Stevanato shares fall 26.04% after third-quarter results and slower growth outlook for 2027
Key Facts
Stevanato Group shares fell 26.04% on Tuesday, November 3, according to TipRanks, after the company reported third-quarter results and pointed to an expected temporary slowdown in growth during 2027. The share move came amid a contrast between continued revenue growth and improved adjusted earnings, and management's forecast of lower GLP-1 product volumes and revenue than previously expected. The company said this factor would temporarily affect growth next year, while confirming that it had left its fiscal 2026 outlook unchanged. In premarket trading on November 3, Investing.com reported that the stock fell 24.16% to $14.97, compared with a previous close of $19.74. That puts the focus on the growth outlook, even as quarterly results showed expansion in revenue and adjusted profitability.
Third-quarter revenue was 326.1 million euros, up 8% year over year and 8% organically, according to the company's statement. Growth reflected differing performance across its two main segments: revenue in the Biopharmaceutical and Diagnostic Solutions segment rose 11% organically, while revenue in the Engineering segment fell 12%. The company said growth in the first segment offset the decline in the second, leaving overall revenue expansion in line with the reported organic growth. On the demand side, non-GLP-1 biopharmaceutical products grew by more than 30% in the quarter, helping offset lower GLP-1 revenue and weak Engineering performance. Management said demand for these biopharmaceutical products continued to support results during the period, but was not enough to prevent a decline in the Engineering segment.
Adjusted EBITDA rose 14% to 88.8 million euros, and its margin expanded 150 basis points to 27.2%, the company said. Net profit increased 16% to 41.8 million euros, while adjusted net profit rose 14% to 44.0 million euros. Adjusted diluted earnings per share were 0.16 euros, compared with 0.14 euros in the year-earlier period. By contrast, gross margin fell 10 basis points to 29.1%, which the company attributed mainly to higher utility costs and expected depreciation, as well as lower gross profit in the Engineering segment. It said improvements at its Latina and Fishers sites and a better product mix offset some of these pressures.
Revenue from high-value solutions was 149.4 million euros, up 1% year over year, and accounted for 46% of total third-quarter revenue. This performance highlights slower growth than the increase in overall revenue, while these solutions remained close to half of quarterly sales. For its outlook, the company kept its fiscal 2026 revenue range at 1.260 billion to 1.280 billion euros. It also reiterated its forecast for adjusted EBITDA of 335.0 million to 345.2 million euros and adjusted diluted earnings per share of 0.60 to 0.62 euros. The company's message thus distinguished between unchanged targets for the current year and a factor it expects to temporarily limit growth in 2027.
Franco Stevanato said on the earnings call that the headwinds related to GLP-1 volumes in 2027 were "related to one customer." He said volumes and revenue from these products had come in below the level the company had previously expected and would lead to a temporary moderation in growth. Still, he said the company believes it can deliver growth "in the low single-digit range" in 2027. He added that, absent this temporary factor, growth would have been in line with the long-term plan, which targets growth "from the high single digits to the low double digits." The company is scheduled to provide its full 2027 guidance on its next earnings call in early March.