WST WEST PHARMACEUTICAL SERVICES INC

Overview and Growth

Fiscal 2025 results for WEST PHARMACEUTICAL SERVICES INC combined $3.07B of revenue with net income of $493.70M and an operating cash inflow of $754.80M. At $3.07B, the top line establishes the operating scale supporting the company’s profit and cash-flow profile. The top line expanded 6.3% from $2.89B in fiscal 2024, increasing the company’s operating scale. On a per-share basis, diluted EPS was $6.79, which connects the reported earnings outcome with the company’s diluted share count. Against diluted EPS of $6.69 in fiscal 2024, the current result was 1.5% higher. The revenue-to-assets relationship was 0.72x, showing the sales generated relative to the resources carried on the balance sheet.

Profitability

Gross profit was $1.10B, representing the portion of revenue remaining after the reported cost of revenue and before operating expenses. The gross-profit relationship equaled 35.9% of revenue, quantifying the portion retained before operating expenses were recognized. The reported operating result was $584.90M, capturing profitability after direct costs and the operating expenses reflected in the statements. Relative to revenue, operating income represented 19.0%, showing how efficiently sales converted into operating profit. After all reported below-operating-line items, the company recorded net income of $493.70M for the fiscal year. Net margin was 16.1%, meaning that this portion of revenue remained as net income after all recognized expenses. Pretax income was $600.90M, isolating the reported earnings outcome before the income-tax provision recognized for the fiscal year. The pretax margin was 19.5%, relating income before taxes directly to revenue. The company recognized $121.60M of income tax for the period, completing the transition from pretax income to net income. The income-tax provision equaled 20.2% of pretax income, showing the tax burden absorbed by the year’s earnings.

Liquidity and Capital Structure

At period end, the $4.27B asset base was financed through $1.09B of liabilities and $3.18B of equity. At period end, current assets of $1.98B compared with current liabilities of $654.90M, defining the company’s short-term resource position. At 3.02x, the current ratio shows that short-term assets were greater than short-term liabilities at period end. Cash and equivalents totaled $791.30M, identifying the most liquid reported component available within the broader current-asset balance. Measured only with cash and equivalents, coverage of current liabilities was 120.8%, excluding receivables and other current assets. The company carried $202.80M of total debt at period end, which frames its leverage and debt-service burden. Against book equity, debt measured 0.06x, placing the company’s financial leverage in clear balance-sheet terms. Relative to total assets, debt measured 4.7%, showing how much of the asset base was matched by borrowing. The liabilities-to-assets relationship was 25.6%, placing reported obligations against the full positive asset balance. Cash and equivalents equaled 18.5% of total assets, showing the liquid cash component within the company’s broader resource base.

Cash Flow and Earnings Quality

Cash flow from operations was $754.80M, a reported cash inflow that can be compared directly with net income and capital spending. Operating cash flow equaled 1.53x of net income, showing how strongly accounting earnings converted into cash from operations. Capital expenditures used $285.90M, identifying the reported investment outflow deducted from operating cash flow in the free-cash-flow calculation. Capital expenditures represented 37.9% of operating cash flow, leaving the remainder available as free cash flow. The combination of operating cash flow and capital spending produced $468.90M of positive free cash flow for the period. Free cash flow represented 15.3% of revenue, linking post-investment cash generation with the company’s operating scale. Measured against total assets, free cash flow represented 11.0%, showing the cash productivity of the company’s assets.

Based on the annual report for the fiscal year ending Dec 31, 2025. Analysis generated Oct 21, 2026.