West Pharmaceutical Services, Inc.

Good day, and welcome to Wes' first quarter earnings conference call. At this time, all participants are in listen-only mode. After the speaker's presentation, there will be a question-and-answer session. Instructions will be given at that time. Please note, today's call is being recorded. I would like to turn the call over to John Sweeney, Vice President of Investor Relations. Please go ahead.

Good morning, and welcome to West's first quarter 2026 earnings conference call, which has been webcast live. With me today on the call are West's President, CEO, and Chairman, Eric Green, and West's Senior Vice President and CFO, Bob McMahon. Earlier today, we issued our first quarter financial results, a copy of the press release, along with today's slide presentation containing supplemental information for your reference has been posted in the investor section of the company's website at investor.westfarmer.com. Later today, a replay of the webcast will also be available in the investor section of our website. Before we begin, we'd like to remind you that statements made by management during this call and in the accompanying presentation contain forward-looking statements within the meaning of U.S. federal securities law. Please refer to the accompanying Safe Harbor statements in today's press release and in addition to other disclosures made by the company, such as our 10-K and 10-Q regarding the risks to which the company is subject. During the call, management will also report on certain non-GAAP financial measures, including organic net sales, adjusted operating profit, adjusted operating profit margin, free cash flow, and adjusted diluted earnings per share. The accompanying disclosure statement, as well as reconciliations of these non-GAAP financial measures to the most comparable financial results prepared in conformity with U.S. GAAP, are provided in this morning's press release and in today's presentation materials. I will now turn the call over to our CEO, Eric Green. Eric?

Thank you, John, and good morning, everyone. Thanks for joining us today. I am pleased to report the year is off to a strong start with outstanding performance in the first quarter revenues and adjusted EPS, with both metrics coming in well above our expectations. It is clear our growth strategy is delivering. First quarter revenues of $845 million were up 21% on a reported basis and 15% on an organic basis. Adjusted operating margins in the quarter were 21.4%, expanding 350 basis points as compared to prior year, and adjusted EPS came in at $2.13, up 47% compared to prior year. As announced in the press release today, due to our strong first quarter performance and the expected ongoing momentum in our business, we are increasing our revenue and adjusted EPS guidance for full year 2026. We now anticipate full year organic revenue growth back to our long-term construct of 7% to 9%, up from our previous guide of 5% to 7%, and adjusted EPS increase to the range of $8.40 to $8.75. Bob will go into more detail shortly. Now let's take a closer review of each of the businesses, starting with HVP components in our proprietary product segment, which represents 48% of our company's total net sales and continues to be the key growth driver for West. HVP components grew 23% on an organic basis in the first quarter. This growth was led by strong performance in both GLP-1 and non-GLP-1 revenues. HVP components' GLP-1 revenues grew significantly and contributed 10% of total company sales, consistent with the previous quarter. While it is still early days in the adoption of orals, the trend is playing out as we expected and have previously communicated. That is, orals are expanding the market. Our view remains unchanged for long-term growth in both injectable and oral GLP-1 markets as overall adoption of these products continues to increase. We continue to believe there are a number of factors that leave us optimistic about the prospects for our GLP-1 elastomers in the future. These include the expansion of insurance coverage, FDA regulatory decisions on compounded GLP-1s, reduced drug prices, and the introduction of GLP-1s for new indications as well as next generation products. In addition, the launch of generics in several countries outside the U.S. should drive additional demand in the coming years. Non-GLP-1 HVP components revenues increased in the high teens in the quarter. This growth was driven by durable growth drivers, including biologics, HVP upgrades, including Annex I, and underlying core customer demand growth. The better-than-expected HVP components performance in the quarter can be attributed to market growth and tremendous execution of our operating unit strategy and scaling up production, particularly in Europe. Recently, I met with our team in Eschweiler, Germany, to see firsthand the operational improvements that we are leveraging across our HVP components manufacturing sites. There are three key aspects to this operational excellence initiative. First, we accelerated the process of onboarding new employees in the second half of 2025, which benefited production this quarter, and further increased output by temporarily redeploying our team members from other European sites. Second, we continued to optimize our global network. This includes working with our customers to qualify second sites enabling us to increase production output. And third, a significant benefit of this initiative is the transfer of knowledge and implementation of best practices, which will result in ongoing enhancements throughout our global manufacturing network. Turning to our largest market, Biologics. This business continues to be a strong growth driver for our HPP components business and delivered 26% organic growth. We continue to have strong win rates for biologics entering the market, with solid growth for NovaPeer, which is increasingly being selected for its attributes and quality by customers who are bringing new biologics to market. We're also benefiting from many biosimilar launches. Growth in this market is being increased by easing regulations and reduced testing requirements. When a biosimilar is introduced, it usually results in expansion of therapy use. This generally allows us to maintain or even increase overall volume demand after biosimilars are commercialized. And we see a continued ramp in HVP conversion in Annex 1. We are experiencing strong conversion of standard products into HVP components. and this mix shift is improving revenue and margin performance. We continue to have strong growth in Annex 1 related projects, which increased sequentially and is up 66% as compared to this time last year. Annex 1 is anticipated to be a multi-year tailwind to our business, with an expected revenue growth contribution of 200 basis points in 2026 from Annex 1 and HVP conversion. Moving on to our HVP delivery devices, which comprises 15% of company revenues, we delivered strong organic growth in the quarter, up 28% compared to prior year. This was driven by increase of SmartDOS 3.5 revenues, which were requested in advance of the transaction, which we continue to expect to close mid-year. The non-smart dose parts of the business represent more than half of the revenues and were up double digits in the quarter, led by self-dose and crystal zenith. Standard products, which represents 19% of our business, were up 0.5% on an organic basis during the first quarter. Standard products are an important funnel as they convert to HVP components over time. which provides value to our customers and generates incremental revenue for us. Turning now to West Vantage, the new brand name for our contract manufacturing segment, which represents 18% of our business. Revenues increased 6% organically in the first quarter. I was in Ireland a couple weeks ago to participate in the official opening of our new Dublin West Vantage site. which is now fully operational and producing commercial product. This milestone marks a significant step forward in strengthening our global capabilities. The site incorporates our drug handling business, which is more profitable and less capital intensive than our legacy contract manufacturing. While we are in the early stages in building our drug handling business, to date, this business is meeting our expectations. The site also supports growing customer demand for high-volume injectable therapies, including treatments for diabetes and obesity. These aspects reinforce West's role as a critical partner in helping to secure patient access to these essential medicines. Now, I'd like to turn the call over to Bob to discuss the financials and guidance in more detail. Bob?