WEST PHARMACEUTICAL SERVICES INC
For the period ended Mar 31, 2026. Filed Apr 23, 2026.
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.
Mar 31, 2026 · Filed Apr 23, 2026
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 2025-09-30; filed 2025-10-23.
0000105770-25-000093
Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSCurrent report: 10-Q
Period ended 2026-03-31; filed 2026-04-23.
0000105770-26-000049
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 134 previous paragraphs and 111 current paragraphs.
68 unchanged; 31 reworded; 12 added; 33 removed; 2 previous and 0 current paragraphs rearranged.
Tables are not compared: 14 previous and 11 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 (12)
Current report
We continue to monitor the events and macro-economic impacts that the conflict in the Middle East has on our business model. We have raw materials and other costs in our operations that are dependent on petro-chemicals. Based on the current situation in the Middle East, we anticipate future inflationary pressures on these costs, but we do not expect those impacts to have a material impact. Additionally, our Israel-based facilities continue to operate as they had prior to the conflict, and we did not experience any disruption in business during the first quarter of 2026.
Current report
(2)During the three months ended March 31, 2026, the Company recorded charges of $1.9 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 $0.9 million of the charges within other expense (income), related to employee benefit costs in connection with the sale agreement. The Company recorded the remaining $1.0 million within selling, general and administrative expenses, relating to professional services in connection with the sale agreement.
Current report
Consolidated net sales increased by $146.9 million, or 21.0%, for thethree months ended March 31, 2026, as compared to the same period in 2025, including a favorable foreign currency translation impact of $40.0 million. Excluding foreign currency translation effects, consolidated net sales for thethree months ended March 31, 2026 increased by $106.9 million, or 15.3%, as compared to the same period in 2025.
Current report
Proprietary Products – Proprietary Products net sales increased by $131.3 million, or 23.3%, for thethree months ended March 31, 2026, as compared to the same period in 2025, including a favorable foreign currency translation impact of $32.8 million. Excluding foreign currency translation effects, net sales for thethree months ended March 31, 2026 increased by $98.5 million, or 17.5%, as compared to the same period in 2025, due primarily to an increase in sales of Westar®, NovaPure® and FluroTec® products, as well as self-injection device platforms.
Current report
Proprietary Products -Proprietary Products gross profit increased by $62.9 million, or 29.9%, for thethree months ended March 31, 2026, as compared to the same period in 2025, including a favorable foreign currency translation impact of $14.9 million. Proprietary Products gross profit margin increased by 2.0 margin points for the three months ended March 31, 2026, as compared to the same periods in 2025, due primarily to increased customer demand, primarily of high value components, and sales price increases.
Current report
Proprietary Products -Proprietary Products SG&A costs increased by$4.7 million, or 7.8%, for the three months ended March 31, 2026, as compared to the same period in 2025, including an unfavorable foreign currency translation impact of$2.0 million, due primarily to increased salary and wages.
Current report
Corporate and unallocated items -Corporate and unallocated items changed by $16.0 million for thethree months ended March 31, 2026, as compared to the same period in 2025, due primarily to the Company recording restructuring and other charges of $1.8 million within the three months ended March 31, 2026, as compared to $16.4 million being recorded during the same period in 2025. The Company's 2026 restructuring and other charges within other expense (income) were (i) $0.9 million related to acceleration of depreciation and lease costs in connection with the Company's January 2025 restructuring plan and (ii) $0.9 million related to employee benefit costs in connection with the Company's agreement to sell its SmartDose® 3.5mL On-Body Delivery System and associated facilities to AbbVie. The Company's 2025 restructuring and other charges of $16.4 million related to severance, acceleration of depreciation and lease costs in connection with the Company's January 2025 restructuring plan.
Current report
Consolidated - Consolidated operating profit increased by $70.1 million, or 65.5%, for thethree months ended March 31, 2026, as compared to the same period in 2025, including a favorable foreign currency translation impact of $13.4 million for thethree months ended March 31, 2026, as compared to the same period in 2025.
Current report
Proprietary Products -Proprietary Products operating profit increased by $58.6 million, or 44.9%, for thethree months ended March 31, 2026, as compared to the same period in 2025, including a favorable foreign currency translation impact of$12.4 million, due to the factors described above, most notably increased customer demand, primarily of high value components, and sales price increases.
Current report
West Vantage -West Vantage operating profit increased by$2.1 million, or 15.6%, for the three months ended March 31, 2026, as compared to the same period in 2025, including a favorable foreign currency translation impact of$1.0 million, due to the factors described above, most notably sales price increases and foreign exchange gains, partially offset by increased production costs.
Current report
Interest income increased by $1.0 million, for thethree months ended March 31, 2026, as compared to the same period in 2025, due primarily to the Company having a higher average cash balance inthree months ended March 31, 2026, as compared to the same period in 2025.
Current report
Equity in net income of affiliated companies was $3.4 million and $3.4 million for thethree months ended March 31, 2026 and 2025, respectively.
Removed paragraphs (33)
Previous report
We have operations based in Israel that conduct research and development activities and manufacture certain components for our devices. Our Israel-based facilities continue to substantially operate as they had prior to the conflict in Israel and surrounding area. We continue to monitor the impact of the conflict in Israel and surrounding areas on our operations and those of our suppliers, the possible expansion of such conflict and potential geopolitical consequences, if any, on our business and operations.
Previous report
During thethree and nine months ended September 30, 2025, we recorded a tax benefit of $1.0 million and $3.9 million respectively, associated with stock-based compensation.
Previous report
During thethree and nine months ended September 30, 2024, we recorded a tax benefit of $2.7 million and $19.3 million, respectively, associated with stock-based compensation.
Previous report
Consolidated net sales increased by $57.7 million, or 7.7%, for the three months ended September 30, 2025, as compared to the same period in 2024, including a favorable foreign currency translation impact of $20.1 million. Excluding foreign currency translation effects, consolidated net sales for the three months ended September 30, 2025 increased by $37.6 million, or 5.0%, as compared to the same period in 2024.
Previous report
Proprietary Products – Proprietary Products net sales increased by $46.1 million, or 7.7%, for the three months ended September 30, 2025, as compared to the same period in 2024, including a favorable foreign currency translation impact of $15.7 million. Excluding foreign currency translation effects, net sales for the three months ended September 30, 2025 increased by $30.4 million, or 5.1%, as compared to the same period in 2024, due primarily to an increase in sales of Westar®, Envision® and NovaBrand products. These increases were partially offset by a decline in sales of self-injection device platforms and approximately $19 million in customer incentives received in connection with volumes achieved during the three months ended September 30, 2024 that were not repeated in the same period in 2025.
Previous report
Consolidated net sales increased by $124.7 million, or 5.8%, for the nine months ended September 30, 2025, as compared to the same period in 2024, including a favorable foreign currency translation impact of $24.9 million.
Previous report
Excluding foreign currency translation effects, consolidated net sales for the nine months ended September 30, 2025 increased by $99.8 million, or 4.7%, as compared to the same period in 2024.
Previous report
Proprietary Products – Proprietary Products net sales increased by $109.7 million, or 6.4%, for the nine months ended September 30, 2025, as compared to the same period in 2024, including a favorable foreign currency translation impact of $18.8 million. Excluding foreign currency translation effects, net sales for the nine months ended September 30, 2025 increased by $90.9 million, or 5.3%, as compared to the same period in 2024, due primarily to an increase in sales of Westar®, NovaBrand and Envision® products. These increases were partially offset by a decline in sales of FluroTec® products and approximately $22 million in customer incentives received in connection with volumes achieved during the nine months ended September 30, 2024 that were not repeated in the same period in 2025.
Previous report
Contract-Manufactured Products – Contract-Manufactured Products net sales increased by $15.0 million, or 3.5%, for the nine months ended September 30, 2025, as compared to the same period in 2024, including a favorable foreign currency translation impact of $6.1 million. Excluding foreign currency translation effects, net sales for the nine months ended September 30, 2025 increased by $8.9 million, or 2.1%, 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 report
Consolidated gross profit increased by $75.2 million, or 10.4%, for the nine months ended September 30, 2025, as compared to the same period in 2024, including a favorable foreign currency translation impact of $11.8 million for the nine months ended September 30, 2025, as compared to the same period in 2024. Consolidated gross profit margin increased by 1.5 margin points for the nine months ended September 30, 2025, as compared to the same period in 2024.
Previous report
Proprietary Products -Proprietary Products gross profit increased by $28.3 million, or 12.0%, for the three months ended September 30, 2025, as compared to the same period in 2024, including a favorable foreign currency translation impact of $7.8 million. Proprietary Products gross profit margin increased by 1.6 margin points for the three months ended September 30, 2025, as compared to the same periods in 2024, due primarily to higher plant absorption from increased customer demand and sales price increases. These increases were partially offset by approximately $19 million in customer incentives received in connection with volumes achieved during the three months ended September 30, 2024 that were not repeated in the same period in 2025.
Previous report
Proprietary Products gross profit increased by $72.7 million, or 11.2%, for the nine months ended September 30, 2025, as compared to the same period in 2024, including a favorable foreign currency translation impact of $10.7 million. Proprietary Products gross profit margin increased by 1.7 margin points for thenine months ended September 30, 2025, as compared to the same periods in 2024, due primarily to higher plant absorption from increased customer demand and sales price increases. These increases were partially offset by approximately $22 million in customer incentives received in connection with volumes achieved during the nine months ended September 30, 2024 that were not repeated in the same period in 2025.
Previous report
Contract-Manufactured Products gross profit increased by $2.5 million, or 3.3%, for the nine months ended September 30, 2025, as compared to the same period in 2024, including a favorable foreign currency translation impact of $1.1 million. Contract-Manufactured Products gross profit margin remained flat in thenine months ended September 30, 2025, as compared to the same period in 2024.
Previous report
Consolidated SG&A costs increased by $33.4 million, or 13.2%, for thenine months ended September 30, 2025, as compared to the same period in 2024, including an unfavorable foreign currency translation impact of$1.3 million, due primarily to higher annual incentive compensation and increased salary and wages, partially offset by decreased costs related to professional services.
Previous report
Proprietary Products -Proprietary Products SG&A costs increased by$9.0 million, or 15.9%, for the three months ended September 30, 2025, as compared to the same period in 2024, including an unfavorable foreign currency translation impact of$1.1 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.
Previous report
Proprietary Products SG&A costs increased by$14.0 million, or 8.1%, for thenine months ended September 30, 2025, as compared to the same period in 2024, including an unfavorable foreign currency translation impact of$1.1 million. Proprietary Products SG&A costs increased due primarily to higher annual incentive compensation and increased salary and wages, partially offset by decreased costs related to professional services.
Previous report
Contract-Manufactured Products -Contract-Manufactured Products SG&A costs increased by$0.8 million, or 11.9%, for the three months ended September 30, 2025, as compared to the same period in 2024, including an unfavorable foreign currency translation impact of$0.1 million, dueprimarily to higher annual incentive compensation and increased salary and wages.
Previous report
Corporate SG&A costs increased by$16.4 million, or 27.0%, for thenine months ended September 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, increased expense related to stock-based compensation and increased costs related to professional services.
Previous report
Contract-Manufa ctured Products -Contract-Manufactured Products other expense (income) remained flat in thethree months ended September 30, 2025, as compared to the same period in 2024.
Previous report
Contract-Manufactured Products other expense (income) changed by $2.0 million for the nine months ended September 30, 2025, as compared to the same period in 2024, due primarily to increased foreign exchange losses in the nine months ended September 30, 2025, as compared to the same period in 2024.
Previous report
Corporate and unallocated items -Corporate and unallocated items changed by $1.8 million for thethree months ended September 30, 2025, as compared to the same period in 2024, due primarily to the Company recording expense of $0.9 million to related to restructuring and other charges during the three months ended September 30, 2025, as compared to a net benefit of $2.5 million during the same period in 2024.
Previous report
Corporate and unallocated items changed by $15.1 million for the nine months ended September 30, 2025, as compared to the same period in 2024, due primarily to the Company recording expense of $17.5 million related to restructuring and other charges in the nine months ended September 30, 2025, as compared to a net benefit of $2.5 million during the same period in 2024.
Previous report
Consolidated operating profit increased by $6.3 million, or 3.9%, for the three months ended September 30, 2025, as compared to the same period in 2024, including a favorable foreign currency translation impact of $7.3 million for the three months ended September 30, 2025, as compared to the same period in 2024.
Previous report
Consolidated operating profit increased by $18.0 million, or 4.4%, for the nine months ended September 30, 2025, as compared to the same period in 2024, including a favorable foreign currency translation impact of $10.5 million for the nine months ended September 30, 2025, as compared to the same period in 2024.
Previous report
Proprietary Products -Proprietary Products operating profit increased by $17.0 million, or 10.7%, for the three months ended September 30, 2025, as compared to the same period in 2024, including a favorable foreign currency translation impact of$6.6 million, due to the factors described above, most notably higher plant absorption from increased customer demand and sales price increases.
Previous report
Proprietary Products operating profit increased by $52.0 million, or 12.5%, for the nine months ended September 30, 2025, as compared to the same period in 2024, including a favorable foreign currency translation impact of $9.6 million, due to the factors described above, most notably higher plant absorption from increased customer demand and sales price increases.
Previous report
Contract-Manufactured Products -Contract-Manufactured Products operating profit increased by$0.5 million, or 2.3%, for the three months ended September 30, 2025, as compared to the same period in 2024, including a favorable foreign currency translation impact of$0.7 million, due to the factors described above.
Previous report
Contract-Manufactured Products operating profit decreased by$2.5 million, or 4.5%, for thenine months ended September 30, 2025, as compared to the same period in 2024, including a favorable foreign currency translation impact of$0.9 million, due to the factors described above, most notably increased salary and wages.
Previous report
Excluding the unallocated items, Corporate costs increased by $9.1 million, or 14.8%, for the nine months ended September 30, 2025, as comparedto the same period in 2024, due to the factors described above, most notably the higher annual incentive compensation.
Previous report
For unallocated items, please refer to the Financial Performance Summary section above for details.
Previous report
Interest expense, net, decreased by $0.5 million, for the three months ended September 30, 2025, as compared to the same period in 2024, due primarily to a decline in interest rates in 2025, as compared to the same periods in 2024. Interest expense, net, decreased by $3.1 million, for the nine months ended September 30, 2025, as compared to the same period in 2024, due primarily to an increase in capitalized interest.
Previous report
Equity in net income of affiliated companies was $2.1 million and $3.9 million for the three months ended September 30, 2025 and 2024, respectively. Equity in net income of affiliated companies decreased by $1.8 million for the three months ended September 30, 2025, as compared to the same period in 2024, due primarily to less favorable operating results at Daikyo and the Mexico affiliates.
Previous report
Equity in net income of affiliated companies was $10.5 million and $12.7 million for the nine months ended September 30, 2025 and 2024, respectively. Equity in net income of affiliated companies decreased by $2.2 million for the nine months ended September 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.
Reworded paragraphs (31)
Previous wording
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.
Current wording
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.
Previous wording
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, we do not believe the impact will be material to our 2025 results.
Current wording
Beginning in 2025, the U.S. government 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, we do not believe the impact will be material to our 2026 results.
Previous wording
The following tables present a reconciliation from U.S. GAAP to non-U.S. GAAP financial measures for the three and nine months ended September 30, 2025:
Current 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, 2026:
Previous wording
The following tables present a reconciliation from U.S. GAAP to non-U.S. GAAP financial measures for the three and nine months ended September 30, 2024:
Current 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:
Previous wording
(1)During the three and nine months ended September 30, 2025, the Company recorded charges of $2.5 million and $21.9 million, respectively, related to restructuring programs. During the three and nine months ended September 30, 2025, the Company recorded $0.9 million and $17.5 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 $1.6 million and $4.4 million, respectively, within selling, general and administrative expenses, related to our plan to optimize the legal structure of the Company and its subsidiaries. Restructuring and other charges were a net benefit of $0.9 million for thethree and nine months ended September 30, 2024. The net benefit represented the impact of two items, the first of which is a $2.5 million benefit recorded within other expense (income) related to revised severance estimates in connection with the Company's 2022 restructuring plan. This benefit was partially offset by $1.6 million of expense recorded within selling, general and administrative expenses, related to our plan to optimize the legal structure of the Company and its subsidiaries.
Current wording
(1)During the three months ended March 31, 2026, the Company recorded pre-tax charges of $1.4 million related to our two existing restructuring programs: (i) $0.9 million 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 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 thethree months ended March 31, 2025, the Company recorded pre-tax charges of $17.8 million related to our two existing restructuring programs: (i) $16.4 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) $1.4 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 $2.0 million related primarily to withholding tax and capital gains incurred in executing our plan to optimize our legal structure.
Previous wording
(2)During the nine months ended September 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 nine months ended September 30, 2025, the Company recorded $0.4 million and $1.3 million, respectively, of amortization expense in association with an acquisition of increased ownership interest in Daikyo. During thethree and nine months ended September 30, 2024, the Company recorded $0.2 million and $0.6 million, respectively, of amortization expense within operating profit associated with an intangible asset acquired duringthe second quarter of 2020. During thethree and nine months ended September 30, 2024, the Company recorded $0.6 million and $1.6 million, respectively, of amortization expensein association with an acquisition of increased ownership interest in Daikyo.
Current wording
(3)During the three months ended March 31, 2026, and 2025, the Company recorded $0.0 million and $0.2 million, respectively, of amortization expense within selling, general and administrative expenses associated with an intangible asset acquired duringthe second quarter of 2020. During thethree months ended March 31, 2026, and 2025, the Company recorded $0.5 million and $0.4 million, respectively, of amortization expense in association with an acquisition of increased ownership interest in Daikyo.
Previous wording
The following table presents net sales, consolidated and by reportable segment, for the three months ended September 30, 2025 and 2024:
Current wording
The following table presents net sales, consolidated and by reportable segment, for thethree months ended March 31, 2026 and 2025:
Previous wording
Contract-Manufactured Products – Contract-Manufactured Products net sales increased by $11.6 million, or 8.0%, for the three months ended September 30, 2025, as compared to the same period in 2024, including a favorable foreign currency translation impact of $4.4 million. Excluding foreign currency translation effects, net sales for the three months ended September 30, 2025 increased by $7.2 million, or 4.9%, 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 wording
West Vantage – West Vantage net sales increased by $15.6 million, or 11.6%, for thethree months ended March 31, 2026, as compared to the same period in 2025, including a favorable foreign currency translation impact of $7.2 million. Excluding foreign currency translation effects, net sales for thethree months ended March 31, 2026 increased by $8.4 million, or 6.2%, as compared to the same period in 2025, due primarily to an increase in sales of self-injection devices for obesity and diabetes.
Previous wording
Consolidated gross profit increased by $29.6 million, or 11.2%, for the three months ended September 30, 2025, as compared to the same period in 2024, including a favorable foreign currency translation impact of $8.6 million for the three months ended September 30, 2025, as compared to the same period in 2024. Consolidated gross profit margin increased by 1.2 margin points for the three months ended September 30, 2025, as compared to the same period in 2024.
Current wording
Consolidated -Consolidated gross profit increased by $64.5 million, or 27.8%, for thethree months ended March 31, 2026, as compared to the same period in 2025, including a favorable foreign currency translation impact of $16.2 million for thethree months ended March 31, 2026, as compared to the same period in 2025. Consolidated gross profit margin increased by 1.9 margin points for thethree months ended March 31, 2026, as compared to the same period in 2025.
Previous wording
Contract-Manufactured Products -Contract-Manufactured Products gross profit increased by $1.3 million, or 4.5%, for the three months ended September 30, 2025, as compared to the same period in 2024, including afavorable foreign currency translation impact of $0.8 million. Contract-Manufactured Products gross profit margin decreased by 0.6 margin points for the three months ended September 30, 2025, as compared to the same period in 2024, due primarily to increased production costs, partially offset by sales price increases.
Current wording
West Vantage -West Vantage gross profit increased by $1.6 million, or 7.4%, for thethree months ended March 31, 2026, as compared to the same period in 2025, including afavorable foreign currency translation impact of $1.3 million. West Vantage gross profit margin decreased by 0.6 margin points for the three months ended March 31, 2026, as compared to the same period in 2025, due primarily to increased production costs, partially offset by sales price increases.
Previous wording
Consolidated R&D costs increased by $1.6 million, or 10.3%, and$1.9 million, or 3.8%for the three and nine months ended September 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.
Current wording
Consolidated R&D costs decreased by $0.5 million, or 3.1%, for the three months ended March 31, 2026, respectively, as compared to the same period in 2025. Efforts remain focused on the continued investment in (1) primary injectables in elastomeric components, formulation development & packaging and (2) drug containment systems, self-injection systems, and drug administration consumables.
Previous wording
All of the R&D costs incurred in thethree and nine months ended September 30, 2025 and 2024 related to Proprietary Products.
Current wording
All of the R&D costs incurred in thethree months ended March 31, 2026 and 2025 related to Proprietary Products.
Previous wording
Consolidated SG&A costs increased by $19.2 million, or 23.0%, for the three months ended September 30, 2025, as compared to the same period in 2024, including an unfavorable foreign currency translation impact of$1.2 million, due primarily to higher annual incentive compensation, increased salary and wages and increased expense related to stock-based compensation.
Current wording
Consolidated - Consolidated SG&A costs increased by $11.5 million, or 13.1%, for the three months ended March 31, 2026, as compared to the same period in 2025, including an unfavorable foreign currency translation impact of$2.2 million, due primarily to increased expense related to stock-based compensation and increased salary and wages.
Previous wording
Contract-Manufactured Products SG&A costs increased by$3.0 million, or 15.7%, for thenine months ended September 30, 2025, as compared to the same period in 2024, including an unfavorable foreign currency translation impact of$0.2 million, dueprimarily to increased salary and wages and higher annual incentive compensation.
Current wording
West Vantage -West Vantage SG&A costs increased by$0.2 million, or 2.6%, for the three months ended March 31, 2026, as compared to the same period in 2025, including an unfavorable foreign currency translation impact of$0.2 million.
Previous wording
Corporate and unallocated items -Corporate SG&A costs increased by$9.4 million, or 46.5%, for the three months ended September 30, 2025, as compared to the same period in 2024, due primarily to an increase in expense related to stock-based compensation, higher annual incentive compensation and increased salary and wages.
Current wording
Corporate and unallocated items -Corporate SG&A costs increased by$6.6 million, or 32.8%, for the three months ended March 31, 2026, as compared to the same period in 2025, due primarily to an increase in expense related to stock-based compensation and increased salary and wages.
Previous wording
Other expense and income items consist of restructuring and related charges, foreign exchange transaction gains and losses, contingent consideration, asset impairments and miscellaneous income and charges.
Current wording
Other expense and income items consist of restructuring and related charges, foreign exchange transaction gains and losses, contingent consideration, gains and losses on oil hedges, asset impairments and miscellaneous income and charges.
Previous wording
Consolidated other expense (income) changed by $2.5 million for the three months ended September 30, 2025, as compared to the same period in 2024, and changed by $21.9 million for thenine months ended September 30, 2025, as compared to the same period in 2024, due to the factors described below.
Current wording
Consolidated - Consolidated other expense (income) changed by $16.6 million for the three months ended March 31, 2026, as compared to the same period in 2025, due to the factors described below.
Previous wording
Proprietary Products other expense (income) changed by $4.8 million for the nine months ended September 30, 2025, as compared to the same period in 2024, due primarily to increased contingent consideration expense being recorded in the nine months ended September 30, 2025, as compared to the same period in 2024.
Current wording
Proprietary Products - Proprietary Products other expense (income) changed by $0.1 million for thethree months ended March 31, 2026, as compared to the same period in 2025, due primarily to increased contingent consideration expense and foreign exchange losses being recorded in thethree months ended March 31, 2026, as compared to the same period in 2025. This was partially offset by gains being recorded on oil hedges in thethree months ended March 31, 2026, as compared to losses being recorded in the same period in 2025.
Previous wording
Proprietary Products - Proprietary Products other expense (income) changed by $0.7 million for the three months ended September 30, 2025, as compared to the same period in 2024, due primarily to increased contingent consideration expense being recorded in the three months ended September 30, 2025, as compared to the same period in 2024.
Current wording
West Vantage -West Vantage other expense (income) changed by $0.7 million for thethree months ended March 31, 2026, as compared to the same period in 2025, due primarily to foreign exchange gains being recorded in thethree months ended March 31, 2026, as compared to foreign exchange losses being recorded in the same period in 2025.
Previous wording
Corporate and unallocated -Excluding the unallocated items, Corporate costs increased by $8.0 million, or 41.2%, for the three months ended September 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.
Current wording
Corporate and unallocated -Excluding the unallocated items, Corporate costs increased by $4.7 million, or 24.6%, for thethree months ended March 31, 2026, as comparedto the same period in 2025, due to the factors described above, most notably the increase in expense related to stock-based compensation.
Previous wording
Interest income increased by $0.1 million for the three months ended September 30, 2025, as compared to the same period in 2024. Interest income decreased by $2.4 million for the nine months ended September 30, 2025, as compared to the same period in 2024, due primarily to a decline in interest rates in 2025, as compared to the same periods in 2024.
Current wording
Interest expense, net, increased by $1.5 million, for thethree months ended March 31, 2026, as compared to the same period in 2025, due primarily to a decline in interest rates on the Company's Term Loan inthree months ended March 31, 2026, as compared to the same period in 2025, as well as a decrease in capitalized interest.
Previous wording
Other nonoperating expense (income) was $0.2 million and $0.7 million for the three months ended September 30, 2025 and 2024, respectively, and $0.6 million and $0.7 million for the nine months ended September 30, 2025 and 2024, respectively.
Current wording
Other nonoperating expense (income) was $0.2 million and $0.2 million for thethree months ended March 31, 2026 and 2025, respectively.
Previous wording
The provision for income taxes was $88.3 million and $70.7 million for the nine months ended September 30, 2025 and 2024, respectively, and the effective tax rate was 20.1% and 16.8%, 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 nine months ended September 30, 2025 as compared to the same period in 2024.
Current wording
The provision for income taxes was $44.7 million and $24.1 million for thethree months ended March 31, 2026 and 2025, respectively, and the effective tax rate was 24.8% and 21.8%, respectively. The increase in the effective tax rate is due primarily to a one-time tax cost of $12.0 million associated with an internal legal entity restructuring which occurred in the first quarter of 2026.
Previous wording
The following table presents cash flow data for the nine months ended September 30:
Current wording
The following table presents cash flow data for thethree months ended March 31:
Previous wording
Net Cash Provided by Operating Activities – Net cash provided by operating activities increased by $40.4 million for the nine months ended September 30, 2025, as compared to the same period in 2024, due primarily to favorable working capital management.
Current wording
Net Cash Provided by Operating Activities – Net cash provided by operating activities decreased by $39.5 million for thethree months ended March 31, 2026, as compared to the same period in 2025, due primarily to fluctuations in working capital and increased incentive payments, partially offset by improved operating results.
Previous wording
Net Cash Used in Investing Activities – Net cash used in investing activities decreased by $64.1 million for the nine months ended September 30, 2025, as compared to the same period in 2024, due primarily to a decrease in capital expenditures.
Current wording
Net Cash Used in Investing Activities – Net cash used in investing activities decreased by $28.6 million for thethree months ended March 31, 2026, as compared to the same period in 2025, due to a decrease in capital expenditures.
Previous wording
Net Cash Used in Financing Activities – Net cash used in financing activities decreased by $380.3 million for the nine months ended September 30, 2025, as compared to the same period in 2024, due primarily to a decrease in purchases under our share repurchase programs.
Current wording
Net Cash Used in Financing Activities – Net cash used in financing activities increased by $161.7 million for thethree months ended March 31, 2026, as compared to the same period in 2025, due primarily to an increase in purchases under our share repurchase programs.
Previous wording
Cash and cash equivalents – Our cash and cash equivalents balance at September 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 September 30, 2025 included $96.6 million of cash held by subsidiaries within the U.S., and $531.9 million of cash held by subsidiaries outside of the U.S. During the nine months ended September 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.
Current wording
Cash and cash equivalents – Our cash and cash equivalents balance at March 31, 2026 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, 2026 included $98.4 million of cash held by subsidiaries within the U.S., and $423.0 million of cash held by subsidiaries outside of the U.S. During thethree months ended March 31, 2026, we purchased 1,222,019 shares of our common stock under the share repurchase program at a cost of $297.6 million, or an average price of $243.57 per share.
Previous wording
Working capital – Working capital at September 30, 2025 increased by $200.2 million, or 20.3%, as compared to December 31, 2024, which includes a favorable foreign currency translation impact of$48.8 million. Excluding the impact of currency exchange rates, cash and cash equivalents, total current liabilities, accounts receivable and inventories increased by$118.8 million, $53.9 million, $43.4 million and $36.4 million, respectively.
Current wording
Working capital – Working capital at March 31, 2026 decreased by $170.5 million, or 12.9%, as compared to December 31, 2025, which includes adecrease of$6.5 million due toforeign currency translation. Excluding the impact of currency exchange rates, cash and cash equivalents decreased by$261.4 million, while accounts receivable increased by$115.6 million.
Previous wording
Theincrease in cash and cash equivalents wasdue to cash from operations, partially offset by share repurchases and capital expenditures during the nine months ended September 30, 2025. Theincrease in total current liabilities wasdriven by increases in our annual incentives and short-term hedge liabilities. The increase in accounts receivable was due to increased net sales leading up to the September 30, 2025 balance sheet date as compared to the December 31, 2024 balance sheet date. Theincrease in inventories was to ensure we have sufficient inventory on hand to support the needs of our customers.
Current wording
Thedecrease in cash and cash equivalents wasdue to share repurchases and capital expenditures during thethree months ended March 31, 2026, partially offset by cash from operations. The increase in accounts receivable was due to increased net sales leading up to the March 31, 2026 balance sheet date as compared to the December 31, 2025 balance sheet date.
Previous wording
Debt and credit facilities – The total debt balance of $202.7 million at September 30, 2025 increased $0.1 million from the total debt balance at December 31, 2024.
Current wording
Debt and credit facilities – The total debt balance of $202.8 million at March 31, 2026 is consistent with the total debt balance at December 31, 2025.
Rearranged previous paragraphs (2)
Previous report — wording carried elsewhere
The following table presents net sales, consolidated and by reportable segment, for the nine months ended September 30, 2025 and 2024:
Previous report — wording carried elsewhere
The provision for income taxes was $34.0 million and $32.4 million for the three months ended September 30, 2025 and 2024, respectively, and the effective tax rate was 19.8% and 19.7%, respectively.