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What changed in West Pharmaceutical Services's 10-K — 2024 vs 2025

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Paragraph-level year-over-year comparison of West Pharmaceutical Services's 2024 and 2025 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2025 report.

+209 added−210 removedSource: 10-K (2026-02-17) vs 10-K (2025-02-18)

Top changes in West Pharmaceutical Services's 2025 10-K

209 paragraphs added · 210 removed · 163 edited across 9 sections

Item 1. Business

Business — how the company describes what it does

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Biggest changeDue to regulatory control over our production processes, sole source availability, and the cost and time involved in qualifying suppliers, we rely on single-source suppliers for many critical raw materials. We generally purchase certain raw materials in the open market and therefore the results of our operations may be affected by price fluctuations.
Biggest changeWe employ a supply chain management strategy in our business segments, which involves purchasing from integrated suppliers that control their own sources of supply. Due to quality and regulatory control over our production processes, single source availability, and the quality and regulatory burden required in qualifying suppliers, we rely on single-source suppliers for certain critical raw materials.
Offering the combination of primary proprietary packaging components, containment solutions, and drug delivery devices, as well as a broad range of integrated services, helps to position us as a leader in the integrated containment and delivery of injectable medicines. This reportable segment has manufacturing facilities in North and South America, Europe, and Asia, with affiliated companies in Mexico and Japan.
Offering the combination of primary proprietary packaging components, containment solutions, and drug delivery devices, as well as a broad range of integrated services, helps to position us as a leader in the integrated containment and delivery of injectable medicines. This reportable segment has manufacturing facilities in North and South America, Europe, and Asia, with affiliated companies in Japan and Mexico.
Please refer to Item 2, Properties , for additional information on our manufacturing and other sites. 4 Contract-Manufactured Products Segment 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.
Please refer to Item 2, Properties , for additional information on our manufacturing and other sites. Contract-Manufactured Products Segment 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.
These areas of focus are in addition to our commitments to safety, quality, business continuity, as well as business compliance and integrity. Additionally, our philanthropic programs are an essential element of our corporate citizenship especially as we focus on the areas of children’s health; access to healthcare; and science, technology, engineering and math education.
These areas of focus are in addition to our commitments to safety, quality, business continuity, and business compliance and integrity. Additionally, our philanthropic programs are an essential element of our corporate citizenship especially as we focus on the areas of children’s health; access to healthcare; and science, technology, engineering and math education.
Risk Factors . 5 Intellectual Property Our intellectual property, including patents, patent applications, trademarks, copyrights, know-how and trade secrets, is important to our business. We own or license intellectual property rights, including know-how and issued patents and pending patent applications in the U.S. and in other countries, which relate to various aspects of our business.
Risk Factors . Intellectual Property Our intellectual property, including patents, patent applications, trademarks, copyrights, know-how and trade secrets, is important to our business. We own or license intellectual property rights, including know-how and issued patents and pending patent applications in the U.S. and in other countries, which relate to various aspects of our business.
We compete in this market on the basis of our reputation for quality and reliability in engineering and project management, as well as our knowledge of, and experience in, compliance with regulatory requirements. We have specialized knowledge of container closure components, which is integral to developing delivery systems.
We compete in this market on the basis of our reputation for quality and reliability in engineering and project management, as well as our knowledge of, and experience in, compliance with regulatory requirements. 6 We have specialized knowledge of container closure components, which is integral to developing delivery systems.
Regulatory authorities, including regulatory review and oversight, can impact the time and cost associated with the development and continued availability of our products, and they have the authority to take various administrative and legal actions against West.
Regulatory authorities, including regulatory review and oversight, can impact on the time and cost associated with the development and continued availability of our products, and they have the authority to take various administrative and legal actions against West.
New products that we develop may require separate approval as medical devices, and products that are intended to be used in the packaging and delivery of pharmaceutical products are subject to both customer acceptance of our products and regulatory approval of the customer’s products following our development period.
New products that we develop may require separate approval as medical devices, and products that are intended to be used in the packaging and delivery of pharmaceutical products are subject to both customer acceptance of our products and regulatory approval of the customers' products following our development period.
" There were no required material capital expenditures for adherence to our government-led regulatory standards in our facilities in 2024 outside the normal course of business, and there are currently no needed or planned material expenditures for 2025.
" There were no required material capital expenditures for adherence to our government-led regulatory standards in our facilities in 2025 outside the normal course of business, and there are currently no needed or planned material expenditures for 2026.
We will provide any of the foregoing information without charge upon written request to our Corporate Secretary, West Pharmaceutical Services, Inc., 530 Herman O. West Drive, Exton, PA 19341. 10
We will provide any of the foregoing information without charge upon written request to our Corporate Secretary, West Pharmaceutical Services, Inc., 530 Herman O. West Drive, Exton, PA 19341. 9
Proprietary Products Segment Our Proprietary Products reportable segment offers elastomers & primary containment, drug delivery devices, integrated solutions, and analytical lab services, primarily to biologic, generic, and pharmaceutical drug customers.
Proprietary Products Segment Our Proprietary Products reportable segment offers elastomers & primary containment, drug delivery devices, integrated systems, and analytical lab services, primarily to biologic, generic, and pharmaceutical drug customers.
In Part III of this Form 10-K, we incorporate by reference certain information from parts of other documents filed with the SEC and from our Proxy Statement for the 2025 Annual Meeting of Shareholders (“2025 Proxy Statement”), which will be filed with the SEC within 120 days following the end of our 2024 fiscal year.
In Part III of this Form 10-K, we incorporate by reference certain information from parts of other documents filed with the SEC and from our Proxy Statement for the 2026 Annual Meeting of Shareholders (“2026 Proxy Statement”), which will be filed with the SEC within 120 days following the end of our 2025 fiscal year.
Our 2025 Proxy Statement will be available on our website under the caption Investors - Financial - Annual Reports & Proxy when complete.
Our 2026 Proxy Statement will be available on our website under the caption Investors - Financial - Annual Reports & Proxy when complete.
Please refer to Note 3, Revenue , and Note 19, Segment Information , for additional information on our consolidated net sales. Competition With our range of proprietary technologies, we compete with several companies across our Proprietary Products product lines.
Please refer to Note 3, Revenue , and Note 19, Segment Information , for additional information on our consolidated net sales. Competition With our range of proprietary technologies, we compete with several companies, such as Datwyler and Aptar, across our Proprietary Products product lines.
Compliance with these laws, rules and regulations did not require material capital expenditures in 2024 and is not expected to have a material effect on our capital expenditures, results of operations and competitive position in 2025 as compared to prior periods. For more information on the potential impacts of government regulations affecting our business, see "Item 1A. Risk Factors .
Compliance with these laws, rules and regulations did not require material capital expenditures in 2025 and is not expected to have a material effect on our capital expenditures, results of operations and competitive position in 2026. For more information on the potential impacts of government regulations affecting our business, see "Item 1A. Risk Factors .
Customers also appreciate the global scope of our manufacturing capability and our ability to produce many products at multiple sites. Our Contract-Manufactured Products business operates in very competitive markets for its products. The competition varies from smaller regional companies to large global assembly manufacturers.
Customers also appreciate the global scope of our manufacturing capability and our ability to produce many products at multiple sites. Our Contract-Manufactured Products business operates in very competitive markets for its products. The competition for device manufacturing varies from smaller regional companies such as SMC Ltd. to large global assembly manufacturers such as Phillips Medisize.
We also provide films, coatings, washing, vision inspection and sterilization processes and services to enhance the quality of our packaging products and mitigate the risk of contamination and compatibility issues. This segment’s product portfolio also includes drug containment solutions, including Crystal Zenith, a cyclic olefin polymer, in the form of vials, syringes and cartridges.
We also provide films, coatings, washing, vision inspection and sterilization processes and services to enhance the quality of our packaging products and mitigate the risk of contamination and compatibility issues. This segment’s product portfolio also includes drug containment solutions in the form of vials, syringes, plungers and cartridges.
Our HSE and employee well-being can also be seen in our focus on quality implementation of proactive Leading Indicator programs and metrics, and team-member-led Hazard Identification programs that help to drive improved Lagging Indicator performance. 9 Environmental, Social and Governance (“ESG”) Commitment West has been committed to ESG topics for many years.
Our HSE and employee well-being can also be seen in our focus on quality implementation of proactive Leading Indicator programs and metrics, and team-member-led Hazard Identification programs that help to drive improved Lagging Indicator performance. 8 Corporate Sustainability Commitment West has been committed to sustainability topics for many years.
Our Contract-Manufactured Products customers include many of the world’s largest pharmaceutical, diagnostic, and medical device companies. Contract-Manufactured Products components generally are incorporated into our customers’ manufacturing lines for further processing or assembly. Our products and services are sold and distributed primarily through our own sales force and distribution network, with limited use of contract sales agents and regional distributors.
Contract-Manufactured Products components generally are incorporated into our customers’ manufacturing lines for further processing or assembly. Our products and services are sold and distributed primarily through our own sales force and distribution network, with limited use of contract sales agents and regional distributors.
Our long-term strategic priorities include focus on talent attraction, retention and engagement; a climate and greenhouse gas ("GHG") reduction strategy that incorporates renewable energy and reduced absolute and intensity emissions; developing a more sustainable and responsible supply chain; research and development that focuses on issues of sustainability including secondary packaging, beneficial reuse and recyclability; and, reduction of waste and water in our operational processes.
Our long-term strategic priorities include focus on talent attraction, retention and engagement; a climate and greenhouse gas ("GHG") reduction strategy that incorporates renewable energy and reduced absolute emissions; developing a more sustainable and responsible supply chain; research and development that begins to incorporate sustainability; and, reducing waste to landfill and lowering water intensity in our operational processes.
We are also expanding our philanthropic scope to include more sustainability related initiatives. We solicit input from a variety of stakeholders including employees, customers, and suppliers on ways to improve in these and other ESG areas and see continued progress in these areas as critical to maintaining an engaged and responsible workforce.
We have expanded our philanthropic scope to include more sustainability related initiatives. We solicit input from a variety of stakeholders including employees, customers, and suppliers on ways to improve in these and other sustainability areas and see continued progress in these areas as critical to maintaining an engaged and responsible workforce. Available Information We maintain a website at www.westpharma.com .
Our ten largest customers accounted for 43.4% of our consolidated net sales in 2024, and one of these customers, individually accounted for more than 10% of consolidated net sales, at 12.3% or $356.4 million, contributing to net sales in both the Proprietary and Contract Manufacturing reporting segments.
Our ten largest customers accounted for 47.6% of our consolidated net sales in 2025, and one of these customers individually accounted for more than 10% of consolidated net sales, at 15.8% or $485.9 million, contributing to net sales in both the Proprietary and Contract Manufacturing reporting segments.
Although the general business processes are similar to the domestic business, international operations are exposed to additional risks. These risks include currency fluctuations relative to the U.S. Dollar (“USD”) and multiple tax jurisdictions.
Sales outside of the U.S. accounted for 56.7% of our consolidated net sales in 2025. Although the general business processes are similar to the domestic business, international operations are exposed to additional risks. These risks include currency fluctuations relative to the U.S. Dollar (“USD”) and multiple tax jurisdictions.
Our ESG program includes a senior-level cross-functional ESG team which has been working with executive leadership, our board and other stakeholders to enhance our ESG framework and ensure alignment with our corporate mission, vision and values.
Our sustainability team, which is led by our General Counsel, includes cross-functional collaboration and has been working with executive leadership, our board and other stakeholders to enhance our sustainability framework and ensure alignment with our corporate mission, vision and values.
We have vast expertise in product design and development, including in-house mold design, process design and validation and high-speed automated assemblies. This reportable segment has manufacturing facilities in North America and Europe. Please refer to Item 2, Properties , for additional information on our manufacturing and other sites.
We have vast expertise in product design and development, including in-house mold design, process design and validation and high-speed automated assemblies. This reportable segment has manufacturing facilities in North America and Europe.
Our quality control, regulatory and laboratory testing capabilities are used to ensure compliance with applicable manufacturing and regulatory standards for primary and secondary pharmaceutical packaging components and drug delivery systems.
Our quality control, regulatory and laboratory testing capabilities are used to ensure compliance with applicable manufacturing and regulatory standards for primary and secondary pharmaceutical packaging components and drug delivery systems. Technological advances and scientific discoveries have accelerated the pace of change in primary packaging, drug delivery and administration technologies.
Human Ca pital Management Our People As of December 31, 2024, we employed approximately 10,600 people, excluding contractors and temporary workers, in our operations throughout the world. During 2024 , West hired approximately 1,800 new team members and experienced an attrition rate of approximately 17%.
Human Ca pital Management Our People As of December 31, 2025, we employed approximately 10,800 people, excluding contractors and temporary workers, in our operations throughout the world.
Raw Materials We use three basic raw materials in the manufacture of our products: elastomers, aluminum and plastic. Elastomers include both synthetic and natural materials. We currently have access to adequate supplies of these raw materials to meet our production needs through agreements with suppliers. We are required to carry significant amounts of inventory to meet customer requirements.
Raw Materials We use three primary raw materials in the manufacture of our products: elastomers, aluminum and plastic. Elastomers include both synthetic and natural materials. We currently have access to adequate supplies of these raw materials to meet our production needs through robust agreements with suppliers, supported by a dedicated supplier performance and supplier relationship management framework.
Government Regulation Our business activities are global and are subject to various federal, state, local, and foreign laws, rules, and regulations to healthcare, environmental protection, occupational health and safety, anti-corruption, export control, product safety and efficacy, employment, privacy and other areas.
We believe, however, that neither our business nor any business segment is wholly dependent on a single intellectual property asset, license, or technology, by itself. 5 Government Regulation Our business activities are global and are subject to various federal, state, local, and foreign laws, rules, and regulations to healthcare, environmental protection, occupational health and safety, anti-corruption, export control, product safety and efficacy, employment, privacy and other areas.
International We have significant operations outside of the United States (“U.S.”), which are managed through the same business segments as our U.S. operations – Proprietary Products and Contract-Manufactured Products. Sales outside of the U.S. accounted for 57.5% of our net sales in 2024.
Please refer to Item 2, Properties , for additional information on our manufacturing and other sites. 4 International We have significant operations outside of the United States (“U.S.”), which are managed through the same business segments as our U.S. operations – Proprietary Products and Contract-Manufactured Products.
There were no required material capital expenditures for environmental controls in our facilities in 2024 and there are currently no needed or planned material expenditures for 2025. 6 Marketing Our Proprietary Products customers primarily include many of the major biologic, generic, and pharmaceutical drug companies in the world, which incorporate our components and other offerings into their injectable products for distribution to the point of care and ultimate end-user, the patient.
Marketing Our Proprietary Products customers primarily include many of the major biologic, generic, and pharmaceutical drug companies in the world, which incorporate our components and other offerings into their injectable products for distribution to the point of care and ultimate end-user, the patient. Our Contract-Manufactured Products customers include many of the world’s largest pharmaceutical, diagnostic, and medical device companies.
Every team member is required to undergo Code of Conduct and mutual respect in the workplace training annually. Our focus on talent acquisition, performance management, resource planning and leadership assessment are strongly aligned with our inclusion, collaboration, and innovation strategies, all of which lead to more opportunities, better access to talent and stronger business performance.
West’s Code of Conduct, available in multiple languages on westpharma.com, provides guidance to our team members on appropriate and ethical conduct. Our focus on talent acquisition, performance management, resource planning and management development is strongly aligned with our inclusion, collaboration, and innovation strategies, all of which lead to more opportunities, better access to talent and stronger business performance.
Our compliance with these laws and regulations has not had a material impact on our financial position, results of operations or cash flows.
Our compliance with these laws and regulations has not had a material impact on our financial position, results of operations or cash flows. There were no required material capital expenditures for environmental controls in our facilities in 2025 and there are currently no needed or planned material expenditures for 2026.
Given the cost pressures they face, many of our customers look to reduce costs by sourcing from low-cost locations. We seek to differentiate ourselves by leveraging our global capabilities and reputation and by employing new technologies such as high-speed automated assembly, insert-molding, multi-shot precision molding, and expertise with multiple-piece closure systems.
We seek to differentiate ourselves by leveraging our global capabilities and reputation and by employing new technologies such as high-speed automated assembly, insert-molding, multi-shot precision molding, expertise with multiple-piece closure systems, and more recently scalable drug packaging and assembly solutions, which expands our competitive set to include CMO’s such as Sharp and PCI Pharma Services.
Technological advances and scientific discoveries have accelerated the pace of change in primary packaging, drug delivery and administration technologies. 7 Commercial development of our new products and services for medical and pharmaceutical applications commonly requires several years.
Commercial development of our new products and services for medical and pharmaceutical applications commonly requires several years.
Our team members live our values (Passion for Customer, Leadership in Quality and One West Team) as they work together to support our mission to improve patients' lives. West’s Code of Conduct, available in multiple languages on westpharma.com, provides guidance to our team members on appropriate and ethical conduct.
We centrally manage and organize on-the-job training, instructor-led trainings and online trainings in many different languages and topics through our global Learning Management System. Our team members live our values (Passion for Customer, Leadership in Quality and One West Team) as they work together to support our mission to improve patients' lives.
In addition, some of our supply agreements require us to purchase inventory in bulk orders, which increases inventory levels but decreases the risk of supply interruption. We employ a supply chain management strategy in our business segments, which involves purchasing from integrated suppliers that control their own sources of supply.
We are required to carry significant amounts of inventory to meet customer requirements, which is managed using a critical material planning process within supply chain. In addition, some of our supply agreements require us to purchase inventory in bulk orders, which increases inventory levels but decreases the risk of supply interruption.
Going forward, the ESG program will have an increased focus on compliance, given the increased regulatory requirements, as well as advancing our long-term strategic priorities.
During 2025, our focus was navigating a dynamic compliance environment, given the increased requirements and uncertainty surrounding regulations such as the EU Deforestation Regulation, and on advancing our long-term strategic priorities.
We offer resources such as our tuition reimbursement program and our online learning catalog, with more than 46,000 courses available. We centrally manage and organize on-the-job training, instructor-led trainings and online trainings in many different languages and topics through our global Learning Management System.
Training, Compliance and Talent Development We strongly encourage our team members to engage in continuous learning and provide development opportunities to strengthen individual skills and gain new experiences with the goal to build talent from within. We offer resources such as our tuition reimbursement program and our online learning catalog, with more than 50,000 courses available.
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In 2024, more than 170 utility and design patents were issued to West across the globe. Certain key value-added and proprietary products and processes are exclusively licensed from Daikyo. We believe, however, that neither our business nor any business segment is wholly dependent on a single intellectual property asset, license, or technology, by itself.
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In such circumstances, we deploy a range of cross-functional resources to manage the existing supplier relationship and to profile and manage the supply disruption risk. We purchase certain raw materials in the open commodities market and therefore the results of our operations may be affected by price fluctuations.
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The following table presents the approximate percentage of our employees by region: North America 44% Europe 41% Asia Pacific 12% South America 3% Total 100% As of December 31, 2024, the following table presents the approximate percentage of our employees by business unit: Global Operations 84% Corporate 6% Sales and Marketing 4% Digital & Technology (D&T) 4% Research & Development 2% Total 100% As of December 31, 2024, we had the following global gender demographics: Men Women West Global Employees 63% 37% 8 Training, Compliance and Talent Development We strongly encourage our team members to engage in continuous learning and provide development opportunities to strengthen individual skills and gain new experiences with the goal to build talent from within.
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Certain key value-added and proprietary products and processes are exclusively licensed from Daikyo.
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During 2024, we continued to increase internal and external awareness of our ESG commitment by expanding our education and communication regarding our ESG program and initiatives and more closely integrating ESG considerations into our business processes.
Added
Given the cost pressures they face, many of our customers look to reduce costs by sourcing from low-cost locations.
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Available Information We maintain a website at www.westpharma.com .
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The following table presents the approximate percentage of our employees by region: North America 43% Europe 42% Asia Pacific 12% South America 3% Total 100% 7 As of December 31, 2025, the following table presents the approximate percentage of our employees by function: Proprietary Products 73% Contract-Manufactured Products 17% Corporate 10% Total 100% As of December 31, 2025, approximately 37% of our full-time employees were female.

Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

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Biggest changeOur growth partly depends on new-product innovation and the development and commercialization of proprietary multi-component systems for injectable drug administration and other healthcare applications. Product development and commercialization is inherently uncertain and is subject to a number of factors outside of our control, including any necessary regulatory approvals and commercial acceptance for the products.
Biggest changeProduct development and commercialization is inherently uncertain and is subject to a number of factors outside of our control, including any necessary regulatory approvals and commercial acceptance for the products. The ultimate timing and successful commercialization of new products and systems requires substantial evaluations of the functional, operational, clinical, and economic viability of our products.
There can be no certainty that we will be able to enter into or maintain hedges of these currency risks, or that our hedges will be effective, which could have a significant effect on our financial condition and operating results. 12 In addition, our international operations are governed by the U.S. Foreign Corrupt Practices Act and similar foreign anti-corruption laws.
There can be no certainty that we will be able to enter into or maintain hedges of these currency risks, or that our hedges will be effective, which could have a significant effect on our financial condition and operating results. In addition, our international operations are governed by the U.S. Foreign Corrupt Practices Act and similar foreign anti-corruption laws.
We also refer you to further disclosures we make on related subjects in our Quarterly Reports on Form 10-Q and Current Reports on Form 8-K to the SEC. Global and Economic Risks Global economic conditions, including inflation and supply chain disruptions, could continue to adversely affect our operations.
We also refer you to further disclosures we make on related subjects in our Quarterly Reports on Form 10-Q and Current Reports on Form 8-K to the SEC. Global and Economic Risks Global economic conditions, including inflation and supply chain disruptions, could adversely affect our operations.
Because of the special nature of these products, competition is based primarily on product design and performance, although total cost is becoming increasingly important as pharmaceutical companies continue with aggressive cost-control programs across their operations. 13 Companies often compete on the basis of price.
Because of the special nature of these products, competition is based primarily on product design and performance, although total cost is becoming increasingly important as pharmaceutical companies continue with aggressive cost-control programs across their operations. Companies often compete on the basis of price.
As a result, a reduction or interruption in supply, or an inability to secure alternative sources of raw materials or components, could have a material adverse effect on our business and/or results of operations. Raw material and energy prices have a significant impact on our profitability.
As a result, a reduction or interruption in supply, or an inability to secure alternative sources of raw materials or components, could have a material adverse effect on our business and/or results of operations. 13 Raw material and energy prices have a significant impact on our profitability.
We believe it is likely that the scientific and political attention to issues concerning the extent and causes of climate change will continue, with new and more restrictive legislation or regulations and focus on ESG initiatives that could affect our financial condition, results of operations and cash flows.
We believe it is likely that the scientific and political attention to issues concerning the extent and causes of climate change will continue, with new and more restrictive legislation or regulations and focus on climate issues that could affect our financial condition, results of operations and cash flows.
UNRESOLVED STAFF COMMENTS As of the filing of this Form 10-K, there were no unresolved comments from the Staff of the SEC. 22
UNRESOLVED STAFF COMMENTS As of the filing of this Form 10-K, there were no unresolved comments from the Staff of the SEC.
Risk Factors , as well as economic and geopolitical conditions in general and to variability in the prevailing sentiment regarding our operations or business prospects, as well as, among other things, changing investment priorities of our shareholders. ITEM IB.
Risk Factors , as well as economic and geopolitical conditions in general and to variability in the prevailing sentiment regarding our operations or business prospects, as well as, among other things, changing investment priorities of our shareholders. ITEM 1B.
Further consolidation within the industries we serve could exert additional pressure on the prices of our products. The medical technology industry is very competitive and customer demands and/or new products in the marketplace could cause a reduction in demand.
Further consolidation within the industries we serve could exert additional pressure on the prices of our products. 12 The medical technology industry is very competitive and customer requests and/or new products in the marketplace could cause a reduction in demand.
Our patents, trademarks and other intellectual property are important to our business. We rely on patent, trademark, copyright, trade secret, and other intellectual property laws, as well as nondisclosure and confidentiality agreements and other methods, to protect our proprietary products, information, technologies and processes. We also have obligations with respect to the non-use and non-disclosure of third-party intellectual property.
We rely on patent, trademark, copyright, trade secret, and other intellectual property laws, as well as nondisclosure and confidentiality agreements and other methods, to protect our proprietary products, information, technologies and processes. We also have obligations with respect to the non-use and non-disclosure of third-party intellectual property.
Those conditions could negatively affect demand for our products due to customers decreasing their inventories in the near-term or long-term, reduction in sales due to raw material shortages, reduction in research and development efforts, our inability to sufficiently hedge our currency and raw material costs, insolvency of suppliers or customers, and exacerbate some of the other risks that affect our business, financial condition and results of operations. 11 Unauthorized access to our or our customers’ information and systems could negatively impact our business.
Those conditions could negatively affect demand for our products due to customers decreasing their inventories in the near-term or long-term, reduction in sales due to raw material shortages, reduction in research and development efforts, our inability to sufficiently hedge raw material costs, insolvency of suppliers or customers, and exacerbate some of the other risks that affect our business, financial condition and results of operations.
Our business depends to a substantial extent on customers’ continued sales and development of products that are delivered by injection.
Our business depends to a substantial extent on customers’ continued sales and development of products that are delivered by injection, such as GLP-1s.
If (i) our customers fail to continue to sell, develop and deploy injectable products; (ii) our customers reconfigure their drug product or develop new drug products requiring less frequent dosing; or (iii) we are unable to develop new products that assist in the delivery of drugs by alternative methods, our sales and profitability may suffer.
If (i) our customers fail to continue to sell, develop and deploy injectable products and opt for products delivered via alternative means, such as oral GLP-1s; (ii) our customers reconfigure their drug product or develop new drug products requiring less frequent dosing; or (iii) we are unable to develop new products that assist in the delivery of drugs by alternative methods, our sales and profitability may suffer.
Additionally, a number of factors, including U.S. relations with the governments of the foreign countries in which we operate, changes to international trade agreements and treaties, increases in trade protectionism, or the weakening or loss of certain intellectual property protection rights in some countries, may affect our business, financial condition and results of operations.
Additionally, a number of factors, including U.S. relations with the governments of the foreign countries in which we operate, tariffs or other restrictions imposed on foreign imports by the U.S. and related countermeasures taken by impacted foreign countries, changes to international trade agreements and treaties, increases in trade protectionism, or the weakening or loss of certain intellectual property protection rights in some countries, may affect our business, financial condition and results of operations.
A recall could result in significant costs, as well as negative publicity and damage to our reputation that could reduce demand for our products. Personal injuries relating to the use of our products can also result in product liability claims being brought against us.
A recall could result in significant costs, as well as negative publicity and damage to our reputation that could reduce demand for our products. Personal injuries relating to the use of our products can also result in product liability claims being brought against us. In some circumstances, such adverse events could also cause delays in new product approvals.
Although we believe we have clearly reflected the economics of these transactions and the proper local transfer pricing documentation is in place, tax authorities may propose and sustain adjustments that could result in changes that may impact our mix of earnings in countries with differing statutory tax rates. 19 We are subject to stringent and changing obligations related to data privacy and security.
Although we believe we have clearly reflected the economics of these transactions and the proper local transfer pricing documentation is in place, tax authorities may propose and sustain adjustments that could result in changes that may impact our mix of earnings in countries with differing statutory tax rates.
If the applicable regulations were to be modified in a way that reduced the level of data and information needed to prove equivalency for a change from one supplier’s components or devices to those made by another, it is likely that the competitive pressure would increase and adversely affect our sales and profitability. 18 If we are not successful in protecting our intellectual property rights, our ability to compete may be affected.
If the applicable regulations were to be modified in a way that reduced the level of data and information needed to prove equivalency for a change from one supplier’s components or devices to those made by another, it is likely that the competitive pressure would increase and adversely affect our sales and profitability.
Our future success depends, in large part, on our ability to attract and retain key employees, including our executive officers and individuals in technical, marketing, sales, and research positions. Competition for experienced employees, particularly for persons with specialized skills, can be intense.
A loss of or inability to attract key personnel or highly skilled employees could disrupt our operations. Our future success depends, in large part, on our ability to attract and retain key employees, including our executive officers and individuals in technical, marketing, sales, and research positions. Competition for experienced employees, particularly for persons with specialized skills, can be intense.
Sales outside of the U.S. accounted for 57.5% of our consolidated net sales in 2024 and we anticipate that sales from international operations will continue to represent a significant portion of our net sales in the future.
A significant portion of our net sales and earnings are generated internationally. Sales outside of the U.S. accounted for 56.7% of our consolidated net sales in 2025 and we anticipate that sales from international operations will continue to represent a significant portion of our net sales in the future.
Key value-added and proprietary products and processes are licensed from our affiliate, Daikyo, including but not limited to, Crystal Zenith, FluroTec ® and B2-coating technologies. Our rights to these products and processes are licensed pursuant to agreements that expire in 2027.
Key value-added and proprietary products and processes are licensed from our affiliate, Daikyo, including but not limited to, Crystal Zenith, FluroTec ® and B2-coating technologies. Our rights to these products and processes are licensed pursuant to agreements that expire in 2027. However, if the agreements are terminated early or not renewed, our business could be adversely impacted.
While we have procedures to monitor and limit exposure to credit risk on trade receivables and other current assets, there can be no assurance such procedures will effectively limit our credit risk and avoid losses, which could have a material adverse effect on our financial condition and operating results.
While we have procedures to monitor and limit exposure to credit risk on trade receivables and other current assets, there can be no assurance such procedures will effectively limit our credit risk and avoid losses, which could have a material adverse effect on our financial condition and operating results. 11 Unstable market and economic conditions and adverse developments with respect to financial institutions and associated liquidity risk may have serious adverse consequences on our business and financial condition.
However, if the agreements are terminated early or not renewed, our business could be adversely impacted. 17 Legal and Regulatory Risks We are subject to regulation by governments around the world, and if these regulations are not complied with, existing and future operations may be curtailed, and we could be subject to liability.
Legal, Regulatory and Compliance Risks We are subject to regulation by governments around the world, and if these regulations are not complied with, existing and future operations may be curtailed, and we could be subject to liability.
The development of new or improved products, processes or technologies by other companies (such as needle-free injection technology) may reduce customer demand for our products or render some of our products or proposed products obsolete or less competitive. In addition, any failure or inability to meet increased customer quality expectations could cause a reduction in demand.
The development of new or improved products, processes or technologies by other companies (such as needle-free injection technology) may reduce customer demand for our products or render some of our products or proposed products obsolete or less competitive.
If we cannot comply with regulations or prevent the unauthorized access, release and/or corruption of our or our customers’ confidential, classified or personally identifiable information, our reputation could be damaged, and/or we could face financial losses.
If we cannot comply with regulations or prevent the unauthorized access, release and/or corruption of our or our customers’ confidential, classified or personally identifiable information, our reputation could be damaged, and/or we could face financial losses. 10 We may also be required to incur additional costs to modify or enhance our systems, or to try to prevent or remediate any such attacks.
Delays, interruptions or failures in developing and commercializing new-product innovations or proprietary multi-component systems could adversely affect future revenues and operating income. In addition, adverse conditions may also result in future charges to recognize impairment in the carrying value of our goodwill and other intangible assets, which could have a material adverse effect on our financial results.
In addition, adverse conditions may also result in future charges to recognize impairment in the carrying value of our goodwill and other intangible assets, which could have a material adverse effect on our financial results.
The global nature of our business also means legal and compliance risks, such as anti-bribery, anti-corruption, fraud, trade, environmental, competition, privacy, and other regulatory matters, will continue to exist and additional legal proceedings and other contingencies will arise from time to time, which could adversely affect us.
Failure to comply with applicable regulatory requirements or failure to obtain regulatory approval for a new product could subject us to fines, sanctions or other penalties that could negatively affect our reputation, business, financial condition, and results of operations. 16 The global nature of our business also means legal and compliance risks, such as anti-bribery, anti-corruption, fraud, trade, environmental, competition, privacy, and other regulatory matters, will continue to exist and additional legal proceedings and other contingencies will arise from time to time, which could adversely affect us.
As a result, our customers may request that changes be made to our products, procedures or facilities, as well as other aspects of our business, that increase costs and may require the investment of capital or reduction in profit margins if not offset by price increases, customer investment or other cost savings.
We could also face increased costs related to defending and resolving legal claims and other litigation related to climate change and any alleged impact of our operations on climate change. 19 Many of our customers are subject to the same or related emerging legislation or regulations and, as a result, may request that changes be made to our products, procedures or facilities, as well as other aspects of our business, that increase costs and may require the investment of capital or reduction in profit margins if not offset by price increases, customer investment or other cost savings.
There is a risk that incident management systems in place may prove inadequate and that any disruption may materially adversely affect our ability to make and sell products and therefore, materially adversely affect our reputation, performance or financial condition. 14 Our international sales and operations are subject to risks and uncertainties that vary by country and which could have a material adverse effect on our business and/or results of operations.
There is a risk that incident management systems in place may prove inadequate and that any disruption may materially adversely affect our ability to make and sell products and therefore, materially adversely affect our reputation, performance or financial condition.
Unstable market and economic conditions and adverse developments with respect to financial institutions and associated liquidity risk may have serious adverse consequences on our business and financial condition. Potential future disruptions in access to bank deposits or lending commitments due to bank failure could materially and adversely affect our liquidity, our business and financial condition.
Potential future disruptions in access to bank deposits or lending commitments due to bank failure could materially and adversely affect our liquidity, our business and financial condition.
Current economic and political conditions make tax laws and regulations, or their interpretation and application, in any jurisdiction subject to significant change. Proposals to reform U.S. and foreign tax laws could significantly impact how U.S. multinational corporations are taxed on foreign earnings and could increase the U.S. corporate tax rate.
Proposals to reform U.S. and foreign tax laws could significantly impact how U.S. multinational corporations are taxed on foreign earnings and could increase the U.S. corporate tax rate.
Failure to protect our intellectual property or successfully invalidate or defend against intellectual property protections of third parties could harm our business and results of operations. In addition, if relevant and effective patent protection is not available or has expired, we may not be able to prevent competitors from independently developing products and services similar or duplicative to ours.
In addition, if relevant and effective patent protection is not available or has expired, we may not be able to prevent competitors from independently developing products and services similar or duplicative to ours. 17 Significant developments in U.S. tax policies could have a material adverse effect on our business and/or results of operations.
Foreign, federal, state and local regulatory and legislative bodies, such as the SEC, have proposed various legislative and regulatory measures relating to increased transparency and standardization of reporting related to factors that may include climate change, regulating GHG emissions, energy policies, recycling of plastic materials, waste taxes, and other governmental charges and mandates.
Foreign, state and local regulatory and legislative bodies, most notably in the European Union, have proposed various legislative and regulatory measures to increase transparency and standardization of reporting and corporate action related to factors that may include climate change, accountability for potential environmental impacts in our supply chain, regulating GHG emissions, energy policies, recycling of plastic materials, waste taxes, and other matters.
In some circumstances, we may not be able to increase the prices of our products due to competitive pressure and other factors.
In some circumstances, we may not be able to increase the prices of our products due to competitive pressure and other factors. If we are unable to pass along increased raw material prices and energy costs to our customers, our profitability, and thus our financial condition, may be adversely affected.
We may be unable to increase capacity or efficiency at our own manufacturing facilities, which could adversely affect our business, financial condition, and results of operations. We must adjust our production capacity in accordance with customer demand changes and remain focused on increasing capacity at various facilities through our capital strategy.
We must adjust our production capacity in accordance with customer demand changes and remain focused on increasing capacity at various facilities through our capital strategy.
In addition, because of the complex nature of many of our products and programs, we are generally dependent on an educated and highly skilled engineering staff and workforce. Our operations could be disrupted by a shortage of available skilled employees.
In addition, because of the complexity of many of our products and programs, we rely on an educated and highly skilled engineering staff as well as a manufacturing workforce that includes employees across all levels of skilled labor. As a result, a shortage of available skilled employees could disrupt our operations.
We are a global company with significant revenues and earnings generated internationally, which exposes us to the impact of foreign currency fluctuations, as well as political and economic risks. A significant portion of our net sales and earnings are generated internationally.
Modifying or enhancing our systems may result in unanticipated or prolonged disruption events, which could have a material adverse effect on our business and/or results of operations. We are a global company with significant revenues and earnings generated internationally, which exposes us to the impact of foreign currency fluctuations and tariffs, as well as political and economic risks.
We may not succeed in finding and completing acquisitions or other strategic transactions, which could have an adverse effect on our business and results of operations. We expect to continue to seek acquisition opportunities that compliment and expand our existing operations.
We may not succeed in completing divestitures, acquisitions or other strategic transactions, all of which could have an adverse effect on our business and results of operations. In the normal course of business, we engage in discussions with third parties relating to possible divestitures, acquisitions and other strategic transactions.
Significant developments in U.S. tax policies could have a material adverse effect on our business and/or results of operations. We earn a substantial portion of our income in foreign countries and, as such, we are subject to the tax laws in the United States and numerous foreign jurisdictions.
We earn a substantial portion of our income in foreign countries and, as such, we are subject to the tax laws in the United States and numerous foreign jurisdictions. Current economic and political conditions make tax laws and regulations, or their interpretation and application, in any jurisdiction subject to significant change.
If we are unable to pass along increased raw material prices and energy costs to our customers, our profitability, and thus our financial condition, may be adversely affected. 15 If we are not timely or successful in new-product innovation or the development and commercialization of proprietary multi-component systems, our future revenues and operating income could be adversely affected.
If we are not timely or successful in new-product innovation or the development and commercialization of proprietary multi-component systems, our future revenues and operating income could be adversely affected. Our growth partly depends on new-product innovation and the development and commercialization of proprietary multi-component systems for injectable drug administration and other healthcare applications.
We currently incur costs to comply with environmental laws and regulations and these costs may become more significant, especially as the laws become more stringent and our use of materials changes. 21 Changes in reimbursement practices of third-party payers or other cost containment measures, including changes to applicable laws and regulations, could affect the demand for our products and the prices at which they are sold.
Such regulations restricting or banning PFAS could adversely affect our business and results of operations in the event of our non-compliance and/or our development and adoption of alternative materials in our products. 20 Changes in reimbursement practices of third-party payers or other cost containment measures, including changes to applicable laws and regulations, could affect the demand for our products and the prices at which they are sold.
The ultimate timing and successful commercialization of new products and systems requires substantial evaluations of the functional, operational, clinical, and economic viability of our products. In addition, the timely and adequate availability of filling capacity is essential to both conducting definitive stability trials and the timing of commercialization of customers’ products in Crystal Zenith vials, syringes and cartridges.
In addition, the timely and adequate availability of filling capacity is essential to both conducting definitive stability trials and the timing of commercialization of customers’ products in Crystal Zenith vials, syringes and cartridges. Delays, interruptions or failures in developing and commercializing new-product innovations or proprietary multi-component systems could adversely affect future revenues and operating income.
Removed
We may also be required to incur additional costs to modify or enhance our systems, or to try to prevent or remediate any such attacks. Modifying or enhancing our systems may result in unanticipated or prolonged disruption events, which could have a material adverse effect on our business and/or results of operations.
Added
Unauthorized access to our or our customers’ information and systems could negatively impact our business.
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We conduct business in most of the major pharmaceutical markets in the world.
Added
In addition, any failure or inability to meet increased customer quality expectations or to develop innovative products that address our customers' requests could cause a reduction in demand.
Removed
In some circumstances, such adverse events could also cause delays in new product approvals. 16 A loss of or inability to attract key personnel or highly skilled employees could disrupt our operations.
Added
Our international sales and operations are subject to risks and uncertainties that vary by country and which could have a material adverse effect on our business and/or results of operations. We conduct business in most of the major pharmaceutical markets in the world.
Removed
Failure to comply with applicable regulatory requirements or failure to obtain regulatory approval for a new product could subject us to fines, sanctions or other penalties that could negatively affect our reputation, business, financial condition, and results of operations.
Added
With respect to divestitures or dispositions, we continually assess the strategic fit of our existing businesses and products and may divest or otherwise dispose of businesses or products for strategic, financial or other reasons.
Removed
We could also face increased costs related to defending and resolving legal claims and other litigation related to climate change and any alleged impact of our operations on climate change. 20 We, along with other companies in many business sectors have been implementing and expanding ESG and sustainability strategies, specifically ways to track and reduce GHG emissions.
Added
As a recent example, the Company entered into a definitive agreement to sell all manufacturing and supply rights for the SmartDose® 3.5mL On-Body Delivery System and associated facilities to AbbVie. While divestitures and other dispositions can be beneficial to the Company and its shareholders, sometimes they can result in financial results that are different than expected.
Added
A successful divestiture depends on various factors, including our ability to effectively transfer liabilities, contracts, facilities and employees to the purchaser, identify and separate the intellectual property to be divested from the intellectual property that we wish to keep and reduce fixed costs previously associated with the divested assets or business.
Added
In exiting a business, we may still retain liabilities associated with the support and warranty of that business and other indemnification obligations. All of these efforts require varying levels of management resources, which may divert our attention from other business operations.
Added
If we do not realize the expected benefits or synergies of such transactions, our consolidated financial position, results of operations, cash flows and stock price could be negatively impacted. 14 Meanwhile, we expect to continue to seek acquisition opportunities that complement and expand our existing operations.
Added
The concentration of our customer base could adversely affect our financial condition and operating results. We derive a substantial portion of our revenue from a limited number of customers. The loss of, or a significant reduction in orders from, any of these customers could have a material adverse impact on our business, financial condition and operating results.
Added
Our dependence on a concentrated customer base could also expose us to further risks relating to contract negotiations, pricing pressures, and operational disruptions.
Added
While we continually strive to meet the needs of all of our customers, any adverse change in our relationships with one or more of our key customers could have a material adverse effect on our business, financial condition and operating results. 15 We may be unable to increase capacity or efficiency at our own manufacturing facilities, which could adversely affect our business, financial condition, and results of operations.
Added
If we are not successful in protecting our intellectual property rights, our ability to compete may be affected. Our patents, trademarks and other intellectual property are important to our business.
Added
Failure to protect our intellectual property or successfully invalidate or defend against intellectual property protections of third parties could harm our business and results of operations.
Added
If we fail to maintain an effective system of internal controls, we may not be able to accurately report our financial results, which could lead to a loss of investor confidence in our financial statements and have an adverse effect on our stock price.
Added
Effective internal controls are necessary for us to provide reliable and accurate financial statements and to effectively prevent fraud. We devote significant resources and time to comply with the internal control over financial reporting requirements of the Sarbanes Oxley Act of 2002 and continue to enhance our controls.
Added
However, we cannot be certain that we will be able to prevent future significant deficiencies or material weaknesses.
Added
Inadequate internal controls could cause investors to lose confidence in our reported financial information, which could have a negative effect on investor confidence in our financial statements, the trading price of our stock and our access to capital. 18 We are subject to stringent and changing obligations related to data privacy and security.
Added
We currently incur costs to comply with environmental laws and regulations and these costs may become more significant, especially as the laws become more stringent and our use of materials changes.
Added
For example, the European Union and some states in the United States have introduced, and are considering more comprehensive updates to, regulations aimed at restricting the use of per and polyfluoroalkyl substances (“PFAS”) in packaging.

Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

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Biggest changeITEM 1C. CYBERSECURITY Risk Management and Strategy The Company has implemented the Committee of Sponsoring Organizations (“COSO”) Enterprise Risk Management (“ERM”) Framework, which outlines the process by which an organization can view any risk by way of governance and culture, integration into strategy, risk assessments, reviewing capabilities and practices, and monitoring and reporting.
Biggest changeITEM 1C. CYBERSECURITY Our Cybersecurity Risk Management Governance Strategy The Company has implemented the Committee of Sponsoring Organizations (“COSO”) Enterprise Risk Management (“ERM”) Framework, which provides a comprehensive view of the risks and opportunities relevant to our business portfolio, confirming that they are appropriately identified, measured, managed, and monitored. The COSO ERM Framework also applies to cybersecurity risk.
In addition, we retain an external cybersecurity consultancy company to assist when a cybersecurity event arises, as needed and, in addition we maintain appropriate cybersecurity liability insurance. The Company also educates and shares best practices globally with its employees to raise awareness of cybersecurity threats.
In addition, we retain an external cybersecurity consultancy company to assist with a cybersecurity event as needed and maintain appropriate cybersecurity liability insurance. The Company also educates and shares best practices globally with its employees to raise awareness of cybersecurity threats.
Any cybersecurity incident that is declared as a crisis would follow our global Incident and Crisis Response and Management Procedure, which includes escalation to the West Leadership Team and Board of Directors, as deemed necessary pending the materiality of the incident. We have not encountered cybersecurity challenges that have materially impacted our operations or financial condition.
Any cybersecurity incident that is declared as a crisis would follow our global Incident and Crisis Response and Management Procedure, which includes escalation to the West Leadership Team and the Board of Directors. We have not encountered cybersecurity challenges that have materially impacted our operations or financial condition.
Our plan covers various cyber incidents like ransomware attacks, cyber-intrusions, data loss, denial of service, insider threats, malware attacks, and others. In a material cybersecurity incident, our D&T team, inclusive of our Chief Information Officer and our VP of Cybersecurity and Infrastructure Support, address the threat via established escalation procedures, roles, responsibilities, and communication.
This plan covers various cyber incidents like ransomware attacks, cyber-intrusions, data loss, denial of service, insider threats, malware attacks, and others. In a material cybersecurity incident, our D&T team, inclusive of our Chief Digital Officer and our VP of D&T, Cybersecurity and Infrastructure and Site Support, would address the threat via established escalation procedures, roles, responsibilities and communication.
For example, our Cybersecurity Incident Response Plan clearly defines roles and responsibilities for the investigation of and response to information security incidents to minimize disruption of critical computing services and operations and prevent the loss or theft of sensitive or mission-critical information.
To safeguard our information assets, we have put various procedures and technologies in place. Another example is our Cybersecurity Incident Response Plan. This plan clearly defines roles and responsibilities for the investigation of and response to information security incidents to minimize disruption of critical computing services and operations and prevent the loss or theft of sensitive or mission-critical information.
In addition, we have a dedicated 24-by-7 Security Operations Center to facilitate the monitoring of the Company's cybersecurity landscape and associated applications. Governance Our approach to cybersecurity begins with our responsibility for strong governance and controls.
In addition, we have a dedicated 24/7 Security Operations Center to facilitate the monitoring of the Company's cybersecurity landscape and associated applications. 22
As part of our onboarding process, we train all new employees on cybersecurity and conduct an annual retraining of all employees on cybersecurity standards. Training also includes how to recognize, report and properly respond to phishing and social engineering schemes. Multiple phishing simulation exercises are conducted throughout the year to increase cybersecurity awareness.
As part of our onboarding process, we train all new employees on cybersecurity and conduct an annual retraining of all employees on cybersecurity standards. Our cybersecurity defenses also utilize robust technologies to ensure the security of West’s intellectual properties and customer and vendor data.
Removed
This process would apply to the cybersecurity risk as it would any of the other enterprise risks. We follow the National Institute of Standards and Technology (“NIST”) Cybersecurity Framework (“CSF”) with layered security controls to help identify, protect against, detect, respond to, and recover from cyber-attacks. To safeguard our information assets, we have put various procedures and technologies in place.
Added
The cybersecurity program is led by our Vice President of Digital & Transformation (“D&T”), Cybersecurity and Infrastructure and Site Support, who provides regular reports to senior Management, periodic updates to the Audit Committee, and at least annual updates to the Board of Directors. 21 We follow the National Institute of Standards and Technology Cybersecurity Framework with layered security controls to help identify, protect against, detect, respond to, and recover from cyber attacks.
Removed
Our cybersecurity defenses also utilize technologies such as next generation firewalls, Zero Trust architecture, intrusion detection and prevention measures, anti-malware software, advance threat protection, multifactor authentication, network segmentation and encryption to ensure the security of West intellectual properties, customer and vendor data.
Removed
Security begins at the top of our organization, where Company leadership consistently communicates the requirements for vigilance and compliance throughout the organization, and then leads by example. Our diligence and assessment extend beyond West, as the Company performs a cybersecurity assessment when third-party vendors and service providers are onboarded.
Removed
Throughout the year, we monitor the effectiveness of our third-party vendors' and service providers' control environment, assessing any impact to our Company.
Removed
The cybersecurity program is led by our Chief Information Officer and our VP of Cybersecurity and Infrastructure Support, who provide periodic updates to the Audit Committee of our Board of Directors, annual updates to the Board of Directors, and regular reports to the West Leadership Team about the program, including information about cyber risk management governance and the status of ongoing efforts to strengthen cybersecurity effectiveness.
Removed
Additionally, our ERM program enables a portfolio view of the risks inherent in our business, including cybersecurity. The ERM function monitors and reports on these top risks with periodic updates to the Audit Committee and our Board of Directors, annual updates to the Board of Directors, and regular reporting to the West Leadership Team on risk mitigation and response efforts.
Removed
Security controls and processes are developed and maintained to protect sensitive and confidential information while ensuring availability and integrity. 23

Item 2. Properties

Properties — owned and leased real estate

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Biggest changeAustell Proprietary Products France Le Nouvion Proprietary Products Germany Eschweiler (1) (2) Proprietary Products Stolberg Proprietary Products Ireland Waterford Proprietary Products Dublin (2) Contract Manufactured Products Serbia Kovin Proprietary Products Asia Pacific China Qingpu Proprietary Products India Sri City Proprietary Products Singapore Jurong (2) Proprietary Products Mold-and-Die Tool Shop: North America United States of America Upper Darby, PA Proprietary Products 24 Type of Facility/ Country Location Segment Europe England Bodmin Proprietary Products Germany Stolberg Proprietary Products Contract Analytical Laboratory: North America United States of America Exton, PA Proprietary Products Technology Center: Asia Pacific India Bangalore (2) Proprietary Products, Contract Manufactured Products (1) This manufacturing facility is also used for research and development activities.
Biggest changeAustell Proprietary Products France Le Nouvion Proprietary Products Germany Eschweiler (1) (2) Proprietary Products Stolberg Proprietary Products Ireland Waterford Proprietary Products Dublin (1) (2) Contract Manufactured Products Serbia Kovin Proprietary Products Asia Pacific China Qingpu Proprietary Products India Sri City Proprietary Products Singapore Jurong (1) (2) Proprietary Products 23 Type of Facility/ Country Location Segment Mold-and-Die Tool Shop: North America United States of America Upper Darby, PA Proprietary Products Europe England Bodmin Proprietary Products Germany Stolberg Proprietary Products Contract Analytical Laboratory: North America United States of America Exton, PA Proprietary Products Technology Center: Asia Pacific India Bangalore (1) (2) Proprietary Products and Contract Manufactured Products (1) This manufacturing facility is also used for research and development activities.
Type of Facility/ Country Location Segment Manufacturing: North America United States of America Scottsdale, AZ (1) (2) Proprietary Products Tempe, AZ (2) Contract Manufactured Products and Proprietary Products St.
Type of Facility/ Country Location Segment Manufacturing: North America United States of America Scottsdale, AZ (1) (2) Proprietary Products Tempe, AZ (2) Proprietary Products and Contract Manufactured Products St.
Petersburg, FL (1) Proprietary Products Grand Rapids, MI Contract Manufactured Products Kinston, NC Proprietary Products Kearney, NE Proprietary Products Jersey Shore, PA Proprietary Products Williamsport, PA Contract Manufactured Products Cayey, Puerto Rico Proprietary Products and Contract Manufactured Products South America Brazil Sao Paulo Proprietary Products Europe Denmark Horsens Proprietary Products England St.
Petersburg, FL (1) Proprietary Products Greenfield, IN (2) Contract Manufactured Products Grand Rapids, MI Contract Manufactured Products Kinston, NC Proprietary Products Kearney, NE Proprietary Products Jersey Shore, PA Proprietary Products Williamsport, PA Proprietary Products and Contract Manufactured Products Cayey, Puerto Rico Proprietary Products and Contract Manufactured Products South America Brazil Sao Paulo Proprietary Products Europe Denmark Horsens Proprietary Products England St.
(2) This facility is leased in whole or in part. Our Proprietary Products reportable segment leases facilities located in Scottsdale, AZ, Radnor, PA, Germany, and Israel for research and development, as well as other activities. Sales offices in various locations are leased under contractual arrangements. ITEM 3. LEGAL PROCEEDINGS None.
(2) This facility is leased in whole or in part. Our Proprietary Products reportable segment leases facilities located in Scottsdale, AZ, Radnor, PA, Germany, Israel and Taiwan for research and development, as well as other activities. Sales offices in various locations are leased under contractual arrangements.

Item 4. Mine Safety Disclosures

Mine Safety Disclosures — required of mining issuers

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Biggest changeFrom January 2016 to September 2017, served as Lonza Pharma and Biotech, Senior Vice President of Global Sales. Prior to Lonza, she served for over 15 years in a variety of Commercial leadership roles at SAFC, a division of Sigma-Aldrich Company. Chad R. Winters 46 Vice President, Finance & Chief Accounting Officer since February 2024.
Biggest changePoussot has served for over 20 years in positions of increasing responsibility at a variety of companies including Illumina, Inc., Cardinal Health and McKinsey & Company. Chad R. Winters 47 Vice President, Finance & Chief Accounting Officer since February 2024. Vice President, Chief Accounting Officer and Corporate Controller from May 2020 to February 2024.
ITEM 4. MINE SAFETY DISCLOSURES Not applicable. INFORMATION ABOUT OUR EXECUTIVE OFFICERS The executive officers of the Company are set forth in this table. Generally, executive officers are elected by the Board of Directors annually at the regular meeting of the Board of Directors following the Annual Meeting of Shareholders.
ITEM 4. MINE SAFETY DISCLOSURES Not applicable. 24 INFORMATION ABOUT OUR EXECUTIVE OFFICERS The executive officers of the Company are set forth in this table. Generally, executive officers are elected by the Board of Directors annually at the regular meeting of the Board of Directors following the Annual Meeting of Shareholders.
Green 55 Chair of the Board since May 2022. Chief Executive Officer since April 2015 and President since December 2015. Prior to joining West, he was Executive Vice President and President of the Research Markets business unit at Sigma-Aldrich Corporation from 2013 to 2015.
Green 56 Chair of the Board since May 2022. Chief Executive Officer since April 2015 and President since December 2015. Prior to joining West, he was Executive Vice President and President of the Research Markets business unit at Sigma-Aldrich Corporation from 2013 to 2015.
Prior to joining West, she spent more than 25 years at IBM Corporation, an information technology services company, in a number of strategic and global human resources roles, including Vice President, Global Talent Management, Vice President of Human Resources for Worldwide Software Sales, and Human Resources Leader for the company’s Southwest European Region, based out of Spain. 25 Eric M.
Prior to joining West, she spent more than 25 years at IBM Corporation, an information technology services company, in a number of strategic and global human resources roles, including Vice President, Global Talent Management, Vice President of Human Resources for Worldwide Software Sales, and Human Resources Leader for the company’s Southwest European Region, based out of Spain. Norman D.
Vice President, Chief Accounting Officer and Corporate Controller from May 2020 to February 2024. Vice President and Corporate Controller from October 2019 to May 2020. Prior to joining West, he served as Senior Vice President of Finance & Accounting and Controller of Amneal Pharmaceuticals, Inc., a specialty pharmaceutical company.
Vice President and Corporate Controller from October 2019 to May 2020. Prior to joining West, he served as Senior Vice President of Finance & Accounting and Controller of Amneal Pharmaceuticals, Inc., a specialty pharmaceutical company. Prior to Amneal, he held roles of increasing responsibility at the Chemours Company, UGI Corporation, and PricewaterhouseCoopers LLP. 25 PART II
From 2009 to 2013, he served as Vice President and Managing Director, International, where he was responsible for Asia Pacific and Latin America, and prior thereto, held various commercial and operational roles. Kimberly Banks MacKay 59 Senior Vice President, General Counsel and Corporate Secretary since December 2020.
From 2009 to 2013, he served as Vice President and Managing Director, International, where he was responsible for Asia Pacific and Latin America, and prior thereto, held various commercial and operational roles. He has also served as an Independent Director at Ecolab, Inc. since 2022. Robert W. McMahon 56 Senior Vice President & Chief Financial Officer since August 2025.
Favorite 60 Senior Vice President and Chief Human Resources Officer since October 2015.
Campbell spent 20 years at DuPont, a global chemical company, and served in a number of senior global leadership roles. Annette F. Favorite 61 Senior Vice President and Chief Human Resources Officer since October 2015.
Removed
Additionally, executive officers may be elected upon hire or due to a promotion. Name Age Position Bernard J. Birkett 56 Senior Vice President and Chief Financial Officer since April 2024. Senior Vice President and Chief Financial and Operations Officer from July 2022 to April 2024. Senior Vice President and Chief Financial Officer from June 2018 to July 2022.
Added
Additionally, executive officers may be elected upon hire or due to a promotion. Name Age Position Shane A. Campbell 45 Chief Proprietary Segment Officer since May 2025. Prior to joining West, he served as the Chief Commercial Officer of the Construction Materials business at Carlisle Companies Inc., a supplier of construction products. Prior to Carlisle, Mr.
Removed
In addition, Treasurer from June 2018 to December 2019 and Principal Accounting Officer from October 2019 to April 2020.
Added
Finch Jr. 61 Senior Vice President, General Counsel and Corporate Secretary since December 2025. Prior to joining West, he served as a legal, compliance, investment and HR advisor to start-up healthcare technology companies.
Removed
Prior to joining West, he spent more than 20 years at Merit Medical Systems, Inc., a leading manufacturer of disposable medical devices, where he served in a number of senior global leadership roles, including Chief Financial Officer and Treasurer, Controller for Europe, Middle East and Africa (EMEA) and Vice President of International Finance. Annette F.
Added
Previously, he served as the SVP, General Counsel and Secretary for Illinois Tool Works Inc., overseeing the global legal function and serving as the primary legal advisor to the chief executive officer, the organization’s senior management team, and the Board of Directors. In addition, Mr.
Removed
Prior to joining West, from April 2019 to November 2020, she served as Senior Vice President, General Counsel and Corporate Secretary at the Segal Group in New York, a privately held firm specializing in employee benefits and investment consulting.
Added
Finch held senior legal roles at Sealed Air Corporation as VP, General Counsel, Secretary and Human Resources and Zimmer Holdings, Inc. (now Zimmer Biomet) as VP, Associate General Counsel and Chief Compliance Officer. He began his law career at Fulbright & Jaworski (now Norton Rose Fulbright), serving in the pharmaceutical and medical device practice group. Eric M.
Removed
Prior to Segal, she served for over 15 years in a variety of Legal leadership roles for Novartis, a global healthcare company, including Head of U.S. Legal for Novartis Business Service. Cindy Reiss-Clark 51 Chief Commercial Officer since May 2022. Senior Vice President, Global Markets and Commercial Solutions since November 2019.
Added
Prior to joining West, he served as the Chief Financial Officer of Agilent Technologies Inc, a provider in application focused solutions that include instruments, software, services and consumables for the entire laboratory workflow. At Agilent, he was responsible for finance, audit, treasury, tax, investor relations, IT and procurement. From 2014 to 2018, Mr.
Removed
Vice President and General Manger Biologics Market Unit from September 2018 to November 2019. Prior to joining West, she served as Senior Vice President of Global Marketing at Lonza Pharma and Biotech, a leading Contract Development and Manufacturing Business from October 2017 to July 2018.
Added
McMahon served as Chief Financial Officer at Hologic, Inc, a developer, manufacturer and supplier of diagnostics products, medical imaging systems, and surgical products. Prior to Hologic, Mr. McMahon spent 20 years with Johnson & Johnson, a biotechnology, medical technology, and pharmaceutical manufacturer, in various executive financial roles of increasing responsibility.
Removed
Prior to Amneal, he held roles of increasing responsibility at the Chemours Company, UGI Corporation, and PricewaterhouseCoopers LLP. 26 PART II
Added
He has also served as an Independent Director at OraSure Technologies, Inc. since 2023. Rudy J. Poussot 48 Senior Vice President, Strategy and Corporate Development since November 2023. Prior to joining West, Mr. Poussot served as the Director of Health Strategy, Business Operations at Google, a technology company, for the last three years. Prior to Google, Mr.

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

4 edited+1 added−3 removed3 unchanged
Biggest changeDuring the year ended December 31, 2024, we purchased 1,583,032 shares of our common stock under the program at a cost of $560.9 million, or an average price of $354.30 per share. 27 Performance Graph The following performance graph compares the cumulative total return to holders of our common stock with the cumulative total return of the Standard & Poor’s 500 Index (“S&P 500”) and the Standard & Poor's 500 Health Care Index, for the five years ended December 31, 2024.
Biggest changePerformance Graph The following performance graph compares the cumulative total return to holders of our common stock with the cumulative total return of the Standard & Poor’s 500 Index (“S&P 500”) and the Standard & Poor's 500 Health Care Index, for the five years ended December 31, 2025.
Dividends We paid a quarterly dividend of $0.19 per share on our common stock in each of the first three quarters of 2023; $0.20 per share in the fourth quarter of 2023 and each of the first three quarters of 2024; and $0.21 per share in the fourth quarter of 2024.
Dividends We paid a quarterly dividend of $0.20 per share on our common stock in each of the first three quarters of 2024; $0.21 per share in the fourth quarter of 2024 and each of the first three quarters of 2025; and $0.22 per share in the fourth quarter of 2025.
MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES Our common stock is listed on the New York Stock Exchange (“NYSE”) under the symbol “WST.” As of February 6, 2025, we had 523 shareholders of record, which excludes beneficial owners whose shares were held by brokerage firms, depositaries and other institutional firms in “street names” for their customers.
MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES Our common stock is listed on the New York Stock Exchange (“NYSE”) under the symbol “WST.” As of January 29, 2026, we had 468 shareholders of record, which excludes beneficial owners whose shares were held by brokerage firms, depositaries and other institutional firms in “street names” for their customers.
The cumulative shareholder return on our common stock is based on an investment of $100 on December 31, 2019 and is compared to the cumulative total return of the S&P indices mentioned above over the period with a like amount invested. *Five year total return data obtained from NASDAQ IR Insight ITEM 6. RESERVED 28
The cumulative shareholder return on our common stock is based on an investment of $100 on December 31, 2020 and is compared to the cumulative total return of the S&P indices mentioned above over the period with a like amount invested. ITEM 6. RESERVED 26
Removed
Issuer Purchases of Equity Securities The following table shows information with respect to purchases of our common stock made during the three months ended December 31, 2024 by us or any of our “affiliated purchasers” as defined in Rule 10b-18(a)(3) under the Exchange Act: Period Total number of shares purchased (1) Average price paid per share (1) Total number of shares purchased as part of publicly announced plans or programs (1) Approximate dollar value of shares that may yet be purchased under the plans or programs (1) October 1 - 31, 2024 65,531 $ 297.81 65,531 $ 35,700,000 November 1 - 30, 2024 52,917 321.15 52,917 18,700,000 December 1 - 31, 2024 54,798 326.64 54,798 800,000 Total 173,246 $ 314.06 173,246 $ 800,000 (1) In February 2023, the Board of Directors approved a share repurchase program under which we may repurchase up to $1.0 billion in shares of common stock.
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Issuer Purchases of Equity Securities During the three months ended December 31, 2025, there were no purchases of our common stock made by us or any of our “affiliated purchasers” as defined in Rule 10b-18(a)(3) under the Exchange Act.
Removed
The share repurchase program does not have an expiration date under which we may repurchase common stock on the open market or in privately-negotiated transactions. The number of shares to be repurchased and the timing of such transactions will depend on a variety of factors, including market conditions.
Removed
During the three months ended December 31, 2024, we purchased 173,246 shares of our common stock under the program at a cost of $54.4 million, or an average price of $314.06 per share.

Item 6. [Reserved]

Selected Financial Data — reserved (removed by SEC in 2021)

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Biggest changeITEM 6. RESERVED 28 ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 29 ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 42 ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA 44 ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE 88
Biggest changeITEM 6. RESERVED 26 ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 27 ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 40 ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA 42 ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE 86

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

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Biggest changeInterest Expense, Net and Interest Income The following table presents interest expense, net, by significant component: Year Ended December 31, % Change ($ in millions) 2024 2023 2022 2024/2023 2023/2022 Interest expense $ 16.2 $ 14.8 $ 11.6 9.5 % 27.6 % Capitalized interest (13.2) (5.8) (3.7) 127.6 % 56.8 % Interest expense, net $ 3.0 $ 9.0 $ 7.9 (66.7) % 13.9 % Interest income $ (19.6) $ (28.0) $ (5.1) (30.0) % 449.0 % 36 Interest expense, net, decreased by $6.0 million, or 66.7%, in 2024, primarily due to an increase in capitalized interest.
Biggest changeInterest Expense, Net and Interest Income The following table presents interest expense, net, by significant component: Year Ended December 31, % Change ($ in millions) 2025 2024 2023 2025/2024 2024/2023 Interest expense $ 15.1 $ 16.2 $ 14.8 (6.8 %) 9.5 % Capitalized interest (14.6) (13.2) (5.8) 10.6 % 127.6 % Interest expense, net $ 0.5 $ 3.0 $ 9.0 (83.3) % (66.7) % Interest income $ (17.5) $ (19.6) $ (28.0) (10.7) % (30.0) % Interest expense, net, decreased by $2.5 million, or 83.3%, in 2025, due primarily to an increase in capitalized interest in 2025 and interest expense on repayments made on the Company's Series B notes in 2024 that was not repeated in 2025. 34 Interest income decreased by $2.1 million, or 10.7%, in 2025, due primarily to a decline in interest rates and the Company having a lower average cash balance in 2025, as compared to 2024 .
($ in millions) Operating profit Income tax expense Net income Diluted EPS Year ended December 31, 2023 GAAP $ 676.0 $ 122.3 $ 593.4 $ 7.88 Unallocated items: Restructuring and other charges (1) (2.0) (0.9) (1.1) (0.02) Amortization of acquisition-related intangible assets (2) 0.7 0.1 2.8 0.04 Loss on disposal of plant (3) 11.6 (0.7) 12.3 0.16 Cost investment activity (4) 4.3 — 4.3 0.06 Legal settlement (5) — (0.9) (2.9) (0.04) Year ended December 31, 2023 adjusted amounts (non-U.S.
($ in millions) Operating profit Income tax expense Net income Diluted EPS Year ended December 31, 2023 GAAP $ 676.0 $ 122.3 $ 593.4 $ 7.88 Unallocated items: Restructuring and other charges (1) (2.0) (0.9) (1.1) $ (0.02) Cost-method investment activity (3) 4.3 — 4.3 $ 0.06 Amortization of acquisition-related intangible assets (4) 0.7 $ 0.1 2.8 $ 0.04 Loss on disposal of plant (5) 11.6 (0.7) 12.3 $ 0.16 Legal settlement (6) — $ (0.9) (2.9) $ (0.04) Year ended December 31, 2023 adjusted amounts (non-U.S.
Our research and development expenses fluctuate from period to period primarily based on the ongoing improvements to our manufacturing processes and product enhancements. Selling, general and administrative expenses Selling, general and administrative expenses primarily include personnel costs, incentive compensation, insurance, professional fees, and depreciation. 30 Financial Performance Summary The following tables present a reconciliation from U.S. GAAP to non-U.S.
Our research and development expenses fluctuate from period to period primarily based on the ongoing improvements to our manufacturing processes and product enhancements. Selling, general and administrative expenses Selling, general and administrative expenses primarily include personnel costs, incentive compensation, insurance, professional fees, and depreciation. Financial Performance Summary The following tables present a reconciliation from U.S. GAAP to non-U.S.
The net expense represents the impact of two items, the first of which is $4.6 million of expense recorded within selling, general and administrative expenses in connection with a plan to optimize the legal structure of the Company and its subsidiaries. The expense consists primarily of consulting fees, legal expenses, and other one-time costs directly attributable to this plan.
The net expense represents the impact of two items, the first of which is $4.6 million of expense recorded within selling, general and administrative expenses in connection with a plan to optimize the legal structure of the Company and its subsidiaries. The expense consisted primarily of consulting fees, legal expenses, and other one-time costs directly attributable to this plan.
The after-tax excess earnings are then discounted to present value using the respective discount rates. 40 Intangible assets with finite lives are amortized using the straight-line method over their estimated useful lives and reviewed for impairment whenever circumstances indicate that the carrying value of these assets may not be recoverable.
The after-tax excess earnings are then discounted to present value using the respective discount rates. 38 Intangible assets with finite lives are amortized using the straight-line method over their estimated useful lives and reviewed for impairment whenever circumstances indicate that the carrying value of these assets may not be recoverable.
During 2023, the Company recorded a benefit to restructuring and other charges of $2.0 million, which represents the net impact of a $2.8 million b enefit within other expense (income) for revised severance estimates in connection with its 2022 restructuring plan and an inventory write down of $0.8 million within cost of goods and services sold.
During 2023, the Company recorded a benefit to restructuring and other charges of $2.0 million, which represents the net impact of a $2.8 million benefit within other expense (income) for revised severance estimates in connection with its 2022 restructuring plan and an inventory write down of $0.8 million within cost of goods and services sold.
Working capital is defined as current assets less current liabilities. Cash and cash equivalents – Our cash and cash equivalents balance at December 31, 2024 consisted of cash held in depository accounts with banks around the world and cash invested in high-quality, short-term investments.
Working capital is defined as current assets less current liabilities. Cash and cash equivalents – Our cash and cash equivalents balance at December 31, 2025 consisted of cash held in depository accounts with banks around the world and cash invested in high-quality, short-term investments.
Discussion of the year-over-year changes for the fiscal year ended December 31, 2023 compared to the fiscal year ended December 31, 2022 and the results of operations and cash flows for the fiscal year ended December 31, 2022 is included in Item 7, Management’s Discussion and Analysis of Financial Condition and Result of Operations of our Annual Report on Form 10-K for the fiscal year ended December 31, 2023, filed with the SEC on February 20, 2024, and is incorporated herein by reference.
Discussion of the year-over-year changes for the fiscal year ended December 31, 2024 compared to the fiscal year ended December 31, 2023 and the results of operations and cash flows for the fiscal year ended December 31, 2023 is included in Item 7, Management’s Discussion and Analysis of Financial Condition and Result of Operations of our Annual Report on Form 10-K for the fiscal year ended December 31, 2024, filed with the SEC on February 18, 2025, and is incorporated herein by reference.
Please refer to Note 1, Basis of Presentation and Summary of Significant Accounting Policies to our consolidated financial statements for additional information on our significant accounting policies. 41
Please refer to Note 1, Basis of Presentation and Summary of Significant Accounting Policies to our consolidated financial statements for additional information on our significant accounting policies. 39
Other Expense (Income) The following table presents other expense and income items, consolidated and by reportable segment and corporate and unallocated items: Year Ended December 31, ($ in millions) 2024 2023 2022 Proprietary Products $ 22.1 $ 14.9 $ (2.2) Contract-Manufactured Products (0.5) (0.5) 1.6 Corporate and unallocated items (0.6) 17.0 27.4 Consolidated other expense (income) $ 21.0 $ 31.4 $ 26.8 Other expense and income items consist of a loss on disposal of plant, asset impairments, foreign exchange transaction gains and losses, contingent consideration and miscellaneous income and charges.
Other Expense (Income) The following table presents other expense and income items, consolidated and by reportable segment and corporate and unallocated items: Year Ended December 31, ($ in millions) 2025 2024 2023 Proprietary Products $ 21.1 $ 22.1 $ 14.9 Contract-Manufactured Products 2.5 (0.5) (0.5) Corporate and unallocated items 27.6 (0.6) 17.0 Consolidated other expense (income) $ 51.2 $ 21.0 $ 31.4 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.
Additionally, during 2024, 2023 and 2022, the company recorded $2.1 million of amortization expense in association with an acquisition of increased ownership interest in Daikyo. (3) During 2023 , the Company recorded expense of $11.6 million as a result of the sale of one of the Company’s manufacturing facilities within the Proprietary Products segment.
Additionally, during 2025, 2024 and 2023, the Company recorded $1.8 million, $2.1 million and $2.1 million, respectively, of amortization expense in association with an acquisition of increased ownership interest in Daikyo. 29 (5) During 2023 , the Company recorded expense of $11.6 million within other expense (income) as a result of the sale of one of the Company’s manufacturing facilities within the Proprietary Products segment.
Liquidity and Capital Resources The table below presents selected liquidity and capital measures as of: ($ in millions) December 31, 2024 December 31, 2023 Cash and cash equivalents $ 484.6 $ 853.9 Accounts receivable, net $ 552.5 $ 512.0 Inventories $ 377.0 $ 434.7 Accounts payable $ 239.3 $ 242.4 Debt $ 202.6 $ 206.8 Equity $ 2,682.3 $ 2,881.0 Working capital $ 987.7 $ 1,264.6 Cash and cash equivalents include all instruments that have maturities of ninety days or less when purchased.
Liquidity and Capital Resources The table below presents selected liquidity and capital measures as of: ($ in millions) December 31, 2025 December 31, 2024 Cash and cash equivalents $ 791.3 $ 484.6 Accounts receivable, net $ 574.4 $ 552.5 Inventories $ 443.9 $ 377.0 Accounts payable $ 253.7 $ 239.3 Debt $ 202.8 $ 202.6 Equity $ 3,176.0 $ 2,682.3 Working capital $ 1,323.3 $ 987.7 Cash and cash equivalents include all instruments that have maturities of ninety days or less when purchased.
GAAP, these purchase obligations are not reflected in the accompanying consolidated balance sheets. At December 31, 2024, our outstanding unconditional contractual commitments, including for the purchase of raw materials and finished goods, amounted to $200.7 million, of which $46.7 million is due to be paid in 2025. These purchase commitments are in the normal course of business.
GAAP, these purchase obligations are not reflected in the accompanying consolidated balance sheets. At December 31, 2025, our outstanding unconditional contractual commitments, including for the purchase of raw materials and finished goods, amounted to $221.8 million, of which $75.0 million is due to be paid in 2026.
All of the R&D costs incurred during 2024, 2023 and 2022 related to Proprietary Products. 34 Selling, General and Administrative (“SG&A”) Costs The following table presents SG&A costs, consolidated and by reportable segment and corporate and unallocated items: Year Ended December 31, % Change ($ in millions) 2024 2023 2022 2024/2023 2023/2022 Proprietary Products $ 231.5 $ 240.6 $ 212.6 (3.8 %) 13.2 % Contract-Manufactured Products 26.2 24.4 20.9 7.4 % 16.7 % Corporate and unallocated items 80.8 88.4 83.4 (8.6 %) 6.0 % Consolidated SG&A costs $ 338.5 $ 353.4 $ 316.9 (4.2 %) 11.5 % SG&A as a % of net sales 11.7 % 12.0 % 11.0 % Consolidated SG&A costs decreased by $14.9 million, or 4.2%, in 2024, including a favorable foreign currency translation impact of $0.5 million, primarily due to lower annual incentive compensation and a decrease in expense related to stock-based compensation, partially offset by increased salary and wages.
All of the R&D costs incurred during 2025, 2024 and 2023 related to Proprietary Products. 32 Selling, General and Administrative (“SG&A”) Costs The following table presents SG&A costs, consolidated and by reportable segment and corporate and unallocated items: Year Ended December 31, % Change ($ in millions) 2025 2024 2023 2025/2024 2024/2023 Proprietary Products $ 255.6 $ 231.5 $ 240.6 10.4 % (3.8 %) Contract-Manufactured Products 29.9 26.2 24.4 14.1 % 7.4 % Corporate and unallocated items 108.1 80.8 88.4 33.8 % (8.6 %) Consolidated SG&A costs $ 393.6 $ 338.5 $ 353.4 16.3 % (4.2 %) SG&A as a % of net sales 12.8 % 11.7 % 12.0 % Consolidated SG&A costs increased by $55.1 million, or 16.3%, in 2025, including an unfavorable foreign currency translation impact of $3.0 million, due primarily to higher annual incentive compensation and increased salary and wages, partially offset by decreased costs related to professional services.
(2) During 2024, 2023 and 2022, the Company recorded $0.8 million, $0.7 million and $0.7 million, respectively, of amortization expense within operating profit associated with an acquisition of an intangible asset during the second quarter of 2020.
(4) During 2025, 2024 and 2023, the Company recorded $0.2 million, $0.8 million and $0.7 million, respectively, of amortization expense within selling, general and administrative expenses associated with an acquisition of an intangible asset during the second quarter of 2020.
Equity in net income of affiliated companies decreased by $3.0 million, or 16.9%, in 2024, primarily due to less favorable operating results at Daikyo. 37 FINANCIAL CONDITION, LIQUIDITY AND CAPITAL RESOURCES Cash Flows The following table presents cash flow data for the years ended December 31: ($ in millions) 2024 2023 2022 Net cash provided by operating activities $ 653.4 $ 776.5 $ 724.0 Net cash used in investing activities $ (378.7) $ (368.7) $ (288.2) Net cash used in financing activities $ (622.6) $ (459.6) $ (293.6) Net Cash Provided by Operating Activities Net cash provided by operating activities decreased by $123.1 million in 2024, primarily due to a decline in operating results.
Equity in net income of affiliated companies decreased by $0.3 million, or 2.0%, in 2025, due primarily to less favorable operating results at Daikyo and the Mexico affiliates. 35 FINANCIAL CONDITION, LIQUIDITY AND CAPITAL RESOURCES Cash Flows The following table presents cash flow data for the years ended December 31: ($ in millions) 2025 2024 2023 Net cash provided by operating activities $ 754.8 $ 653.4 $ 776.5 Net cash used in investing activities $ (285.9) $ (378.7) $ (368.7) Net cash used in financing activities $ (185.1) $ (622.6) $ (459.6) Net Cash Provided by Operating Activities Net cash provided by operating activities increased by $101.4 million in 2025, due primarily to improved operating results and the timing of incentive payments.
Operating Profit The following table presents operating profit and adjusted operating profit, consolidated and by reportable segment, corporate and unallocated items: Year Ended December 31, % Change ($ in millions) 2024 2023 2022 2024/2023 2023/2022 Proprietary Products $ 577.8 $ 710.1 $ 784.4 (18.6 %) (9.5 %) Contract-Manufactured Products 72.3 72.1 60.4 0.3 % 19.4 % Corporate and unallocated (80.2) (106.2) (110.8) (24.5 %) (4.2 %) Consolidated operating profit $ 569.9 $ 676.0 $ 734.0 (15.7 %) (7.9 %) Consolidated operating profit margin 19.7 % 22.9 % 25.4 % Unallocated items 2.9 14.6 28.0 Adjusted consolidated operating profit $ 572.8 $ 690.6 $ 762.0 (17.1 %) (9.4 %) Adjusted consolidated operating profit margin 19.8 % 23.4 % 26.4 % Consolidated operating profit decreased by $106.1 million, or 15.7%, in 2024, including an unfavorable foreign currency translation impact of $1.6 million, due to the factors described above.
Operating Profit The following table presents operating profit and adjusted operating profit, consolidated and by reportable segment, corporate and unallocated items: Year Ended December 31, % Change ($ in millions) 2025 2024 2023 2025/2024 2024/2023 Proprietary Products $ 657.2 $ 577.8 $ 710.1 13.7 % (18.6 %) Contract-Manufactured Products 63.4 72.3 72.1 (12.3 %) 0.3 % Corporate and unallocated (135.7) (80.2) (106.2) 69.2 % (24.5 %) Consolidated operating profit $ 584.9 $ 569.9 $ 676.0 2.6 % (15.7 %) Consolidated operating profit margin 19.0 % 19.7 % 22.9 % Unallocated items 37.5 2.9 14.6 Adjusted consolidated operating profit $ 622.4 $ 572.8 $ 690.6 8.7 % (17.1 %) Adjusted consolidated operating profit margin 20.2 % 19.8 % 23.4 % Consolidated operating profit increased by $15.0 million, or 2.6%, in 2025, including a favorable foreign currency translation impact of $22.3 million, due to the factors described above.
Net Sales The following table presents net sales, consolidated and by reportable segment: Year Ended December 31, % Change ($ in millions) 2024 2023 2022 2024/2023 2023/2022 Proprietary Products $ 2,334.5 $ 2,397.3 $ 2,406.8 (2.6 %) (0.4 %) Contract-Manufactured Products 558.7 552.5 480.4 1.1 % 15.0 % Intersegment sales elimination — — (0.3) — % (100.0 %) Consolidated net sales $ 2,893.2 $ 2,949.8 $ 2,886.9 (1.9 %) 2.2 % Consolidated net sales decreased by $56.6 million, or 1.9%, in 2024, including an unfavorable foreign currency translation impact of $7.0 million.
Net Sales The following table presents net sales, consolidated and by reportable segment: Year Ended December 31, % Change ($ in millions) 2025 2024 2023 2025/2024 2024/2023 Proprietary Products $ 2,492.1 $ 2,334.5 $ 2,397.3 6.8 % (2.6 %) Contract-Manufactured Products 582.0 558.7 552.5 4.2 % 1.1 % Consolidated net sales $ 3,074.1 $ 2,893.2 $ 2,949.8 6.3 % (1.9 %) Consolidated net sales increased by $180.9 million, or 6.3%, in 2025, including a favorable foreign currency translation impact of $56.4 million.
GAAP financial measures: ($ in millions) Operating profit Income tax expense Net income Diluted EPS Year ended December 31, 2024 GAAP $ 569.9 $ 107.5 $ 492.7 $ 6.69 Unallocated items: Restructuring and other charges (1) 2.1 0.4 1.7 0.02 Amortization of acquisition-related intangible assets (2) 0.8 0.1 2.8 0.04 Year ended December 31, 2024 adjusted amounts (non-U.S.
GAAP) $ 622.4 $ 124.7 $ 529.9 $ 7.29 During 2025, we recorded a tax benefit of $4.5 million associated with stock-based compensation. 28 ($ in millions) Operating profit Income tax expense Net income Diluted EPS Year ended December 31, 2024 GAAP $ 569.9 $ 107.5 $ 492.7 $ 6.69 Unallocated items: Restructuring and other charges (1) 2.1 0.4 1.7 0.02 Amortization of acquisition-related intangible assets (4) 0.8 0.1 2.8 0.04 Year ended December 31, 2024 adjusted amounts (non-U.S.
The Company previously entered into a material supply agreement for butyl polymers used as a principal raw material in a broad range of the Company’s polymer-based pharmaceutical packaging products. • Our long-term debt obligations, net of unamortized debt issuance costs including fixed and variable-rate debt, is further discussed in Note 10, Debt . • Our lease obligations primarily related to land, buildings, and machinery and equipment, with lease terms through 2269 further discussed in Note 6, Leases . • Our various tax-qualified and non-qualified defined benefit pension plan obligations in the U.S. and other countries that cover employees and former employees who meet eligibility requirements is further discussed in Note 15, Benefit Plans . 39 CRITICAL ACCOUNTING ESTIMATES Management’s discussion and analysis addresses consolidated financial statements that are prepared in accordance with U.S.
These purchase commitments are in the normal course of business. • Our long-term debt obligations, net of unamortized debt issuance costs including fixed and variable-rate debt, is further discussed in Note 10, Debt . • Our lease obligations primarily related to land, buildings, and machinery and equipment, with lease terms through 2269 further discussed in Note 6, Leases . • Our various tax-qualified and non-qualified defined benefit pension plan obligations in the U.S. and other countries that cover employees and former employees who meet eligibility requirements is further discussed in Note 15, Benefit Plans . 37 CRITICAL ACCOUNTING ESTIMATES Management’s discussion and analysis addresses consolidated financial statements that are prepared in accordance with U.S.
At December 31, 2024, we were in compliance with all of our debt covenants, and we expect to continue to be in compliance with the terms of these agreements throughout 2025.
In addition, the agreements contain other customary covenants, none of which we consider restrictive to our operations. At December 31, 2025, we were in compliance with all of our debt covenants, and we expect to continue to be in compliance with the terms of these agreements throughout 2026.
Contract-Manufactured Products – Contract-Manufactured Products gross profit increased by $2.0 million, or 2.1%, in 2024. Contract-Manufactured Products gross profit margin increased by 0.1 margin points in 2024, primarily due to increased sales prices.
Contract-Manufactured Products – Contract-Manufactured Products gross profit decreased by $2.2 million, or 2.2%, in 2025. Contract-Manufactured Products gross profit margin decreased by 1.0 margin points in 2025, due primarily to increased production costs, partially offset by sales price increases.
We believe the items discussed below provide insight into the factors that affect these key measures. Net Sales Our net sales result from the sale of goods or services and reflect the net consideration which we expect to receive in exchange for those goods or services.
Net Sales Our net sales result from the sale of goods or services and reflect the net consideration which we expect to receive in exchange for those goods or services.
Please refer to Note 10, Debt , for further discussion of our multi-currency revolving credit facility. 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.
We do not expect any significant limitations on our ability to access this source of funds. Please refer to Note 10, Debt , for further discussion of our multi-currency revolving credit facility. 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.
(5) During 2023 , the Company recorded a benefit of $3.8 million within other nonoperating expense (income) as a result of a favorable legal settlement related to a matter not included in our normal operations.
(6) During 2023 , the Company recorded a benefit of $3.8 million within other nonoperating expense (income) as a result of a favorable legal settlement related to a matter not included in our normal operations. 30 RESULTS OF OPERATIONS We evaluate the performance of our segments based upon, among other things, segment net sales and operating profit.
Proprietary Products – Proprietary Products SG&A costs decreased by $9.1 million, or 3.8%, in 2024, including a favorable foreign currency translation impact of $0.5 million. Proprietary Products SG&A costs decreased primarily due to lower annual incentive compensation, partially offset by increased salary and wages.
Proprietary Products – Proprietary Products SG&A costs increased by $24.1 million, or 10.4%, in 2025, including an unfavorable foreign currency translation impact of $2.5 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.
Please refer to Note 17, Income Taxes , for further discussion of our income taxes. Equity in Net Income of Affiliated Companies Equity in net income of affiliated companies was $14.7 million, $17.7 million, and $20.7 million for the years 2024, 2023, and 2022, respectively.
Equity in Net Income of Affiliated Companies Equity in net income of affiliated companies was $14.4 million, $14.7 million, and $17.7 million for the years 2025, 2024, and 2023, respectively.
Corporate and unallocated – Excluding the unallocated items, Corporate costs decreased by $14.3 million, or 15.6%, in 2024, due to the factors described above, most notably the decrease in expense related to stock-based compensation and lower annual incentive compensation. For unallocated items, please refer to the Financial Performance Summary section above for details.
Corporate and unallocated – Excluding the unallocated items, Corporate costs increased by $20.9 million, or 27.0%, in 2025, due to the factors described above, most notably higher annual incentive compensation. For unallocated items, please refer to the Financial Performance Summary section above for details.
Income Taxes The provision for income taxes was $107.5 million, $122.3 million, and $114.7 million for the years 2024, 2023, and 2022, respectively, and the effective tax rate was 18.4%, 17.5%, and 16.9%, respectively.
Other Nonoperating Expense (Income) Other nonoperating expense (income) was $1.0 million, $1.0 million and $(3.0) million for the years 2025, 2024, and 2023, respectively. Income Taxes The provision for income taxes was $121.6 million, $107.5 million, and $122.3 million for the years 2025, 2024, and 2023, respectively, and the effective tax rate was 20.2%, 18.4%, and 17.5%, respectively.
Efforts remain focused on the continued investment in elastomeric packaging components, formulation development, drug containment systems, self-injection systems and drug administration consumable.
During 2025, certain elastomer asset impairments also took place. Efforts remain focused on the continued investment in (1) primary injectables in elastomeric components, formulation development & packaging and (2) drug containment systems, self-injection systems, and drug administration consumables.
For assets held for sale or for investment purposes, management determines fair value by estimating the proceeds to be received upon sale of the asset, less disposition costs.
For assets held for sale or for investment purposes, management determines fair value by estimating the proceeds to be received upon sale of the asset, less disposition costs. For further information regarding the Company's held for sale assets at December 31, 2025 refer to Note 1, Basis of Presentation and Summary of Significant Accounting Policies .
($ in millions) Operating profit Income tax expense Net income Diluted EPS Year ended December 31, 2022 GAAP $ 734.0 $ 114.7 $ 585.9 $ 7.73 Unallocated items: Restructuring and other charges (1) 23.8 2.0 21.8 0.29 Amortization of acquisition-related intangible assets (2) 0.7 0.1 2.8 0.04 Cost investment activity (4) 3.5 — 3.5 0.05 Pension settlement (6) — 20.6 31.6 0.42 Royalty acceleration (7) — 1.3 (1.3) (0.02) Tax law changes (8) — (5.7) 5.7 0.07 Year ended December 31, 2022 adjusted amounts (non-U.S.
GAAP financial measures: ($ in millions) Operating profit Income tax expense Net income Diluted EPS Year ended December 31, 2025 GAAP $ 584.9 $ 121.6 $ 493.7 $ 6.79 Unallocated items: Restructuring and other charges (1) 23.3 0.9 22.4 0.31 SmartDose® 3.5mL sale (2) 8.4 1.9 6.5 0.09 Cost-method investment activity (3) 4.5 — 4.5 0.06 Amortization of acquisition-related intangible assets (4) 0.2 — 2.0 0.03 Other 1.1 0.3 0.8 0.01 Year ended December 31, 2025 adjusted amounts (non-U.S.
Contract-Manufactured Products – Contract-Manufactured Products net sales increased by $6.2 million, or 1.1%, in 2024, including an unfavorable foreign currency translation impact of $0.1 million.
Contract-Manufactured Products – Contract-Manufactured Products net sales increased by $23.3 million, or 4.2%, in 2025, including a favorable foreign currency translation impact of $11.7 million.
The intersegment sales elimination, which is required for the presentation of consolidated net sales, represents the elimination of components sold between our segments. 33 Gross Profit The following table presents gross profit and related gross margins, consolidated and by reportable segment and by unallocated: Year Ended December 31, % Change ($ in millions) 2024 2023 2022 2024/2023 2023/2022 Proprietary Products: Gross profit $ 900.5 $ 1,034.0 $ 1,053.3 (12.9 %) (1.8 %) Gross profit margin 38.6 % 43.1 % 43.8 % Contract-Manufactured Products: Gross profit $ 98.0 $ 96.0 $ 82.9 2.1 % 15.8 % Gross profit margin 17.5 % 17.4 % 17.3 % Unallocated items $ — $ (0.8) $ — Consolidated gross profit $ 998.5 $ 1,129.2 $ 1,136.2 (11.6 %) (0.6 %) Consolidated gross profit margin 34.5 % 38.3 % 39.4 % Consolidated gross profit decreased by $130.7 million, or 11.6%, in 2024, including an unfavorable foreign currency translation impact of $2.1 million.
Excluding foreign currency translation effects, net sales increased by $11.6 million, or 2.1%, due primarily to an increase in sales of self-injection devices for obesity and diabetes, partially offset by a decrease in sales of healthcare diagnostic devices. 31 Gross Profit The following table presents gross profit and related gross margins, consolidated and by reportable segment and by unallocated: Year Ended December 31, % Change ($ in millions) 2025 2024 2023 2025/2024 2024/2023 Proprietary Products: Gross profit $ 1,008.2 $ 900.5 $ 1,034.0 12.0 % (12.9 %) Gross profit margin 40.5 % 38.6 % 43.1 % Contract-Manufactured Products: Gross profit $ 95.8 $ 98.0 $ 96.0 (2.2 %) 2.1 % Gross profit margin 16.5 % 17.5 % 17.4 % Unallocated items $ — $ — $ (0.8) Consolidated gross profit $ 1,104.0 $ 998.5 $ 1,129.2 10.6 % (11.6 %) Consolidated gross profit margin 35.9 % 34.5 % 38.3 % Consolidated gross profit increased by $105.5 million, or 10.6%, in 2025, including a favorable foreign currency translation impact of $25.5 million.
At December 31, 2024, we had no outstanding borrowings under the multi-currency revolving credit facility. At December 31, 2024, the borrowing capacity available under the multi-currency revolving credit facility, including outstanding letters of credit of $2.4 million, was $497.6 million. We do not expect any significant limitations on our ability to access this source of funds.
Our sources of liquidity include our multi-currency revolving credit facility. At December 31, 2025, we had no outstanding borrowings under the multi-currency revolving credit facility. At December 31, 2025, the borrowing capacity available under the multi-currency revolving credit facility, including outstanding letters of credit of $2.3 million, was $497.7 million.
Consolidated gross profit margin decreased by 3.8 margin points in 2024. Proprietary Products – Proprietary Products gross profit decreased by $133.5 million, or 12.9%, in 2024, including an unfavorable foreign currency translation impact of $2.1 million. Proprietary Products gross profit margin decreased by 4.5 margin points in 2024.
Consolidated gross profit margin increased by 1.4 margin points in 2025. Proprietary Products – Proprietary Products gross profit increased by $107.7 million, or 12.0%, in 2025, including a favorable foreign currency translation impact of $23.6 million. Proprietary Products gross profit margin increased by 1.9 margin points in 2025.
Consolidated other expense (income) changed by $10.4 million in 2024 as compared to 2023, due to the factors described below.
Consolidated other expense (income) changed by $30.2 million in 2025 as compared to 2024, due to the factors described below. Proprietary Products – Proprietary Products other expense (income) changed by $1.0 million in 2025 as compared to 2024 , due primarily to a reduction in asset impairments in 2025, as compared to 2024 .
Proprietary Products – Proprietary Products other expense (income) changed by $7.2 million in 2024 as compared to 2023 , primarily due to increased losses on foreign exchange transactions and increased expense related to contingent consideration being recorded in 2024, as compared to 2023.
Contract-Manufactured Products – Contract-Manufactured Products other expense (income) changed by $3.0 million in 2025 as compared to 2024 , due primarily to increased foreign exchange losses in 2025, as compared to 2024 . 33 Corporate and unallocated items – Corporate and unallocated items changed by $28.2 million in 2025 as compared to 2024.
Contract-Manufactured Products – Contract-Manufactured Products SG&A costs increased by $1.8 million, or 7.4%, in 2024, primarily due to increased salary and wages.
Contract-Manufactured Products – Contract-Manufactured Products SG&A costs increased by $3.7 million, or 14.1%, in 2025, including an unfavorable foreign currency translation impact of $0.5 million, due primarily to increased salary and wages and higher annual incentive compensation.
Research and Development (“R&D”) Costs The following table presents consolidated R&D costs: Year Ended December 31, % Change ($ in millions) 2024 2023 2022 2024/2023 2023/2022 Consolidated R&D costs $ 69.1 $ 68.4 $ 58.5 1.0 % 16.9 % Consolidated R&D costs increased by $0.7 million, or 1.0%, in 2024, as compared to 2023, due to increased depreciation as a result of recent investments and increased salary and wages, offset by lower annual incentive compensation.
Research and Development (“R&D”) Costs The following table presents consolidated R&D costs: Year Ended December 31, % Change ($ in millions) 2025 2024 2023 2025/2024 2024/2023 Consolidated R&D costs $ 74.3 $ 69.1 $ 68.4 7.5 % 1.0 % Consolidated R&D costs increased by $5.2 million, or 7.5%, in 2025, as compared to 2024, due primarily to increased investment in integrated systems related to the Company's Synchrony™ Prefillable Syringe (PFS) System, which launched in January 2026, and increased investment in engineered plastics and components ("EP&C").
Corporate and unallocated items – Corporate SG&A costs decreased by $7.6 million, or 8.6%, in 2024, due primarily to a decrease in expense related to stock-based compensation, lower annual incentive compensation and decreased fees related to professional services, partially offset by increased salary and wages.
Corporate and unallocated items – Corporate SG&A costs increased by $27.3 million, or 33.8%, in 2025, due primarily to higher annual incentive compensation, increased expense related to stock-based compensation, expenses in connection with a plan to optimize the legal structure of the Company and its subsidiaries and increased costs related to professional services.
Proprietary Products – Proprietary Products operating profit decreased by $132.3 million, or 18.6%, in 2024, including an unfavorable foreign currency translation impact of $1.6 million, due to the factors described above, most notably lower gross profit driven by lower sales volume and an unfavorable mix of products sold.
Contract-Manufactured Products – Contract-Manufactured Products operating profit decreased by $8.9 million, or 12.3%, in 2025, including a favorable foreign currency translation impact of $1.4 million, due to the factors described above, most notably increased production costs.
Excluding foreign currency translation effects and the impact related to the disposal of one of our plants of $4.3 million, consolidated net sales decreased by $45.3 million, or 1.5%. Proprietary Products – Proprietary Products net sales decreased by $62.8 million, or 2.6%, in 2024, including an unfavorable foreign currency translation impact of $6.9 million.
Excluding foreign currency translation effects, consolidated net sales increased by $124.5 million, or 4.3%. Proprietary Products – Proprietary Products net sales increased by $157.6 million, or 6.8%, in 2025, including a favorable foreign currency translation impact of $44.7 million.
The increase in the effective tax rate in 2024 of 0.9% is primarily due to a decrease in the tax benefit related to stock-based compensation in 2024, as compared to 2023, partially offset by a decrease in our tax liability on unremitted earnings of our Germany subsidiaries due to a tax law change in 2024.
The increase in the effective tax rate in 2025 of 1.8% is due primarily to a decrease in the tax benefit related to stock-based compensation in 2025, as compared to 2024 . Please refer to Note 17, Income Taxes , for further discussion of our income taxes.
The decrease is driven by lower plant absorption from reduced customer demand and an unfavorable shift in mix of products sold from HVP Components to HVP Delivery Devices. These headwinds were partially offset by increased sales prices and approximately $47 million in customer incentives earned in connection with volumes achieved during 2024, as compared to 2023.
The increase is due to increased customer demand, primarily of high value components, higher plant absorption and sales price increases. These increases were partially offset by approximately $47 million in customer incentives received in connection with volumes achieved during 2024 that were not repeated in the same period in 2025.
Excluding the impact of currency exchange rates, cash and cash equivalents, total current liabilities and inventories decreased by $349.0 million, $103.3 million and $42.0 million, respectively, while accounts receivable increased by $58.8 million.
Excluding the impact of currency exchange rates, cash and cash equivalents, total current liabilities, inventories and other current assets increased by $281.8 million, $75.7 million, $42.3 million and $45.2 million, respectively. The increase in cash and cash equivalents was due to cash from operations, partially offset by share repurchases and capital expenditures in 2025 .
The cash and cash equivalents balance at December 31, 2024 included $94.4 million of cash held by subsidiaries within the U.S. and $390.2 million of cash held by subsidiaries outside of the U.S.
The cash and cash equivalents balance at December 31, 2025 included $219.1 million of cash held by subsidiaries within the U.S. and $572.2 million of cash held by subsidiaries outside of the U.S. For further information on our position regarding permanent reinvestment of foreign subsidiary earnings and profits refer to Note 17, Income Taxes .
These reductions were partially offset by an increase in sales of self-injection device platforms and increased sales prices, which includes approximately $47 million in customer incentives earned in connection with volumes achieved during 2024, as compared to 2023.
Excluding foreign currency translation effects, net sales increased by $112.9 million, or 4.8%, due primarily to an increase in sales of Westar®, NovaChoice® and Envision® products. These increases were partially offset by approximately $47 million in customer incentives received in connection with volumes achieved during 2024 that were not repeated in 2025.
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. 29 Components of and Key Factors Influencing Our Results of Operations In assessing the performance of our business, we consider a variety of performance and financial measures.
Based on the information available at this time, the impact was not material to our 2025 results. 27 Components of and Key Factors Influencing Our Results of Operations In assessing the performance of our business, we consider a variety of performance and financial measures. We believe the items discussed below provide insight into the factors that affect these key measures.
The transaction closed during the second quarter of 2023. (4) During 2023 and 2022, the Company recorded cost investment impairment charges of $4.3 million and $3.5 million, respectively.
The Company recorded the remaining $2.2 million within selling, general and administrative expenses, relating to professional services in connection with the sale agreement. (3) During 2025, the Company recorded cost-method investment impairment charges of $4.5 million within other expense (income). During 2023, the Company recorded cost-method investment impairment charges of $4.3 million within other expense (income).
Removed
Macroeconomic Factors 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.
Added
Macroeconomic Factors 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.
Removed
GAAP) $ 762.0 $ 133.0 $ 650.0 $ 8.58 During 2022, we recorded a tax benefit of $16.5 million associated with stock-based compensation. 31 (1) During 2024, the Company recorded expense to restructuring and other charges of $2.1 million.
Added
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.
Removed
During 2022, the Company recorded expense to restructuring and other charges of $23.8 million, which primarily included a charge of $8.7 million in net severance and post-employment benefits primarily in connection with our plan to adjust our operating cost base and $15.3 million in asset-related charges associated with this plan.
Added
(1) During 2025, the Company recorded pre-tax charges of $23.3 million related to our two existing restructuring programs: (i) $18.4 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) $4.9 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.
Removed
(6) During 2022, we recorded a gross pension settlement charge of $52.2 million within other nonoperating expense (income), which primarily relates to the full settlement of the U.S. qualified defined benefit plan (the "U.S. pension plan"). Please refer to Note 15, Benefit Plans , for further discussion of these items.
Added
In addition, we recorded income tax charges of $4.9 million related primarily to withholding tax and capital gains incurred in executing our plan to optimize our legal structure. During 2024, the Company recorded expense to restructuring and other charges of $2.1 million.
Removed
(7) During 2022, the Company increased its expected tax benefit related to the prepayment of future royalties from one of its subsidiaries by $1.3 million .
Added
(2) During 2025, the Company recorded charges of $8.4 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 $6.2 million of the charges within other expense (income), related to severance and lease impairment charges in connection with the sale agreement.
Removed
(8) During 2022, the Company incurred additional tax expense of $5.7 million due to the impact of a tax law change in the state of Pennsylvania enacted during the period. 32 RESULTS OF OPERATIONS We evaluate the performance of our segments based upon, among other things, segment net sales and operating profit.
Added
This reduction was partially offset by increased contingent consideration expense being recorded in 2025, as compared to 2024 .
Removed
Excluding foreign currency translation effects and the impact related to the disposal of one of our plants of $4.3 million, net sales decreased by $51.6 million, or 2.2%, due to a decline in sales of certain High-Value Product ("HVP") offerings due to customer inventory management, primarily FluroTec® products, Westar® components and Daikyo® components.
Added
This is due primarily to the Company recording expense of $24.6 million related to restructuring and other charges in 2025, as compared to a net benefit of $2.5 million in 2024 .
Removed
Excluding foreign currency translation effects, net sales increased by $6.3 million, or 1.1%, primarily due to an increase in sales of self-injection devices for obesity and diabetes and sales price increases, offset by a decrease in sales of healthcare diagnostic devices.
Added
The Company's 2025 restructuring and other charges within other expense (income) were (i) $18.4 million related to severance, acceleration of depreciation and lease costs in connection with the Company's January 2025 restructuring plan and (ii) $6.2 million related to severance and lease impairment charges in connection with the Company's agreement to sell its SmartDose® 3.5mL On-Body Delivery System and associated facilities to AbbVie.
Removed
Contract-Manufactured Products – Contract-Manufactured Products other expense (income) remained consistent in 2024 as compared to 2023. 35 Corporate and unallocated items – Corporate and unallocated items changed by $17.6 million in 2024 as compared to 2023.
Added
Proprietary Products – Proprietary Products operating profit increased by $79.4 million, or 13.7%, in 2025, including a favorable foreign currency translation impact of $20.9 million, due to the factors described above, most notably increased customer demand, primarily of high value components, higher plant absorption and sales price increases.
Removed
This is primarily due to the Company recording expense of $11.6 million as a result of the sale of one of the Company’s manufacturing facilities within the Proprietary Products segment during 2023, which was not repeated in 2024. Additionally, the Company recorded additional asset impairments related to our cost method investments in 2023, as compared to 2024.
Added
Net Cash Used in Investing Activities Net cash used in investing activities decreased by $92.8 million in 2025, due primarily to a decrease in capital expenditures. Net Cash Used in Financing Activities Net cash used in financing activities decreased by $437.5 million in 2025, due primarily to a decrease in purchases under our share repurchase programs.
Removed
Contract-Manufactured Products – Contract-Manufactured Products operating profit increased by $0.2 million, or 0.3%, in 2024, due to the factors described above, most notably the increased sales prices.
Added
Working capital - Working capital at December 31, 2025 increased by $335.6 million, or 34.0%, as compared to December 31, 2024, which includes an increase of $49.0 million due to foreign currency translation.
Removed
Interest income decreased by $8.4 million in 2024, due primarily to the Company having a lower average cash balance during 2024, as compared to the same periods in 2023. Other Nonoperating Expense (Income) Other nonoperating expense (income) was $1.0 million, $(3.0) million and $51.3 million for the years 2024, 2023, and 2022, respectively.
Added
The increase in total current liabilities was driven by increases in our annual incentives. The increase in inventories was largely in work-in-progress and finished goods inventory in connection with customer demand to ensure we have sufficient inventory on hand to support the needs of our customers.
Removed
Other nonoperating expense (income) changed by $4.0 million in 2024, primarily due to a benefit from a favorable legal settlement recorded in 2023 that was not repeated in 2024.
Added
The increase in other current assets was due primarily to held for sale assets being recorded into other current assets.
Removed
Net Cash Used in Investing Activities Net cash used in investing activities increased by $10.0 million in 2024, due to an increase in capital expenditures for additional manufacturing capacity to meet future customer demand.
Added
For further information regarding the Company's held for sale assets at December 31, 2025 refer to Note 1, Basis of Presentation and Summary of Significant Accounting Policies . 36 Debt and credit facilities - The total debt balance of $202.8 million at December 31, 2025 increased $0.2 million from the total debt balance at December 31, 2024.
Removed
Net Cash Used in Financing Activities Net cash used in financing activities increased by $163.0 million in 2024, primarily due to increases in purchases under our share repurchase program, increased principal repayments on finance leases and decreased proceeds from stock-based compensation awards in 2024, as compared to 2023.
Removed
For further information on our position regarding permanent reinvestment of foreign subsidiary earnings and profits refer to Note 17, Income Taxes . 38 Working capital - Working capital at December 31, 2024 decreased by $276.9 million, or 21.9%, as compared to December 31, 2023, which includes an unfavorable foreign currency translation impact of $41.8 million.

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Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

10 edited+0 added−2 removed8 unchanged
Biggest changeIn addition, we have entered into several foreign currency contracts, designated as cash flow hedges, for periods of up to eighteen months, intended to hedge the currency risk associated with a portion of our forecasted transactions denominated in foreign currencies.
Biggest changeThe following table summarizes the total amount of the following forward exchange contracts, designated as fair value hedges at December 31: (in millions) Forward Exchange Contracts Currency 2025 2024 Cross-Currency Intercompany Loans SGD 421.9 421.9 Cross-Currency Intercompany Loans USD $ — $ 13.4 Cross-Currency Intercompany Demand Notes EUR 23.5 145.3 Cross-Currency Intercompany Demand Notes USD $ — $ 47.1 In addition, we have entered into several foreign currency contracts, designated as cash flow hedges, for periods of up to eighteen months, intended to hedge the currency risk associated with a portion of our forecasted transactions denominated in foreign currencies.
As of December 31, 2024, the notional amount of the cross-currency swap is Japanese Yen ("JPY") 17.0 billion ($130.0 million) and the swap termination date is July 2, 2027.
As of December 31, 2025, the notional amount of the cross-currency swap is Japanese Yen ("JPY") 17.0 billion ($130.0 million) and the swap termination date is July 2, 2027.
The following table summarizes our interest rate risk-sensitive instruments: ($ in millions) 2025 2026 2027 2028 2029 Thereafter Carrying Value Fair Value Long-Term Debt: U.S. dollar denominated $130.0 $130.0 $130.0 Average interest rate - variable 5.68% U.S. dollar denominated $73.0 $73.0 $70.9 Average interest rate - fixed 4.02% A change of 1.0% in variable interest rates would decrease or increase annual interest expense by $1.3 million based on our outstanding debt as of December 31, 2024.
The following table summarizes our interest rate risk-sensitive instruments: ($ in millions) 2026 2027 2028 2029 2030 Thereafter Carrying Value Fair Value Long-Term Debt: U.S. dollar denominated $130.0 $130.0 $130.0 Average interest rate - variable 5.02% U.S. dollar denominated $73.0 $73.0 $72.6 Average interest rate - fixed 4.02% A change of 1% in variable interest rates would decrease or increase annual interest expense by $1.3 million based on our outstanding debt as of December 31, 2025.
Under the current cross-currency swap, we receive fixed USD interest rate payments in return for paying fixed JPY interest rate payments. 42 A sensitivity analysis of changes in fair value of these contracts outstanding as of December 31, 2024, while not predictive in nature, indicated that a 10% decrease or increase in the foreign currency exchange rates from their level would increase or decrease the fair value of these contracts by $7.0 million or $5.8 million, respectively, the majority of which relates to our hedges of the movement between the Euro and United States Dollar contracts.
Under the current cross-currency swap, we receive fixed USD interest rate payments in return for paying fixed JPY interest rate payments. 40 A sensitivity analysis of changes in fair value of these contracts outstanding as of December 31, 2025, while not predictive in nature, indicated that a 10% decrease or increase in the foreign currency exchange rates from their level would increase or decrease the fair value of these contracts by $0.4 million or $10.2 million, respectively, the majority of which relates to our hedges of the movement between the Euro and United States Dollar contracts.
All derivatives are recorded in our consolidated balance sheet at fair value. Foreign Currency Exchange Risk Sales outside of the U.S. accounted for 57.5% of our consolidated net sales in 2024. Virtually all of these sales and related operating costs are denominated in the currency of the local country and translated into USD for consolidated reporting purposes.
All derivatives are recorded in our consolidated balance sheet at fair value. Foreign Currency Exchange Risk Sales outside of the U.S. accounted for 56.7% of our consolidated net sales in 2025. Virtually all of these sales and related operating costs are denominated in the currency of the local country and translated into USD for consolidated reporting purposes.
As of December 31, 2024, we had outstanding contracts to purchase 190,773 barrels of crude oil from December 2024 to June 2026, at a weighted-average strike price of $84.70 per barrel. During 2024, the loss recorded in other expense (income) related to these options was $0.7 million.
As of December 31, 2025, we had outstanding contracts to purchase 184,075 barrels of crude oil from December 2025 to June 2027, at a weighted-average strike price of $72.94 per barrel. During 2025 and 2024, the loss recorded in other expense (income) related to these options was $0.7 million.
As of December 31, 2024, we had outstanding foreign currency contracts to purchase and sell certain pairs of currencies, as follows: (in millions) Sell Currency Purchase USD EUR SGD EUR 20.8 22.9 — — JPY 6,683.7 28.4 14.8 1.8 SGD 39.8 16.9 12.2 — In December 2019, we entered into a five-year floating-to-floating forward-starting cross-currency swap for $90 million, which we designated as a hedge of our net investment in Daikyo.
As of December 31, 2025, we had outstanding foreign currency contracts to purchase and sell certain pairs of currencies, as follows: (in millions) Sell Currency Purchase USD EUR SGD EUR 27.1 31.6 — — JPY 4,921.3 20.4 9.9 3.1 SGD 36.5 17.6 9.5 — In December 2019, we entered into a five-year floating-to-floating forward-starting cross-currency swap for $90 million, which we designated as a hedge of our net investment in Daikyo.
During 2023, the loss recorded in other expense (income) related to these options was $1.3 million. A sensitivity analysis of changes in brent crude oil prices indicated that a 10% decrease or increase in pricing would decrease or increase the fair value of our commodity call options by $0.2 million or $0.4 million, respectively, as of December 31, 2024. 43
A sensitivity analysis of changes in brent crude oil prices indicated that a 10% decrease or increase in pricing would decrease or increase the fair value of our commodity call options by $0.1 million or $0.3 million, respectively, as of December 31, 2025. 41
We have also entered into forward exchange contracts, designated as fair value hedges, to manage our exposure to fluctuating foreign exchange rates on cross-currency intercompany demand notes which were executed at various times throughout 2023 and 2024. As of December 31, 2024, the total amount of these forward exchange contracts was Euro ("EUR") 145.3 million and $47.1 million.
We have entered into forward exchange contracts, designated as fair value hedges, to manage our exposure to fluctuating foreign exchange rates on cross-currency intercompany loans in Singapore Dollar ("SGD") and USD and on cross-currency intercompany demand notes in Euro ("EUR") and USD, which were executed at various times throughout 2024 and 2025.
We periodically use forward exchange contracts to hedge certain transactions or to manage month-end balance sheet exposures on cross-currency intercompany balances. We have entered into forward exchange contracts, designated as fair value hedges, to manage our exposure to fluctuating foreign exchange rates on cross-currency intercompany loans.
We periodically use forward exchange contracts to hedge certain transactions or to manage month-end balance sheet exposures on cross-currency intercompany balances.
Removed
As of December 31, 2024 the total amount of these forward exchange contracts was Singapore Dollar ("SGD") 421.9 million and $13.4 million. As of December 31, 2023 the total amount of these forward exchange contracts was SGD 601.5 million and $13.4 million.
Removed
As of December 31, 2023, the total amount of these forward exchange contracts was EUR 278.6 million and SGD 94.0 million.

Other WST 10-K year-over-year comparisons