Stevanato Group S.p.A.

Good afternoon, this is the chorus call conference operator. Welcome and thank you for joining the Stevanato Second Quarter 2025 results conference call. As a reminder, all participants are in listen-only mode. 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 in VISTA relations. Please go ahead, madam.

Good morning and thank you for joining us. With me today are Franco Stevanato, Chief Executive Officer, and Marco DeLago, Chief Financial Officer. A presentation to accompany today's results is available on the investor relations page of our website under the financial results tab. As a reminder, some statements being made today are forward-looking and based on current expectations. Actual results may differ materially due to risks outlined in item 3D risk factors of our most recent annual report on form 20F filed with the SEC. Please review the safe harbor statement included at the beginning of today's presentation and in our press release. The company undertakes no obligation to revise or update these forward-looking statements except as required by law. Today's presentation may include non-GAAP financial information. Management uses these measures internally to assess performance and believes they may be helpful for investors in evaluating the quality of our financial results, identifying trends in our performance, and providing meaningful -to-period comparisons. For reconciliation of these non-GAAP measures, please refer to the company's most recent earnings press release. And with that, I'll hand the call over to Franco Stevanato.

Thank you, Lisa, and thanks for joining us. Today, we will review our second quarter performance, share updates on our investment projects, and discuss the current market environment. We deliver another solid quarter marked by top-line growth, a higher mix of high-value solutions, and expanded margins. These results keep us on track to achieve our full year 2025 guidance and reflect the continued momentum of our strategic roadmap. In the second quarter of 2025, revenue grew 8%, led by strong performance in our biopharmaceutical and diagnostic solution segment, particularly in our core drug containment business. Notably, this growth offset a 2% revenue decline in the engineering segment as we continue to advance our business optimization plan. The solid performance in the BDA segment is underpinned by favorable secular tailwinds, especially the continued rise in biologics, which is fueling strong demand for our products. The expanding capacity in Latina and in Fischer's is a direct response to market demand. And our new facilities are already contributing to near-term growth as we scale volumes and generate revenue from high-value products. In the second quarter, high-value solutions accounted for 42% of total revenue, driven primarily by growth in high-value syringes and, to a lesser extent, easy-fill cartridges and easy-fill vias. We are also seeing encouraging signs of ongoing stabilization in vial demand as the effects of the stocking continue to ease. Turning to the engineering segment, second quarter revenue was largely in line with our expectations, but margins were lower due to a higher mix of revenue from legacy projects and the timing of new order intake. Two factors contributed to this. First, our top priority remains execution. We dedicate the resources focused on completing the remaining legacy projects. Second, several new orders that were forecast in the second quarter are now expected to be secured in the second half of 2025. However, we are making meaningful operational progress of the initiative outlined in our business optimization plan. During the quarter, we completed the majority of these legacy projects and remain on track to finalize the remaining ones by the end of this year. One of the key performance indicators underscoring our operational improvements is customer site acceptance tests, or SITs. This is the final validation step when a customer accepts the manufacturing line. For the first half of 2025, our SITs significantly increased compared to last year. This is an important achievement for the team and confirms that our actions are delivering results. Over the last 12 months, we have streamlined processes and improved workflows across every phase, from order intake to acceptance testing. We have also rebalanced internal resources to support the relocation of certain activities to Italy. Looking ahead, our Denmark cooperation will serve as an innovation hub, focused on more customized manufacturing lines for device assembly and packaging. In parallel, we are advancing our footprint optimization efforts. We are evaluating a second location in Bologna, Italy, where we already have operation and access to a strong pool of technical talent. Over the past year, we have been laser focused on execution. Now we have initiatives underway to enhance our commercial strategy and better position the segment to capitalize on long term growth opportunities. Over the next five years, we see continuous strong demand due to the favorable trends such as the increase in the self-administration of medicine and the continued rise in biologics. We also believe that we are well positioned to benefit from the increase in capital investments and U.S. onshore initiatives that were recently announced by several pharma and biotech customers. Let's turn to an update on our capital investment projects in Fisher and Latina, where we are increasing our capacity for high value syringes in the near term. In Fisher's, line installation and customer validation are ongoing, and the site is expected to reach full productivity in late 2028. In June, we hosted participants from the Parental Drug Association, or PDI, conference for a tour of Stevanato Group's advanced manufacturing capabilities. The event showcases our premium drug containment solutions, integrated device manufacturing, and engineering after-sales services. It was a valuable opportunity to strengthen our relationships and demonstrate our commitment to innovation and quality. In Latina, the team remains focused on scaling the current phase of commercial production for high value syringes. In parallel, we are installing additional syringe lines, including ones that produce dual chamber products. Customer validations will continue into 2026 as planned. We are also preparing for the next phase already to use cartridge production. Our capital investments are helping us meet rising market demand for our core drug containment products amid the growth in Biologics. In the first half of 2025, Biologics represented 39% of BDS revenue, compared with 35% and 25% in the same period in fiscal 2024 and 2023 respectively. While JLP-1s remain a strong long-term tailwind, the wider Biologics segment is also a key growth driver for our broader high-value solutions portfolio. Let me share some examples. First, we are seeing high demand for our ALBA technology, the highest performance range platform in our portfolio. Customers in the US, Europe, and APAC are using our ALBA platform for a range of MAPS-based products that require minimal particle release. Those programs include ophthalmic application, among others. Second, we have a robust pipeline of MAPS projects in the clinical phase for both novel application and biosimilars, driving demand for our Nexa premium syringes. Lastly, we see an increasing number of requests for specially coated vias that are suited for highly potent drugs. This includes antibody-drug conjugates or ADCs that require more complex production processes and advanced technologies. We believe that the strengths of our portfolio will put us in an optimal position to leverage the diverse set opportunities ahead, particularly in Biologics, to deliver long-term sustainable growth. With that, I'll turn the call over to Marco.