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West Pharmaceutical Services, Inc. WST delivered adjusted fourth-quarter 2025 earnings per share (EPS) of $2.04, which moved up 12.1% year over year. The figure topped the Zacks Consensus Estimate by 11.5%.
The adjustments include expenses related to the amortization of acquisition-related intangible assets, among others.
GAAP EPS for the quarter was $1.82, reflecting an improvement of 2.2% from the year-ago figure.
Full-year adjusted EPS was $7.29, up 8% from the comparable 2024 period.
West Pharmaceutical registered revenues of $805 million in the fourth quarter, up 7.5% year over year. The figure surpassed the Zacks Consensus Estimate by 1.4%.
Organic net sales, which exclude the impact of acquisitions and/or divestitures, were up 3.3% year over year.
Robust performances by the Proprietary Products and Contract-Manufactured Products segments drove the top-line improvement.
Full-year 2025 revenues were $3.07 billion, reflecting a 6.3% increase from the comparable 2024 period. On an organic basis, revenues were up 4.3% year over year.
Shares of WST were up nearly 3.6% in today’s pre-market trading. The company’s shares have gained 2.6% in the past six months compared with the industry’s growth of 21.8% and the S&P 500 Index’s rise of 9.9%.
WST operates under two segments — Proprietary Products and Contract-Manufactured Products.
In the quarter under review, Proprietary Products reported worldwide revenues of $661.8 million, up 7.8% year over year on a reported basis. Our estimate for the segment’s revenues was pinned at $645.3 million.
On an organic basis, revenues were up 3.6% year over year.
The segment’s high-value product (HVP) accounted for 48% of its net sales during the period. Sales of HVP components were up 20.3%, driven by strength in Westar and Envision products. HVP Delivery Devices, which represented 14% of total company net sales, decreased 16.9%. The decline was primarily due to the absence of a non-recurring fee of $25 million recorded in the year-ago quarter. Standard Products, 20% of total company net sales, increased 3%.
Revenues in the Contract-Manufactured Products segment totaled $143.2 million, up 6.2% year over year on a reported basis. This growth was driven by an increase in sales of self-injection devices for obesity and diabetes, partially offset by a decrease in sales of healthcare diagnostic devices. Our estimate for this segment’s fourth-quarter revenues was pegged at $147.4 million.
Organically, revenues were up 1.9% year over year.
In the quarter under review, West Pharmaceutical’s gross profit increased 11.1% year over year to $303.9 million. The gross margin expanded 130 basis points (bps) to 37.8%. We had projected a 35.3% gross margin for the fourth quarter of 2025.
Selling, general and administrative expenses increased 25.4% year over year to $107 million. Research and development expenses increased 17.8% to $21.8 million.
Adjusted operating profit totaled $172 million, reflecting a 5.7% improvement from the year-ago quarter’s level. The adjusted operating margin contracted 30 bps to 21.4%. We had projected a 17.9% operating margin for the quarter.
WST exited the fourth quarter with cash and cash equivalents of $791.3 million compared with $628.5 million as of September-end. Total debt at the end of 2025 was $202.8 million compared with $202.7 million as of September-end.
Cumulative net cash provided by continuing operating activities at the end of 2025 was $754.8 million compared with $653.4 million a year ago.
West Pharmaceutical has a consistent dividend-paying history, with a five-year annualized dividend growth rate of 5.39%.
West Pharmaceutical has issued first-quarter guidance and updated its financial outlook for 2026.
WST expects its first-quarter sales to lie between $770 million and $790 million, implying organic growth of 4.6-7.4%. The company expects EPS to be in the range of $1.65-$1.70. The Zacks Consensus Estimate for first-quarter sales and EPS is pegged at $759.7 million and $1.64, respectively.
WST projects full-year revenues to be between $3.21 billion and $3.27 billion, which assumes a mid-year 2026 close for the sale of SmartDose 3.5ml to AbbVie. Full-year revenues include a 2% benefit based on current foreign exchange rates. The Zacks Consensus Estimate is pegged at $3.24 billion.
For 2026, organic net sales are expected to grow 5-7% from the prior-year level.
For the full year, adjusted EPS is now anticipated to be in the range of $7.85-$8.20. The Zacks Consensus Estimate is pegged at $7.67.
West Pharmaceutical Services, Inc. price-consensus-eps-surprise-chart | West Pharmaceutical Services, Inc. Quote
West Pharmaceutical exited the fourth quarter of 2025 with better-than-expected results. Solid top-line results, along with improvements in organic revenues, were impressive. Robust performance by the Proprietary Products segment was encouraging. Strength in HVP and robust growth in the Biologics and Pharma market units during the reported quarter were also promising. Gross margin expansion and improving organic revenue trends reinforce confidence in the company’s execution capabilities.
WST’s management attributed the strong finish to 2025 to the consistent execution of its growth strategy. The HVP Components business within the Proprietary Products segment supported double-digit growth in adjusted earnings per share. The company expects momentum to carry into 2026, positioning the year as an important period for focused execution and operational discipline aimed at sustaining growth and enhancing long-term value for patients, customers and shareholders.
Management’s 2026 sales outlook suggests steady demand fundamentals, favorable currency tailwinds and portfolio optimization initiatives, including the planned SmartDose divestiture.
WST currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the broader medical space are Intuitive Surgical ISRG, Merit Medical Systems MMSI and Masimo Corporation MASI.
Intuitive Surgical, sporting a Zacks Rank #1 (Strong Buy) at present, has an estimated long-term growth rate of 15.7%. ISRG’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 13.2%. You can see the complete list of today’s Zacks #1 Rank stocks here.
Intuitive Surgical’s shares have gained 3.7% against the industry’s 3.6% decline in the past six months.
Merit Medical, carrying a Zacks Rank of 2 at present, has an estimated long-term growth rate of 10.3%. MMSI’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 14.1%.
Merit Medical stock has declined 4.1% against the industry’s 24.5% gain in the past six months.
Masimo, carrying a Zacks Rank of 2 at present, has an estimated long-term growth rate of 17.1%. MASI’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 12.4%.
Masimo’s shares have lost 10% compared with the industry’s 3.5% decline over the past six months.
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This article originally published on Zacks Investment Research (zacks.com).
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