Eric M. Green West Pharmaceutical Services, Inc. President & CEO, Chair of the Board Bob W. McMahon Senior VP & Chief Financial Officer Fourth-Quarter and Full-Year 2025 Earnings Call February 12, 2026 | 8 a.m. Eastern Time To participate on the call by asking questions to Management, please register in advance by clicking here. A replay of the webcast will be available on the Company's website for on the call. approximately 90 days after the event. Registered telephone participants will receive the dial-in ...

Core Insights - West Pharmaceutical Services reported strong financial results for Q4 and full year 2025, driven by double-digit organic revenue growth in High-Value Product (HVP) Components [1][2] - The company expects continued positive momentum into 2026, emphasizing operational excellence and sustainable growth [1] Financial Performance - Q4 2025 net sales reached $805.0 million, a 7.5% increase year-over-year, with organic growth of 3.3% [1][2] - Full-year 2025 net sales totaled $3.074 billion, up 6.3% from the previous year, with organic growth of 4.3% [1][2] - Adjusted diluted EPS for Q4 2025 was $2.04, a 12.1% increase, while full-year adjusted diluted EPS was $7.29, an 8.0% increase [1][2] Segment Performance - Proprietary Products Segment saw Q4 net sales of $661.8 million, growing 7.8% overall and 3.6% organically [1][2] - High-Value Product Components within the Proprietary Products Segment reported net sales of $389.8 million, a 20.3% increase, with organic growth of 15.1% [1][2] - Contract-Manufactured Products Segment net sales increased by 6.2% to $143.2 million, with organic growth of 1.9% [1][2] Shareholder Returns - In 2025, the company repurchased 552,593 shares for $134.0 million at an average price of $242.55 [1][2] - Operating cash flow for 2025 was $754.8 million, a 15.5% increase, with free cash flow rising 69.6% to $468.9 million [1][2] 2026 Financial Guidance - For full-year 2026, net sales are projected to be between $3.215 billion and $3.275 billion, with organic growth expected to be approximately 5% to 7% [1][2] - Reported growth for 2026 is anticipated to be between 4.6% and 6.5% [1][2]

Financial Performance - Company reported net sales of $766.5 million for the second quarter of 2025, an increase of 9.2% compared to the same period last year, with organic net sales growth of 6.8% [12][19] - Diluted EPS for the quarter was $1.82, up from $1.51 in the prior year, while adjusted-diluted EPS increased to $1.84 from $1.52 [12][19] - Operating cash flow for the first six months of 2025 was $306.5 million, an increase of 8.2% year-over-year, with free cash flow rising to $160.0 million from $92.4 million [7][28] Segment Performance - Proprietary Products segment net sales grew by 10.7% to $619.8 million, with High-Value Product (HVP) components accounting for 47% of total sales and increasing by 11.3% [4][20] - Contract-Manufactured Products segment saw a 3.0% increase in net sales to $146.7 million, driven by self-injection devices for obesity and diabetes [6][20] Guidance and Future Outlook - Company raised its full-year 2025 net sales guidance to a range of $3.040 billion to $3.060 billion, up from the previous range of $2.945 billion to $2.975 billion [12][13] - Adjusted-diluted EPS guidance for 2025 was also increased to a range of $6.65 to $6.85, up from $6.15 to $6.35 [12][13] Shareholder Returns - The Board of Directors approved a fourth-quarter 2025 dividend of $0.22 per share, payable on November 19, 2025, to shareholders of record as of November 12, 2025 [12][13] Financial Condition - As of June 30, 2025, the company had cash and cash equivalents of $509.7 million, accounts receivable of $582.4 million, and inventories of $421.1 million [29]

Financial Performance - First-quarter net sales reached $698 million, a 0.4% increase[1] - Organic net sales increased by 2.1%[18] - Reported diluted EPS was $1.23, while adjusted diluted EPS was $1.45[1] - The company's full-year consolidated net sales guidance is $2.945 - $2.975 billion[42] - The company's full-year adjusted-diluted EPS guidance is $6.15 to $6.35[42] Business Segments - Proprietary Products' Q1 organic net sales increased by 2.4%[33] - High Value Products (HVP) components have grown at a CAGR of 13% in the past 5 years[21] - Annex 1 revenues accounted for approximately 200 basis points of total revenues in Q1[21] - Standard products sales were relatively flat year over year[24] - Contract Manufacturing segment is experiencing growth in GLP-1 auto-injector production, offsetting CGM contract exits[27] Profitability - Gross profit margin was 33.2% compared to 33.1% in the same period last year[29] - Reported operating profit was $107 million, while adjusted operating profit was $125 million[29]