West Pharmaceutical Services
WSTFinancial Snapshot
ticker: WST step: 04 generated: 2026-05-13 source: quick-research
West Pharmaceutical Services, Inc. (WST) — Financial Snapshot
Income Statement Summary
| Metric | FY2022 | FY2023 | FY2024 | YoY |
|---|---|---|---|---|
| Revenue | $2.89B | $2.95B | $2.89B | -1.9% |
| Gross Margin | ~36% | ~35% | ~33% | |
| Operating Margin | ~22% | ~20% | ~17% | |
| Net Income | ~$580M | ~$540M | ~$400M | |
| EPS (diluted) | ~$7.80 | ~$7.98 | ~$6.75 | -15% |
FY2022 revenue and margins were elevated by COVID vaccine/biologic manufacturing demand (glut of injectable vials requiring West components). FY2023–FY2024 saw customer destocking — pharma companies drew down excess component inventory accumulated during COVID — suppressing West's volumes. FY2025 marked the recovery inflection with revenue growing 7.5% to ~$3.1B and margins expanding on GLP-1 and biologics demand.
Cash Flow & Balance Sheet (FY2024)
| Metric | Value |
|---|---|
| Operating Cash Flow | ~$550M |
| Free Cash Flow | ~$350M |
| Capital Expenditures | ~$200M |
| Cash & Equivalents | ~$650M |
| Total Debt | ~$600M |
Key Ratios (approximate, FY2025 recovery basis)
- P/E: ~45x (historical); ~35–40x on FY2026 EPS guidance | EV/EBITDA: ~25x
- Revenue Growth (FY2025): +7.5% | FCF Margin: ~12–15%
- Dividend Yield: ~0.5% (modest; company is a growth-oriented compounder)
Growth Profile
West's revenue was essentially flat from FY2022–FY2024 as COVID-era inventory overhang at pharma customers suppressed component orders despite underlying drug demand growth. The destocking cycle cleared in late 2024/early 2025, and underlying GLP-1 injectable demand (Ozempic, Wegovy, Mounjaro pens all use West elastomers), biologics growth, and Annex 1 regulatory upgrades drove a strong recovery. GLP-1 components reached ~9% of 2025 revenue and ~340 Annex 1 customer upgrade projects are in process, representing a multi-year volume tailwind estimated at 6 billion components.
Forward Estimates
- FY2025 Revenue: ~$3.1B (actual, +7.5% YoY)
- FY2026 Revenue Guidance: $3.215B–$3.275B (+5–7% organic growth)
- FY2026 Adjusted EPS Guidance: $7.85–$8.20
- Analyst consensus: 10 Buy / 2 Hold out of 12 analysts; average price target ~$348 (~26% upside)
- FY2025 Q4 beat: Adjusted EPS $2.13 vs. $1.68 consensus (+27%); revenue +10.3% YoY; organic +15%
Deeper Financial Analysis
The fundamental tier adds 9 additional research dimensions for $WST.