0000105770false00001057702025-02-132025-02-13

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported) – February 13, 2025
wstlogoq319.jpg
WEST PHARMACEUTICAL SERVICES, INC.
(Exact name of registrant as specified in its charter)
Pennsylvania
1-8036
23-1210010
(State or other jurisdiction
of incorporation)
(Commission File Number)
(IRS Employer
Identification No.)
530 Herman O. West Drive, Exton, PA
19341-1147
(Address of principal executive offices)
(Zip Code)
 Registrant’s telephone number, including area code: 610-594-2900
Not Applicable
(Former name or address, if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
☐
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading SymbolName of each exchange on which registered
Common Stock, par value $0.25 per shareWSTNew York Stock Exchange
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

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Item 2.02 Results of Operations and Financial Condition.

On February 13, 2025, West Pharmaceutical Services, Inc. (the “Company”) issued a press release announcing its fourth-quarter and full year 2024 financial results. A copy of the press release is attached hereto as Exhibit 99.1 and incorporated herein by reference.

Item 7.01 Regulation FD Disclosure.

The information set forth in “Item 2.02 Results of Operations and Financial Condition,” including the exhibit referred to therein, is incorporated herein by reference.

A copy of the Company’s presentation materials used during the call will be available through the Investors link at the Company’s website, http://www.westpharma.com, and is also attached hereto as Exhibit 99.2 and incorporated herein by reference.

The information in this report (including the exhibits attached hereto) is being furnished pursuant to Item 2.02 and Item 7.01 and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (“Exchange Act”), or otherwise subject to the liabilities of that section, nor will it be incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific referencing in such filing.

Item 9.01 Financial Statements and Exhibits.
(d)
Exhibit No.
Description
 99.1
West Pharmaceutical Services, Inc. Press Release, dated February 13, 2025.
 99.2
West Pharmaceutical Services, Inc. Presentation, dated February 13, 2025.
 104
The cover page from the Company’s Current Report on Form 8-K, dated February 13, 2025, formatted in Inline XBRL.



2



SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.


WEST PHARMACEUTICAL SERVICES, INC.
/s/ Bernard J. Birkett
Bernard J. Birkett
Senior Vice President, Chief Financial Officer
February 13, 2025



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EXHIBIT INDEX

Exhibit No.
Description
99.1
99.2
104
The cover page from the Company’s Current Report on Form 8-K, dated February 13, 2025, formatted in Inline XBRL.

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exh991logoa.jpg
Exhibit 99.1

West Announces Fourth-Quarter and Full-Year 2024 Results
- Conference Call Scheduled for 9 a.m. EDT Today -

Exton, PA, February 13, 2025 – West Pharmaceutical Services, Inc. (NYSE: WST) today announced its financial results for the fourth-quarter and full-year 2024 and introduced 2025 financial guidance.

Fourth Quarter Summary (comparisons to prior-year period) & Full Year 2025 Guidance
•Fourth-quarter 2024 net sales of $748.8 million increased 2.3%; organic net sales grew 3.3%.
•Fourth-quarter 2024 reported-diluted EPS of $1.78 declined 2.7%; fourth-quarter 2024 adjusted-diluted EPS of $1.82 declined 0.5%.
•For full-year 2025, the Company anticipates net sales in a range of $2.875 billion to $2.905 billion and adjusted-diluted EPS in the range of $6.00 to $6.20.

Eric M. Green, President, Chief Executive Officer and Chair of the Board: “I am pleased to report we had a strong quarter with revenues and profits exceeding our expectations, and a return to positive organic growth as the impact of destocking continues to moderate. Our core businesses continue to benefit from our market-leading positions and proprietary processes. Looking ahead to 2025, we expect our business momentum to continue in key areas of our Proprietary Products business, driven by improving High-Value Products ("HVP") trends in Biologics and Generics, and growth driven by Annex 1 and GLP-1. We are focused on operational excellence and driving strong returns in 2025."


Proprietary Products Segment
Fourth-quarter 2024 net sales increased to $613.9 million. Organic net sales growth was 4.5%. HVP represented approximately 74% of segment net sales in the period, led by robust customer demand for self-injection device platforms. Fourth-quarter sales included a benefit of approximately $25 million in customer incentives earned in connection with volumes achieved related to HVP Delivery Devices.

The Biologics market unit experienced high-single digit organic net sales growth, driven by an increase in sales of self-injection device platforms, offset by lower sales of NovaPure® products. The Pharma market unit saw mid-single digit organic net sales growth, driven by an increase in sales of Westar® products and Administrative Systems. The Generics market unit had a mid-single digit organic net sales decline, driven by lower volumes of FluroTec® products.

Full-year 2024 net sales declined by 2.6% to $2.335 billion, while organic net sales declined by 2.2%. Full-year 2024 HVP sales represented approximately 73% of segment net sales with a low-single digit organic net sales decline.



Contract-Manufactured Products Segment
Fourth-quarter 2024 net sales declined by 2.5% to $134.9 million, while organic net sales declined 2.0%. Segment performance was driven by a continued decrease in sales of healthcare diagnostic devices, partially offset by growth in self-injection devices for obesity and diabetes.

Full-year 2024 net sales grew by 1.1% to $558.7 million, while organic net sales also increased 1.1%. Segment performance was driven by growth in self-injection devices for obesity and diabetes, offset by a decrease in sales of healthcare diagnostic devices.

Full-year 2024 Financial Highlights (comparisons to prior-year period)
Full-year 2024 net sales were $2.893 billion, a decline of 1.9%, while organic net sales declined 1.5%.

Full-year 2024 adjusted-diluted EPS was $6.75, a decline of 16.5%, and full-year 2024 reported-diluted EPS was $6.69, a decline of 15.1%.

Operating cash flow was $653.4 million, a decline of 15.9%. Capital expenditures were $377.0 million, an increase of 4.1%. Free cash flow (operating cash flow minus capital expenditures) was $276.4 million, a decline of 33.3%.

During 2024, the Company repurchased 1,583,032 shares for $560.9 million at an average share price of $354.30 under its share repurchase program.

Introducing 2025 Financial Guidance
•Full-year 2025 net sales are expected to be in a range of $2.875 billion to $2.905 billion.
◦Organic net sales growth is expected to be approximately 2% to 3%.
◦Net sales guidance includes an estimated full-year 2025 headwind of $75 million based on current foreign currency exchange rates.
•Full-year 2025 adjusted-diluted EPS is expected to be in a range of $6.00 to $6.20.
◦Full-year adjusted-diluted EPS guidance range includes an estimated headwind of approximately $0.23 based on current foreign currency exchange rates.
◦This adjusted-diluted EPS guidance range assumes a full-year 2025 tax rate of approximately 22%, which does not include potential tax benefits from stock-based compensation. As in prior years, we are not including potential 2025 tax benefits from stock-based compensation, as they are out of the Company's control. Any tax benefits associated with stock-based compensation that we receive in 2025 would provide a positive adjustment to our full-year EPS guidance.
•Full-year 2025 capital spending is expected to be $275 million. This includes incremental capital spending to support capacity expansions at existing HVP sites and investments in Contract Manufacturing facilities.





Fourth-Quarter 2024 Conference Call
The live audio-only webcast will be made available via the Company's Investor Relations website at westpharma.com.

To participate in the conference call by asking questions to Management, please register in advance at https://register.vevent.com/register/BI3c9092338ee2475fae7b7b53e70973e6.

Upon registration, all telephone participants will receive the dial-in number along with a unique PIN number that will be used to access the call.

Management will refer to a slide presentation during the call, which will be made available on the day of the call. To view the presentation, select "Presentations" in the "Investors" section of the Company's website.

A replay of the conference call and webcast will be available on the Company's website for 30 days.

Investor Contact:Media Contact:
John Sweeney, CFAMichele Polinsky
Vice President, Investor RelationsVice President, Global Communications
(484) 790-0373(610) 594-3054
John.Sweeney@westpharma.comMichele.Polinsky@westpharma.com
























Forward-Looking Statements
This release contains statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements may include such words as “raising,” “positioned,” “updating,” “expected,” “assumes,” “unchanged,” “includes,” “would,” “provide” and other similar terminology. These statements reflect management’s current expectations regarding future events and operating performance and speak only as of the date of this release. There is no certainty that actual results will be achieved in-line with current expectations. These forward-looking statements involve a number of risks and uncertainties. The following are some of the factors that could cause our actual results to differ materially from those expressed in or underlying our forward-looking statements: prevailing economic conditions and general uncertainties relating thereto that may be unknown and unforeseeable; customers’ changing inventory requirements and manufacturing plans and customer decisions to move forward with our new products and product categories; disruptions or limitations in the Company’s manufacturing capacity; average profitability, or mix, of the products we sell; dependence on third-party suppliers and partners; increased raw material, energy and labor costs; fluctuations in currency exchange; the ability to meet development milestones with key customers; and the consequences of other geopolitical events, including natural disasters, acts of war, and global health crises. This list of important factors is not all inclusive. For a description of certain additional factors that could cause the Company’s future results to differ from those expressed in any such forward-looking statements, see Part I Item 1A, entitled “Risk Factors,” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023, and other filings with the United States Securities and Exchange Commission, including the Company’s quarterly reports on Form 10-Q and current reports on Form 8-K.

Except as required by law or regulation, we undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise.

Non-U.S. GAAP Financial Measures
This release contains certain non-GAAP financial measures, including organic net sales and adjusted-diluted EPS. 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 the U.S. Dollar at the applicable foreign currency exchange rates in effect during the comparable prior-year period. We may also refer to financial results excluding the effects of unallocated items. The re-measured results excluding effects from currency translation and excluding the effects of unallocated items are not in conformity with U.S. generally accepted accounting principles (“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 into our discussion and analysis as management uses them in evaluating our results of operations and believes that this information provides users a valuable insight into our overall performance and financial position. A reconciliation of these adjusted non-U.S. GAAP measures to the comparable U.S. GAAP financial measures is included in the accompanying tables.


WEST PHARMACEUTICAL SERVICES, INC.
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
(in millions, except per share data)

 Three Months Ended
December 31,		Twelve Months Ended
December 31,
 2024202320242023
Net sales$748.8 100%$732.0 100%$2,893.2 100%$2,949.8 100%
Cost of goods and services sold475.2 63453.8 621,894.7 651,820.6 62
Gross profit273.6 37278.2 38998.5 351,129.2 38
Research and development18.5 318.4 369.1 268.4 2
Selling, general and administrative expenses85.3 1290.0 12338.5 12353.4 12
Other expense (income), net10.2 18.9 121.0 131.4 1
Operating profit159.6 21160.9 22569.9 20676.0 23
Interest (income) expense, net(5.6)(1)(8.2)(1)(16.6)—(19.0)(1)
Other nonoperating expense (income)0.3 —0.9 —1.0 —(3.0)—
Income before income taxes and equity in net income of affiliated companies164.9 22168.2 23585.5 20698.0 24
Income tax expense36.8 434.5 5107.5 4122.3 4
Equity in net income of affiliated companies(2.0)—(3.3)(1)(14.7)(1)(17.7)—
Net income$130.1 18%$137.0 19%$492.7 17%$593.4 20%
Net income per share:     
Basic$1.79  $1.85  $6.75  $7.98  
Diluted$1.78  $1.83  $6.69  $7.88  
Average common shares outstanding72.7  74.1  73.0  74.3  
Average shares assuming dilution73.3  75.0  73.7  75.3  



WEST PHARMACEUTICAL SERVICES
REPORTING SEGMENT INFORMATION
(UNAUDITED)
(in millions)

Three Months Ended
December 31,		Twelve Months Ended
December 31,
Net Sales:
2024202320242023
Proprietary Products$613.9 $593.7 $2,334.5 $2,397.3 
Contract-Manufactured Products134.9 138.3 558.7 552.5 
Consolidated Total$748.8 $732.0 $2,893.2 $2,949.8 
Gross Profit:
Proprietary Products$250.7 $253.4 $900.5 $1,034.0 
Contract-Manufactured Products22.9 24.7 98.0 96.0 
Unallocated— 0.1 — (0.8)
Gross Profit$273.6 $278.2 $998.5 $1,129.2 
Gross Profit Margin36.5 %38.0 %34.5 %38.3 %
Operating Profit (Loss):   
Proprietary Products$162.3 $163.6 $577.8 $710.1 
Contract-Manufactured Products16.2 18.8 72.3 72.1 
Stock-based compensation expense(4.3)(1.4)(18.7)(23.3)
General corporate costs(14.6)(20.1)(61.5)(82.9)
Reported Operating Profit$159.6 $160.9 $569.9 $676.0 
Reported Operating Profit Margin21.3 %22.0 %19.7 %22.9 %
Unallocated items3.2 (1.0)2.9 14.6 
Adjusted Operating Profit$162.8 $159.9 $572.8 $690.6 
Adjusted Operating Profit Margin21.7 %21.8 %19.8 %23.4 %



WEST PHARMACEUTICAL SERVICES
RECONCILIATION OF NON-U.S. GAAP MEASURES (UNAUDITED)
Please refer to “Non-U.S. GAAP Financial Measures” for more information
(in millions, except per share data)

Reconciliation of Reported and Adjusted Operating Profit, Net Income and Diluted EPS
Three Months ended December 31, 2024Operating
profit		Income
tax
expense		Net
income		Diluted
EPS
Reported (U.S. GAAP)$159.6 $36.8 $130.1 $1.78 
Unallocated Items:
Restructuring and other charges (1)
3.0 0.7 2.3 0.03 
Amortization of acquisition-related intangible assets (2)
0.2 — 0.7 0.01 
Adjusted (Non-U.S. GAAP)$162.8 $37.5 $133.1 $1.82 
Twelve Months ended December 31, 2024Operating
profit		Income
tax
expense		Net
income		Diluted
EPS
Reported (U.S. 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 (2)
0.8 0.1 2.8 0.04 
Adjusted (Non-U.S. GAAP)$572.8 $108.0 $497.2 $6.75 
Three Months ended December 31, 2023Operating
profit		Income
tax
expense		Net
income		Diluted
EPS
Reported (U.S. GAAP)$160.9 $34.5 $137.0 $1.83 
Unallocated items:
Restructuring and other charges (1)
(2.1)(0.6)(1.5)(0.02)
Amortization of acquisition-related intangible assets (2)
0.1 — 0.7 0.01 
Cost investment activity (4)
1.0 — 1.0 0.01 
Adjusted (Non-U.S. GAAP)$159.9 $33.9 $137.2 $1.83 
Twelve Months ended December 31, 2023Operating
profit		Income
tax
expense		Net
income		Diluted
EPS
Reported (U.S. GAAP)$676.0 $122.3 $593.4 $7.88 
Unallocated items:
Restructuring and other charges (1)
(2.0)(0.9)(1.1)(0.02)
Amortization of acquisition-related intangible assets (2)
0.7 0.1 2.8 0.04 
Loss on disposal of plant (3)
11.6 (0.7)12.3 0.16 
Cost investment activity (4)
4.3 — 4.3 0.06 
Legal settlement (5)
— (0.9)(2.9)(0.04)
Adjusted (Non-U.S. GAAP)$690.6 $119.9 $608.8 $8.08 



(1)Restructuring and other charges was an expense of $3.0 million and $2.1 million in the three and twelve months ended December 31, 2024, respectively. The net expense represents the impact of two items, the first of which is an expense of $3.0 million and $4.6 million during the three and twelve months ended December 31, 2024, respectively, 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 consists 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 in the twelve months ended December 31, 2024 recorded within other expense (income) related to revised severance estimates in connection with the Company's 2022 restructuring plan. During the three and twelve months ended December 31, 2023, the Company recorded a benefit to restructuring and other charges of $2.1 million and $2.0 million, respectively. The twelve-month benefit represents the net impact of a $2.8 million benefit within other expense (income) for revised severance estimates in connection with our 2022 restructuring plan and an inventory write down of $0.8 million within cost of goods and services sold.

(2)During the three and twelve months ended December 31, 2024 and 2023, the Company recorded $0.2 million and $0.8 million, and $0.1 million and $0.7 million, respectively, of amortization expense within operating profit associated with an intangible asset acquired during the second quarter of 2020. During the three and twelve months ended December 31, 2024 and 2023, the Company recorded $0.5 million and $2.1 million, respectively, of amortization expense in association with an acquisition of increased ownership interest in Daikyo.

(3)During the twelve months ended December 31, 2023, the Company recorded expense of $11.6 million as a result of the sale of one of the Company’s manufacturing facilities within the Proprietary Products segment. The transaction closed during the second quarter of 2023.

(4)During the three and twelve months ended December 31, 2023, the Company recorded a cost investment impairment charge of $1.0 million and $4.3 million, respectively.

(5)During the twelve months ended December 31, 2023, the Company recorded a benefit of $3.8 million within other nonoperating expense (income) as a result of a favorable legal settlement related to a matter not included in our normal operations.



WEST PHARMACEUTICAL SERVICES
RECONCILIATION OF NON-U.S. GAAP FINANCIAL MEASURES (UNAUDITED)
Please refer to “Non-U.S. GAAP Financial Measures” for more information
(in millions, except per share data)

Reconciliation of Net Sales to Organic Net Sales (6 and 7)

Three Months ended December 31, 2024ProprietaryCMTotal
Reported net sales (U.S. GAAP)$613.9 $134.9 $748.8 
Effect of changes in currency translation rates6.5 0.7 7.2 
Organic net sales (non-U.S. GAAP) (6)
$620.4 $135.6 $756.0 
Twelve Months ended December 31, 2024ProprietaryCMTotal
Reported net sales (U.S. GAAP)$2,334.5 $558.7 $2,893.2 
Effect of changes in currency translation rates6.9 0.1 7.0 
Organic net sales (non-U.S. GAAP) (6)
$2,341.4 $558.8 $2,900.2 

Twelve Months ended December 31, 2023ProprietaryCMTotal
Reported net sales (U.S. GAAP)$2,397.3 $552.5 $2,949.8 
Effect of divestitures and/or acquisitions(4.3)— (4.3)
Net sales excluding divestiture (non-U.S. GAAP) (7)
$2,393.0 $552.5 $2,945.5 
(6)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 the U.S. Dollar at the applicable foreign currency exchange rates in effect during the comparable prior-year period.

(7)Net sales excluding divestitures represents the 2023 comparative sales figure used in our organic sales growth calculation to eliminate the impact of our 2023 divestiture. As the 2023 divestiture took place in the second quarter of 2023, there was no impact of divestitures and/or acquisitions in the three months ended December 31, 2023.



WEST PHARMACEUTICAL SERVICES
RECONCILIATION OF NON-U.S. GAAP FINANCIAL MEASURES (UNAUDITED)
Please refer to “Non-U.S. GAAP Financial Measures” for more information
(in millions, except per share data)

Reconciliation of Reported-Diluted EPS Guidance to Adjusted-Diluted EPS Guidance

2024 Actual
2025 Guidance% Change
Reported-diluted EPS (U.S. GAAP)$6.69$5.97 to $6.17(10.8%) to (7.8%)
Restructuring and other charges0.02—
Amortization of acquisition-related intangible assets0.040.03
Adjusted-diluted EPS (Non-U.S. GAAP) (8)
$6.75$6.00 to $6.20(11.1%) to (8.1%)

Notes:

See “Introducing 2025 Financial Guidance” and “Non-U.S. GAAP Financial Measures” in today’s press release for additional information regarding adjusted-diluted EPS.

(8)We have opted not to forecast 2025 tax benefits from stock-based compensation in upcoming quarters, as they are out of the Company’s control. Instead, we recognize the benefits as they occur. In 2024, tax benefits associated with stock-based compensation increased adjusted-diluted EPS by $0.26. Any future tax benefits associated with stock-based compensation that we receive in 2025 would provide a positive adjustment to our full-year EPS guidance.



WEST PHARMACEUTICAL SERVICES
CASH FLOW ITEMS
(UNAUDITED)
(in millions)
 Twelve Months Ended
December 31,
 20242023
Depreciation and amortization$155.4 $137.3 
Operating cash flow$653.4 $776.5 
Capital expenditures$377.0 $362.0 
Free cash flow$276.4 $414.5 




WEST PHARMACEUTICAL SERVICES
FINANCIAL CONDITION
(UNAUDITED)
(in millions)
 
As of
December 31, 2024
As of
December 31, 2023
Cash and cash equivalents$484.6 $853.9 
Accounts receivable, net$552.5 $512.0 
Inventories$377.0 $434.7 
Accounts payable$239.3 $242.4 
Debt$202.6 $206.8 
Equity$2,682.3 $2,881.0 
Working capital$987.7 $1,264.6 


Trademark Notices
Trademarks and registered trademarks are the property of West Pharmaceutical Services, Inc., in the United States and other jurisdictions, unless noted otherwise.

Daikyo®, Daikyo Crystal Zenith® and Daikyo CZ® are registered trademarks of Daikyo Seiko, Ltd. Daikyo Crystal Zenith technologies are licensed from Daikyo Seiko, Ltd.



1 Fourth-Quarter and Full Year 2024 Results Fourth Quarter Overall Net Sales $748.8M | 2.3% Diluted Earnings Per Share: $1.78 Adjusted Diluted Earnings Per Share: $1.82 Eric M. Green President and Chief Executive Officer Chair of the Board West Pharmaceutical Services, Inc. WST Q4/FY 2024 Earnings “I am pleased to report we had a strong quarter with revenues and profits exceeding our expectations, and a return to positive organic growth as the impact of destocking continues to moderate. Our core businesses continue to benefit from our market-leading positions and proprietary processes. Looking ahead to 2025, we expect our business momentum to continue in key areas of our Proprietary Products business, driven by improving High-Value Products ("HVP") trends in Biologics and Generics, and growth driven by Annex 1 and GLP-1. We are focused on operational excellence and driving strong returns in 2025.” Full Year Overall Net Sales $2.893B | 1.9% Diluted Earnings Per Share: $6.69 Adjusted Diluted Earnings Per Share: $6.75 Cautionary Statement Under the Private Securities Litigation Reform Act of 1995 This presentation and any accompanying management commentary contain “forward-looking statements” as that term is defined in the Private Securities Litigation Reform Act of 1995. Such statements include, but are not limited to, statements about product development and operational performance. Each of these statements is based on preliminary information, and actual results could differ from any preliminary estimates. We caution investors that the risk factors listed under “Cautionary Statement” in our press releases, as well as those set forth under the caption "Risk Factors" in our most recent Annual Report on Form 10-K as filed with the Securities and Exchange Commission and as revised or supplemented by our quarterly reports on Form 10-Q, could cause our actual results to differ materially from those estimated or predicted in the forward-looking statements. You should evaluate any statement in light of these important factors. Except as required by law or regulation, we undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise, therefore you should not rely on these forward-looking statements as representing our views as of any date other than today. Non-U.S. GAAP Financial Measures Certain financial measures included in these presentation materials, or which may be referred to in management’s discussion of the Company’s results and outlook, have not been calculated in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”), and therefore are referred to as non- U.S. GAAP financial measures. Non-U.S. GAAP financial measures should not be considered in isolation or as an alternative to such measures determined in accordance with U.S. GAAP. Please refer to “Reconciliation of Non-U.S. GAAP Financial Measures” at the end of these materials for more information.

 
West Pharmaceutical Services, Inc. Eric M. Green President & CEO, Chair of the Board Bernard J. Birkett Senior VP & Chief Financial Officer Fourth-Quarter and Full Year Results 2024 Analyst Conference Call 9 a.m. Eastern Time | February 13, 2025

 
3 West Analyst Conference Call 9 a.m. Eastern Time February 13, 2025 A webcast of today’s call can be accessed in the “Investors” section of the Company’s website: www.westpharma.com To participate on the call by asking questions to Management, please register in advance at: https://register.vevent.com/register/BI3c9092338ee2475fae7b7 b53e70973e6 Upon registration, all telephone participants will receive the dial-in number along with a unique PIN number that will be used to access the call. A replay of the conference call and webcast will be available on the Company’s website for 30 days. These presentation materials are intended to accompany today’s press release announcing the Company’s results for the fourth quarter 2024 and full year 2024 and management’s discussion of those results during today’s conference call. WST Q4/FY 2024 Earnings

 
4 Safe Harbor Statement This presentation and any accompanying management commentary contain “forward-looking statements” as that term is defined in the Private Securities Litigation Reform Act of 1995. Such statements include, but are not limited to, statements about product development, operational performance and expectations regarding future events. Each of these statements is based on preliminary information, and actual results could differ from any preliminary estimates. We caution investors that the risk factors listed under our “Forward Looking Statements” in our press releases, as well as those set forth under the caption "Risk Factors" in our most recent Annual Report on Form 10-K as filed with the Securities and Exchange Commission and as revised or supplemented by our quarterly reports on Form 10-Q, could cause our actual results to differ materially from those estimated or predicted in the forward-looking statements. You should evaluate any statement in light of these important factors. Except as required by law or regulation, we undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise, therefore you should not rely on these forward-looking statements as representing our views as of any date other than today. Certain financial measures included in these presentation materials, or which may be referred to in management’s discussion of the Company’s results and outlook, have not been calculated in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”), and therefore are referred to as non-U.S. GAAP financial measures. Non-U.S. GAAP financial measures should not be considered in isolation or as an alternative to such measures determined in accordance with U.S. GAAP. Please refer to “Reconciliation of Non-U.S. GAAP Financial Measures” at the end of these materials for more information. Cautionary Statement Under the Private Securities Litigation Reform Act of 1995 Non-U.S. GAAP Financial Measures Trademarks and registered trademarks used in this report are the property of West Pharmaceutical Services, Inc. or its subsidiaries, in the United States and other jurisdictions, unless noted otherwise. Daikyo Crystal Zenith® and Daikyo CZ® are registered trademarks of Daikyo Seiko, Ltd. Daikyo Crystal Zenith technologies are licensed from Daikyo Seiko, Ltd. Trademarks WST Q4/FY 2024 Earnings

 
5 FY24 Financial Highlights WST Q4/FY 2024 Earnings • Capitalized on the significant opportunities within the fast-growing GLP-1 market. • High participation rate on newly approved molecules, particularly in Biologics. • Engaging with customers to help them address the changing regulatory landscape with Annex 1. • Close to the end of the industry-wide destocking cycle; customers returning to more normalized ordering patterns. • Returned over $560 million to our shareholders through our share repurchase program. • Made strategic investments in additional High value products capacity to drive incremental growth.

 
6 Q424 Financial Highlights WST Q4/FY 2024 Earnings • Q4 2024 came in above our expectations. • Revenues increased 3.3% on an organic basis. Q4 marked a return to revenue growth. • Proprietary Products organic revenues increased 4.5%. Continued improving trend, as Proprietary Products organic revenues declined in each of the first three quarters of 2024 compared to the same period in prior year, largely due to destocking. • Adjusted Operating Profit margin was 21.7%, in-line with Prior Year.

 
7 • Most important contributor to West long-term growth. • Current expectation is that HVP components will grow Mid-to-High-Single Digit in 2025. Anticipate continued mix shift to HVP in FY25 and beyond. • Biologics Market expected to grow at High-Single Digit (HSD) to Low-Double Digits (LDD). High participation rate on new molecules entering the market. • HVP GLP-1 elastomer business: Expect acceleration in growth due to continued market expansion of GLP-1s. • Encouraged with progress from customers adopting EU GMP Annex 1. West has over 200 Annex 1 projects in various stages with our customers. Proprietary Products Business HVP Components WST Q4/FY 2024 Earnings

 
8 Proprietary Products Business HVP Delivery Devices and Standard Components SmartDose® On-Body Delivery System • Patient-centric approach to self-administration. • Expected to be margin dilutive in 2025, due to changes in pricing / incentive. Standard Products • The bulk products produced across our global manufacturing network. • Standard components mainly used by Pharma and Generics customers. WST Q4/FY 2024 Earnings

 
9 Contract Manufacturing • Investments to build out our GLP-1 device business. • Now accounts for approximately 40% of total Contract Manufacturing revenue. • Anticipate GLP-1 growth to continue due to Dublin and Grand Rapids investments • Continuous Glucose Monitoring customers developed next generation devices. • Decision to NOT participate going forward due to financial metrics. • Actively pursuing CM opportunities that more closely align with financial targets. Grand Rapids, MI expansion WST Q4/FY 2024 Earnings

 
10 Fourth-Quarter 2024 Summary Results ($ millions, except earnings-per-share (EPS) data) Three Months Ended December 31, 2024 2023 Reported Net Sales $748.8 $732.0 Gross Profit Margin 36.5% 38.0% Reported Operating Profit $159.6 $160.9 Adjusted Operating Profit (1) $162.8 $159.9 Reported Operating Profit Margin 21.3% 22.0% Adjusted Operating Profit Margin (1) 21.7% 21.8% Reported-Diluted EPS $1.78 $1.83 Adjusted-Diluted EPS (1) $1.82 $1.83 “Adjusted Operating Profit,” “Adjusted Operating Profit Margin” and “Adjusted-Diluted EPS” are Non-U.S. GAAP financial measures. See accompanying slides and the discussion under the heading “Non-U.S. GAAP Financial Measures” in today’s press release for an explanation and reconciliation of these items. (1) WST Q4/FY 2024 Earnings

 
11 Overall Organic Net Sales Growth: 3.3% (Q4 2024) Proprietary Products Q4 2024 organic net sales increased by 4.5% driven by sales of High-value products and customer demand for self-injection device platforms. BIOLOGICS GENERICS PHARMA Organic sales growth driven by an increase in sales of self- injection device platforms, offset by lower sales of NovaPure® products Organic sales decline driven by lower volumes of FluroTec® products Organic sales growth driven by an increase in sales of Westar® products and Administrative Systems CONTRACT MANUFACTURING Organic net sales decline driven by a continued decrease in sales of healthcare diagnostic devices, partially offset by growth in self- injection devices for obesity and diabetes High-Single Digit (Mid-Single Digit) (Low-Single Digit)Mid-Single Digit Fourth-Quarter 2024 Organic Net Sales WST Q4/FY 2024 Earnings

 
12 Change in Consolidated Net Sales Fourth-quarter 2023 to 2024 ($ millions) WST Q4/FY 2024 Earnings

 
13 Gross Profit Update ($ millions) Three Months Ended December 31, 2024 2023 Proprietary Products Gross Profit $250.7 $253.4 Proprietary Products Gross Profit Margin 40.8% 42.7% Contract-Manufactured Products Gross Profit $22.9 $24.7 Contract-Manufactured Products Gross Profit Margin 17.0% 17.9% Consolidated Gross Profit $273.6 $278.2 Consolidated Gross Profit Margin 36.5% 38.0% WST Q4/FY 2024 Earnings

 
14 Cash Flow and Balance Sheet Metrics ($ millions) Cash Flow Items YTD Q4 2024 YTD Q4 2023 Depreciation and Amortization $155.4 $137.3 Operating Cash Flow $653.4 $776.5 Capital Expenditures $377.0 $362.0 Free Cash Flow $276.4 $414.5 Financial Condition December 31, 2024 December 31, 2023 Cash and Cash Equivalents $484.6 $853.9 Debt $202.6 $206.8 Equity $2,682.3 $2,881.0 Working Capital $987.7 $1,264.6 WST Q4/FY 2024 Earnings

 
15 2025 Full-Year Guidance WST Q4/FY 2024 Earnings 2025 Full-Year Guidance Consolidated Net Sales $2.875 - $2.905 billion Adjusted-Diluted EPS $6.00 to $6.20

 
16 FY24 to FY25 EPS Guidance Progression WST Q4/FY 2024 Earnings $6.75 $0.77 $(0.77) $(0.43) $(0.22) $6.00 – $6.20 $5.00 $5.50 $6.00 $6.50 $7.00 $7.50 $8.00 2024 Adj. EPS Proprietary Products ex. Delivery Device Incentive Incentive Comp., Tax on SBC & Currency Delivery Device Incentive and CM R&D / SG&A Investments 2025 Guidance Range

 
17 • Pleased with the strong finish to the year. • Confident we can execute on our key objectives in 2025. • Our performance in HVP components is particularly encouraging, seeing a return to growth driven by Biologics, GLP-1s and Annex 1 adoption. • We believe we will exit 2025 with strong momentum. Delivering a Successful 2025 WST Q4/FY 2024 Earnings

 
18 Eric M. Green President & Chief Executive Officer, Chair of the Board Bernard J. Birkett Senior VP & Chief Financial Officer John Sweeney VP, Investor Relations Q & A WST Q4/FY 2024 Earnings

 
19 Notes to Non-U.S. GAAP Financial Measures The Non-U.S. GAAP financial measures are incorporated into our discussion and analysis as management uses them in evaluating our results of operations and believes that this information provides users a valuable insight into our overall performance and financial position. A reconciliation of these adjusted Non-U.S. GAAP financial measures to the comparable U.S. GAAP financial measures is included in the accompanying tables. 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 the U.S. Dollar at the applicable foreign exchange rates in effect during the comparable prior-year period. We may also refer to financial results excluding the effects of unallocated items. The re-measured results excluding effects from currency translation, the impact from acquisitions and/or divestitures, and 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. WST Q4/FY 2024 Earnings

 
20 Notes to Non-U.S. GAAP Financial Measures RECONCILIATION OF NON-U.S. GAAP FINANCIAL MEASURES (UNAUDITED) See “Notes to Non-U.S. GAAP Financial Measures”, “Safe Harbor Statement” (Slide 4) and today’s press release for an explanation and reconciliation of these items. Reconciliation of Reported and Adjusted Operating Profit, Net Income and Diluted EPS ($ millions, except EPS data) Three months ended December 31, 2024 Operating profit Income tax expense Net income Diluted EPS Reported (U.S. GAAP) $159.6 $36.8 $130.1 $1.78 Unallocated items: Restructuring and other charges 3.0 0.7 2.3 0.03 Amortization of acquisition-related intangible assets 0.2 - 0.7 0.01 Adjusted (Non-U.S. GAAP) $162.8 $37.5 $133.1 $1.82 Twelve months ended December 31, 2024 Operating profit Income tax expense Net income Diluted EPS Reported (U.S. GAAP) $569.9 $107.5 $492.7 $6.69 Unallocated items: Restructuring and other charges 2.1 0.4 1.7 0.02 Amortization of acquisition-related intangible assets 0.8 0.1 2.8 0.04 Adjusted (Non-U.S. GAAP) $572.8 $108.0 $497.2 $6.75 WST Q4/FY 2024 Earnings

 
21 Notes to Non-U.S. GAAP Financial Measures RECONCILIATION OF NON-U.S. GAAP FINANCIAL MEASURES (UNAUDITED) See “Notes to Non-U.S. GAAP Financial Measures”, “Safe Harbor Statement” (Slide 4) and today’s press release for an explanation and reconciliation of these items. Reconciliation of Reported and Adjusted Operating Profit, Net Income and Diluted EPS ($ millions, except EPS data) Three months ended December 31, 2023 Operating profit Income tax expense Net income Diluted EPS Reported (U.S. GAAP) $160.9 $34.5 $137.0 $1.83 Unallocated items: Restructuring and other charges (2.1) (0.6) (1.5) (0.02) Amortization of acquisition-related intangible assets 0.1 - 0.7 0.01 Cost investment activity 1.0 - 1.0 0.01 Adjusted (Non-U.S. GAAP) $159.9 $33.9 $137.2 $1.83 Twelve months ended December 31, 2023 Operating profit Income tax expense Net income Diluted EPS Reported (U.S. GAAP) $676.0 $122.3 $593.4 $7.88 Unallocated items: Restructuring and other charges (2.0) (0.9) (1.1) (0.02) Amortization of acquisition-related intangible assets 0.7 0.1 2.8 0.04 Loss on disposal of plant 11.6 (0.7) 12.3 0.16 Cost investment activity 4.3 - 4.3 0.06 Legal settlement - (0.9) (2.9) (0.04) Adjusted (Non-U.S. GAAP) $690.6 $119.9 $608.8 $8.08 WST Q4/FY 2024 Earnings

 
22 Notes to Non-U.S. GAAP Financial Measures RECONCILIATION OF NON-U.S. GAAP FINANCIAL MEASURES (UNAUDITED) See “Notes to Non-U.S. GAAP Financial Measures”, “Safe Harbor Statement” (Slide 4) and today’s press release for an explanation and reconciliation of these items. Reconciliation of Net Sales to Organic Net Sales (1 and 2) ($ millions) 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 the U.S. Dollar at the applicable foreign exchange rates in effect during the comparable prior-year period. (1) Three months ended December 31, 2024 Proprietary CM Total Reported net sales (U.S. GAAP) $613.9 $134.9 $748.8 Effect of changes in currency translation rates 6.5 0.7 7.2 Organic net sales (Non-U.S. GAAP) (1) $620.4 $135.6 $756.0 Twelve months ended December 31, 2024 Proprietary CM Total Reported net sales (U.S. GAAP) $2,334.5 $558.7 $2,893.2 Effect of changes in currency translation rates 6.9 0.1 7.0 Organic net sales (Non-U.S. GAAP) (1) $2,341.4 $558.8 $2,900.2 WST Q4/FY 2024 Earnings

 
23 Notes to Non-U.S. GAAP Financial Measures RECONCILIATION OF NON-U.S. GAAP FINANCIAL MEASURES (UNAUDITED) See “Notes to Non-U.S. GAAP Financial Measures”, “Safe Harbor Statement” (Slide 4) and today’s press release for an explanation and reconciliation of these items. Reconciliation of Net Sales to Organic Net Sales (1 and 2) ($ millions) (2) Net sales excluding divestitures represents the 2023 comparative sales figure used in our organic sales growth calculation to eliminate the impact of our 2023 divestiture. As the 2023 divestiture took place in the second quarter of 2023, there was no impact of divestitures and/or acquisitions in the three months ended December 31, 2023. Twelve months ended December 31, 2023 Proprietary CM Total Reported net sales (U.S. GAAP) $2,397.3 $552.5 $2,949.8 Effect of divestitures and/or acquisitions (4.3) - (4.3) Net sales excluding divestiture (Non-U.S. GAAP) (2) $2,393.0 $552.5 $2,945.5 WST Q4/FY 2024 Earnings

 
24 Notes to Non-U.S. GAAP Financial Measures RECONCILIATION OF NON-U.S. GAAP FINANCIAL MEASURES (UNAUDITED) See “Notes to Non-U.S. GAAP Financial Measures”, “Safe Harbor Statement” (Slide 4) and today’s press release for an explanation and reconciliation of these items. Reconciliation of Reported-Diluted EPS Guidance to Adjusted-Diluted EPS Guidance 2024 Actual 2025 Guidance % Change Reported-diluted EPS (U.S. GAAP) $6.69 $5.97 to $6.17 (10.8%) to (7.8%) Restructuring and other charges 0.02 - Amortization of acquisition-related intangible assets 0.04 0.03 Adjusted-diluted EPS (Non-U.S. GAAP) (1) $6.75 $6.00 to $6.20 (11.1%) to (8.1%) (1) See “Introducing 2025 Financial Guidance” and “Non-U.S. GAAP Financial Measures” in today’s press release for additional information regarding adjusted-diluted EPS. We have opted not to forecast 2025 tax benefits from stock-based compensation in upcoming quarters, as they are out of the Company’s control. Instead, we recognize the benefits as they occur. In 2024, tax benefits associated with stock-based compensation increased adjusted-diluted EPS by $0.26. Any future tax benefits associated with stock- based compensation that we receive in 2025 would provide a positive adjustment to our full-year EPS guidance. WST Q4/FY 2024 Earnings

 
v3.25.0.1
Cover
Feb. 13, 2025
Document and Entity Information [Abstract]  
Entity Central Index Key 0000105770
Document Type 8-K
Document Period End Date Feb. 13, 2025
Entity Registrant Name WEST PHARMACEUTICAL SERVICES, INC.
Entity Incorporation, State or Country Code PA
Entity File Number 1-8036
Entity Tax Identification Number 23-1210010
Entity Address, Address Line One 530 Herman O. West Drive
Entity Address, City or Town Exton
Entity Address, State or Province PA
Entity Address, Postal Zip Code 19341-1147
City Area Code 610
Local Phone Number 594-2900
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Title of 12(b) Security Common Stock, par value $0.25 per share
Trading Symbol WST
Security Exchange Name NYSE
Entity Emerging Growth Company false
Amendment Flag false
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