# WEST PHARMACEUTICAL SERVICES INC (WST)

Informational only - not investment advice.

CIK: 0000105770
SIC: 3841 Surgical & Medical Instruments & Apparatus
SIC breadcrumb: [Manufacturing](/division/D/) > [SIC Major Group 38](/major-group/38/) > [SIC 3841 Surgical & Medical Instruments & Apparatus](/industry/3841/)
Latest 10-K filed: 2026-02-17
SEC page: https://www.sec.gov/edgar/browse/?CIK=105770
Filing source: https://www.sec.gov/Archives/edgar/data/105770/000010577026000010/wst-20251231.htm

## At a glance

FY2025 · period end 2025-12-31 · filed 2026-02-17 · accession 0000105770-26-000010 · source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000105770.json

| Metric | Value | FY | Provenance |
| --- | ---: | ---: | --- |
| Revenue | 3,074,100,000 USD | 2025 | verified |
| Net income | 493,700,000 USD | 2025 | verified |
| Assets | 4,270,000,000 USD | 2025 | verified |
| Free cash flow | 468,900,000 USD | 2025 | computed |
| Net margin | 16.06% | 2025 | computed |
| Operating margin | 19.03% | 2025 | computed |
| Revenue YoY | +6.25% | 2025 | computed |
| ROE | 15.54% | 2025 | computed |

Computed values are grepcent-computed from the verified facts above and may differ from ratios the company itself reports. Free cash flow = operating cash flow − capital expenditures. Net margin = net income ÷ revenue. Operating margin = operating income ÷ revenue. Revenue YoY = FY2025 revenue ÷ FY2024 revenue − 1 (consecutive fiscal years only). ROE = net income ÷ period-end stockholders' equity.

Peer groups: [Medical devices and instruments](/compare/medical-devices/) · SIC 3841 Surgical & Medical Instruments & Apparatus

No market price, no rating, no forecast on this site. Not investment advice.

## Peer comparisons including WST

- Medical devices and instruments: [peer review](/compare/medical-devices/) · [market-risk page](/compare/medical-devices/risk/)

### Peer percentile fingerprint

| Ratio | WST | Peer median | Percentile | N |
| --- | ---: | ---: | ---: | ---: |
| Net margin | 16.1% | -6.0% | 87 | 63 |
| Operating margin | 19.0% | -2.7% | 87 | 63 |
| Revenue growth | 6.3% | 13.6% | 25 | 64 |
| FCF margin | 15.3% | 0.2% | 82 | 63 |
| ROE | 15.5% | -9.1% | 82 | 58 |
| ROA | 11.6% | -4.8% | 89 | 65 |
| Liabilities / equity | 0.34 | 0.89 | 27 | 63 |
| Current ratio | 3.02 | 3.23 | 47 | 65 |

Percentile = share of the N covered peers reporting that ratio whose value is lower (ties counted half); computed among grepcent-covered companies in SIC industry 3841 Surgical & Medical Instruments & Apparatus, not the whole market. A higher percentile means a higher value of the ratio, not a better company. Ratios with fewer than 8 reporting peers are omitted. Latest reported values per company; fiscal periods may differ. Descriptive arithmetic - not a score, rating, or ranking.

## Selected Fundamentals
| Metric | Value | Unit | FY | Filed |
| --- | ---: | --- | ---: | --- |
| Revenue | 3074100000 | USD | 2025 | 2026-02-17 |
| Net income | 493700000 | USD | 2025 | 2026-02-17 |
| Assets | 4270000000 | USD | 2025 | 2026-02-17 |

## Financials

Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-02-17. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000105770.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts.

| Metric | 2009 | 2010 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Revenue |  |  |  |  | 1,717,400,000 | 1,839,900,000 | 2,146,900,000 | 2,831,600,000 | 2,886,900,000 | 2,949,800,000 | 2,893,200,000 | 3,074,100,000 |
| Net income | 72,600,000 | 65,300,000 |  |  | 206,900,000 | 241,700,000 | 346,200,000 | 661,800,000 | 585,900,000 | 593,400,000 | 492,700,000 | 493,700,000 |
| Operating income |  |  | 195,200,000 | 225,800,000 | 240,300,000 | 296,600,000 | 406,900,000 | 752,300,000 | 734,000,000 | 676,000,000 | 569,900,000 | 584,900,000 |
| Gross profit |  |  | 501,400,000 | 512,900,000 | 545,400,000 | 605,700,000 | 767,800,000 | 1,175,800,000 | 1,136,200,000 | 1,129,200,000 | 998,500,000 | 1,104,000,000 |
| Diluted EPS |  |  | 1.91 | 1.99 | 2.74 | 3.21 | 4.57 | 8.67 | 7.73 | 7.88 | 6.69 | 6.79 |
| Operating cash flow |  |  | 219,400,000 | 263,300,000 | 288,600,000 | 367,200,000 | 472,500,000 | 584,000,000 | 724,000,000 | 776,500,000 | 653,400,000 | 754,800,000 |
| Capital expenditures |  |  | 170,200,000 | 130,800,000 | 104,700,000 | 126,400,000 | 174,400,000 | 253,400,000 | 284,600,000 | 362,000,000 | 377,000,000 | 285,900,000 |
| Dividends paid |  |  | 35,800,000 | 39,100,000 | 42,100,000 | 45,100,000 | 48,100,000 | 51,100,000 | 54,100,000 | 57,000,000 | 59,100,000 | 61,200,000 |
| Share buybacks |  |  | 52,200,000 | 74,400,000 | 70,800,000 | 83,100,000 | 115,500,000 | 137,100,000 | 202,800,000 | 438,300,000 | 560,900,000 | 134,000,000 |
| Assets |  |  | 1,716,700,000 | 1,862,800,000 | 1,978,900,000 | 2,341,400,000 | 2,793,800,000 | 3,313,800,000 | 3,616,800,000 | 3,829,500,000 | 3,643,400,000 | 4,270,000,000 |
| Liabilities |  |  | 599,200,000 | 582,900,000 | 582,600,000 | 768,200,000 | 939,300,000 | 978,400,000 | 931,900,000 | 948,500,000 | 961,100,000 | 1,094,000,000 |
| Stockholders' equity |  |  |  | 1,279,900,000 | 1,396,300,000 | 1,573,200,000 | 1,854,500,000 | 2,335,400,000 | 2,684,900,000 | 2,881,000,000 | 2,682,300,000 | 3,176,000,000 |
| Cash and cash equivalents |  |  | 203,000,000 | 235,900,000 | 337,400,000 | 439,100,000 | 615,500,000 | 762,600,000 | 894,300,000 | 853,900,000 | 484,600,000 | 791,300,000 |
| Free cash flow |  |  | 49,200,000 | 132,500,000 | 183,900,000 | 240,800,000 | 298,100,000 | 330,600,000 | 439,400,000 | 414,500,000 | 276,400,000 | 468,900,000 |

### Ratios

ROE and ROA use period-end equity/assets. Liabilities / equity uses total liabilities divided by stockholders' equity. Current ratio uses current assets divided by current liabilities when both are reported.

| Metric | 2009 | 2010 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Net margin |  |  |  |  | 12.05% | 13.14% | 16.13% | 23.37% | 20.30% | 20.12% | 17.03% | 16.06% |
| Operating margin |  |  |  |  | 13.99% | 16.12% | 18.95% | 26.57% | 25.43% | 22.92% | 19.70% | 19.03% |
| Return on equity |  |  |  |  | 14.82% | 15.36% | 18.67% | 28.34% | 21.82% | 20.60% | 18.37% | 15.54% |
| Return on assets |  |  |  |  | 10.46% | 10.32% | 12.39% | 19.97% | 16.20% | 15.50% | 13.52% | 11.56% |
| Liabilities / equity |  |  |  | 0.46 | 0.42 | 0.49 | 0.51 | 0.42 | 0.35 | 0.33 | 0.36 | 0.34 |
| Current ratio |  |  | 2.66 | 2.66 | 3.15 | 3.10 | 2.73 | 2.93 | 3.70 | 2.88 | 2.79 | 3.02 |

## As-reported value updates

1 tracked difference above grepcent's stated thresholds were found between the earliest XBRL-filed value and the value currently on file for the same fiscal period.

Ledger: /company/WST/revisions/


## Quarterly

Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-07-23. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000105770.json.

Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived.

| Quarter | End date | Revenue | Net income | Diluted EPS | Method |
| --- | --- | ---: | ---: | ---: | --- |
| 2022-Q3 | 2022-09-30 |  |  | 1.59 | reported discrete quarter |
| 2023-Q1 | 2023-03-31 |  |  | 1.85 | reported discrete quarter |
| 2023-Q2 | 2023-06-30 |  |  | 2.06 | reported discrete quarter |
| 2023-Q3 | 2023-06-30 |  | 155,100,000 |  | reported discrete quarter |
| 2023-Q3 | 2023-09-30 | 747,400,000 |  | 2.14 | reported discrete quarter |
| 2023-Q4 | 2023-12-31 | 732,000,000 | 137,000,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2024-Q1 | 2024-03-31 | 695,400,000 | 115,300,000 | 1.55 | reported discrete quarter |
| 2024-Q2 | 2024-03-31 |  | 115,300,000 |  | reported discrete quarter |
| 2024-Q2 | 2024-06-30 | 702,100,000 |  | 1.51 | reported discrete quarter |
| 2024-Q3 | 2024-06-30 |  | 111,300,000 |  | reported discrete quarter |
| 2024-Q3 | 2024-09-30 | 746,900,000 |  | 1.85 | reported discrete quarter |
| 2024-Q4 | 2024-12-31 | 748,800,000 | 130,100,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2025-Q1 | 2025-03-31 | 698,000,000 | 89,800,000 | 1.23 | reported discrete quarter |
| 2025-Q2 | 2025-03-31 |  | 89,800,000 |  | reported discrete quarter |
| 2025-Q2 | 2025-06-30 | 766,500,000 |  | 1.82 | reported discrete quarter |
| 2025-Q3 | 2025-06-30 |  | 131,800,000 |  | reported discrete quarter |
| 2025-Q3 | 2025-09-30 | 804,600,000 |  | 1.92 | reported discrete quarter |
| 2025-Q4 | 2025-12-31 | 805,000,000 | 132,100,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2026-Q1 | 2026-03-31 | 844,900,000 | 138,800,000 | 1.92 | reported discrete quarter |
| 2026-Q2 | 2026-03-31 |  | 138,800,000 |  | reported discrete quarter |
| 2026-Q2 | 2026-06-30 | 872,300,000 |  | 2.15 | reported discrete quarter |

## Filed narrative (10-K & 10-Q)

## Business

Verbatim Item 1 Business section from WST's latest 10-K: [/company/WST/business/](/company/WST/business/).

## Risk Factors

Verbatim Item 1A Risk Factors from WST's latest 10-K: [/company/WST/risk-factors/](/company/WST/risk-factors/).

## Latest quarter (10-Q)

Latest 10-Q source: https://www.sec.gov/Archives/edgar/data/105770/000010577026000099/wst-20260630.htm

Extracted structurally from real Item 2 body heading to real Item 3/4 boundary.
Confidence: high
Filing date: 2026-07-23
Report date: 2026-06-30

ITEM 2.  MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

OVERVIEW

The following discussion is intended to further the reader’s understanding of the consolidated financial condition and results of operations of our Company. It should be read in conjunction with our condensed consolidated financial statements and accompanying notes elsewhere in this Quarterly Report on Form 10-Q (“Form 10-Q”) as well as Management’s Discussion and Analysis of Financial Condition and Results of Operations and the consolidated financial statements and accompanying notes included in our 2025 Annual Report. Our historical financial statements may not be indicative of our future performance. This Management’s Discussion and Analysis of Financial Condition and Results of Operations contains a number of forward-looking statements, all of which are based on our current expectations and could be affected by the uncertainties and risks discussed in Part I, Item 1A of our 2025 Annual Report and in Part II, Item 1A of this Form 10-Q.

Throughout this section, references to “Notes” refer to the notes to our condensed consolidated financial statements (unaudited) in Part I, Item 1 of this Form 10-Q, unless otherwise indicated.

Non-U.S. GAAP Financial Measures

For the purpose of aiding the comparison of our year-over-year results, we may refer to net sales and other financial results excluding the effects of changes in foreign currency exchange rates. Organic net sales exclude the impact from acquisitions and/or divestitures and translate the current-period reported sales of subsidiaries whose functional currency is other than USD at the applicable foreign exchange rates in effect during the comparable prior-year period. We may also refer to adjusted consolidated operating profit and adjusted consolidated operating profit margin, which exclude the effects of unallocated items. The unallocated items are not representative of ongoing operations, and generally include restructuring and related charges, certain asset impairments, and other specifically identified income or expense items. The re-measured results excluding effects from currency translation, the impact from acquisitions and/or divestitures, and excluding the effects of unallocated items are not in conformity with U.S. GAAP and should not be used as a substitute for the comparable U.S. GAAP financial measures. The non-U.S. GAAP financial measures are incorporated in our discussion and analysis as management uses them in evaluating our results of operations and believes that this information provides users with a valuable insight into our overall performance and financial position.

Our Operations

We are a leading global manufacturer in the design and production of technologically advanced, high-quality, integrated containment and delivery systems for injectable drugs and healthcare products. Our products include a variety of primary proprietary packaging, containment solutions, reconstitution and transfer systems, and drug delivery systems, as well as contract manufacturing, analytical lab services and integrated solutions. Our customers include leading biologic, generic, pharmaceutical, diagnostic, and medical device companies around the world. Our top priority is delivering quality products that meet the exact product specifications and quality standards customers require and expect. This focus on quality includes a commitment to excellence in manufacturing, scientific and technical expertise and management, which enables us to partner with our customers in order to deliver safe, effective drug products to patients quickly and efficiently.

Our business operations are organized into two global segments, Proprietary Products and West Vantage. Effective in the first quarter of 2026, the Company renamed its "Contract-Manufactured Products" reportable segment to "West Vantage™" to better align with its current strategic focus and offerings. This change in name does not affect the composition of the reportable segment, nor does it impact previously reported segment financial information. Our Proprietary Products reportable segment offers proprietary packaging, containment solutions and drug delivery systems, along with analytical lab services and other integrated services and solutions, primarily to biologic, generic and pharmaceutical drug customers. Our West Vantage reportable segment serves as a fully integrated business, focused on the design, manufacture, and automated assembly of complex devices, as well as combination product assembly and packaging, primarily for pharmaceutical, diagnostic, and medical device customers. We also maintain collaborations to share technologies and market products with affiliates in Japan and Mexico.

29

Table of Contents

Macroeconomic Factors

Beginning in 2025, the U.S. government imposed additional tariffs and trade restrictions on certain goods produced outside of the United States, and certain jurisdictions in which we operate have imposed or are considering imposing tariffs and restrictions on certain goods produced in the United States. In February 2026, the U.S. Supreme Court issued a ruling that certain tariffs imposed under the International Emergency Economics Power Act (“IEEPA”) were unauthorized. During the second quarter of 2026, the Company began applying for and receiving certain refunds for tariffs previously collected under the IEEPA. We continue to monitor this dynamic trade-policy environment, including the potential impact of existing or future tariffs, trade restrictions, retaliatory measures, available refund processes and mitigation actions. Based on information currently available, we do not expect these matters to have a material impact on our 2026 results.

We continue to monitor the conflict in the Middle East and related macroeconomic developments, including potential impacts on our operations, supply chain, transportation costs, energy costs and petroleum-based raw material inputs. While escalation or prolongation of the conflict could contribute to volatility or inflationary pressure in certain of these costs, based on information currently available and our corresponding mitigation efforts, we do not expect these matters to have a material impact on our results of operations, financial condition or liquidity. During the first six months of 2026, our Israel-based facilities continued to operate without material disruption.

Financial Performance Summary

The following tables present a reconciliation from U.S. GAAP to non-U.S. GAAP financial measures for the three and six months ended June 30, 2026:

[[GREPCENT_TABLE]]
[["($ in millions, except per share data)","Operating Profit","","Income tax expense","","Net income","","Diluted EPS"],["Three months ended June 30, 2026 U.S. GAAP","$","179.1","","","$","32.2","","","$","154.0","","","$","2.15"],["Unallocated items:"],["Restructuring and other charges(1)","1.5","","","0.3","","","1.2","","","0.02"],["M&A activities, including SmartDose\u00ae 3.5mL sale(2)","6.4","","","1.5","","","4.9","","","0.07"],["Cost-method investment activity(3)","3.5","","","\u2014","","","3.5","","","0.05"],["Amortization of acquisition-related intangible assets(4)","\u2014","","","\u2014","","","0.4","","","\u2014"],["Other(5)","6.9","","","1.4","","","5.4","","","0.08"],["Three months ended June 30, 2026 adjusted amounts (non-U.S. GAAP)","$","197.4","","","$","35.4","","","$","169.4","","","$","2.37"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["($ in millions, except per share data)","Operating profit","","Income tax expense","","Net income","","Diluted EPS"],["Six months ended June 30, 2026 U.S. GAAP","$","356.2","","","$","76.9","","","$","292.8","","","$","4.07"],["Unallocated items:"],["Restructuring and other charges(1)","2.9","","","(11.3)","","","14.2","","","0.20"],["M&A activities, including SmartDose\u00ae 3.5mL sale(2)","8.3","","","1.9","","","6.4","","","0.09"],["Cost-method investment activity(3)","3.5","","","\u2014","","","3.5","","","0.05"],["Amortization of acquisition-related intangible assets(4)","\u2014","","","\u2014","","","0.9","","","0.01"],["Other(5)","7.5","","","1.6","","","5.9","","","0.08"],["Six months ended June 30, 2026 adjusted amounts (non-U.S. GAAP)","$","378.4","","","$","69.1","","","$","323.7","","","$","4.50"]]
[[/GREPCENT_TABLE]]

30

Table of Contents

The following tables present a reconciliation from U.S. GAAP to non-U.S. GAAP financial measures for the three and six months ended June 30, 2025:

[[GREPCENT_TABLE]]
[["($ in millions, except per share data)","Operating Profit","","Income tax expense","","Net income","","Diluted EPS"],["Three months ended June 30, 2025 U.S. GAAP","$","153.7","","","$","30.2","","","$","131.8","","","$","1.82"],["Unallocated items:"],["Restructuring and other charges(1)","1.6","","","0.4","","","1.2","","","0.02"],["Amortization of acquisition-related intangible assets(4)","\u2014","","","\u2014","","","0.5","","","\u2014"],["Three months ended June 30, 2025 adjusted amounts (non-U.S. GAAP)","$","155.3","","","$","30.6","","","$","133.5","","","$","1.84"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["($ in millions, except per share data)","Operating Profit","","Income tax expense","","Net income","","Diluted EPS"],["Six months ended June 30, 2025 U.S. GAAP","$","260.7","","","$","54.3","","","$","221.6","","","$","3.05"],["Unallocated items:"],["Restructuring and other charges(1)","19.4","","","2.4","","","17.0","","","0.23"],["Amortization of acquisition-related intangible assets(4)","0.2","","","\u2014","","","1.1","","","0.01"],["Six months ended June 30, 2025 adjusted amounts (non-U.S. GAAP)","$","280.3","","","$","56.7","","","$","239.7","","","$","3.29"]]
[[/GREPCENT_TABLE]]

(1)During the three and six months ended June 30, 2026, the Company recorded pre-tax charges of $1.5 million and $2.9 million, respectively, related to our two existing restructuring programs: (i) $1.0 million and $1.9 million, respectively, within other expense (income), related to acceleration of depreciation and lease costs in connection with the Company's January 2025 restructuring plan and (ii) $0.5 million and $1.0 million, respectively, within selling, general and administrative expenses, for professional services relating to our 2024 plan to optimize the legal structure of the Company and its subsidiaries. In addition, we recorded a one-time tax cost of $12.0 million associated with an internal legal entity restructuring which occurred in the first quarter of 2026. During the three and six months ended June 30, 2025, the Company recorded pre-tax charges of $1.6 million and $19.4 million, respectively, related to our two existing restructuring programs: (i) $0.2 million and $16.6 million, respectively, within other expense (income), related to severance, acceleration of depreciation and lease costs in connection with the Company's January 2025 restructuring plan and (ii) $1.4 million and $2.8 million, respectively, within selling, general and administrative expenses, for professional services relating to our 2024 plan to optimize the legal structure of the Company and its subsidiaries. In addition, we recorded income tax charges of $2.0 million in the first quarter of 2025, related primarily to withholding tax and capital gains incurred in executing our plan to optimize our legal structure.

(2)During the three and six months ended June 30, 2026, the Company recorded pre-tax charges of $6.4 million and $8.3 million, respectively, related to M&A activities, including the Company's agreement to sell its SmartDose® 3.5mL On-Body Delivery System and associated facilities to AbbVie. The Company recorded $1.3 million and $2.2 million, respectively, of the charges within other expense (income), related to employee benefit costs in connection with the sale agreement. The Company recorded the remaining $5.1 million and $6.1 million, respectively, within selling, g

[Excerpt truncated for page length; source filing is linked above.]

## Latest 10-K MD&A (excerpt)

Latest 10-K Item 7 source: https://www.sec.gov/Archives/edgar/data/105770/000010577026000010/wst-20251231.htm
Complete FY 2025 MD&A: /company/WST/mda/fy2025/

Extracted structurally from real Item 7 body heading to real Item 7A/8 boundary.
Confidence: high
Filing date: 2026-02-17
Report date: 2025-12-31

ITEM 7.  MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

OVERVIEW

The following discussion is intended to further the reader’s understanding of the consolidated financial condition and results of operations of the Company. It should be read in conjunction with our consolidated financial statements and the accompanying footnotes included in Part II, Item 8 of this Form 10-K. These historical financial statements may not be indicative of our future performance. This Management’s Discussion and Analysis of Financial Condition and Results of Operations contains a number of forward-looking statements, all of which are based on our current expectations and could be affected by the uncertainties and risks discussed in Part I, Item 1A of this Form 10-K.

Non-U.S. GAAP Financial Measures

For the purpose of aiding the comparison of our year-over-year results, we may refer to net sales and other financial results excluding the effects of changes in foreign currency exchange rates. Organic net sales exclude the impact from acquisitions and/or divestitures and translate the current-period reported sales of subsidiaries whose functional currency is other than USD at the applicable foreign exchange rates in effect during the comparable prior-year period. We may also refer to adjusted consolidated operating profit and adjusted consolidated operating profit margin, which exclude the effects of unallocated items. The unallocated items are not representative of ongoing operations, and generally include restructuring and related charges, certain asset impairments, and other specifically-identified income or expense items. The re-measured results excluding effects from currency translation, the impact from acquisitions and/or divestitures, and excluding the effects of unallocated items are not in conformity with U.S. Generally Accepted Accounting Principles ("GAAP") and should not be used as a substitute for the comparable U.S. GAAP financial measures. The non-U.S. GAAP financial measures are incorporated in our discussion and analysis as management uses them in evaluating our results of operations and believes that this information provides users with a valuable insight into our overall performance and financial position.

Our Operations

We are a leading global manufacturer in the design and production of technologically advanced, high-quality, integrated containment and delivery systems for injectable drugs and healthcare products. Our products include a variety of primary proprietary packaging, containment solutions, reconstitution and transfer systems, and drug delivery systems, as well as contract manufacturing, analytical lab services and integrated solutions. Our customers include leading biologic, generic, pharmaceutical, diagnostic, and medical device companies around the world. Our top priority is delivering quality products that meet the exact product specifications and quality standards customers require and expect. This focus on quality includes a commitment to excellence in manufacturing, scientific and technical expertise and management, which enables us to partner with our customers in order to deliver safe, effective drug products to patients quickly and efficiently.

Our business operations are organized into two global segments, Proprietary Products and Contract-Manufactured Products. Our Proprietary Products reportable segment offers proprietary packaging, containment solutions and drug delivery systems, along with analytical lab services and other integrated services and solutions, primarily to biologic, generic and pharmaceutical drug customers. Our Contract-Manufactured Products reportable segment serves as a fully integrated business, focused on the design, manufacture, and automated assembly of complex devices, primarily for pharmaceutical, diagnostic, and medical device customers. We also maintain collaborations to share technologies and market products with affiliates in Japan and Mexico.

Macroeconomic Factors

In recent months, the U.S. government has imposed additional tariffs and trade restrictions on certain goods produced outside of the United States. In response to these actions, certain jurisdictions in which we operate have imposed or are considering imposing tariffs and restrictions on certain goods produced in the United States. We continue to monitor this dynamic situation to assess the impact of these tariffs on our business and actions we can take to minimize their impact. Based on the information available at this time, the impact was not material to our 2025 results.

27

Components of and Key Factors Influencing Our Results of Operations

In assessing the performance of our business, we consider a variety of performance and financial measures. We believe the items discussed below provide insight into the factors that affect these key measures.

Net Sales

Our net sales result from the sale of goods or services and reflect the net consideration which we expect to receive in exchange for those goods or services.

Several factors affect our reported net sales in any period, including product, payer and geographic sales mix, operational effectiveness, pricing realization, timing of orders and shipments, regulatory actions, competition, and business acquisitions that involve our customers or competitors.

Cost of goods and services sold and gross profit

Cost of goods and services sold includes personnel costs, manufacturing costs, raw materials and product costs, freight costs, depreciation, and facility costs associated with our manufacturing and warehouse facilities. Fluctuations in our cost of goods sold correspond with the fluctuations in sales units as well as inflationary and other market factors that influence our cost base.

Gross profit is calculated as net sales less cost of goods and services sold. Our gross profit is affected by product and geographic sales mix, realized pricing of our products, the efficiency of our manufacturing operations and the costs of materials used to make our products.

Research and development expenses

Research and development expenses relate to our investments in improvements to our manufacturing processes, product enhancements, and additional investments in our elastomeric packaging components, formulation development, integrated drug containment systems, self-injection systems and drug administration consumables.

We expense research and development costs as incurred. Our research and development expenses fluctuate from period to period primarily based on the ongoing improvements to our manufacturing processes and product enhancements.

Selling, general and administrative expenses

Selling, general and administrative expenses primarily include personnel costs, incentive compensation, insurance, professional fees, and depreciation.

Financial Performance Summary

The following tables present a reconciliation from U.S. GAAP to non-U.S. GAAP financial measures:

[[GREPCENT_TABLE]]
[["($ in millions)","Operating profit","","Income tax expense","","Net income","","Diluted EPS"],["Year ended December 31, 2025 GAAP","$","584.9","","","$","121.6","","","$","493.7","","","$","6.79"],["Unallocated items:"],["Restructuring and other charges (1)","23.3","","","0.9","","","22.4","","","0.31"],["SmartDose\u00ae 3.5mL sale (2)","8.4","","","1.9","","","6.5","","","0.09"],["Cost-method investment activity (3)","4.5","","","\u2014","","","4.5","","","0.06"],["Amortization of acquisition-related intangible assets (4)","0.2","","","\u2014","","","2.0","","","0.03"],["Other","1.1","","","0.3","","","0.8","","","0.01"],["Year ended December 31, 2025 adjusted amounts (non-U.S. GAAP)","$","622.4","","","$","124.7","","","$","529.9","","","$","7.29"]]
[[/GREPCENT_TABLE]]

During 2025, we recorded a tax benefit of $4.5 million associated with stock-based compensation.

28

[[GREPCENT_TABLE]]
[["($ in millions)","Operating profit","","Income tax expense","","Net income","","Diluted EPS"],["Year ended December 31, 2024 GAAP","$","569.9","","","$","107.5","","","$","492.7","","","$","6.69"],["Unallocated items:"],["Restructuring and other charges (1)","2.1","","","0.4","","","1.7","","","0.02"],["Amortization of acquisition-related intangible assets (4)","0.8","","","0.1","","","2.8","","","0.04"],["Year ended December 31, 2024 adjusted amounts (non-U.S. GAAP)","$","572.8","","","$","108.0","","","$","497.2","","","$","6.75"]]
[[/GREPCENT_TABLE]]

During 2024, we recorded a tax benefit of $19.5 million associated with stock-based compensation.

[[GREPCENT_TABLE]]
[["($ in millions)","Operating profit","","Income tax expense","","Net income","","Diluted EPS"],["Year ended December 31, 2023 GAAP","$","676.0","","","$","122.3","","","$","593.4","","","$","7.88"],["Unallocated items:"],["Restructuring and other charges (1)","(2.0)","","","(0.9)","","","(1.1)","","","$","(0.02)"],["Cost-method investment activity (3)","4.3","","","\u2014","","","4.3","","","$","0.06"],["Amortization of acquisition-related intangible assets (4)","0.7","","","$","0.1","","","2.8","","","$","0.04"],["Loss on disposal of plant (5)","11.6","","","(0.7)","","","12.3","","","$","0.16"],["Legal settlement (6)","\u2014","","","$","(0.9)","","","(2.9)","","","$","(0.04)"],["Year ended December 31, 2023 adjusted amounts (non-U.S. GAAP)","$","690.6","","","$","119.9","","","$","608.8","","","$","8.08"]]
[[/GREPCENT_TABLE]]

During 2023, we recorded a tax benefit of $32.0 million associated with stock-based compensation.

(1)During 2025, the Company recorded pre-tax charges of $23.3 million related to our two existing restructuring programs: (i) $18.4 million within other expense (income), related to severance, acceleration of depreciation and lease costs in connection with the Company's January 2025 restructuring plan and (ii) $4.9 million within selling, general and administrative expenses, for professional services relating to our 2024 plan to optimize the legal structure of the Company and its subsidiaries. In addition, we recorded income tax charges of $4.9 million related primarily to withholding tax and capital gains incurred in executing our plan to optimize our legal structure. During 2024, the Company recorded expense to restructuring and other charges of $2.1 million. The net expense represents the impact of two items, the first of which is $4.6 million of expense recorded within selling, general and administrative expenses in connection with a plan to optimize the legal structure of the Company and its subsidiaries. The expense consisted primarily of consulting fees, legal expenses, and other one-time costs directly attributable to this plan. This expense was partially offset by a $2.5 million benefit recorded within other expense (income) related to revised severance estimates in connection with the Company's 2022 restructuring plan. During 2023, the Company recorded a benefit to restructuring and other charges of $2.0 million, which represents the net impact of a $2.8 million benefit within other expense (income) for revised severance estimates in connection with its 2022 restructuring plan and an inventory write down of $0.8 million within cost of goods and services sold.

(2)During 2025, the Company recorded charges of $8.4 million related to the Company's agreement to sell its SmartDose® 3.5mL On-Body Delivery System and associated facilities to AbbVie. The Company recorded $6.2 million of the charges within other expense (income), related to severance and lease impairment charges in connection with the sale agreement. The Company recorded the remaining $2.2 million within selling, general and administrative expenses, relating to professional services in connection with the sale agreement.

(3)During 2025, the Company recorded cost-method investment impairment charges of $4.5 million within other expense (income). During 2023, the Company recorded cost-method investment impairment charges of $4.3 million within o

[Excerpt truncated for page length; the complete text is on the linked full-MD&A page.]

Read the full FY 2025 MD&A: /company/WST/mda/fy2025/
All MD&A years: /company/WST/mda/


## MD&A history

Prior-year 10-K MD&A spans are extracted from SEC filings with the same bounded parser used for the latest filing. Each year's full verbatim text is on its own sub-page.

- [FY 2024 MD&A](/company/WST/mda/fy2024/): filed 2025-02-18; accession 0000105770-25-000013 (https://www.sec.gov/Archives/edgar/data/105770/000010577025000013/wst-20241231.htm)
- [FY 2023 MD&A](/company/WST/mda/fy2023/): filed 2024-02-20; accession 0000105770-24-000015 (https://www.sec.gov/Archives/edgar/data/105770/000010577024000015/wst-20231231.htm)
- [FY 2022 MD&A](/company/WST/mda/fy2022/): filed 2023-02-21; accession 0000105770-23-000012 (https://www.sec.gov/Archives/edgar/data/105770/000010577023000012/wst-20221231.htm)
- [FY 2021 MD&A](/company/WST/mda/fy2021/): filed 2022-02-22; accession 0001628280-22-003342 (https://www.sec.gov/Archives/edgar/data/105770/000162828022003342/wst-20211231.htm)




## Macro cross-references

Indicators mapped to this company's SIC classification (industry 3841 Surgical & Medical Instruments & Apparatus) by grepcent's deterministic macro-sector crosswalk. A navigational mapping, not a statistical or causal claim.

- [INDPRO](/indicator/INDPRO/): Industrial Production: Total Index
- [TCU](/indicator/TCU/): Capacity Utilization: Total Index
- [PPIACO](/indicator/PPIACO/): Producer Price Index by Commodity: All Commodities
- [GDPC1](/indicator/GDPC1/): Real Gross Domestic Product
- [DGS10](/indicator/DGS10/): Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity
- [FEDFUNDS](/indicator/FEDFUNDS/): Federal Funds Effective Rate
- [CES0500000003](/indicator/CES0500000003/): Average Hourly Earnings of All Employees, Total Private
- [PAYEMS](/indicator/PAYEMS/): All Employees, Total Nonfarm

Macro-to-micro threads including this sector: [Inflation (CPI / PCE / PPI)](/thread/inflation-cpi-pce-ppi/), [US labor market](/thread/us-labor-market/), [Growth & output](/thread/growth-output/), [Money & trade](/thread/money-trade/), [Government finances](/thread/government-finances/), [Sector employment](/thread/sector-employment/), [Industrial orders & inventories](/thread/industrial-orders/), [Trade & external](/thread/trade-external/).

All macro indicators: /indicators/


## For LLMs & downloads

Markdown twin: /company/WST.md · JSON record: /company/WST.json · verified financials: /company/WST/financials.json / /company/WST/financials.csv · machine TOC for the whole site: /llms.txt