to continue all year. We continue to advance the build-out for contract manufacturing activities in support of a couple of large device programs for a key US customer. The build-out is going well. Nearly all of the injection molding machine are installed. We started producing components for qualification activities.

Speaker #7: The past year was dedicated to the installation and production of syringe capacity and customer validations , all of which will continue in 2026 .

Speaker #7: The next phase in Latina is devoted to increasing for easy fill cartridges to meet rising global demand Turning to fissures . Throughout 2025 , the teams were focused on core activities , including the ongoing line installations .

Speaker #7: In parallel , customer validations and audits continue . And in 2025 , we doubled the number of customers that are now validated in fissures .

Speaker #7: Looking ahead , line installations and customer validation activities are expected to continue all year . We continue to advance the build out for contract manufacturing activities in support of a couple of large device programs for a key US customer , the build out is going well .

Speaker #7: Nearly all of the injection molding machines are installed and we started producing components for qualification activities . The first phase of new cleanroom is completed .

Franco Stevanato: The first phase of new clean room is completed. We still expect the commercial activities to begin at the end of 2026 or early 2027 for the first device program. Please turn to the next slide for a status update on the engineering segment. Over the past 12 months, we've made meaningful progress advancing our optimization efforts and improving execution. In 2025, we right-sized operations, streamlined processes, and increased standardization across delivery teams. We reinforce our project management office, driving improvements in project planning, process harmonization, contract management, and customer engagement. We also consolidate offices in Denmark, move the visual inspection activities to Italy, and acquire a new location in Bologna to access strong technical talent. These actions have contributed to double-digit growth in site acceptance rates, an important KPI.

Speaker #7: We still expect the commercial activities to begin at the end of 2026 or early 2027 . For the first device program Please turn to the next slide for a status update on the engineering segment Over the past 12 months , we've made meaningful progress advancing our optimization efforts and improving execution In 2025 , we rightsized operations , streamlined processes , and increased standardization across delivery teams .

Speaker #7: We reinforce our project management office , driving improvements in project planning , process harmonization , contract management , and customer engagement . We also consolidated offices in Denmark , moved the visual inspection activities to Italy and acquired a new location in Bologna to access strong technical talent .

Speaker #7: This section have contributed to double digit growth in site acceptance rates and important KPI . Nevertheless , our 2026 guidance assumes a revenue decrease from the engineering segment due to lower order intake in the prior month While our efforts in 2025 were focused on execution , we recently stepped up our sales and marketing efforts , which has led to a more robust opportunity pipeline Converting opportunities into new form orders has been slower than we anticipated , but our pipeline is especially strong in pharmaceutical , visual inspection , underpinned by innovation and superior technology .

Franco Stevanato: Nevertheless, our 2026 guidance assumes a revenue decrease from the engineering segment due to lower order intake in the prior months. While our efforts in 2025 were focused on execution, we recently stepped up our sales and marketing efforts, which has led to a more robust opportunity pipeline. Converting opportunities into new firm orders has been slower than we anticipated, but our pipeline is especially strong in pharmaceutical visual inspection, underpinned by innovation and superior technology. All in all, getting the business back to historical performance is taking longer than we expected, and we're working to best position the segment for long-term success. In summary, 2025 was a successful year, characterized by robust top-line growth, a favorable mix, and ongoing margin expansion.

Speaker #7: All in all , getting the business back to historical performance is taking longer than we expected , and we're working to best position the segment for long term success .

Speaker #7: In summary , 2025 was a successful year characterized by robust top line growth , a favorable mix , and ongoing margin expansion , double digit growth in our segment , more than offset the expected revenue reduction in engineering and enable us to navigate the unfavorable effects from foreign currency .

Franco Stevanato: Double-digit growth in our BDS segment more than offset the expected revenue reduction in engineering and enable us to navigate the unfavorable effects from foreign currency. High-value solution were the primary driver of revenue growth and margin expansions, reflecting our ability to scale our main investments and perform in full alignment with the strategic direction set at the time of our IPO. We expect that GLPs will remain an important tailwind, having anchored our position as a market leader in high-value products. Importantly, our diverse product set enable us to achieve strategic position beyond GLPs, allowing us to participate in the broader global market for injectable biologics and biosimilars. Looking ahead, we will continue to execute our strategic priorities, including aligning growth investments with customer demand trends. I will hand the call over to Marco.

Speaker #7: High-value solutions were the primary driver of revenue growth and margin expansions, reflecting our ability to scale our main investments and perform in full alignment with the strategic direction set at the time of our IPO.

Speaker #7: We expect that GLP will remain an important tailwind having anchored our position as a market leader in high value products Importantly , our diverse product set enables us to achieve strategic position beyond GLP , allowing us to participate in the broader global market for injectable biologics and biosimilars Looking ahead , we will continue to execute our strategic priorities , including aligning growth investments with customer demand trends .

Speaker #7: I will hand the call over to Marco . Thanks .

Marco Dal Lago: Thanks, Franco. Before I begin, I want to clarify that all comparisons refer to year-over-year changes, unless otherwise specified. Starting on page 10, we ended fiscal 2025 with positive financial results for the Q4. Total company revenue grew 7% at constant currency and 5% on a reported basis to $346.5 million for the Q4 2025. Foreign currency translation was a headwind throughout fiscal 2025, with a higher impact in the second half of 2025 due to a weaker US dollar. Our BDS segment delivered another solid Q4, with revenue increasing 13% at the constant currency and 10% on a reported basis. This offset the expected 23% revenue decline in the engineering segment.

Speaker #8: Franco Before I begin , I want to clarify that all comparisons refer to year over year changes , unless otherwise specified Starting on page ten .

Speaker #8: We end fiscal 2025 with positive financial results for the fourth quarter . Total company revenue grew 7% at constant currency and 5% on a reported basis to 346.5 million for the fourth quarter of 2025 .

Speaker #8: Foreign currency translation was a headwind throughout fiscal 2025 , with a higher impact in the second half of 2025 due to a weaker US dollar Our segment delivered another solid for quarter , with revenue increasing 13% at the cost and currency and 10% on a reported basis .

Speaker #8: This offset the spec that 23% revenue decline in the engineering segment for the fourth quarter of 2025 , revenue from high value solutions grew 31% to 171 million , a represented approximately 49% of total company revenue in the quarter The strong performance was driven by continued growth in our premium perform next syringes and to a lesser extent , easy fill cartridges for the fourth quarter of 2025 .

Marco Dal Lago: For Q4 2025, revenue from high-value solutions grew 31% to EUR 171 million and represented approximately 49% of total company revenue in the quarter. The strong performance was driven by continued growth in our premium performance Nexa syringes and, to a lesser extent, EZ-fill cartridges. For Q4 2025, gross profit margin increased 120 basis points to 30.9%. This was mostly driven by three factors. First, a favorable mix of high-value solutions. Second, the year-over-year improvements in Latina and Fishers as we scale production in our new facilities. Together, they remain dilutive to the corporate margin. Third, the improved market landscape for vials, which led to higher vial production and better utilization. This was partially offset by tariffs and unfavorable effects of foreign currency.

Speaker #8: Gross profit margin increased 120 basis points to 30.9% . This was mostly driven by three factors . First , a favorable mix of high value solutions Second , the year over year improvements in Latina and Fissures as we scale production in our new facilities .

Speaker #8: But together , they remain dilutive to the corporate margin . And third , the improved market landscape for vials , which led to higher vial production and better utilization This was partially offset by tariffs and unfavorable effects of foreign currency For the fourth quarter of 2025 , operating profit margin was 20.2% .

Marco Dal Lago: For Q4 2025, operating profit margin was 20.2%. As a result, net profit totaled EUR 47.6 million, and diluted earnings per share were EUR 0.17. On an adjusted basis, net profit was EUR 49.8 million, and adjusted diluted EPS were EUR 0.18 for Q4 2025. Adjusted EBITDA increased 7% to EUR 97.7 million, and adjusted EBITDA margin increased 70 basis points to 28.2%. Let's review segment results on page 11. The BDS segment finished strong with double-digit growth in Q4. Revenue grew 13% at a constant currency and 10% on a reported basis to EUR 307.1 million. Segment growth was led by a 31% revenue increase from high-value solutions to EUR 171 million, which accounted for 56% of segment revenue.

Speaker #8: As a result , net profit totaled 47.6 million and diluted earnings per share were $0.17 . On an adjusted basis , net profit was 49.8 million and adjusted diluted EPs were $0.18 for the fourth quarter of 2025 , adjusted EBITDA increased 7% to 97.7 million , and adjusted EBITDA margin increased 70 basis points to 28.2% .

Speaker #8: Let's review segment results on page 11 . The Bdz segment finished strong with double digit growth in the fourth quarter . Revenue grew 13% at constant currency and 10% on a reported basis to 307.1 million .

Speaker #8: Segment growth was led by a 31% revenue increase from high value solutions to 171 million , which accounted for 56% of segment revenue This offset the 9% revenue reduction in other containment and delivery solutions As we prioritize the production of premium products for the fourth quarter of 2025 , gross profit margin for the segment improved 50 basis points to 31.6% , led by a favorable mix of operational gains in our new facilities .

Marco Dal Lago: This offset the 9% revenue reduction in other containment and delivery solutions as we prioritize the production of premium products. For Q4 2025, gross profit margin for the BDS segment improved 50 basis points to 31.6%, led by a favorable mix, operational gains in our new facilities as we scale commercial production, and an improved vial market. These positive trends were offset by the unfavorable impact of tariffs and foreign currency translation. This resulted in an operating profit margin of 23.8%, which improved 50 basis points in Q4 2025. The BDS segment continues to perform well, reflecting the successful execution of our strategic priorities and a strong position to capitalize on future opportunities.

Speaker #8: As we scale commercial production and an improved vial market, these positive trends were offset by the unfavorable impact of tariffs and foreign currency translation. This resulted in an operating profit margin of 23.8%, which improved 50 basis points in the fourth quarter of 2025.

Speaker #8: The segment continues to perform well, reflecting the successful execution of our strategic priorities and the strong position to capitalize on future opportunities. For the fourth quarter of 2025, revenue from the engineering segment decreased 23% to €39.4 million due to lower revenue in glass conversion and assembly, offset by growth in pharmaceutical visual inspection.

Marco Dal Lago: For Q4 of 2025, revenue from the engineering segment decreased 23% to EUR 39.4 million due to lower revenue in glass conversion and assembly, offsetting growth in pharmaceutical visual inspection. For Q4 of 2025, segment gross profit margin decreased to 15.8% and, as a result, operating profit margin was 9.1%. Ongoing efforts under our business optimization plan have yielded improvements in execution and meaningful operational progress. However, the unfavorable portfolio mix, coupled with low order intake, continues to put pressure on margins. The team has been very focused on securing new orders, which will help refresh and reposition the portfolio for long-term success. Please turn to the next slide for a view of balance sheet and cash flow items.

Speaker #8: For the fourth quarter of 2025 , segment gross profit margin decreased to 15.8% , and as a result . Operating profit margin was 9.1% .

Speaker #8: Ongoing efforts . Under our business optimization plan have yielded improvements in execution and meaningful operational progress However , the unfavorable portfolio mix coupled with low order intake continues to put pressure on margins .

Speaker #8: The team has been very focused on securing new orders, which will help refresh and reposition the portfolio for long-term success. Please turn to the next slide for a view of balance sheet and cash flow items. We ended the year with cash and cash equivalents of $130.6 million and net debt of $337.7 million.

Marco Dal Lago: We ended the year with cash and cash equivalents of EUR 130.6 million and net debt of EUR 337.7 million. With our current cash on hand, cash generated from operations, available credit lines, and our ability to access additional financing, we believe we have available liquidity to fund our strategic and operational priorities over the next 12 months. For the full year 2025, capital expenditures totaled EUR 294.9 million, of which approximately 89% were deployed for growth projects to support customer demand. These investments are related to capacity expansion for high-value solutions and supporting future DDS commercial activities. For the full year 2025, cash from operating activities totaled EUR 286.1 million. Cash used in the purchase of property, plant, equipment, and intangible assets was EUR 275.1 million.

Speaker #8: With our current cash on hand , cash generated from operations available , credit lines and our ability to access additional financing . We believe we have available liquidity to fund our strategic and operational priorities over the next 12 months .

Speaker #8: For the full year 2025 , capital expenditures totaled 294.9 million , of which approximately 89% were deployed for growth projects to support customer demand .

Speaker #8: These investments are related to capacity expansion for high-value solutions and supporting future needs, as well as commercial activities. For the full year 2025, cash from operating activities totaled $286.1 million.

Speaker #8: Cash used in the purchase of property , plant , equipment and intangible assets was 275.1 million . The combination of increased cash flow from operations and lower CapEx helped drive a significant year over year improvement in free cash flow , and we exited fiscal 2025 with positive free cash flow of 18.4 million for the full year Lastly , to the next slide , we are establishing 2026 guidance .

Marco Dal Lago: The combination of increased cash flow from operations and lower CapEx helped drive a significant year-over-year improvement in free cash flow. We exited fiscal 2025 with positive free cash flow of EUR 18.4 million for the full year. Lastly, turn to the next slide. We are establishing 2026 guidance. We expect revenue in the range of EUR 1,260 million to 1,290 million. On a constant currency basis, revenue will range between EUR 1,278 million and 1,308 million. Adjusted EBITDA in the range of EUR 331.8 million to 346.9 million. Adjusted diluted EPS in the range of $0.59 to $0.63. Our 2026 guidance considers headwinds and tailwinds, and we have assumed the following factors.

Speaker #8: We expect revenue in the range of $1,000,000,260 million to $1,000,000,290 million. On a constant currency basis, revenue will range between $1,000,000,278 million and $1,000,000,308 million. Adjusted EBITDA will be in the range of $331.8 million to $346.9 million, and adjusted diluted EPS in the range of $0.59 to $0.63.

Speaker #8: Our 2026 guidance considers headwinds and tailwinds , and we have assumed the following factors . Revenue will be stronger in the second half of 2026 compared with the first half .

Marco Dal Lago: Revenue will be stronger in the second half of 2026 compared with the first half. The effects from foreign currency translation are expected to be a headwind of approximately EUR 18 million for fiscal 2026, with an impact of approximately EUR 10 million in Q1. As a result, in Q1, we expect mid-single digit revenue growth on a reported basis compared to last year based on the midpoint of our guide. For the full year, the BDS segment is expected to grow on a reported basis, high single to low double digits, and double digits on a constant currency rate. Engineering is expected to decline by mid-single digit to low double digits. For fiscal 2026, high-value solutions are expected to range between 47% to 48% of total company revenue. In 2026, we are assuming a tax rate of approximately 26.8%.

Speaker #8: The effects from foreign currency translation are expected to be a headwind of approximately $18 million for fiscal 2026, with an impact of approximately $10 million in Q1.

Speaker #8: As a result , in the first quarter , we expect mid-single digit revenue growth on a reported basis compared to last year . Based on the midpoint of our guide for the full year , the BDS segment is expected to grow on a reported basis .

Speaker #8: High single to low double digits and double digits on a constant currency rate . Engineering is expected to decline by mid-single digit to low double digits for fiscal 2026 .

Speaker #8: High value solutions are expected to range between 47% to 48% of total company revenue, and in 2026, we are assuming a tax rate of approximately 26.8%.

Marco Dal Lago: Finally, capital expenditures and free cash flow. We have assumed CapEx in the range of EUR 270 million to 290 million before customer contributions and prepayments. Net of contributions and prepayments, CapEx is expected to range between EUR 240 million and 260 million. Regarding free cash flow, in 2026, we are modeling breakeven to positive free cash flow of approximately EUR 20 million. I will hand the call back to Franco.

Speaker #8: And finally , capital expenditures and free cash flow . We have assumed CapEx in the range of 270 million to 290 million before customer contributions and prepayments , net of contributions and prepayments .

Speaker #8: CapEx is expected to range between 240 and 260 million . Regarding free cash flow in 2026 , we are modeling breakeven to positive free cash flow of approximately 20 million .

Speaker #8: I will end the call back to Franco .

Franco Stevanato: Thank you, Marco. In closing, we remain focused on executing our key priorities supported by strong business fundamentals. We operate in attractive, growing end markets with favorable secular tailwinds. Innovation across the industry continues to advance patient care, and we remain mission-critical to the delivery of biologics, supporting new therapeutic areas, expanding global access to treatments, and improving standards of care. Demand for innovative drug products remains strong. There are more than 9,000 injectable assets in the global drug pipeline undergoing clinical evaluation or being registered, and more than 60% are biologics. We believe we are well positioned to serve this demand through our integrated value proposition, differentiated portfolio, and long-standing commitment to science and technology-driven innovation. Biologics, our fastest-growing segment, is expected to remain a key driver of top-line growth and margin expansion as we continue to move up the value chain.

Speaker #7: Thank you Marco . In closing , we remain focused on executing our key priorities , supported by strong business fundamentals . We operate in attractive , growing and markets with favorable secular tailwinds .

Speaker #7: Innovation across the industry continues to advance patient care and will remain mission critical to the delivery of biologics . Supporting new therapeutic areas , expanding global access to treatments , and improving standards of care .

Speaker #7: Demand for innovative drug products remains strong There are more than 9000 injectable assets in the global drug pipeline undergoing clinical evaluation or being registered , and more than 60% are biologics .

Speaker #7: We believe we are well positioned to serve this demand through our integrated value proposition , differentiated portfolio and long standing commitment to science and technology driven innovation .

Speaker #7: Biologics . Our fast and growing segment is expected to remain a key driver of top line growth and margin expansion as we continue to move up the value chain .

Franco Stevanato: At the same time, we're making meaningful operational progress. We expect to increasingly benefit from new capacity coming online, productivity gains, and improvements within our engineering segment. Together, we expect that these efforts position us to deliver long-term sustainable growth and shareholder value. Operator, we are ready for questions.

Speaker #7: At the same time , we are making meaningful operational progress and we expected to increasingly benefit from new capacity coming online . Productivity gains and improvements within our engineering segment expect that these efforts position us to deliver long term , sustainable growth and shareholder value Operator we are ready for questions

Operator: Thank you. This is the Chorus Call conference operator. We will now begin the question-and-answer session. Anyone who wishes to ask a question may press star and one on their touchtone telephone. To remove yourself from the question queue, please press star and two. Please pick up the receiver when asking questions. Anyone who has a question may press star and one at this time. We kindly ask you to limit to one question and one follow-up only, and join the queue again for any further questions. We will pause for a moment as participants are joining the queue. First question is from Mike Ryskin, Bank of America.

Speaker #5: Thank you . This is the conference . Operator . We will now begin the question and answer session Anyone who wishes to ask a question may press star and one on their touch tone telephone .

Speaker #5: To remove yourself from the question queue, please press star and two. Please pick up the receiver when asking questions. Anyone who has a question may press star and one.

Speaker #5: At this time , we kindly ask you to limit to one question and one follow up only And join the queue again for any further questions .

Speaker #5: We will pause for a moment as participants are joining the queue First question is from Michael Ryskin , Bank of America .

Mike Ryskin: Great. Thanks for taking the question and congrats on the strong end to the year. I want to start on, sort of parsing out your guide for 2026. Appreciate you provided a lot of color in the deck, and in your prepared remarks. I'm curious if you would comment on your expectations for GLP-1s in 2026. I think you said for 2025 it was up to 19% to 20% of revenues and grew 50% year-over-year. At the midpoint of your guide for 2026, what is your assumption for GLP-1 growth next year? I have a follow-up. Thanks.

Speaker #9: Great, thanks for taking the question, and congrats on the strong end to the year. I want to start by sort of parsing out your guide for 2026.

Speaker #9: I appreciate you provided a lot of color in the deck and in your prepared remarks . I'm curious if you would comment on your expectations for GLP 1 in 2026 .

Speaker #9: I think you said for 2025 it was up to 19 to 20% of revenues and grew 50% year over year . So at the midpoint of your guide for 2026 , what is your assumption for GLP one growth next year ?

Speaker #9: And I have a follow up . Thanks .

Marco Dal Lago: Thank you. Franco speaking. Revenue from the GLP-1s accounted in 2025, approximately between 19% to 20%. We have delivered our growth in 2020 compared to 2024, about 50%. If you do an estimation and look at our outlook on 2026, within us would be a growth in the range of mid-teens.

Speaker #10: Thank you. Franco speaking. Revenue from the GLP-1 account in 2025, approximately between 19% to 20%. And we have growth in 2025 compared to 2024.

Speaker #10: About 50%. If you do an estimation, if we look at our outlook on 2026, we think that will be a growth in the range of mid-teens.

Mike Ryskin: Okay. Mid-teens. Okay. That's great. Thanks. Follow up on the engineering segment. I mean, on the one hand, encouraging, it sounds like you're making a lot of progress in terms of the operational plan, the optimization, you know, moving some of the facilities around, right-sizing operations. All of that is encouraging. The guide for engineering for 2026 and the color on low order intake, that's a disappointing update. On the order intake side, this is engineering specific. We'd just love to get a better sense of what you think is behind that. Is that some weakness in the market? Is it, you know, as simple as you guys were so focused on getting the operational things right that you missed a few opportunities?

Speaker #9: Okay . Meetings . Okay . That's great . Thanks . And then follow up on the engineering segment . I mean , on the one hand , encouraging it sounds like you're making a lot of progress of the operational plan .

Speaker #9: The optimization , you know , moving some of the facilities around , rightsizing operations , all of that is encouraging . But then the guide for engineering for 2026 and the color on low order intake , that's a that's a disappointing update .

Speaker #9: So on the order intake side , we just love to this is engineering specific . Would just love to get a better sense of what you think is behind that .

Speaker #9: Is that some weakness in the market ? Is it as simple as you guys were so focused on getting the operational things right that that you missed a few opportunities ?

Mike Ryskin: Just get a sense of why that suddenly turned bad in the second half of 2025, and how quickly can you regain the momentum on the commercial side of things?

Mike Ryskin: Just get a sense of why that suddenly turned bad in the second half of 2025, and how quickly can you regain the momentum on the commercial side of things? Thanks.

Speaker #9: Just get a sense of why that's suddenly turned bad in the second half of 2025. And how quickly can you regain momentum on the commercial side of things?

[Analyst]: Thanks.

Franco Stevanato: Right. First of all, the pharmaceutical market, in particular biologics, is also robust in term of demand for new machine. That means for inspection machine, assembly technology is very robust. Today, most of the biologic market it will move to injection and when there is also self-administration, and it's going to require an inspection machine. Today, the order intake and the pipeline that we have in the engineering is healthy, it is rich. What is the big, the nice KPI is the fact that there are repetitive orders with our historical big clients. What was the pain point is the fact that the sales cycle, because of technicality of this line, takes a little bit longer than was expected. Translating what?

Speaker #9: Thanks .

Speaker #10: So first of all , the pharmaceutical market in particular , biologics is also robust in terms of demand for new new machines for inspection machine assembly technology is very robust today , most of the biologics market it will move through injection .

Speaker #10: And when there is also self-administration and is going to require special machines . So today the order intake , the pipeline that we have in in the engineering is healthy , is rich .

Speaker #10: What is the big the nice KPI is the fact that there are repetitive orders with our historical big clients . So what was the the , the the pain point is the fact that the sales cycle , because of technicality of this line , is taking a little bit longer .

Speaker #10: That was expected. Translating what instead to maybe receive the order, the confirmation of the order in January or February can be easily postponed a few months.

Franco Stevanato: Instead to maybe receive the order, the confirmation of the order in January, February, can be easily postponed few months. This is the reason why we took some more prudent approach. Another important element that I would like to underline, in 2025, the big focus of the engineering division is really to make a strong operational progress in terms of management and execution. The good KPI that we can translate to share with you is the number of site acceptance tests that increase and more than double in 2025 compared to 2024. This is extremely important. At the end of the day, the company in 25 focus our attention to execute, deliver this line. Now we are entering the new ways to new orders, repetitive orders with our clients. This is take a little bit more months than what are our expectation.

Speaker #10: This is going to—there is why we took some more prudent approach. Another important element that I would like to underline: in 2025, the big focus of the engineering division is really to make strong operational progress in terms of management and execution. And the good KPI that we can translate to share with you is the number of sites acceptance tests, that increase more than double in 2025 compared to 2020.

Speaker #10: Four . This is extremely important at the end of the game , the company in 25 focus our attention to execute deliver this line .

Speaker #10: Now we are entering the new waves to new orders , repetitive orders with our clients . The . This is take a little bit more months than what are about expectation , but the outlook in the medium term is strong .

Franco Stevanato: The outlook in the medium term is strong also in the engineering division.

Speaker #10: Also in the engineering division

[Analyst]: Thanks so much. Appreciate the call.

Mike Ryskin: Thanks so much. Appreciate the call.

Speaker #9: Thanks so much . Appreciate the color

Operator: Next question is from Patrick Donnelly, Citi.

Speaker #5: Next question is from Patrick Donelli , Citi

Patrick Donnelly: Thank you guys for taking the questions. Maybe one on the high-value solutions side. It seems like you guys are guiding 47%, 48% of revenue for that segment. Can you just talk about where we are on kind of the utilization capacity side? I know you guys are ramping Fishers, you're ramping Latina in terms of utilization. Are you still capacity constrained with the high-value side? You know, just wondering where we are on the capacity side versus the demand. Are there areas where demand is outpacing capacity? Would be helpful just to talk through that piece.

Speaker #11: Thank you guys for taking the questions . Maybe one on the high value solution side , it seems like you guys are guiding 4,748% of revenue for that segment .

Speaker #11: Can you just talk about where we are on kind of the utilization capacity side ? I know you guys are ramping fissures . You're ramping Latina in terms of utilization .

Speaker #11: Are you still capacity constrained with the high value side ? Just wondering where we are on the capacity side versus the demand ? Are there areas where demand is outpacing capacity would be helpful just to talk through that piece ?

Franco Stevanato: Capacity in Stevanato Group, in particular for preferred syringes through the format of Nexa syringes, Alba syringes, and cartridges is play a role. 2025, practically, we run approximately in full capacity in Stevanato Group. This is translated in the ramping up that we are doing in Latina, in particular, with good success, the ramp up that we are doing in Fishers. Also in 2026, we will follow this nice positive momentum, where the demand is robust, practically in all our high value products. The capacity had played a role in 2025. It will play a role also in 2026 for Stevanato Group.

Speaker #10: So capacity in Stevanato Group S.p.A. particular for prefilled syringes through the format of nexus ranges , Alba syringes , a cartridges is play a role in 2025 .

Speaker #10: Practically we run approximately in full capacity in of group . And also this is the translated in the ramping up that we're doing in Latin and particular with good success .

Speaker #10: The ramp up that we are doing in fissures . So also in 2026 , we will this , this nice , positive momentum where the demand is robust , practically in all our high value products .

Speaker #10: But the capacity have played a role in 25 . It will play a role also in 2026 for seven group

Patrick Donnelly: Okay. That's helpful. Maybe one for Marco, just on the margin expansion here. Again, obviously the mix helps to a degree with some of the high-value stuff. It's helpful here with GLP-1 growth. Can you just talk about, you know, the moving pieces on the margins? You know, the right way to think about the path forward here as high-value becomes a bigger and bigger piece of the pie. I guess flowing that into just the cash flow piece, you know, how you continue to drive an inflection there, it seems like a little bit positive this year. Thank you, guys.

Speaker #11: Okay . That's helpful . And then maybe Marco just on the margin expansion here . Again obviously the mix helps to a degree with some of the high value stuff .

Speaker #11: It was helpful here. The GLP growth—can you just talk about the moving pieces on the margins? What’s the right way to think about the path forward here as high value becomes a bigger and bigger piece of the pie?

Speaker #11: And then I guess following that into just the cash flow piece, how you continue to drive an inflection there. It seems like it’s a little bit positive this year.

Speaker #11: Thank you guys .

Lisa Miles: Patrick, just to clarify, I think you're asking about 26 or are you asking about 25?

Speaker #12: Patrick , just to clarify , I think you're asking about 26 . Or are you asking about 25 ?

Patrick Donnelly: Yes, 2026 margin expansion and just the drivers of cash flow into 2026 as well.

Speaker #11: Yes, 2026 margin expansion and just the drivers of cash flow into 2026 as well.

Franco Stevanato: Yes, thanks for the question. Overall, Stevanato Group level, we are assuming our guidance, as mentioned, the center point of the guidance, 7.5% revenue growth and 8.3% on a constant currency basis. About margin, we see margin expansion from 0 to 30 basis points on consolidated level. Operating profit margin expanded 50 basis points at the center point of our guidance and adjusted EBITDA margin expanding for approximately 150 basis points. Gross profit margin, we can put together some headwinds and tailwinds. On the headwind side, for sure we can mention higher depreciation where compared with 2025. We expect approximately 150, 170 basis points more in depreciation on industrial business. We have currency headwind embedded in our guidance.

Speaker #13: Yes . Thanks for the question . So overall , Stevanato group level , we are assuming our guidance . As mentioned at the center point of the guidance , 7.5% revenue growth and 8.3% on a constant currency basis .

Speaker #13: About margin . We see margin expansion from 0 to 30 basis points on consolidated level Operating profit margin expanded 50 basis points at the center point of our guidance .

Speaker #13: And the a margin expanding for approximately 150 basis points . Gross profit margin . We can put together some headwinds and tailwinds on the headwind side .

Speaker #13: For sure , we can mention higher depreciation . We compared with 2025 . We expect approximately 150 170 basis points more in depreciation on industrial business We have currency headwind embedded in our guidance and on the positive side , instead we have ramp up of the two new facilities where we can see quarter after quarter the financial performance is improving , both in Latin and seizures .

Franco Stevanato: On the positive side, instead, we have ramp up of the 2 new facilities where we can see quarter after quarter, the financial performance is improving, both in Latina and Fishers. We are on the right track there to keep on expanding profitability. I touch briefly also engineering. Frank already mentioned the market and revenue guidance. What I can tell you is that we anticipate better margin in 2026 compared to 2025, mainly driven by the project mix. We are targeting more repetitive contracts with the respective customers, not really customized lines as we did in the past. Also we leverage the optimization plan we executed in 2024 and 2025. This is embedded in our model and in our guidance for 2026.

Speaker #13: So, we are on the right track there to keep on expanding profitability. I touched briefly also on engineering—Franco mentioned the market and revenue guidance.

Speaker #13: What I can tell you that we anticipate better margin in 2026 compared to 2025 , mainly driven by the product mix . We are targeting more repetitive contracts with the repetitive customers , so not really customized lines where as we did in the past and also we will leverage the optimization plan we executed in 2024 and 2025 .

Speaker #13: So we are this is embedded in our model and in our guidance for 2026 .

Doug Schenkel: Great. Thank you.

Patrick Donnelly: Great. Thank you.

Speaker #11: Great . Thank you

Operator: Next question is from Doug Schenkel, Wolfe Research.

Speaker #5: Next question is from Doug Schenkel , Wolfe Research

Doug Schenkel: Good day, everybody, and thank you for taking the questions. I have three. I'll just throw them out there and then listen to your answers. One, is there any change in how you are thinking about the long-term growth outlook for GLP-1s for your business? Two, more near term, how strong is your visibility on demand pursuant to the assumption you embedded into guidance for GLPs, which I think is high teens growth in 2026. Third, thinking about Lilly's multi-dose KwikPen format, how do the economics differ between formats for Steno and, you know, really getting at vials versus cartridges? Thank you.

Speaker #14: Good day , everybody , and thank you for taking the questions . I have three I'll just throw them out there and then listen to your answers .

Speaker #14: So, one, is there any change in how you are thinking about the long-term growth outlook for GLP-1 for your business to more near-term?

Speaker #14: How strong is your visibility on demand pursuant to the assumption you embedded into guidance for GLP , which I think is high , teens growth in 2026 and then third , thinking about Lilly's Multi-dose quick pen format , how do the economics differ between formats for Stevanato and really getting at vials versus cartridges ?

Speaker #14: Thank you

Franco Stevanato: What is related to the GLP-1 in 2026, practically, we are just executing the forecast that we share with our clients today, and everything is embedded in our guidance that we are sharing with you. Today we have already all the program that was clear with our clients. For what is beyond 2026, it's a little bit too early to make any type of plan because there are a lot of moving pieces in the GLP-1. We see the big originator that are moving between the also the pen, the autoinjector. They're launching also cartridges, new requirement, thanks to their fixed dose pen. Also we see a lot of biosimilar in the market that are continues to be very, very active to put capacity both for syringes, for cartridges, also for the devices.

Speaker #10: So what is related to the GLP 1 in 2026 ? Practically , we are just executing the forecast that we share with our clients today .

Speaker #10: And I already everything is embedded in our guidance that we are sharing with you today . We have we have already all the programs that we was are clear with our clients .

Speaker #10: But what is beyond the 2026 is a little bit too early to make any type of plan , because there are a lot of moving pieces in the GLP one .

Speaker #10: We see the big originator that are moving between the also the pendant injector , the launching also cartridges , new requirements thanks to their fixed dose pen .

Speaker #10: They also we see a lot of biosimilar in the market that are continues to be very , very active . To put capacity both for syringes for cartridges , also for the devices .

Franco Stevanato: The GLP-1 in the next decade, it will continue to be a powerful tailwind for Stevanato Group, for all the industry. It's a little bit too early to understand what will be the final configuration between originator, biosimilar, and pen versus autoinjector.

Speaker #10: So the GLP one in the next decade , it will continue to be a powerful tailwinds for Stevanato for all the industry , but is a little bit too early to understand what will be final configuration between originator , biosimilar

Speaker #7: Pen versus Autoinjector

Lisa Miles: I think that answer covers all of your questions, Doug, just to confirm.

Speaker #12: I think that answer covers all of your questions. So, just to confirm.

Doug Schenkel: Yeah. I think the only thing, Lisa, was just the economics of the different formats.

Speaker #14: Yeah , I think the only thing Lisa was just the the economics of the different formats

Lisa Miles: Oh, in terms of syringes, cartridges, vials, so on and so forth.

Speaker #12: O in terms of syringes , cartridges , vials , so on and so forth .

Franco Stevanato: Also.

Doug Schenkel: Yeah.

Speaker #7: Also here .

Speaker #14: Yeah , if

Franco Stevanato: We will-- Le-le-let's-

Doug Schenkel: Oh, go ahead. Sorry.

Speaker #7: We

Speaker #14: Go ahead , sorry .

Franco Stevanato: Most of the GLP-1 products are under syringe Nexa. That's a high-value product or cartridges ready to fill. That is also a high-value product. We have in biosimilar a lot of requirement through our Alina pen. That is a high-value product. This is practically the same. The tendency to answer to you that GLP-1 is going to be in a configuration of high-value product because of EZ-fill or through Alina for Stevanato Group.

Speaker #7: Most most of the GLP one products are under syringes . That is in high value product or cartridges ready to fill . That is also a high value product we have in a lot of requirements through our aligner pen that is in high value product .

Speaker #7: This is practically the tendency is to answer to you that GLP one is going to be in a configuration of high value product because of high easy fill , or tülin for auto group

Doug Schenkel: Okay. Thank you again. Have a great day.

Speaker #14: Okay . Thank you again . Have a great day

Operator: Next question is from David Windley, Jefferies.

Speaker #5: Next question is from David Windley . Jefferies .

David Windley: Hi. Thanks. I just wanted to clarify definitionally, when you are talking about GLP-1s, are you including the full gamut of mechanisms that are kind of pursuing obesity, GLP-1, GIP, glucagon, you know, non-incretin glucagon, you know? Are we kind of generally bucketing all of that together for definitional purposes? Thanks.

Speaker #15: Hi . Thanks . I just wanted to clarify Definitionally when when you are talking about GLP one , are you including the full gamut of mechanisms that are kind of pursuing obesity ?

Speaker #15: So GLP one , GIP , glucagon , you know , non and glucagon , you know , are we are we kind of generally bucketing all of that together for definitional purposes ?

Speaker #15: Thanks .

Franco Stevanato: Correct. I confirm.

Speaker #7: Correct . I confirm .

David Windley: Yeah. As you think about, I think you talked about Nexa syringe being the strongest driver of growth in 2025. Franco, you just commented to Doug's question about the kind of 2027 and beyond outlook being a little less clear because of the transition. I guess in 2026, on that guidance that you're giving for this GLP-1 or obesity category, is that still driven by Nexa syringe, or do you see that starting? You mentioned in the prepared remarks some uptake in capacity and cartridge in your next phases of capacity. Is cartridge kind of overtaking the growth lead as we move into 2026 and beyond?

Speaker #15: Yeah. And then as you think about, I think you talked about a Nexus syringe being the strongest driver of growth in '25.

Speaker #15: Franco , you just commented to Doug's question about the the kind of 27 and beyond outlook being a little less clear because of the transition .

Speaker #15: I guess in in 26 on that guidance that you're giving for this GLP one or obesity category , is that still driven by Nexus syringe or do you see that starting you mentioned in the prepared remarks some uptake in in capacity and cartridge in your next phases of capacity is cartridge kind of overtaking the growth as we move into 26 and beyond

Franco Stevanato: In 2026, Nexa syringes will continue to play an important role in the GLP-1s, David. Beyond the 2026, it's also true that we are building a lot of capacity on the cartridges ready to fill. Still minor compared to syringe Nexa, but we are starting also to see that the customer originators and also biosimilar, they are starting to put this new capacity not only on syringes but also for cartridges in the next year to come beyond 26.

Speaker #7: In 2026 . Next ranges , it will continue to play an important role in in the GLP one . David , beyond the 2026 is also true that we are building a lot of capacity on the cartridges to fill .

Speaker #7: Still minor compared to syringe and but we are starting also to see that the customer originators and also biosimilar , they are starting to put new capacity not only on syringes but also for cartridges in the next year to come .

Speaker #7: Beyond 26 .

David Windley: Thanks. If I could just sneak in a follow-up on the margin question. Would you be able to size, maybe this is a Marco question, but size the tariff and FX headwinds to margin so we kinda understand what the gross improvement was from the mix shift to HVS, but offset by tariffs and FX, please?

Speaker #15: Thanks . And if I could just sneak in a follow up on on the margin question , would you be able to size maybe this is a Marco question , but size the tariff and FX headwinds to margins .

Speaker #15: So we kind of understand what the gross improvement was from the mix shift to Hcvs , but offset by tariffs and FX . Please .

Franco Stevanato: Yeah, sure. We mentioned the top line about EUR 18 million currency headwind. Assuming our model, 1.20 euro-dollar exchange rate that, you know, in the very last days, there was volatility, but this is what we have in our model. You can assume about 30% of that is impacting margins for 2026. About tariffs, we have been able to have a good dialogue with our customers, mainly predominantly transferring the effect of tariffs to customers. In 2025, we had about EUR 4 million headwinds, but it was mainly related to supply chain and the time to transfer the different scenario. We are assuming limited impact from tariffs in 2026.

Speaker #13: Yeah , sure . We mentioned the top line about 80 million currency headwind . Assuming our model €1.20 dollar exchange rate that , you know , in the very last days , there was volatility .

Speaker #13: But this is what we have in our model . You can assume about 30% of that is impacting margins For 2026 , about tariffs , we have been able to have a good dialogue with our customers , mainly in predominantly transferring the effect of tariffs to customers .

Speaker #13: In 2025 , we had about 4 million headwinds , but it was mainly related to supply chain and the time to transfer the different scenario .

Speaker #13: So we are assuming limited impact from tariffs in 2026 .

[Analyst]: Okay, that's great. Thank you.

David Windley: Okay, that's great. Thank you.

Speaker #15: Okay . That's great . Thank you

Franco Stevanato: You're welcome.

Speaker #16: You're welcome .

Operator: Next question is from Paul Knight, KeyBank.

Speaker #5: Next question is from Paul Knight, KeyBanc.

Paul Knight: Hi, Franco. After the 50% growth in GLP-1s last year, your mid-upper teens guide on 2026 seems a bit conservative. Is it because Fishers is just ramping, or what's behind this guide on GLP-1s for this year?

Speaker #17: Hi , Franco . After the 50% growth in GLP one last year , your mid upper teens guide on 26 seems a bit conservative .

Speaker #17: Is it because Fisher's is just ramping, or what's behind this guide on GLP ones for this year?

Franco Stevanato: No, I think it's coherent because of the pharmaceutical industry in particular or the originators, they launch the product on the market in 2025. There was a massive preparation of the supply chain. Now, to have a mid-teens growth in this category of drugs is still very important. I think it is a realistic number. They have two years to speak when there is a takeoff of the product, when starting the product has to really go commercial. This is what we see through our originator and also through our biosimilar clients.

Speaker #16: And

Speaker #7: No , it's I think it's coherent because of the the pharmaceutical industry in particular . All the originators they launch the the product on the market in 2025 .

Speaker #7: There was a massive preparation of the supply chain . Now to have a mid-teens growth in this in the in this category of drugs is still a very important I think is a realistic number for The two two .

Speaker #16: Split .

Speaker #7: When there is a take off of the product . When starting , the product has to really go commercial . So this is what what we see through our originator .

Speaker #7: And also to our , our biosimilar clients .

Lisa Miles: Paul, perhaps it's best to think about it as an initial surge followed by a period of normalization where growth slows a bit.

Speaker #16: How—perhaps it's best to think about it.

Speaker #12: As an initial surge followed by a period of normalization, where growth slows a bit.

Paul Knight: Yeah. Then you had mentioned earlier a 45% increase in customers using high-value product. What's driving that? Is it share gain? Is it Annex 1 regulations? Is it recent approvals that have been the right ones for you? What's behind that 45% customer gain?

Speaker #17: Yeah . And then you had mentioned earlier a 45% increase in customers using high value product . What's driving that ? Is it share gain ?

Speaker #17: Is it annex one regulations ? Is it recent approvals that have been the right ones for you ? What's behind that 45% customer gain

Franco Stevanato: On the non-GLP-1 biologic, you mean, Paul? Yes. This is our most important KPI, Stevanato Group. The strategy that we're building since the day of the IPO, Stevanato Group, is to become the partner of the pharmaceutical industry and everything that is around biologic. Well, the good news that more than 60% of biologic, it will be through injection, through a certain medication, through devices. This has become our big number 1 strategy, and this is exactly what we are executing. Today, we are deeply engaged on Nexa syringes program. We are deeply engaged on Alba program. Syringes can move from 1 ml to 2.25 ml, to 3 ml, to 5 ml cartridge. It's the same format because both cartridges and syringes are going to be insert on pen, on autoinjector.

Speaker #7: On the Non-glp-1 biologics , you mean ? Yes . This is our most important KPI Stevanato Group S.p.A. the strategy that we are building since the day of the IPO in Stanford Group is to become the partner of the pharmaceutical industry and everything that is around biologics , where the good news that more than 60% of biologics it will be through injection through a certain medication , through a devices .

Speaker #7: This has to become our big number one strategy . And this is exactly what we are executing today . We are deeply engaged on necessary .

Speaker #7: This program . We are deeply engaged on Alba program . Syringes can move from one ML to 2.25 ML to three ML to five ML .

Speaker #7: Cartridge is the same format because both cartridges and syringes are going to be inserted on pen or not injector , they we are heavily investing in capacity for device space through our cleanroom that we are building up in Germany , and also for other selective program of CMO in Germany .

Franco Stevanato: We are heavily investing in capacity for device space through our Alina clean room that we're building up in Germany and also for other selective program of CMO in Germany. We have a big contract with an American client in Fisher. Everything is going to summarize that where there is an injection, Stevanato want to be in. In the real future, in the next one, two, three, four, five years, are the incremental value that we'll be able to generate spread through several tens of hundreds of programs worldwide through biologic and biosimilar, mostly United States, in Europe, and also Far East is growing rapidly. This is the big long-term strategy of Stevanato.

Speaker #7: Also , we have a bigger contract with with American client in Fisher . So everything is going to summarize that where there is an injection , not want to be in the future in the in the next one , two , three , four , five years are the incremental value that will be able to generate spread to several tens of hundreds of programs worldwide through biologics and biosimilar , mostly United States .

Speaker #7: In Europe . Also , is growing rapidly . This is the big long term strategy of seven .

Paul Knight: Thank you.

Speaker #17: Thank you .

Operator: Next question is from Callum Pickmarsh, Morgan Stanley.

Speaker #5: Next question is from Callum Titmarsh Morgan Stanley .

Callum Pickmarsh: Hey, guys. Thanks for taking the questions. Beyond GLP-1s, I'd love to get a better sense of what you're seeing across the biologic category today. You know, I realize there's a lot of GLP focus just given the relative growth profile, but curious how other biologic categories have been performing, how customer discussions have been trending, you know, any positives, any pressure points, and then what's just being assumed from these categories in the guide for 2026. Thank you.

Kallum Titchmarsh: Hey, guys. Thanks for taking the questions. Beyond GLP-1s, I'd love to get a better sense of what you're seeing across the biologic category today. You know, I realize there's a lot of GLP focus just given the relative growth profile, but curious how other biologic categories have been performing, how customer discussions have been trending, you know, any positives, any pressure points, and then what's just being assumed from these categories in the guide for 2026. Thank you.

Speaker #18: Hey guys. Thanks for taking the questions beyond GLP-1. I'd love to get a better sense of what you're seeing across the biologic category today.

Speaker #18: I realize there's a lot of GLP focus just given the relative growth profile , but curious how other biologic categories have been performing ?

Speaker #18: How customer discussions have been trending . You know , any positives , any pressure points ? And then what's just being assumed from these categories in the guide for 26 ?

Speaker #18: Thank you .

Franco Stevanato: The category are practically monoclonal antibody. We have a wide range of biosimilar spread in the different region of the world. We are focused on immunology, inflammatory, rare diseases, all products that are going to require an injection or a certain medication. There's a combination for Stevanato of a Nexa syringes, cartridges ready to fill with a pen or autoinjector.

Speaker #7: So the category are practically monoclonal antibody . We have a wide range of biosimilars spread in the different regions of the world . We are focused on immuno inflammatory diseases .

Speaker #7: All products that are going to require an injection or a self medication . So there is a combination for stevanato of an cartridge to fill with a pen or auto injector .

Speaker #7: This

Callum Pickmarsh: Would be great.

Kallum Titchmarsh: Would be great.

Speaker #18: Would be would be great to Your latest thoughts as well on on on us Onshoring . You know obviously fishers should be well positioned for that .

Franco Stevanato: Sorry, about the-

Callum Pickmarsh: Hear your latest thoughts as well on US onshoring. You know, obviously, Fishers should be well positioned for that. Any early discussions or insights you could share with us to just better understand the timelines, the benefits here, and when we could expect something to appear in the P&L?

Kallum Titchmarsh: Hear your latest thoughts as well on US onshoring. You know, obviously, Fishers should be well positioned for that. Any early discussions or insights you could share with us to just better understand the timelines, the benefits here, and when we could expect something to appear in the P&L?

Speaker #18: Any early discussions or insights you could share with us to just better understand the timeline for benefits here and when we could expect something to appear in the PNL

Franco Stevanato: You refer to the shore, you mean?

Speaker #7: U.S. sure . You mean .

Callum Pickmarsh: That's right.

Kallum Titchmarsh: That's right.

Speaker #18: That's right .

Franco Stevanato: Yes. Today, in the plant of Fisher is play a important role. When we decide in 2020 and we started to develop this plant in 2021, it was really the purpose to build a campus that was going to mirror exactly the same capability that we have in Europe in particular. For EZ-fill technology with a different range of syringes or vial or auto fillers for devices. Today, what we see that many clients, they are readdressing their supply chain at the States, and the fact that we are present in Fisher with this wider capability is play a role. What translating what, we can really accelerate additional opportunity for customer once the US supply chain.

Speaker #7: Yes . Today in the plans , the plans of fisheries play an important role when we decide in 20 2020 . And we started to to to develop these plans in 2021 , it was really the purpose to build a campus that was going to mirror exactly the same capability that we have in Europe , in particular , for easy technology with a different range of syringes or vials to devices .

Speaker #7: Today , what we see is that many clients that re-addressing their supply chain at states , and the fact that we are present in Fisher with this wider capability is play a role .

Speaker #7: What translating what we can really accelerate additional opportunity for customers once the US supply chain

Operator: Next question is from Larry Solow, CJS Securities.

Speaker #5: Next question is from Larry Solo. See J.S. Securities.

Larry Solow: Great. Good afternoon. I guess just lots of information, GLPs and all that. Really appreciate it. I guess from your seat today, and won't hold you to this, but as we look out over the next five years, do you think the GLPs in summary will, you know, in aggregate, will still be driving 10% plus growth to Stevanato on a top line basis? What's your confidence level on that?

Speaker #19: Great . Good . Good afternoon . I guess just lots of information , GLP and all that . I really appreciate it . I guess from from your seat today and want to hold you to this , but as we look out over the next five years , do you think that glp's in summary , will , you know , in aggregate will still be driving 10% plus growth to stefanato on a top line basis ?

Speaker #19: What’s your confidence level on that?

Franco Stevanato: We is I think it will be continue to benefit on the GLP-1 in the future like a tailwind. The good news of the GLP-1 is this quarter, this are information that we share constantly with our clients. We see quarters after quarters that the number of patients are going to increase and then larger. This is the good news. From the moment that they launch, they.

Speaker #7: So we will is I think it will be continued to benefit on the GLP one in the future , like a tailwinds . So the good news of the GLP one is this .

Speaker #7: These information that we share constantly with our clients , we see a quarter after quarters that the number of patients are going to increase and enlarge .

Speaker #7: So this is the good news . So from the moment that they launch , we also all our clients that they see more upside and downside number than new customers .

Larry Solow: Mm-hmm.

Franco Stevanato: we see also all our clients, they see more upside than downside in numbers on new customers. More and more what we see, that there are new opportunities for Stevanato on Nexa syringes, new opportunity for cartridges, say, to fill and also for our device spaces. I can see that it will be a long-term tailwind for Stevanato, that we help to further boost our biologic revenue. I don't know if after 5 years it will continue to be in double digits, because in parallel, Stevanato is also rapidly growing in other therapy that is so-called biologic, and are all high value products like Alba syringes, our pen, like Alina, or high format on cartridges.

Speaker #7: More and more what do we see that are new opportunities for on syringes . New for cartridges to fill . Also for our device .

Speaker #7: So, I can see that it will be a long-term tailwind for Stevanato, that will help to further boost our biologic revenue. I don't know if, after five years, it will continue to be in double digits because, in parallel, Stevanato is also rapidly growing in other therapy areas that are so-called biologic.

Speaker #7: And these are all high-value products, like syringes. Our pen, like Allena, or high-format cartridges.

Larry Solow: That's all fair. What about just the RTU vials? You know, you mentioned 2025 obviously had a nice rebound. 2022 or 2023/2024 were down years. What, can you give us a little more, you know, granularity on sort of, you know, how the year finished up and your outlook for 2026 in that market?

Speaker #19: That's all fair . What about just the RTU vials ? You mentioned ? 2025 obviously had a nice rebound . 22 or 23 , 24 were were down years .

Speaker #19: What can you give us a little more ? You know , granularity on sort of you know , how the year finished up and your outlook for 26 in that market .

Franco Stevanato: Yes. Marco speaking. As an forecast, let's say we went up about 6% in 2025. Predominantly we grew in sterile configuration, and this is where we see more traction also for 2026, where we expect a mid to high single-digit growth predominantly driven by sterile configuration. Another data point, orders intake in 2025 was double-digit higher than in 2024. We see the actual order is not a sharp increase, but we see steadily increase in volumes, demand.

Speaker #16: Yeah .

Speaker #13: Good . Speaking forecasted . Let's say we went up about 6% in 2025 . Predominantly . We grew in sterile configuration . And this is where we see more traction .

Speaker #13: Also for 2026 where we expect the mid to high single digit growth , predominantly driven by sterile configuration and other data point , or the intake in 25 was double digit than in 2024 .

Speaker #13: So we see the recovery is not a sharp increase , but we see the increase in vials demand .

Larry Solow: Got you. If I could just please one more. Latina, Fishers, the trajectory of profitability, where do we kind of stand? I know Latina is a little bit ahead and Fishers is larger, but where we stand and when do we kind of hit, you know, full runway profitability? Where do you think we can start closing in on that? Thanks.

Speaker #19: Gotcha . And then if I could just squeeze one more in just Latina fishers , the trajectory of profitability , where do we kind of stand .

Speaker #19: And I know , I know , Latinos a little bit ahead and fishers is larger . But where do we stand and when do we kind of hit , you know , full run rate profitability ?

Speaker #19: Where do you you think we can start closing in on that ? Thanks .

Franco Stevanato: We are going to the right direction. We see quarter after quarter better financial performances. Inside the operational performance, we are growing quantities and better leverage our fixed expenses. We are very well positioned in Latina, where we are getting close to our average gross profit margin. Fishers, we are a little bit behind, but we see steady improvement also in Fishers. There's a difference, as mentioned many times, between the two plants. Latina is a smaller plant, is a brownfield, and we ramp up more rapidly than in Fishers. Fishers is a more complex plant with a different type of products, syringes, vials, EZ-fill vials, the drug delivery system. We are progressing, we are improving, going to the right direction, but it will take longer compared with Latina.

Speaker #13: We are going to do the right direction . We see quarter after quarter , better financial performances . The side operational performance . We are growing quantities and better leverage our fixed expenses .

Speaker #13: We are very well positioned in Latina, where we are getting close to our average gross profit margin figures. We are a little bit behind, but we see steady improvement also in features.

Speaker #13: That's the difference. As mentioned many times, many times between the two plants, Latina is smaller, the plant is brownfield, and we ramp up more rapidly than in Fishers.

Speaker #13: Fishers is a more complex plant with different type of products . Syringes , vials , vials . The drug delivery system . So we are progressing .

Speaker #13: We are improving , going to the right direction . But it will take longer compared with the Latina today . The gross profit margin is positive on the combination .

Franco Stevanato: Today, the gross profit margin is positive on the combination 2 plants, still diluted compared with the average of the company, the average of the segment. If I can give a sort of business angle. In Latina, we have continuous installation of a line for high-speed line for syringes Nexa. We are continuing to perform-

Speaker #13: Two plants still diluted compared to the average of the company. The average of the...

Speaker #7: If I can give a sort of business Angle in Latina , we have continuously installation of line for high speed , line for syringes .

Speaker #7: Next we are continuing to perform validation to our regional customer international customers . And this year we are going to install the first high speed line for cartridges to fill .

Larry Solow: Mm-hmm.

Franco Stevanato: validation to our regional customers and national customers. This year, we're going to install the first high-speed line for cartridges straight to fill. The goal is to do the validation this year to start to do commercial revenue at the beginning of 2027.

Speaker #7: But the goal is to do the validation this year to start , to do commercial revenue . At the beginning of 2027 . And in Fisher , we continue to do performance audit to with our big international clients in order to become particular domestic United States .

Larry Solow: Right.

Franco Stevanato: We continue to perform audit to our big international clients in order to become particular domestic US. In fact, we have doubled the number of audit validation in 2025. Important milestone that we are advancing with the build out of this bigger department production that still is expected to produce autoinjector for one big US client at the end of this year.

Speaker #7: In fact , we have double the number of audit validation 2025 important milestone that we are advancing with the build out of this big department production that is still is , still is expected to produce a autoinjector for one big US client at the end of this year

Patrick Donnelly: Great. I appreciate all that color. Thank you, guys.

Larry Solow: Great. I appreciate all that color. Thank you, guys.

Speaker #19: Great. Appreciate all that color. Thank you, guys.

Operator: Next question is from Matt Larra, William Blair.

Speaker #5: Next question is from Matt Larry William Blair

Matt Larra: Hi. Thanks for taking my question. The first is starting on GLP. Maybe the five points I had questions on there.

Matt Larew: Hi. Thanks for taking my question. The first is starting on GLP. Maybe the five points I had questions on there.

Speaker #20: Hi . Thanks for taking my questions . The first is you started on GLP , maybe five points in that question historically . Matt .

Lisa Miles: Matt, I'm sorry. We cannot hear you at all. Can you speak up a little bit?

Speaker #12: I'm sorry , we cannot hear you at all . Can you speak up a little bit ?

Matt Larra: Sure. Can you hear me now?

Matt Larew: Sure. Can you hear me now?

Speaker #20: Sure . Can you hear me now ?

Lisa Miles: A little bit better.

Speaker #12: A little bit better

Franco Stevanato: How do we get volume?

Lisa Miles: Go ahead.

Matt Larra: How's this?

Matt Larew: How's this?

Speaker #21: We .

Speaker #12: Go ahead Yes .

Lisa Miles: Yes.

Matt Larra: Better. Okay. Thank you. You've historically said that you expect orals to be about 30% or one-third of the market. I would say investor expectations on that metric have moved quite a bit since the oral Wegovy launch. You've addressed GLP growth for next year and referenced for the next couple of years, but how do you feel about that metric? I guess in discussions with your customers, how are they viewing that metric?

Matt Larew: Better. Okay. Thank you. You've historically said that you expect orals to be about 30% or one-third of the market. I would say investor expectations on that metric have moved quite a bit since the oral Wegovy launch. You've addressed GLP growth for next year and referenced for the next couple of years, but how do you feel about that metric? I guess in discussions with your customers, how are they viewing that metric?

Speaker #20: Okay . Thank you .

Speaker #22: So you've historically said that you expect orals to be about 30% or one third of of the market , and I would say investor expectations on that metric have moved quite a bit since the oral wegovy launch .

Speaker #22: So, you've addressed GLP growth for next year and referenced it for the next couple of years. But how do you feel about that metric?

Speaker #22: And I guess, in discussions with your customers, how are they viewing that metric?

Franco Stevanato: Yes. For sure, this is, we are putting a lot of attention on this evolution of the piece, and we have a lot of point of contact with our clients, both the originator and the biosimilar. We will look what the key opinion leader are sharing. Our peers, our customer also, I know that all the banks are very well prepared on this. At the end of the day, we are going to confirm that the share between injection spread between cartridges or syringes, which represent the majority in the range of 70%, and oral to be the minority in the range of 30%.

Speaker #7: Yes . So for sure , this is a we are putting a lot of attention on this evolution of the pills , and we have a lot of point of contact with our clients , both the originator and the biosimilar .

Speaker #7: We look at what the key opinion leaders are sharing—our peers, our customers. Also, I know that all the banks are very well prepared on this.

Speaker #7: The end of the day , we are going to confirm that the share between injection spread , between cartridges or syringes , which represent the majority in the range of 70% and oral to be the minority in the range of 30% , now what ?

Franco Stevanato: Now, what also we see, like I was mentioning to all of you before, we see, this is information that we receive from the market, the number of total patients worldwide, it will continue to increase month after month. We don't see cannibalization between injection to the oral because I they are targeting 2 different type of patients today. This is our internal estimation. From a supply chain point of view, what do we do? This is another important target. If you look the number of line that the pharmaceutical industry is installing for syringes, for cartridges, and the number of line for assembly technology for final injector, both into the originator, into the biosimilar, and to the CMO is still high. There's a big program of massive investment for injection in the next year to come on a worldwide basis.

Speaker #7: Also we see like was mentioned in to to all of you before we see this information that we received from the market , the number of total patients worldwide , it will continue to increase month after month , and we don't see cannibalization between injection to the oral because they are targeting two different types of patients today .

Speaker #7: So this is our internal estimation from a supply chain point of view . What we do , because this is another important angle .

Speaker #7: If you look at the number of lines that the pharmaceutical industry is installing for syringes, for cartridges, and the number of lines for assembling technology for pen auto-injector, both into the originator, into the biosimilar, and to the CMO, it is still high.

Speaker #7: There is a big program of massive investment for injection in the next years to come . On a worldwide basis

Matt Larra: Okay, thank you. Now on non-GLP biologics, we're sort of backing into maybe that being up mid-teens. Does that sound right? Then you referenced in the deck the large global pipeline, I think 60% of the 9,000 molecules. What's your expectation for non-GLP biologics going forward? I think that that's generally speaking all high value demand, I guess, if you could confirm that as well.

Matt Larew: Okay, thank you. Now on non-GLP biologics, we're sort of backing into maybe that being up mid-teens. Does that sound right? Then you referenced in the deck the large global pipeline, I think 60% of the 9,000 molecules. What's your expectation for non-GLP biologics going forward? I think that that's generally speaking all high value demand, I guess, if you could confirm that as well.

Speaker #22: Okay . Thank you . On Non-glp biologics , we're sort of backing into maybe that being up mid-teens . Does that sound right ?

Speaker #22: And then you reference in the deck the large global pipeline , I think 60% of the 9000 molecules . So what's your expectation for Non-glp biologics going forward .

Speaker #22: And I think that that's generally speaking all high value demand . I guess if you could confirm that as well .

Franco Stevanato: Yes. Usually this non-GLP, this biologic product are a very rich program that are maybe not in big, big size. It's difficult that they go in the range of hundreds of millions, on the range of tens of millions. Because of the specificity of this large molecule, they're looking for particular drugs, particular primary packaging with particular coating. For example, we are engaged with our Alba syringe because they have a special plasma coating. We are engaged with particular baked-on silicone syringes, with particular Nexa syringes, and also different format. We see more and more moving up to 3 mL or to 5 mL today. That's something that is a little bit new on the market. Usually, the autoinjector pens used to stop at 3 mL.

Speaker #7: Usually these non-glp this biologic product are rich program program that are maybe not in big size difficult that they go in the range of hundreds of millions on the range of tens of millions .

Speaker #7: They're looking because of the specificity of this large molecule. They're looking for particular drugs, particular primary packaging with particular coating, particular...

Speaker #7: For example , we have we are engaged with our alpha syringe because I have a special plasma coating . We are engaged with particular bacon , silicone syringes with particular syringes .

Speaker #7: Also, different format. We see more and more moving up—up to 3 milliliters, to 5 mL today. That's something that is a little bit new on the market.

Speaker #7: They usually the autoinjector pens used to stop at three ML , so overall we see several hundred of programs spread through many customers means the top 25 big customers and some hundreds of biosimilar that are extremely active to build capacity in this way .

Franco Stevanato: overall, we see several hundred of programs spread through many customer, means the top 25 big customer and some hundred of biosimilar that are extremely active to build capacity in this way. what we are doing Stevanato Group, we are building a supply chain through our engineering division with particular line dedicated to be able to be fast and flexible to serve these customers. we want to keep a few Latina, in particular US, to be able to serve this wide range of products that are moving from syringes to cartridges, EZ-fill. through our device colleagues, we are ready with our autoinjector, particular also with our Alina, or in a selective way, when we already serve the syringes or the cartridges, we act like CMO.

Speaker #7: So what we are doing Stevanato Group S.p.A. we are building a supply chain through our engineering division with particular line dedicated to be able to be fast and flexible , to serve these customers .

Speaker #7: So we want to keep Latina, in particular, United States, to be able to serve this wide range of products that are moving from syringes to cartridges to fill through our device.

Speaker #7: Colleagues , we are ready with our autoinjector particular and also with our pen or in the selective way , when we already serve the syringes of the cartridges , we act like CMO .

Franco Stevanato: I want to reiterate our real strategy in Stevanato is really to say, when there is an injection, self-administration, we want to be always or the number 1 or the number 2 for this new product.

Speaker #7: So I want to reiterate our real strategy in Stevanato is really to say , when there is an injection administration , we want to be always all the number one on the number two for this new product .

Matt Larra: Okay, thanks. Just one follow-up. You referenced the contract manufacturing opportunities, maybe that will be ramping end of this year into next year. How do you expect the economics of that business to look for you know, relative to the BDS business and your engineering segment?

Matt Larew: Okay, thanks. Just one follow-up. You referenced the contract manufacturing opportunities, maybe that will be ramping end of this year into next year. How do you expect the economics of that business to look for you know, relative to the BDS business and your engineering segment?

Speaker #22: Okay, thanks. Just one follow-up. You referenced the contract manufacturing opportunities, and maybe that will be ramping at the end of this year into next year.

Speaker #22: How do you expect the economics of that business to look for you ? You know , relative to the business and your engineering segment ?

Franco Stevanato: We are not classifying the CMO as a value product. Nevertheless, we see the specific projects in a high range of non-value solutions. As mentioned many times, we are taking here a selective approach with customers, leveraging this particular case, the integration between syringes, autoinjector, and all the capabilities we have to work with very important customers. We are pushing this strategy, taking a selective approach, especially where we can leverage integration.

Speaker #13: So we are not classifying the CMO as I value product . Nevertheless , we see the specific projects in a high range of non-ideal solutions , and as mentioned many times , we are taking here a selective approach with customers leveraging this particular case .

Speaker #13: The integration between syringes , autoinjector and all the capabilities we have to work with very important customers . So we are pushing this strategy , taking a selective approach , especially where we can leverage integration .

Curtis Moyles: Yes. Thank you.

Matt Larew: Yes. Thank you.

Speaker #22: Yes . Thank you

Operator: Last question is from Curtis Moyles, BNP Paribas Exane.

Speaker #5: Last question is from Curtis Moyles , BNP Paribas Exane .

Curtis Moyles: Great. Thank you for taking my questions. I think you've already given a lot of color here, but on the high-value solutions guidance for 47% to 48% of revenue, I just wanted to clarify, are you thinking that'll be primarily driven by GLP-1s? Or maybe can you separate the contribution from syringes versus kind of vials and cartridges?

Curtis Moiles: Great. Thank you for taking my questions. I think you've already given a lot of color here, but on the high-value solutions guidance for 47% to 48% of revenue, I just wanted to clarify, are you thinking that'll be primarily driven by GLP-1s? Or maybe can you separate the contribution from syringes versus kind of vials and cartridges?

Speaker #23: Hey , thank you for taking my questions . I think you've already given a lot of color here , but on the high value solutions guidance for 47 to 48% of revenue , I just wanted to clarify , are you thinking that will be primarily driven by GLP one ?

Speaker #23: Or maybe can you separate the contribution from syringes versus kind vials and cartridges ?

Franco Stevanato: It's a level of detail we don't provide. What I can tell you is that we are increasing our high-value solution next year, double digit. Low teens if we consider cost and currency rate. We are growing both GLP-1 and other biologics next year.

Speaker #13: It's the level of detail we don't provide . What I can tell you is that we are increasing our high value solution . Next year Double digit low things .

Speaker #13: If we consider cost and currency rate, so we are growing both GLP biologics. Next year.

Curtis Moyles: Thank you. Also just I think earlier in the call you mentioned that you could consider some additional actions around pivoting away from the non-HVS categories. Can you maybe give a little color about what you're thinking about there?

Curtis Moiles: Thank you. Also just I think earlier in the call you mentioned that you could consider some additional actions around pivoting away from the non-HVS categories. Can you maybe give a little color about what you're thinking about there?

Speaker #23: Thank you . And then also just I think earlier in the call you mentioned that you consider some additional actions around pivoting away from the non categories .

Speaker #23: Can you maybe add a little color about what you're thinking about there?

Lisa Miles: I'm sorry, Curtis. We missed a portion of your question as you were dropping out. Can you please repeat?

Speaker #12: I'm sorry Curtis we missed a portion of your of your question as you were dropping out . Can you please repeat .

Curtis Moyles: Sorry about... Yeah, of course. Sorry. I think in the beginning of the call you mentioned that you could consider actions around pivoting away from non-high-value solutions categories in the future. I was just wondering if you can comment on what you're thinking about there.

Curtis Moiles: Sorry about... Yeah, of course. Sorry. I think in the beginning of the call you mentioned that you could consider actions around pivoting away from non-high-value solutions categories in the future. I was just wondering if you can comment on what you're thinking about there.

Speaker #23: but yeah of course . Sorry . I think in the beginning of the call you mentioned that you could consider actions around pivoting away from non-high value solutions categories in the future .

Speaker #23: I was just wondering if you can comment on what you're thinking about there .

Lisa Miles: Yes. Thank you for clarifying that.

Speaker #12: Yes, thank you for clarifying that. Yes.

Franco Stevanato: Yes. Today, the focus is still on the group. Also the investment, all the attention of all our colleagues is on building capacity to become the partner of this biologic market for high value product. This is the reason why, for example, if you have to select it, we are going maybe to deprioritize the ampoules, for example, this historical product is good to produce for sale in certain region of the market, but in particular in Europe and US, the goal is to focus to become the number one, number two in the new product. For example, another example, in Germany, we are build this new big clean room in order to host the production for Alina. Originally in this clean room, we used to produce standard in vitro diagnostic for customers.

Speaker #7: Today the focus in Stevanato Group S.p.A. is also the investment . All the the the the attention of all our colleagues is on building capacity to become the partner of this biologic market for high value products .

Speaker #7: And this is the reason why , for example , if you have to do to select , we are going maybe to to the prioritize the inputs .

Speaker #7: For example , this product is good to produce for sale in certain regions on the market , but in particular in Europe and the goal is to focus to become the number one .

Speaker #7: Number two in the new product or for example , another example in Germany , we have built this new big cleanroom in order to host the production for Alina Pen .

Speaker #7: Originally in this clean room , we used to produce standard in vitro diagnostic for customers . We have decided to use this this space , important space , this know how to start to ramp up in the next years .

Franco Stevanato: We have decided to use this space, important space, this know-how to start to ramp up in the next year, Alina. This is the type of deprioritization that we are looking in the next years. Focus on biologics, on high-value products. When there is no strategic customer behind a strategic market, we try really to do some deprioritization.

Speaker #7: This is the type of the prioritization that we are looking in the next years . Focus on biologics or high value products . And when there is no strategic customer behind or strategic market , we try really to do some the prioritization

Curtis Moyles: Got it. Thank you.

Curtis Moiles: Got it. Thank you.

Speaker #23: Got it . Thank you

Operator: Thanks, Moyles. Gentlemen, there are no more questions registered at this time.

Speaker #5: May smiles . Gentlemen , there are no more questions registered at this time

Lisa Miles: Thank you, everyone. That concludes today's call, and we'll be seeing you shortly. Have a good day.

Speaker #12: Thank you, everyone. That concludes today's call, and we'll be seeing you shortly. Have a good day.

Operator: Ladies and gentlemen, thank you for joining. The conference is now over. You may disconnect your telephones.

Speaker #5: Ladies and gentlemen, thank you for joining. The conference is now over. You may disconnect your telephones.

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