West Pharmaceutical Services, Inc.

Strong Q2 performance; raised full-year guidance (good) - Revenues: $872m, +13.8% reported / +12.7% organic YoY, exceeding expectations. - Adjusted EPS: $2.37, +29% YoY, also $0.28 above the prior guidance midpoint. - Profitability: Q2 gross margin 37.7% (+200 bps YoY) and adjusted operating margin 22.6% (+230 bps YoY), aided by mix toward HVP Components and price. - Guidance raised for 2026: - Organic revenue growth: 10%–11% (up from 7%–9%). - Adjusted EPS: $8.85–$9.05 (implies +21% to +24% YoY). - Reported revenue growth now 8.8%–10%; FX tailwind assumption improved (now ~1% tailwind vs ~2% previously).

HVP Components driving outperformance; non-GLP-1 strength was the surprising upside (good + surprising) - Proprietary segment: +15.5% organic (West Vantage only +0.8% organic). - HVP Components revenues: $424m, +18.4% organic; now ~49% of total company revenue (vs 46% prior-year quarter). - Within HVP Components, the company highlighted “3 growth drivers”: - Biologics/Biosimilars: +29% organic (strong win rates >90% for new large molecules). - HVP upgrades including Annex 1 (mix shift toward higher-value containment/finishing). - GLP-1 components: high teens organic growth. - Management emphasized non-GLP-1 HVP Components exceeded expectations; key reasons cited: - Strong pipeline and participation >90% in new biologics. - Annex 1-driven upgrades: ~800 projects in hand, +50% YoY; upgrades can add process steps (e.g., pharma washing / Envision) with no incremental volume for customers but higher ASP/mix.

Cyber incident impact improving but still a near-term drag (bad/overhang) - West Vantage was specifically impacted and did not fully recover in Q2, pushing some revenue to later quarters. - Management estimate: mid-single-digit impact to Q2 growth, expected to be made up in the remainder of 2026. - Gross margin dip in West Vantage due to the incident was more than offset by strong Proprietary results. - Call-out: 3 growth drivers remained intact, but guidance prudently accounts for recovery timing.