EXTON, PA — West Pharmaceutical Services, Inc. (NYSE: WST) has announced its financial results for the fourth quarter and full-year 2024, highlighting a return to organic growth and setting optimistic guidance for 2025.
Q4 and Full-Year Performance
West’s fourth-quarter 2024 net sales reached $748.8 million, reflecting a year-over-year increase of 2.3%, with organic net sales up 3.3%. Adjusted-diluted EPS for the quarter stood at $1.82, a slight decline of 0.5%, while reported-diluted EPS was $1.78, down 2.7%.
For the full-year 2024, net sales declined 1.9% to $2.893 billion, while organic net sales saw a 1.5% reduction. Adjusted-diluted EPS for the year was $6.75, a decrease of 16.5%. Operating cash flow totaled $653.4 million, while free cash flow—accounting for capital expenditures of $377 million—was $276.4 million.
Despite the declines, Eric M. Green, President, CEO, and Chair of the Board, emphasized the company’s progress in the quarter. “I am pleased to report we had a strong quarter with revenues and profits exceeding our expectations, and a return to positive organic growth as the impact of destocking continues to moderate. Our core businesses continue to benefit from our market-leading positions and proprietary processes.”
Segment Highlights
Proprietary Products
The Proprietary Products segment generated $613.9 million in Q4 sales, with organic net sales growth of 4.5%. High-Value Products (HVP) remained a critical driver, accounting for 74% of segment sales. Self-injection device platforms, particularly in the Biologics market, saw strong demand, contributing to high-single-digit organic sales growth for Biologics overall.
For the full year, Proprietary Products net sales declined 2.6% to $2.335 billion, with organic sales down 2.2%. HVP sales represented 73% of the segment’s revenue, slightly lower than the previous year as lower sales of NovaPure® and FluroTec® products offset gains in Westar® products and Administrative Systems.
Contract-Manufactured Products
Contract-Manufactured Products posted Q4 sales of $134.9 million, a 2.5% year-over-year decline. Organic net sales fell 2%, driven by continued weakness in healthcare diagnostic devices, though growth in self-injection devices for obesity and diabetes provided a partial lift.
For the full year, this segment achieved modest growth, with sales increasing 1.1% to $558.7 million, driven by rising demand for self-injection devices.
2025 Guidance and Strategic Plans
Looking ahead, West has set its 2025 full-year net sales guidance between $2.875 billion and $2.905 billion, projecting organic growth of 2% to 3%. Adjusted-diluted EPS is expected to range from $6.00 to $6.20, with estimated headwinds from foreign currency exchange rates and a tax rate assumption of 22%. Capital expenditures for 2025 are forecasted at $275 million, with investments focused on capacity expansion for HVP sites and Contract Manufacturing facilities.
Green expressed confidence in the company’s forward momentum. “Looking ahead to 2025, we expect our business momentum to continue in key areas of our Proprietary Products business, driven by improving High-Value Products trends in Biologics and Generics, and growth driven by Annex 1 and GLP-1. We are focused on operational excellence and driving strong returns in 2025.”
A Confident Outlook
West Pharmaceutical Services enters 2025 poised to accelerate growth after successfully navigating challenges across its product segments in 2024. With robust Proprietary Products performance and strategic investments in capacity and innovation, the company aims to strengthen its leadership in the pharmaceutical and healthcare markets while delivering long-term value for shareholders and clients alike.
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