Stevanato Group S.p.A.

Good afternoon, this is the Coruscall conference operator. Welcome and thank you for joining the Stevanato Group fourth quarter 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.

Good morning, and thank you for joining us. With me today is Franco Stevanotto, Chairman and Chief Executive Officer, and Marco De 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 20F 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. 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, please see the company's most recent earnings press release. And with that, I will now hand the call over to Franco Stevanotto.

Thank you, Lisa, and thanks for joining us. Today, we will review our 2025 performance, address current market dynamics, discuss our fourth quarter 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 solution segment delivered another solid year with double-digit top-line growth for fiscal 2025. This offset the expected revenue decline from the engineering segment. 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. Since our IPO in 2021, we remained 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 Nexus syringe was our fastest-growing product, driven primarily by growth from GLP-1s. This should come as no surprise as this range 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 features high mechanical resistance. It can be produced at scale, and it is ideally suited for an anti-injector. 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 GLP-1s will serve as a meaningful tailwind as patient demand continues to grow in the years to come. With the launch of the Wigobi 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. 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 gel piece 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-delivered devices. While JLPs 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 biological applications that were unrelated to GLP-1s. These new customer projects are expected to play an important role in future growth. We continue to expand our participation in the broader set of biological 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. 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 easy-fill cartridges to meet rising global demand. Turning to features, throughout 2025, the teams were focused on core activities including the ongoing line installations. In parallel, customer validations and audits continue and in 2025, we doubled the number of customers that are now validated in features. 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 U.S. customer. The build-out is going well. Nearly all of the injection molding machines are installed, and we started producing components for qualification activities. The first phase of new clean room is completed. We still expect 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-size operations, streamline processes, and increase standardization across delivery teams. we reinforce our project management office, driving improvements in project planning, process harmonization, content 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. 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 expansions. Double-digit growth in our BDS segment more than offset the expected revenue reduction in engineering and enabled us to navigate the unfavorable effects from foreign currency. 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. We expect that GLPs will remain an important tailwinds having anchored our position as a market leader in high-value products. Importantly, our diverse products 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 gross investments with customer demand trends. I will hand the call over to Marco.