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• Revenue: Increased by 9% to $256.6 million.

• Biopharmaceutical and Diagnostic Solutions (BDS) Segment Revenue: Grew 11% to $220.8 million.

• Engineering Segment Revenue: Decreased by 4% to EUR35.7 million.

• High-Value Solutions Revenue: Grew 25% to $110.3 million, accounting for 43% of total revenue.

• Gross Profit Margin: Increased by 80 basis points to 27.2%.

• Operating Profit Margin: Increased by 280 basis points to 13.5%; adjusted operating profit margin was 14.3%.

• Net Profit: Totaled $26.5 million; adjusted net profit was $28.1 million.

• Diluted Earnings Per Share (EPS): $0.10; adjusted diluted EPS was also $0.10.

• Adjusted EBITDA: $57.4 million with a margin increase of 100 basis points to 22.4%.

• Cash and Cash Equivalents: $90.7 million.

• Net Debt: $300.2 million.

• Capital Expenditures: $69.7 million, with over 90% for growth investments.

• Free Cash Flow: Generated $29.7 million.

• Guidance for 2025: Revenue expected between $1.160 billion and $1.190 billion; adjusted EBITDA between $288.5 million and $301.8 million; adjusted diluted EPS between $0.50 to $0.54.

• Warning! GuruFocus has detected 8 Warning Sign with STVN.

Release Date: May 08, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Stevanato Group SpA (NYSE:STVN) reported a 9% revenue growth in the first quarter of 2025, exceeding expectations.

• The Biopharmaceutical and Diagnostic Solutions (BDS) segment showed strong operational delivery, with an 11% revenue increase.

• High-value solutions accounted for 43% of total revenue, driven by strong demand for high-value syringes.

• Gross profit margin improved by 80 basis points to 27.2%, supported by capacity expansions at Latina and Fishers facilities.

• The company is on track with its capital investment projects, with ongoing installations and scaling of commercial syringe production at Fishers and Latina.

Negative Points

• The Engineering segment experienced a 4% revenue decline, primarily due to lower sales from pharmaceutical visual inspection and glass conversion lines.

• Gross profit margins in the Engineering segment were below expectations, impacted by the legacy projects in Denmark.

• Tariffs are expected to have a $4.5 million impact on operating profit, affecting diluted earnings per share by approximately $0.01.

• The company anticipates a stronger second half of fiscal 2025, indicating potential challenges in maintaining momentum in the first half.

• Free cash flow guidance remains negative for 2025, with expectations of EUR40 million to EUR60 million negative free cash flow for the year.