Stevanato Group Stock Plunges 26% as Weak Order Intake and Cautious 2027 Outlook Overshadow Revenue Beat

Shares of Stevanato Group fell nearly 26% Tuesday, one of the biggest drops on Wall Street, after the Italian maker of drug containers and delivery systems gave a cautious growth outlook for 2027 and said new orders had fallen short of its targets. Its third-quarter revenue beat expectations.

The New York Stock Exchange-listed stock, which trades under the ticker STVN, fell $5.11, or 25.89%, to $14.63 in morning trading, from Monday's close of $19.74. Trading volume reached about 1.55 million shares, roughly four times the stock's three-month daily average of about 394,000.

The drop wiped out a large share of the company's market value, which fell to about $4 billion. The stock is now down about 20% over the past 52 weeks.

Quarter beat expectations

Stevanato, based in Piombino Dese, near Padua, said revenue rose 8% to 326.1 million euros in the third quarter, both as reported and organically. Analysts had expected about 320.9 million euros.

Adjusted earnings per share were 16 euro cents, up from 14 cents a year earlier and in line with analyst estimates. Adjusted net profit rose 14% to 44.0 million euros.

Adjusted earnings before interest, taxes, depreciation and amortization rose 14% to 88.8 million euros. The adjusted EBITDA margin widened by 1.5 percentage points to 27.2%.

"Third-quarter results were in line with our expectations," CEO and Chairman Franco Stevanato said.

Outlook disappoints investors

The company kept its 2026 revenue guidance of 1.26 billion to 1.28 billion euros. However, it said it expects only low single-digit revenue growth in 2027. That forecast appeared to be the main reason for Tuesday's selloff.

Management also said new order intake improved during the quarter but ended below the company's targets for signed orders.

GLP-1 slowdown

Stevanato makes glass vials, syringes, cartridges and drug delivery devices for pharmaceutical and biotechnology companies. It has benefited from demand for GLP-1 diabetes and weight-loss drugs, many of which are given by injection.

Revenue from GLP-1 therapies made up about 17% to 18% of total revenue in the third quarter. The company said lower GLP-1 revenue was offset by demand from other biologic drugs, where revenue grew more than 30%.

Revenue from high-value solutions, which include its EZ-fill syringes and cartridges, rose only 1% to 149.4 million euros. That category is one of the main sources of the company's profits.

Engineering segment struggles

The company's Biopharmaceutical and Diagnostic Solutions segment grew revenue 10% to 294 million euros, or 11% on an organic basis.

The Engineering segment, which makes equipment for visual inspection, assembly and packaging of drugs, saw revenue fall 12%. Its gross margin slipped to 10.2%. The company blamed lower revenue, the timing of orders and project execution.

Management said Engineering operations have stabilized and an optimization plan has improved operations, but the segment's financial results were below the company's expectations.

Spending on new plants

Capital spending totaled 44.8 million euros in the quarter, mostly for new plants in Italy and Indiana and device programs in Germany. Free cash flow was 21.7 million euros.

Valuation concerns

Before Tuesday's drop, Stevanato shares traded at a premium valuation that reflected expectations of strong growth tied to injectable drugs. Investors appeared unwilling to keep paying that price after a modest beat and a weaker growth outlook.

The stock trades at about 35 times trailing earnings, according to market data.

What to watch

Investors will watch whether new orders recover in coming quarters, how quickly non-GLP-1 biologics demand grows and whether the Engineering business improves. The company is likely to give more detail on its 2027 expectations early next year.