WEST PHARMACEUTICAL SERVICES INC

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Note 1: Basis of Presentation

Basis of Presentation: The condensed consolidated financial statements included in this report are unaudited and have been prepared in accordance with United States (“U.S.”) generally accepted accounting principles (“U.S. GAAP”) for interim financial reporting and U.S. Securities and Exchange Commission (“SEC”) regulations. The year-end condensed consolidated balance sheet data was derived from audited financial statements but does not include all disclosures required by U.S. GAAP. Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with U.S. GAAP have been condensed or omitted. In the opinion of management, these financial statements include all adjustments, which are of a normal recurring nature, necessary for a fair statement of the financial position, results of operations, cash flows and the change in equity for the periods presented. The condensed consolidated financial statements for the three and nine months ended September 30, 2026, should be read in conjunction with the consolidated financial statements and notes thereto of West Pharmaceutical Services, Inc. and its majority-owned subsidiaries (which may be referred to as “West”, the “Company”, “we”, “us” or “our”) appearing in our Annual Report on Form 10-K for the year ended December 31, 2025 (the “2025 Annual Report”). The results of operations for any interim period are not necessarily indicative of the results for the full year.

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.

Sale of SmartDose® 3.5mL On-Body Delivery System: On July 1, 2026, the Company completed the sale of all manufacturing and supply rights for the SmartDose® 3.5mL On-Body Delivery System and associated facilities to AbbVie for $126.9 million cash, inclusive of working capital adjustments. We recognized a $55.7 million pre-tax gain on this transaction within other expense (income) in our Condensed Consolidated Statements of Income during the three and nine months ended September 30, 2026.

In relation to this agreement, the carrying values of certain assets (Inventories - $20.5 million, Property, plant and equipment, net - $39.1 million, Operating lease right-of-use assets - $1.2 million, and Goodwill - $0.6 million) were classified as held for sale in our consolidated balance sheets as of December 31, 2025 and recorded in other current assets within our Proprietary Products segment.

Note 2: New Accounting Standards

Recently Adopted Standards

In December 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2023-09, Income Taxes: Improvements to Income Tax Disclosures, that seeks to enhance income tax disclosures to provide information to better assess how an entity's operations and related tax risks affect its tax rate and prospects for future cash flows. Within the income tax rate reconciliation, the amendment requires disclosure of additional categories and greater detail about individual reconciling items over a specified threshold. It also requires information pertaining to taxes paid to be disaggregated for federal, state, and foreign taxes and further disaggregated for specific jurisdictions over a specified threshold. This guidance is effective for fiscal years beginning after December 15, 2024. The Company adopted and implemented the applicable disclosure requirements within its 2025 Form 10-K filed on February 17, 2026 on a prospective basis.

Standards Issued Not Yet Adopted

In November 2024, the FASB issued ASU No. 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses, that seeks to improve the disclosures about a public business entity’s expenses and address requests from investors for more detailed information about the types of expenses (including purchases of inventory, employee compensation, depreciation, amortization, and depletion) in commonly presented expense captions. The amendments require that at each interim and annual reporting period an entity: (1) disclose the amounts of purchases of inventory, employee compensation, depreciation, and intangible asset amortization included in each of the Company's relevant expense captions; (2) include certain amounts that are already required to be disclosed under current GAAP in the same disclosure as the other disaggregation requirements; (3) disclose a qualitative description of the amounts remaining in relevant expense captions that are not separately disaggregated quantitatively; and (4) disclose the total amount of selling expenses and, in annual reporting periods, an entity’s definition of selling expenses. This guidance is effective for fiscal years beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027. The Company is currently evaluating the impact of this guidance on our financial statements and disclosures.

Note 3: Revenue

Our revenue results from the sale of goods or services and reflects the consideration to which we expect to be entitled in exchange for those goods or services. We record revenue based on a five-step model, in accordance with Accounting Standards Codification (“ASC”) 606. Following the identification of a contract with a customer, we identify the performance obligations (goods or services) in the contract, determine the transaction price, allocate the transaction price to the performance obligations in the contract, and recognize the revenue when (or as) we satisfy the performance obligations by transferring the promised goods or services to our customers. A good or service is transferred when (or as) the customer obtains control of that good or service.

The following table presents the approximate percentage of our net sales by market group:

The following table presents the approximate percentage of our net sales by product category:

The following table presents the approximate percentage of our net sales by geographic location:

Contract Assets and Liabilities

The following table summarizes our contract assets and liabilities:

Contract assets are included within other current assets and deferred income is included within other current liabilities and other long-term liabilities. During the nine months ended September 30, 2026, $37.4 million of revenue was recognized that was included in deferred income at the beginning of the year.

As of September 30, 2026, performance obligations expected to be satisfied beyond one year were $3.6 million. The remaining $40.1 million of performance obligations are expected to be satisfied withinone year or less.

Note 4: Net Income Per Share

The following table reconciles the shares used in the calculation of basic net income per share to those used for diluted net income per share:

During the three months ended September 30, 2026 and 2025, there were 0.1 million and 0.4 million shares, respectively, from stock-based compensation plans not included in the computation of diluted net income per share because their impact was antidilutive. There were 0.3 million and 0.4 million antidilutive shares outstanding during the nine months ended September 30, 2026 and 2025, respectively.

In February 2023, the Board of Directors approved a share repurchase program under which the Company was able to repurchase up to $1.0 billion in shares of common stock. This program was completed during January 2025.

In December 2024, the Board of Directors approved a share repurchase program under which the Company was able to repurchase up to 550,000 shares of common stock. This program was completed during April 2025.

In February 2026, the Company’s Board of Directors authorized a new share repurchase program for the purchase of up to $1.0 billion of the Company’s common stock in open-market transactions, block transactions, through derivative transactions, privately negotiated transactions, or otherwise, including pursuant to any trading plan entered into by the Company under Rule 10b5-1 of the Exchange Act. The number of shares to be repurchased and the timing of any repurchases will depend on factors such as the stock price, economic and market conditions, and corporate and regulatory requirements. This share repurchase program has no expiration date and it may be suspended or terminated at any time.

The following table summarizes the details of the Company's repurchases of common stock under these programs:

Note 5: Inventories

Inventories are valued at the lower of cost (on a first-in, first-out basis) or net realizable value. Inventory balances were as follows:

Note 6: Leases

A lease exists when a contract conveys to the customer the right to control the use of identified property, plant, or equipment for a period of time in exchange for consideration. The definition of a lease embodies two conditions: 1) there is an identified asset in the contract that is land or a depreciable asset (i.e., property, plant, and equipment); and 2) the customer has the right to control the use of the identified asset. Lease payments included in the measurement of the lease right-of-use assets and lease liabilities are comprised of fixed payments (including in-substance fixed payments), variable payments that depend on an index or rate, and the exercise price of a lessee option to purchase the underlying asset if the lessee is reasonably certain to exercise.

The components of lease expense were as follows:

The following table summarizes the finance lease amounts in the condensed consolidated balance sheets:

Supplemental cash flow information related to leases was as follows:

The following table shows the weighted average remaining lease terms and discount rates for our operating and finance leases as of the periods ended:

Maturities of the Company's lease liabilities as of September 30, 2026 were as follows:

Note 7: Affiliated Companies

The following table summarizes the aggregate carrying amounts of our investments in affiliated companies that are accounted for under the equity method and our investments in affiliated companies that are not accounted for under the equity method:

We have elected to record non-equity method investments, for which fair value was not readily determinable, at cost, less impairment, adjusted for subsequent observable price changes. We test these investments for impairment whenever circumstances indicate that the carrying value of the investments may not be recoverable. During the nine months ended September 30, 2026, we recorded impairment charges of $3.5 million within other expense (income) to one of our cost-method investments, recorded above under non-equity method affiliates.

The following table summarizes the amounts due to and from affiliates in the condensed consolidated balance sheets:

The following table summarizes the Company's affiliate transactions:

The majority of the purchase transactions listed above relate to the Company's distributorship agreement with Daikyo Seiko, Ltd. ("Daikyo") that authorizes the Company as the exclusive distributor of Daikyo products in all countries other than Japan, subject to certain limited exceptions.

On July 14, 2026, the Company and Daikyo, in which the Company maintains a 49% ownership interest, entered into an Amended and Restated Technology Exchange and CrossLicense Agreement andtwo Distributorship Agreements, each effective July 14, 2026 with a term often years.

Note 8: Debt

The following table summarizes our long-term debt obligations, net of unamortized debt issuance costs and current maturities. The interest rates shown in parentheses are as of September 30, 2026.

Term Loan

At September 30, 2026, the Company had $130.0 million in borrowings under the Term Loan which were classified as long-term. Please refer to Note 9, Derivative Financial Instruments, for a discussion of the foreign currency hedge associated with the Term Loan.

Multi-Currency Revolving Credit Facility

At September 30, 2026, the borrowing capacity available under our $500.0 million multi-currency revolving credit facility, including outstanding letters of credit of $2.3 million, was $497.7 million.

Pursuant to the financial covenants in our debt agreements, we are required to maintain established interest coverage ratios and to not exceed established leverage ratios. In addition, the agreements contain other customary covenants, none of which we consider restrictive to our operations. At September 30, 2026, we were in compliance with all of our debt covenants.

In accordance with ASC 470-10-45-14 and ASC 855, the Term Loan (due July 2, 2027) and the Series C Notes (due July 5, 2027) are classified as long-term debt in the accompanying balance sheet as of September 30, 2026, as the refinancing was completed prior to the issuance of these financial statements as described below.

Subsequent Event — Debt Refinancing

Entry into New Credit Agreement

On October 26, 2026, the Company completed a refinancing of its senior unsecured credit facilities by entering into a new senior unsecured credit agreement with Bank of America, N.A., as administrative agent, swing line lender and an issuing lender, and the other lenders from time to time party thereto (as amended, restated, extended, supplemented or otherwise modified from time to time, the "New Credit Agreement").

The New Credit Agreement (i) has a maturity date of October 26, 2031 (subject to certain extension mechanics therein by which the Company may request maturity date extensions of the revolving credit facility), (ii) provides for revolving advances up to an aggregate principal amount of $750 million at any one time outstanding (subject to satisfaction of certain conditions at the time advances are made) and (iii) provides for a term loan advance on the closing date in an aggregate principal amount of $200 million (which shall have quarterly amortization payments starting in March 31, 2028 ranging from $1.25 million to $2.5 million per quarter as set forth in the New Credit Agreement with the balance due at maturity) (such term loan, the "New Term Loan A").

Revolving advances are available under the New Credit Agreement in U.S. dollars and certain optional currencies. The applicable margin used in connection with interest rates and the commitment fee is based on the Company’s net leverage ratio. The applicable margin for revolving advances that are term Secured Overnight Financing Rate loans and optional currency loans and for letter of credit fees ranges from 1.000% to 1.500%, and the applicable margin for revolving advances that are base rate loans ranges from 0.000% to 0.500%. The applicable margin for term loans that are term Secured Overnight Financing Rate loans ranges from 1.125% to 1.750%, and the applicable margin for term loans that are base rate loans ranges from 0.125% to 0.750%. The Company will also pay a commitment fee based on its net leverage ratio on the actual daily unused amount of the aggregate revolving commitments ranging from 0.125% to 0.225%.

The New Credit Agreement contains a financial covenant limiting, as of the last day of each fiscal quarter, the Company's net leverage ratio, measured for the preceding four fiscal quarters, to not more than 3.50 to 1.0 (or 4.00 to 1.0 during material acquisition periods, subject to certain limitations), all as calculated in accordance with the terms of the New Credit Agreement.

The New Term Loan A advance of $200 million refinanced and replaced the Company's existing $130.0 million Term Loan A, which was due July 2, 2027.

Unamortized debt issuance costs associated with the prior term loan were written off in connection with the extinguishment and new debt issuance costs will be capitalized and amortized over the life of the New Term Loan A.

Extinguishment of Series C Senior Notes: The Company has delivered a notice to noteholders to repay and extinguish its outstanding Series C senior notes in an outstanding principal amount of $73.0 million, with an expected repayment date to occur on or about November 2, 2026, using, among other available cash, proceeds from the New Term Loan A. The Series C senior notes bore interest at 4.02% and were originally due July 5, 2027. No prepayment make-whole premium is incurred in connection with the extinguishment.