WEST PHARMACEUTICAL SERVICES INC
For the period ended Jun 30, 2025. Filed Jul 24, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2025 · Filed Jul 24, 2025
WST$399.81+1.9%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-03-31; filed 2025-04-24.
0000105770-25-000036
Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSCurrent report: 10-Q
Period ended 2025-06-30; filed 2025-07-24.
0000105770-25-000065
Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 113 previous paragraphs and 133 current paragraphs.
74 unchanged; 33 reworded; 21 added; 6 removed; 0 previous and 5 current paragraphs rearranged.
Tables are not compared: 11 previous and 14 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (21)
Current report
Proprietary Products – Proprietary Products net sales increased by $60.1 million, or 10.7%, for the three months ended June 30, 2025, as compared to the same period in 2024, including a favorable foreign currency translation impact of $12.9 million. Excluding foreign currency translation effects, net sales for the three months ended June 30, 2025 increased by $47.2 million, or 8.4%, as compared to the same period in 2024, due primarily to an increase in sales of Westar® products, NovaChoice® products and Daikyo CZ®, partially offset by a decline in sales of FluroTec® products.
Current report
Consolidated net sales increased by $67.0 million, or 4.8%, for the six months ended June 30, 2025, as compared to the same period in 2024, including a favorable foreign currency translation impact of $4.8 million . Excluding foreign currency translation effects, consolidated net sales for the six months ended June 30, 2025 increased by $62.2 million, or 4.5%, as compared to the same period in 2024.
Current report
Contract-Manufactured Products – Contract-Manufactured Products net sales increased by $3.4 million, or 1.2%, for the six months ended June 30, 2025, as compared to the same period in 2024, including a favorable foreign currency translation impact of $1.7 million. Excluding foreign currency translation effects, net sales for the six months ended June 30, 2025 increased by $1.7 million, or 0.6%, as compared to the same period in 2024, due primarily to an increase in sales of self-injection devices for obesity and diabetes, partially offset by a decrease in sales of healthcare diagnostic devices.
Current report
Consolidated gross profit increased by $45.6 million, or 9.9%, for the six months ended June 30, 2025, as compared to the same period in 2024, including a favorable foreign currency translation impact of $3.2 million for the six months ended June 30, 2025, as compared to the same period in 2024. Consolidated gross profit margin increased by 1.6 margin points for the six months ended June 30, 2025, as compared to the same period in 2024.
Current report
Proprietary Products gross profit increased by $44.4 million, or 10.7%, for the six months ended June 30, 2025, as compared to the same period in 2024, including a favorable foreign currency translation impact of $3.0 million. Proprietary Products gross profit margin increased by 1.8 margin points for thesix months ended June 30, 2025, as compared to the same periods in 2024, due primarily to higher plant absorption from increased customer demand and sales price increases.
Current report
Contract-Manufactured Products -Contract-Manufactured Products gross profit increased by $2.6 million, or 11.3%, for the three months ended June 30, 2025, as compared to the same period in 2024, including a favorable foreign currency translation impact of $0.6 million. Contract-Manufactured Products gross profit margin increased by 1.3 margin points for the three months ended June 30, 2025, as compared to the same period in 2024, due primarily to sales price increases and product mix.
Current report
Contract-Manufactured Products gross profit increased by $1.2 million, or 2.6%, for the six months ended June 30, 2025, as compared to the same period in 2024, including a favorable foreign currency translation impact of $0.2 million. Contract-Manufactured Products gross profit margin increased by 0.2 margin points for thesix months ended June 30, 2025, as compared to the same period in 2024, due primarily to sales price increases andproduct mix.
Current report
Consolidated SG&A costs increased by $14.2 million, or 8.4%, for thesix months ended June 30, 2025, as compared to the same period in 2024, due primarily to increased salary and wages and higher annual incentive compensation, partially offset by decreased costs related to professional services.
Current report
Proprietary Products -Proprietary Products SG&A costs increased by$5.4 million, or 9.6%, for the three months ended June 30, 2025, as compared to the same period in 2024, including an unfavorable foreign currency translation impact of$0.8 million. Proprietary Products SG&A costs increaseddue primarily to higher annual incentive compensation and increased salary and wages, partially offset by decreased costs related to professional services.
Current report
Proprietary Products SG&A costs increased by$5.0 million, or 4.3%, for thesix months ended June 30, 2025, as compared to the same period in 2024. Proprietary Products SG&A costs increased due primarily to increased salary and wages and higher annual incentive compensation, partially offset by decreased costs related to professional services.
Current report
Contract-Manufactured Products -Contract-Manufactured Products SG&A costs increased by$0.8 million, or 12.9%, for the three months ended June 30, 2025, as compared to the same period in 2024, including an unfavorable foreign currency translation impact of$0.1 million, due prima rily to increased salary and wages and higher annual incentive compensation.
Current report
Contract-Manufactured Products SG&A costs increased by$2.2 million, or 17.7%, for thesix months ended June 30, 2025, as compared to the same period in 2024, due primarily to increased salary and wages.
Current report
Corporate and unallocated items -Corporate SG&A costs increased by$6.7 million, or 32.4%, for the three months ended June 30, 2025, as compared to the same period in 2024, due primarily to increase in expense related to stock-based compensation, higher annual incentive compensation and increased costs related to professional services.
Current report
Consolidated operating profit increased by $27.5 million, or 21.8%, for the three months ended June 30, 2025, as compared to the same period in 2024, including a favorable foreign currency translation impact of $6.0 million for the three months ended June 30, 2025, as compared to the same period in 2024.
Current report
Consolidated operating profit increased by $11.7 million, or 4.7%, for the six months ended June 30, 2025, as compared to the same period in 2024, including a favorable foreign currency translation impact of $3.3 million for the six months ended June 30, 2025, as compared to the same period in 2024.
Current report
Proprietary Products operating profit increased by $35.0 million, or 13.6%, for the six months ended June 30, 2025, as compared to the same period in 2024, including a favorable foreign currency translation impact of $3.1 million, due to the factors described above, most notably higher plant absorption from increased customer demand and sales price increases.
Current report
Contract-Manufactured Products -Contract-Manufactured Products operating profit increased by$0.6 million, or 3.5%, for the three months ended June 30, 2025, as compared to the same period in 2024, including a favorable foreign currency translation impact of$0.5 million, due to the factors described above, most notably sales price increases.
Current report
Excluding the unallocated items, Corporate costs increased by $1.1 million, or 2.6%, for the six months ended June 30, 2025, as comparedto the same period in 2024, due to the factors described above, most notably the higher annual incentive compensation and increased costs related to professional services.
Current report
Interest expense, net, decreased by $1.4 million, for the three months ended June 30, 2025, as compared to the same period in 2024, and decreased by $2.6 million, for the six months ended June 30, 2025, as compared to the same period in 2024, due primarily to an increase in capitalized interest, offset by an increase in interest expense driven by an increase in the Company's Term Loan balance.
Current report
Equity in net income of affiliated companies was $8.4 million and $8.8 million for the six months ended June 30, 2025 and 2024, respectively. Equity in net income of affiliated companies decreased by $0.4 million for the six months ended June 30, 2025, as compared to the same period in 2024, due primarily to less favorable operating results at Daikyo, partially offset by more favorable operating results at the Mexico affiliates.
Current report
Theincrease in other current assets was primarily driven by an increase in the asset value of our short-term hedges associated with foreign currency risk and prepaid expenses. Theincrease in inventories was to ensure we have sufficient inventory on hand to support the needs of our customers. Theincrease in total current liabilities wasdriven by an increase in the liability value of our short-term hedges associated with foreign currency risk and an increase in the salaries, wages and benefits accrual. Thedecrease in cash and cash equivalents was due to share repurchases and capital expenditures, offset by cash from operations during thesix months ended June 30, 2025.
Removed paragraphs (6)
Previous report
Contract-Manufactured Products -Contract-Manufactured Products gross profit decreased by $1.4 million, or 6.1%, for the three months ended March 31, 2025, as compared to the same period in 2024, including an unfavorable foreign currency translation impact of $0.3 million. Contract-Manufactured Products gross profit margin decreased by 0.9 margin points for the three months ended March 31, 2025, as compared to the same period in 2024, primarily due to plant spend for additional manufacturing capacity to support the GLP-1 business, offset by increased sales prices.
Previous report
Proprietary Products -Proprietary Products SG&A costs decreased by$0.4 million, or 0.7%, for the three months ended March 31, 2025, as compared to the same period in 2024, including a favorable foreign currency translation impact of $0.8 million. Proprietary Products SG&A costs decreased primarily dueto decreased costs related to professional services, offset by increased salary and wages.
Previous report
Contract-Manufactured Products -Contract-Manufactured Products SG&A costs increased by$1.4 million, or 22.6%, for the three months ended March 31, 2025, as compared to the same period in 2024, including a favorable foreign currency translation impact of $0.1 million, due primarily toincreased salary and wages.
Previous report
Consolidated operating profit decreased by $15.8 million, or 12.9%, for the three months ended March 31, 2025, as compared to the same period in 2024, including an unfavorable foreign currency translation impact of $2.6 million for the three months ended March 31, 2025, as compared to the same period in 2024.
Previous report
Interest expense, net, decreased by $1.2 million, for the three months ended March 31, 2025, as compared to the same period in 2024, primarily due to an increase in capitalized interest.
Previous report
Thedecrease in cash and cash equivalents was due to share repurchases and capital expenditures, offset by cash from operations during thethree months ended March 31, 2025. The decrease in total current liabilities was primarily driven by reductions in accounts payable and income taxes payable, as well as the payout of the 2024 annual incentive plan accrual during the three months ended March 31, 2025 . The decrease in accounts receivable is primarily due to decreased net sales leading up to the March 31, 2025 balance sheet date as compared to the December 31, 2024 balance sheet date.
Reworded paragraphs (33)
Previous wording
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.
Current wording
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.
Previous wording
The following tables present a reconciliation from U.S. GAAP to non-U.S. GAAP financial measures for the three months ended March 31, 2025:
Current wording
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:
Previous wording
During thethree months ended March 31, 2025, we recorded a tax benefit of $1.7 million associated with stock-based compensation.
Current wording
During thethree and six months ended June 30, 2025, we recorded a tax benefit of $1.2 million and $2.9 million respectively, associated with stock-based compensation.
Previous wording
The following tables present a reconciliation from U.S. GAAP to non-U.S. GAAP financial measures for the three months ended March 31, 2024:
Current wording
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, 2024:
Previous wording
During thethree months ended March 31, 2024, we recorded a tax benefit of $10.9 million associated with stock-based compensation.
Current wording
During thethree and six months ended June 30, 2024, we recorded a tax benefit of $5.7 million and $16.6 million, respectively, associated with stock-based compensation.
Previous wording
(1)During the three months ended March 31, 2025, the Company recorded charges of $17.8 million related to restructuring programs. The Company recorded $16.4 million of the charge within other expense (income), related to severance and acceleration of depreciation and lease costs in connection with the Company's 2025 restructuring plan. The remaining $1.4 million of expense, recorded within selling, general and administrative expenses, relates to our plan to optimize the legal structure of the Company and its subsidiaries.
Current wording
(1)During the three and six months ended June 30, 2025, the Company recorded charges of $1.6 million and $19.4 million, respectively, related to restructuring programs. During the three and six months ended June 30, 2025, the Company recorded $0.2 million and $16.6 million, respectively, of the charges within other expense (income), related to severance and acceleration of depreciation and lease costs in connection with the Company's 2025 restructuring plan. The Company recorded the remaining $1.4 million and $2.8 million, respectively, within selling, general and administrative expenses, related to our plan to optimize the legal structure of the Company and its subsidiaries.
Previous wording
(2)During the three months ended March 31, 2025 and 2024, the Company recorded$0.2 million of amortization expense within operating profit associated with an intangible asset acquired duringthe second quarter of 2020. During thethree months ended March 31, 2025 and 2024, the Company recorded $0.4 million and $0.5 million, respectively, of amortization expensein association with an acquisition of increased ownership interest in Daikyo.
Current wording
(2)During the six months ended June 30, 2025, the Company recorded $0.2 millionof amortization expense within operating profit associated with an intangible asset acquired duringthe second quarter of 2020. During thethree and six months ended June 30, 2025, the Company recorded $0.5 million and $0.9 million, respectively, of amortization expense in association with an acquisition of increased ownership interest in Daikyo. During thethree and six months ended June 30, 2024, the Company recorded $0.2 million and $0.4 million, respectively, of amortization expense within operating profit associated with an intangible asset acquired duringthe second quarter of 2020. During thethree and six months ended June 30, 2024, the Company recorded $0.5 million and $1.0 million, respectively, of amortization expensein association with an acquisition of increased ownership interest in Daikyo.
Previous wording
Consolidated net sales increased by $2.6 million, or 0.4%, for the three months ended March 31, 2025, as compared to the same period in 2024, including an unfavorable foreign currency translation impact of $11.7 million. Excluding foreign currency translation effects, consolidated net sales for the three months ended March 31, 2025 increased by $14.3 million, or 2.1%, as compared to the same period in 2024.
Current wording
Consolidated net sales increased by $64.4 million, or 9.2%, for the three months ended June 30, 2025, as compared to the same period in 2024, including a favorable foreign currency translation impact of $16.5 million. Excluding foreign currency translation effects, consolidated net sales for the three months ended June 30, 2025 increased by $47.9 million, or 6.8%, as compared to the same period in 2024.
Previous wording
Contract-Manufactured Products – Contract-Manufactured Products net sales decreased by $0.9 million, or 0.7%, for the three months ended March 31, 2025, as compared to the same period in 2024, including an unfavorable foreign currency translation impact of $2.0 million. Excluding foreign currency translation effects, net sales for the three months ended March 31, 2025 increased by $1.1 million, or 0.8%, as compared to the same period in 2024, due primarily to an increase in sales of self-injection devices for obesity and diabetes, offset by a decrease in sales of healthcare diagnostic devices.
Current wording
Contract-Manufactured Products – Contract-Manufactured Products net sales increased by $4.3 million, or 3.0%, for the three months ended June 30, 2025, as compared to the same period in 2024, including a favorable foreign currency translation impact of $3.6 million. Excluding foreign currency translation effects, net sales for the three months ended June 30, 2025 increased by $0.7 million, or 0.5%, as compared to the same period in 2024, due primarily to an increase in sales of self-injection devices for obesity and diabetes, partially offset by a decrease in sales of healthcare diagnostic devices.
Previous wording
Proprietary Products – Proprietary Products net sales increased by $3.5 million, or 0.6%, for the three months ended March 31, 2025, as compared to the same period in 2024, including an unfavorable foreign currency translation impact of $9.7 million. Excluding foreign currency translation effects, net sales for the three months ended March 31, 2025 increased by $13.2 million, or 2.4%, as compared to the same period in 2024, due primarily to an increase in sales of self-injection device platforms, partially offset by a decline in sales of FluroTec® products.
Current wording
Proprietary Products – Proprietary Products net sales increased by $63.6 million, or 5.7%, for the six months ended June 30, 2025, as compared to the same period in 2024, including a favorable foreign currency translation impact of $3.1 million. Excluding foreign currency translation effects, net sales for the six months ended June 30, 2025 increased by $60.5 million, or 5.4%, as compared to the same period in 2024, due primarily to an increase in sales of self-injection device platforms and Westar® products, partially offset by a decline in sales of FluroTec® products.
Previous wording
Consolidated gross profit increased by $1.7 million, or 0.7%, for the three months ended March 31, 2025, as compared to the same period in 2024, including an unfavorable foreign currency translation impact of $3.6 million for the three months ended March 31, 2025, as compared to the same period in 2024. Consolidated gross profit margin increased by 0.1 margin points for the three months ended March 31, 2025, as compared to the same period in 2024.
Current wording
Consolidated gross profit increased by $43.9 million, or 19.1%, for the three months ended June 30, 2025, as compared to the same period in 2024, including a favorable foreign currency translation impact of $6.8 million for the three months ended June 30, 2025, as compared to the same period in 2024. Consolidated gross profit margin increased by 2.9 margin points for the three months ended June 30, 2025, as compared to the same period in 2024.
Previous wording
Proprietary Products -Proprietary Products gross profit increased by $3.1 million, or 1.5%, for the three months ended March 31, 2025, as compared to the same period in 2024, including an unfavorable foreign currency translation impact of $3.3 million. Proprietary Products gross profit margin increased by 0.3 margin points for the three months ended March 31, 2025, as compared to the same periods in 2024, primarily due to higher plant absorption from increased customer demand and sales price increases. These were offset by a shift in sales mix from HVP Components to HVP Delivery Devices, which have lower profitability.
Current wording
Proprietary Products -Proprietary Products gross profit increased by $41.3 million, or 20.0%, for the three months ended June 30, 2025, as compared to the same period in 2024, including a favorable foreign currency translation impact of $6.2 million. Proprietary Products gross profit margin increased by 3.1 margin points for the three months ended June 30, 2025, as compared to the same periods in 2024, due primarily to higher plant absorption from increased customer demand and sales price increases.
Previous wording
Consolidated R&D costs decreased by $1.3 million, or 7.4%, for thethree months ended March 31, 2025, as compared to the same period in 2024, due primarily to reduced salary and wages and a decrease in professional services. Efforts remain focused on the continued investment in elastomeric packaging components, formulation development, drug containment systems, self-injection systems and drug administration consumable.
Current wording
Consolidated R&D costs increased by $1.6 million, or 9.1%, and$0.3 million, or 0.9%for the three and six months ended June 30, 2025, respectively, as compared to the same period in 2024. Efforts remain focused on the continued investment in elastomeric packaging components, formulation development, drug containment systems, self-injection systems and drug administration consumable.
Previous wording
All of the R&D costs incurred in thethree months ended March 31, 2025 and 2024 related to Proprietary Products.
Current wording
All of the R&D costs incurred in thethree and six months ended June 30, 2025 and 2024 related to Proprietary Products.
Previous wording
Consolidated SG&A costs increased by $1.3 million, or 1.5%, for the three months ended March 31, 2025, as compared to the same period in 2024, including a favorable foreign currency translation impact of $0.9 million, due primarily to increased salary and wages, offset by decreases in expense related to stock-based compensation and professional services.
Current wording
Consolidated SG&A costs increased by $12.9 million, or 15.5%, for the three months ended June 30, 2025, as compared to the same period in 2024, including an unfavorable foreign currency translation impact of$0.9 million, due primarily to higher annual incentive compensation, increased expense related to stock-based compensation and increased salary and wages.
Previous wording
Corporate and unallocated items -Corporate SG&A costs increased by$0.3 million, or 1.5%, for the three months ended March 31, 2025, as compared to the same period in 2024, primarily due to expenses in connection with a plan to optimize the legal structure of the Company and its subsidiaries, offset by a decrease in expense related to stock-based compensation.
Current wording
Corporate SG&A costs increased by$7.0 million, or 17.3%, for thesix months ended June 30, 2025, as compared to the same period in 2024, due primarily to expenses in connection with a plan to optimize the legal structure of the Company and its subsidiaries, higher annual incentive compensation and increased costs related to professional services.
Previous wording
Consolidated other expense (income) changed by $17.5 million for the three months ended March 31, 2025, as compared to the same period in 2024, due to the factors described below.
Current wording
Consolidated other expense (income) changed by $1.9 million for the three months ended June 30, 2025, as compared to the same period in 2024, and changed by $19.4 million for thesix months ended June 30, 2025, as compared to the same period in 2024, due to the factors described below.
Previous wording
Proprietary Products - Proprietary Products other expense (income) changed by $0.5 million for the three months ended March 31, 2025, as compared to the same period in 2024, primarily due to increased contingent consideration expense being recorded in the three months ended March 31, 2025, as compared to the same period in 2024.
Current wording
Proprietary Products - Proprietary Products other expense (income) changed by $3.6 million for the three months ended June 30, 2025, as compared to the same period in 2024, due primarily to increased contingent consideration expense being recorded in the three months ended June 30, 2025, as compared to the same period in 2024.
Previous wording
Contract-Manufa ctured Products -Contract-Manufactured Products other expense (income) changed by $0.8 million for thethree months ended March 31, 2025, as compared to the same period in 2024, primarily due to increased foreign exchange losses in the three months ended March 31, 2025, as compared to the same period in 2024.
Current wording
Contract-Manufa ctured Products -Contract-Manufactured Products other expense (income) changed by $1.2 million for thethree months ended June 30, 2025, as compared to the same period in 2024, due primarily to increased foreign exchange losses in the three months ended June 30, 2025, as compared to the same period in 2024.
Previous wording
Corporate and unallocated items -Corporate and unallocated items changed by $16.2 million for thethree months ended March 31, 2025, as compared to the same period in 2024, primarily due to the Company recording restructuring and other charges of $16.4 million in the three months ended March 31, 2025 that did not occur in the same period in 2024.
Current wording
Corporate and unallocated items changed by $13.3 million for the six months ended June 30, 2025, as compared to the same period in 2024, due primarily to the Company recording restructuring and other charges of $16.6 million in the six months ended June 30, 2025 that did not occur in the same period in 2024.
Previous wording
Proprietary Products -Proprietary Products operating profit increased by $4.3 million, or 3.4%, for the three months ended March 31, 2025, as compared to the same period in 2024, including an unfavorable foreign currency translation impact of$2.4 million, due to the factors described above, most notably higher plant absorption from increased customer demand and sales price increases.
Current wording
Proprietary Products -Proprietary Products operating profit increased by $30.7 million, or 23.4%, for the three months ended June 30, 2025, as compared to the same period in 2024, including a favorable foreign currency translation impact of$5.5 million, due to the factors described above, most notably higher plant absorption from increased customer demand and sales price increases.
Previous wording
Contract-Manufactured Products -Contract-Manufactured Products operating profit decreased by$3.6 million, or 21.1%, for the three months ended March 31, 2025, as compared to the same period in 2024, including an unfavorable foreign currency translation impact of$0.2 million, due to the factors described above, most notably plant spend for additional manufacturing capacity to support the GLP-1 business.
Current wording
Contract-Manufactured Products operating profit decreased by$3.0 million, or 8.7%, for thesix months ended June 30, 2025, as compared to the same period in 2024, including a favorable foreign currency translation impact of$0.2 million, due to the factors described above, most notably increased salary and wage expense.
Previous wording
Corporate and unallocated -Excluding the unallocated items, Corporate costs decreased by $1.3 million, or 6.4%, for the three months ended March 31, 2025, as comparedto the same period in 2024, due to the factors described above, most notably the decrease in expense related to stock-based compensation.
Current wording
Corporate and unallocated -Excluding the unallocated items, Corporate costs increased by $2.4 million, or 11.0%, for the three months ended June 30, 2025, as comparedto the same period in 2024, due to the factors described above, most notably the increase in expense related to stock-based compensation.
Previous wording
Interest income decreased by $2.1 million for the three months ended March 31, 2025, as compared to the same period in 2024, due to the Company having a lower average cash balance during 2025 and a decline in interest rates in 2025, as compared to the same period in 2024.
Current wording
Interest income decreased by $0.4 million for the three months ended June 30, 2025, as compared to the same period in 2024, and decreased by $2.5 million for the six months ended June 30, 2025, as compared to the same period in 2024, due primarily to the Company having a lower average cash balance during 2025 and a decline in interest rates in 2025, as compared to the same periods in 2024.
Previous wording
Other nonoperating expense (income) was $0.2 million and $0.0 million for the three months ended March 31, 2025 and 2024, respectively.
Current wording
Other nonoperating expense (income) was $0.2 million and $0.0 million for the three months ended June 30, 2025 and 2024, respectively, and $0.4 million and $0.0 million for the six months ended June 30, 2025 and 2024, respectively.
Previous wording
The provision for income taxes was $24.1 million and $16.4 million for the three months ended March 31, 2025 and 2024, respectively, and the effective tax rate was 21.8% and 12.9%, respectively. The increase in the effective tax rate is primarily due to a decrease in the tax benefit related to stock-based compensation in the three months ended March 31, 2025 as compared to the same period in 2024.
Current wording
The provision for income taxes was $30.2 million and $21.9 million for the three months ended June 30, 2025 and 2024, respectively, and the effective tax rate was 19.2% and 17.0%, respectively. The increase in the effective tax rate is due primarily to a decrease in the tax benefit related to stock-based compensation in the three months ended June 30, 2025 as compared to the same period in 2024.
Previous wording
Equity in net income of affiliated companies was $3.4 million and $4.3 million for the three months ended March 31, 2025 and 2024, respectively. Equity in net income of affiliated companies decreased by $0.9 million for the three months ended March 31, 2025, as compared to the same period in 2024, primarily due to less favorable operating results at Daikyo.
Current wording
Equity in net income of affiliated companies was $5.0 million and $4.5 million for the three months ended June 30, 2025 and 2024, respectively. Equity in net income of affiliated companies increased by $0.5 million for the three months ended June 30, 2025, as compared to the same period in 2024, due primarily to more favorable operating results at the Mexico affiliates, partially offset by less favorable operating results at Daikyo.
Previous wording
The following table presents cash flow data for the three months ended March 31:
Current wording
The following table presents cash flow data for the six months ended June 30:
Previous wording
Net Cash Provided by Operating Activities – Net cash provided by operating activities increased by $11.2 million for the three months ended March 31, 2025, as compared to the same period in 2024, primarily due to favorable working capital management, offset by less favorable operating results.
Current wording
Net Cash Provided by Operating Activities – Net cash provided by operating activities increased by $23.3 million for the six months ended June 30, 2025, as compared to the same period in 2024, due primarily to favorable working capital management.
Previous wording
Net Cash Used in Investing Activities – Net cash used in investing activities decreased by $19.3 million for the three months ended March 31, 2025, as compared to the same period in 2024, due to a decrease in capital expenditures.
Current wording
Net Cash Used in Investing Activities – Net cash used in investing activities decreased by $45.3 million for the six months ended June 30, 2025, as compared to the same period in 2024, due primarily to a decrease in capital expenditures.
Previous wording
Net Cash Used in Financing Activities – Net cash used in financing activities decreased by $124.0 million for the three months ended March 31, 2025, as compared to the same period in 2024, primarily due to a decrease in purchases under our share repurchase programs.
Current wording
Net Cash Used in Financing Activities – Net cash used in financing activities decreased by $327.4 million for the six months ended June 30, 2025, as compared to the same period in 2024, due primarily to a decrease in purchases under our share repurchase programs.
Previous wording
Cash and cash equivalents – Our cash and cash equivalents balance at March 31, 2025 consisted of cash held in depository accounts with banks around the world and cash invested in high-quality, short-term investments. The cash and cash equivalents balance at March 31, 2025 included $44.6 million of cash held by subsidiaries within the U.S., and $359.6 million of cash held by subsidiaries outside of the U.S. During the three months ended March 31, 2025, we purchased 550,281 shares of our common stock under the share repurchase program at a cost of $133.5 million, or an average price of $242.63 per share.
Current wording
Cash and cash equivalents – Our cash and cash equivalents balance at June 30, 2025 consisted of cash held in depository accounts with banks around the world and cash invested in high-quality, short-term investments. The cash and cash equivalents balance at June 30, 2025 included $97.9 million of cash held by subsidiaries within the U.S., and $411.8 million of cash held by subsidiaries outside of the U.S. During the six months ended June 30, 2025, we purchased 552,593 shares of our common stock under the share repurchase program at a cost of $134.0 million, or an average price of $242.55 per share.
Previous wording
Working capital – Working capital at March 31, 2025 decreased by $56.9 million, or 5.8%, as compared to December 31, 2024, which includes a favorable foreign currency translation impact of$15.3 million. Excluding the impact of currency exchange rates, cash and cash equivalents, total current liabilities and accounts receivable decreased by$89.1 million,$35.2 million and $17.6 million, respectively.
Current wording
Working capital – Working capital at June 30, 2025 increased by $88.6 million, or 9.0%, as compared to December 31, 2024, which includes a favorable foreign currency translation impact of$57.5 million. Excluding the impact of currency exchange rates, other current assets, inventories and total current liabilities increased by$36.4 million,$18.4 million and $19.8 million, respectively, while cash and cash equivalents decreased by$2.8 million.
Rearranged current paragraphs (5)
Current report — wording carried from elsewhere
The following table presents net sales, consolidated and by reportable segment, for the six months ended June 30, 2025 and 2024:
Current report — wording carried from elsewhere
Proprietary Products other expense (income) changed by $4.1 million for the six months ended June 30, 2025, as compared to the same period in 2024, due primarily to increased contingent consideration expense being recorded in the six months ended June 30, 2025, as compared to the same period in 2024.
Current report — wording carried from elsewhere
Contract-Manufactured Products other expense (income) changed by $2.0 million for the six months ended June 30, 2025, as compared to the same period in 2024, due primarily to increased foreign exchange losses in the six months ended June 30, 2025, as compared to the same period in 2024.
Current report — wording carried from elsewhere
Corporate and unallocated items -Corporate and unallocated items changed by $2.9 million for thethree months ended June 30, 2025, as compared to the same period in 2024, due primarily to gains on foreign exchange being recorded in thethree months ended June 30, 2025, as compared to losses on foreign exchange being recorded in the same period in 2024. This was partially offset by the Company recording restructuring and other charges of $0.2 million in the three months ended June 30, 2025 that did not occur in the same period in 2024.
Current report — wording carried from elsewhere
The provision for income taxes was $54.3 million and $38.3 million for the six months ended June 30, 2025 and 2024, respectively, and the effective tax rate was 20.3% and 15.0%, respectively. The increase in the effective tax rate is due primarily to a decrease in the tax benefit related to stock-based compensation in the six months ended June 30, 2025 as compared to the same period in 2024.