West Pharmaceutical Services, Inc.

to the Q2 2025 West Pharmaceutical Services Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 1-1 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 1-1 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, John Sweeney, Head of Investor Relations. Please go ahead.

Good morning and welcome to West's second quarter 2025 earnings conference call. We issued our financial results earlier this morning and the release has been posted in the investor section of the company's website located at westpharma.com. On the call today, we will review our financial results, provide an update for our business, and our outlook for FY25. There's a slide presentation that accompanies today's call, and a copy of the presentation is available on the investor page of West's website. On slide four is the safe harbor statement. Statements made by management on the call and the accompanying presentation contain forward-looking statements with the meaning of U.S. federal securities law. These statements are based on our beliefs and assumptions, current expectations, estimates, and forecasts. The company's future results are influenced by many factors beyond the control of the company. Actual results could differ materially from past results, as well as those expressed or implied in any forward-looking statements made here. Please refer to today's press release, as well as other disclosures made by the company regarding the risks to which this subject, including our 10-K, 10-Q, and 8-K report. During the call, management will make reference to non-GAAP financial measures, including organic sales growth, adjusted operating profit, adjusted operating profit margin, and adjusted diluted EPS. Limitations and reconciliations of the non-GAAP financial measures to the most comparable financial results prepared in conformity to GAAP are provided in this morning's earnings release. I'll now turn the call over to our CEO, Eric Green. Eric.

Thank you, John, and good morning, everyone. Thanks for joining us today. I'll begin with a review of our performance in the second quarter and discuss the encouraging trends we are seeing in the business. Then Bernard will provide our detailed financial review, and I will close with some final thoughts. Now let's turn to slide five and look at our Q2 business performance. I am pleased to report that we exceeded our expectations for the second quarter. This was driven by solid growth in HVP components. This quarter, our net sales increased 9.2% and 6.8% on an organic basis. This strong performance was the result of robust GLP-1 elastomer growth, ongoing momentum in HVP conversions impacted by Annex 1 activity, and the continued normalization of customer ordering patterns. Our improved performance was concentrated in our higher margin businesses, which drove a favorable margin expansion in the quarter. We believe this quarter underscores West's position as the market-leading injectable solutions company, serving some of the fastest-growing areas of healthcare. We do this by leveraging our competitive strengths to help our customers grow their commercialized products and launched new drugs across multiple therapeutic categories. Moving to slide six, our proprietary product segment grew 8.4% on an organic basis in Q2. The key driver of this solid performance was HBP components, which increased 11.3% in the quarter. To meet the continued growth and GLP-1 plunger demand, where possible, we are leveraging the investments that were made during the pandemic. GLP-1 Elastomer products accounted for 8% of total company revenues in the second quarter of 2025. Our performance also reflected our progress delivering HPP upgrades and NX1-related revenues. We now have 370 Annex I HPP upgrade projects, up from 340 last quarter. We continue to view Annex I as a significant multi-year opportunity where we have sustainable competitive advantage as we are the incumbent on these commercialized drugs and have the ability to deliver higher levels of quality at scale. As demand for our product continues to improve, we are working hard to increase supply to our customers. In the quarter, a majority of the customers who have showed growth were those who experienced de-stocking in the first half of the prior year. While we believe there are some de-stocking headwinds to work through in generics and to a lesser extent in biologics, Broadly speaking, we're optimistic that our businesses in these markets are turning back to more normal ordering patterns. Looking to the future, we expect biologics to continue to be a meaningful contributor to our long-term growth. As West continues to win in the market, West's participation rate for biologics and bioslimmers is trending above our historical levels year-to-date. and our win rates for small molecules remain in line with past trends. We believe we're making progress in improving our ability to meet customer demand and increasing asset utilization. As we previously disclosed, one of our HPP plants in Europe has experienced certain constraints. We are proactively executing an initiative to expand capacity through a hiring and training program. that these steps will improve production as the year progresses. The investments made to expand our HPP infrastructure over the past five years continue to provide us with important benefits. This includes five centers of excellence across our global manufacturing network, two in North America, two in Europe, and one in Singapore, that offer a strong platform for growth as demand for HPP components normalizes. Because many of these investments now have been made, we remain confident that we will be able to drive capital expenditures back to the normal level of 6% to 8% of revenues. This level is necessary to support our long-term construct. In longer term, we have the opportunity to align our manufacturing location with revenues. This includes further network optimization, which we can do through technology transfers. These initiatives take about 12 to 18 months and also provide us with a valuable tool to improve service levels and help mitigate potential impacts from tariffs for both West and our customers. Shifting to standard products. Revenues are up 0.4%. Most standard products have a strong regulatory mode with over half of them being specced into an FDA or similar regulatory process. That being said, we're continuously converting a portion of the standard product base to HVP every year. And this business offers West a significant opportunity as it represents a ongoing pipeline for HVP conversions. Moving to our HVP delivery devices business, which represents approximately 13% of total company sales on slide seven. In the second quarter, revenues increased 30%. The majority of the growth in this area was driven by strength in dikeo-crystalline containment and administration systems. HVP delivery devices include SmartDOS. We continue to evaluate the best path forward for SmartDOS, and we're closely managing the cost base and are in the process of introducing a new automated line in early 2026, which will further enhance the economics of SmartDOS. Turning to the contract manufacturing segment on slide eight, we saw a 0.5% organic revenue increase in the quarter. This was driven by the initial ramp-up stages of our Dublin facility where we manufacture auto-injectors and pens, serving the obesity and diabetes market. This was partially offset by lifecycle management of a CGM diagnostics device. We continue to expect contract manufacturing organic revenues to increase low single digits for the full year of 2025. On slide nine, we are updating our full year 2025 guidance. As a result of the strong performance in Q2, continued momentum in our HVP components business, and favorable FX environment, we are increasing our organic revenue and adjusted EPS guidance for the full year 2025. Before I turn the call over to Bernard, I would like to briefly mention the announcement made earlier this week regarding the appointment of our new CFO, Bob McMahon. Having previously served as the CFO of Agilent Technologies, I'm looking forward to his expertise and experience as part of our West team. In the coming months, Bernard and Bob will work together to ensure a seamless transition. And with that, let me turn it over to Bernard, who will provide more details on the quarter. Bernard?