West Pharmaceutical Services reported higher third-quarter sales and earnings, led by its High-Value Product Components business, and raised its full-year 2026 sales and adjusted-earnings outlook. The company also repurchased $231 million of its shares during the quarter and announced a higher fourth-quarter dividend.
Key details
- Third-quarter sales rose 8.7% year over year to $874.5 million. Organic sales growth was 11.9%.
- Diluted earnings per share increased 57.3% to $3.02. Adjusted diluted EPS, which excludes certain items, rose 35.7% to $2.66.
- West raised its 2026 net-sales forecast to $3.41 billion–$3.42 billion, from $3.345 billion–$3.380 billion.
- The company also lifted its adjusted diluted EPS outlook to $9.38–$9.48, from $8.85–$9.05.
- Share repurchases totaled $231 million in the quarter, bringing buybacks for the year to date to $685 million.
- Year-to-date operating cash flow was $403 million, while capital expenditures totaled $125 million.
- The board declared a fourth-quarter dividend of $0.26 per share, up 18% from the $0.22 per share paid in the prior quarter. The dividend was announced on October 19.
What changes
The higher outlook reflects West’s stronger-than-expected third-quarter performance. At the midpoint, the revised sales range is about $53 million above the previous midpoint, while the adjusted EPS midpoint is $0.48 higher. The company attributed the quarter’s performance to its High-Value Product Components business and said stronger sales supported operating-income margin expansion and earnings growth.