WEST PHARMACEUTICAL SERVICES INCWST
WEST PHARMACEUTICAL SERVICES INC Segments Disclosure
Segment Information
Our business operations are organized into two reportable segments, Proprietary Products and Contract-Manufactured Products. Our Proprietary Products reportable segment offers proprietary packaging, containment solutions and drug delivery products, along with analytical lab services and other integrated services and solutions, primarily to biologic, generic and pharmaceutical drug customers. 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 customer.
The Chief Operating Decision Maker ("CODM") is the Chief Executive Officer. The CODM evaluates the performance of our segments based upon, among other things, segment net sales and segment operating profit. Segment operating profit excludes general corporate costs, which include executive and director compensation, stock-based compensation, certain pension and other retirement benefit costs, and other corporate facilities and administrative expenses not allocated to the segments. Also excluded are items that the CODM considers not representative of ongoing operations. Such items are referred to as other unallocated items and generally include restructuring and related charges, certain asset impairments and other specifically-identified income or expense items. The segment operating profit metric is what the CODM uses in evaluating our results of operations and the financial measure that provides a valuable insight into our overall performance and financial position. The CODM considers budget-to-actual variances and variances against prior years within segment operating profit when making decisions about allocating resources to the segments.
The following table presents net sales information about our reportable segments, reconciled to consolidated totals:
| ($ in millions) | 2025 | 2024 | 2023 | ||||||||||||||
| Net sales: | |||||||||||||||||
| Proprietary Products | $ | 2,492.1 | $ | 2,334.5 | $ | 2,397.3 | |||||||||||
| Contract-Manufactured Products | 582.0 | 558.7 | 552.5 | ||||||||||||||
| Consolidated net sales | $ | 3,074.1 | $ | 2,893.2 | $ | 2,949.8 | |||||||||||
In 2025, one of our 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 reportable segments.
In 2024, one of our 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 reportable segments.
In 2023, one of our customers individually accounted for more than 10% of consolidated net sales, at 10.9% or $322.1 million, contributing to net sales in both the Proprietary and Contract Manufacturing reportable segments.
The following table presents net sales and long-lived assets, by the country in which the legal subsidiary is domiciled and assets are located:
| Net Sales | Long-Lived Assets | ||||||||||||||||||||||||||||
| ($ in millions) | 2025 | 2024 | 2023 | 2025 | 2024 | ||||||||||||||||||||||||
| United States | $ | 1,329.6 | $ | 1,230.8 | $ | 1,238.5 | $ | 834.7 | $ | 832.0 | |||||||||||||||||||
| Germany | 380.3 | 372.5 | 406.1 | 233.2 | 191.1 | ||||||||||||||||||||||||
| Ireland | 333.3 | 323.2 | 285.7 | 366.3 | 299.6 | ||||||||||||||||||||||||
| France | 226.6 | 242.2 | 282.9 | 113.3 | 84.7 | ||||||||||||||||||||||||
| Other European countries | 451.0 | 385.5 | 388.1 | 108.7 | 98.1 | ||||||||||||||||||||||||
| Other | 353.3 | 339.0 | 348.5 | 221.9 | 210.3 | ||||||||||||||||||||||||
| $ | 3,074.1 | $ | 2,893.2 | $ | 2,949.8 | $ | 1,878.1 | $ | 1,715.8 | ||||||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||
| ($ in millions) | Proprietary Products | Contract- Manufactured Products | Total | Proprietary Products | Contract- Manufactured Products | Total | Proprietary Products | Contract- Manufactured Products | Total | ||||||||||||||||||||||||||||||||||||||||||||
| Net sales | $ | 2,492.1 | $ | 582.0 | $ | 3,074.1 | $ | 2,334.5 | $ | 558.7 | $ | 2,893.2 | $ | 2,397.3 | $ | 552.5 | $ | 2,949.8 | |||||||||||||||||||||||||||||||||||
| Cost of goods and services sold | 1,483.9 | 486.2 | 1,434.0 | 460.7 | 1,363.3 | 456.5 | |||||||||||||||||||||||||||||||||||||||||||||||
| Research and development | 74.3 | — | 69.1 | — | 68.4 | — | |||||||||||||||||||||||||||||||||||||||||||||||
| Selling, general and administrative expenses | 255.6 | 29.9 | 231.5 | 26.2 | 240.6 | 24.4 | |||||||||||||||||||||||||||||||||||||||||||||||
Other segment expense (income)(1) | 21.1 | 2.5 | 22.1 | (0.5) | 14.9 | (0.5) | |||||||||||||||||||||||||||||||||||||||||||||||
| Segment operating profit | $ | 657.2 | $ | 63.4 | $ | 720.6 | $ | 577.8 | $ | 72.3 | $ | 650.1 | $ | 710.1 | $ | 72.1 | $ | 782.2 | |||||||||||||||||||||||||||||||||||
| Reconciliation of profit or loss: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Stock-based compensation | (23.8) | (18.7) | (23.3) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate general costs(2) | (74.4) | (58.6) | (68.3) | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Unallocated items: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring and other charges(3) | (23.3) | (2.1) | 2.0 | ||||||||||||||||||||||||||||||||||||||||||||||||||
SmartDose® 3.5mL sale(4) | (8.4) | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
Cost-method investment activity(5) | (4.5) | — | (4.3) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Amortization of acquisition-related intangible assets(6) | (0.2) | (0.8) | (0.7) | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Other | (1.1) | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
Loss on disposal of plant(7) | — | — | (11.6) | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Total corporate and unallocated items | (135.7) | (80.2) | (106.2) | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Total consolidated operating profit | 584.9 | 569.9 | 676.0 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Interest (income) expense and other nonoperating expense (income), net | (16.0) | (15.6) | (22.0) | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Income before income taxes and equity in net income of affiliated companies | $ | 600.9 | $ | 585.5 | $ | 698.0 | |||||||||||||||||||||||||||||||||||||||||||||||
(1) Other segment expense (income) primarily includes foreign exchange transaction gains and losses, adjustments to contingent consideration and asset impairments attributable to the segments during the periods ended December 31, 2025, 2024 and 2023.
(2) Corporate general costs includes executive and director compensation, certain pension and other retirement benefit costs, and other corporate facilities and administrative expenses not allocated to the segments.
(3) During 2025, the Company recorded charges of $23.3 million related to our two existing restructuring programs: (i) $18.4 million of the charges within , 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 , for professional services related to our 2024 plan to optimize the legal structure of the Company and its subsidiaries. During 2024, the Company recorded expense to restructuring and other charges of $2.1 million. The net expense represents the impact of two items, the first of which is $4.6 million of expense recorded within 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. This expense was partially offset by a $2.5 million benefit recorded within related to revised severance estimates in connection with the Company's 2022 restructuring plan. 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 for revised severance estimates in connection with its 2022 restructuring plan and an inventory write down of $0.8 million within .
(4) 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. The Company recorded the remaining $2.2 million within selling, general and administrative expenses, relating to professional services in connection with the sale agreement.
(5) 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).
(6) 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.
(7) During 2023, the Company recorded expense of $11.6 million within other expense (income) as a result of the sale of one of the Company’s manufacturing facilities within the Proprietary Products segment. The transaction closed during the second quarter of 2023.
The following tables provide summarized financial information for our two reportable segments and corporate and unallocated:
| ($ in millions) | |||||||||||
| Assets | 2025 | 2024 | |||||||||
| Proprietary Products | $ | 2,987.0 | $ | 2,621.1 | |||||||
| Contract-Manufactured Products | 718.1 | 612.2 | |||||||||
Corporate and Unallocated(1) | 564.9 | 410.1 | |||||||||
| Total consolidated | $ | 4,270.0 | $ | 3,643.4 | |||||||
(1) Corporate and unallocated assets primarily include investments in affiliated companies, cash and cash equivalents, property, plant and equipment used in our corporate operations and deferred income taxes.
| ($ in millions) | |||||||||||||||||
| Depreciation and Amortization | 2025 | 2024 | 2023 | ||||||||||||||
| Proprietary Products | $ | 140.2 | $ | 130.3 | $ | 112.9 | |||||||||||
| Contract-Manufactured Products | 27.9 | 21.3 | 20.4 | ||||||||||||||
| Corporate and Unallocated | 3.3 | 3.8 | 4.0 | ||||||||||||||
| Total consolidated | $ | 171.4 | $ | 155.4 | $ | 137.3 | |||||||||||
| ($ in millions) | |||||||||||||||||
| Capital Expenditures | 2025 | 2024 | 2023 | ||||||||||||||
| Proprietary Products | $ | 204.3 | $ | 246.5 | $ | 259.1 | |||||||||||
| Contract-Manufactured Products | 75.5 | 121.0 | 90.2 | ||||||||||||||
| Corporate and Unallocated | 6.1 | 9.5 | 12.7 | ||||||||||||||
| Total consolidated | $ | 285.9 | $ | 377.0 | $ | 362.0 | |||||||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 17, 2026 | Showing above |
| 2024 | Feb 18, 2025 | |
| 2023 | Feb 20, 2024 | |
| 2022 | Feb 21, 2023 | |
| 2021 | Feb 22, 2022 | |
| 2017 | Feb 26, 2018 | |
| 2016 | Feb 28, 2017 | |
| 2015 | Feb 26, 2016 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.