Full Transcript: West Pharmaceutical Servs Q2 2026 Earnings Call

West Pharmaceutical Servs (NYSE: WST ) reported second-quarter financial results on Thursday. The transcript from the company's second-quarter earnings call has been provided below. APIs provide real-time access to earnings call transcripts and financial data. Visit to learn more.

37 up 29% from the prior year. 05. Key growth drivers included the Proprietary Products segment with 16% organic growth, particularly in the biologics market which saw 29% growth, and HVP components accounting for 49% of total revenues. West Pharmaceutical Services emphasized the strength and expansion of its GLP-1 components and Annex 1-related projects as significant contributors to growth.

Operational excellence initiatives and recovery from a cyber incident were highlighted as contributors to performance, alongside strategic expansions in Asia Pacific and partnerships like the renewed agreement with Daikyo. Management reiterated confidence in long-term growth prospects driven by biologics, biosimilars, and GLP-1 therapies, with ongoing efforts to improve margins and operational efficiency. Full Transcript OPERATOR Good day and welcome to the West Pharmaceutical Servs Q2 2026 earnings conference call. At this time, all participants are in a listen-only mode.

After the speaker presentation, there will be a question-and-answer session. To ask a question during that session, you will need to press star 11 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 11 again.

Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker, Mr. John Sweeney, Vice President of Investor Relations. Please go ahead, sir.

John Sweeney, Vice President of Investor Relations Good morning and welcome to West's second quarter 2026 earnings conference call, which is being webcast live today. Today with me on the call are Eric Green, our CEO, Chair of the Board, and Bob McMahon, CFO. Earlier today, we issued our second quarter financial results. com.

Later today, a replay of the webcast will also be available in the Investors section of our website. S. federal securities laws. Please refer to the accompanying safe harbor statement currently being displayed on the screen and in today's press release, in addition to other disclosures made by the company such as our 10-K and 10-Q, regarding the risks to which the company is subject.

During the call, management will also report on certain non-GAAP financial measures, including organic net sales, adjusted operating profit, adjusted operating profit margin, free cash flow, and adjusted diluted earnings per share. S. GAAP, are provided in this morning's press release and today's presentation materials. I'll now turn the call over to our CEO, Eric Green.

Eric Green, CEO & Chair of the Board Thank you, John, and good morning, everyone. Thanks for joining us today. I am pleased to report strong second quarter results which exceeded our expectations on the top and bottom line. 37 was up 29% as compared to prior year.

Our performance was driven by the execution of our strategy and continued operational excellence initiatives. This is a testament to the exceptional efforts of our colleagues whose collective actions following the cyber incident drove the recovery and these strong financial results. Given the robust outcome in the second quarter and the ongoing momentum in the business, we are raising our guidance for full year 2026. 05.

Bob will go into more detail shortly. Shifting to our results in the quarter, our Proprietary Products segment delivered 16% organic growth, led by the Biologics market group, which was up 29% organic. The largest contributor continues to be our HVP components business, which increased by 18% on an organic basis. HVP components now account for 49% of total company revenues, up from 46% in the prior year quarter.

This was driven by our three growth drivers, which include biologics and biosimilars, HVP upgrades including Annex 1, and continued strength in GLP-1 elastomers. We continue to believe in the near- and long-term growth prospects of HVP components. Non-GLP-1 HVP components were up high teens on an organic basis, exceeding our expectations and were the largest contributors to our outperformance in the quarter. One of the fastest-growing areas of injectable medicines is biologics.

Approximately 75% of new drug approvals in 2025 are large drug molecules, up significantly from prior years. We continue to have strong win rates of over 90% for these new molecules. This is important for West as these customers tend to use the highest-quality components. Biologics are generally more complex molecules, often requiring a barrier film, which delivers the requirements needed by our customers bring