West Pharmaceutical Services, Inc.

Good day, and welcome to the West Pharmaceutical Services Q2 2026 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speaker presentation, there will be a question and answer session. To ask a question during that 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, Mr. John Sweeney, Vice President of Investor Relations. Please go ahead, sir.

Good morning, and welcome to West's second quarter 2026 earnings conference call, which is being webcast live today. With me on the call are Eric Green, our CEO, Chair of the Board, and Bob McMahon, CFO. Earlier today, we issued our second 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.westpharma.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 statement currently being displayed on the screen and in today's press release. In addition to other disclosures made by the companies 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 today's presentation materials. 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 am pleased to report strong second quarter results, which exceeded our expectations on the top and bottom line. Revenues of $872 million were up 13% organically, and adjusted EPS of $2.37 was up 29% as compared to prior year. Our performance was driven by the execution of our strategy and continued operational excellence initiatives. This is a testament to the exceptional efforts of our colleagues whose collective actions following the cyber incident drove the recovery and these strong financial results. Given the robust outcome in the second quarter and the ongoing momentum in the business, we are raising our guidance for full year 2026. We now anticipate organic revenue growth to be 10% to 11% for the full year and adjusted EPS to be in the range of $8.85 to $9.05. Bob will go into more detail shortly. Shifting to our results in the quarter, our proprietary product segment delivered 16% organic growth, led by the Biologics Market Group, which was up 29% organic. The largest contributor continues to be our HVP Components business, which increased by 18% on an organic basis. HVP Components now account for 49% of total company revenues, up from 46% in the prior year quarter. This was driven by our three growth drivers, which include biologics and biosimilars, HVP upgrades, including Annex 1, and continued strength in GLP-1 elastomers. We continue to believe in the near and long-term growth prospects of HVP components. Non-GLP-1 HVP components were up high teens on an organic basis, exceeding our expectations and were the largest contributors to our outperformance in the quarter. One of the fastest growing areas of injectable medicines is biologics. Approximately 75% of new drug approvals in 2025 are large drug molecules, up significantly from prior years. We continue to have strong win rates of over 90% for these new molecules. This is important for West, as these customers tend to use the highest quality components. Biologics are generally more complex molecules, often requiring a barrier film, which delivers the requirements needed by our customers bringing new drugs to market. We've benefited from strong growth in Floratec and Novapyr as these products are well-suited for the most advanced containment options, ensuring safe and effective delivery for biotech customers. The biosimilars market is seeing a lot of interest in potential future growth driven by easing regulations and a significant number of biologic drugs going off patent over the next decade. The continued increase of BLAs expands the potential market. When a biosimilars is introduced, it can result in expansion of therapy use. This generally allows us to maintain or even increase overall volume demand after these drugs are commercialized. Our second growth driver is the mixed shift of HVP upgrades, including Annex 1, and our customers' desire to upgrade to more advanced primary containment solutions. This positive mixed shift drives both improving revenue and margin performance. We are now seeing an increasing number of customers upgrading HVP components, often adding additional finishing processes such as InVision inspection. We believe we're still in the early stages of this multi-year opportunity. We saw continued growth in Annex 1 related projects in the quarter. and we expect this mixed shift to deliver our target of 200 basis points of revenue growth in 2026. Our third growth driver is GLP-1s. HVP GLP-1 components revenues increased in the high teens, slightly better than expected. We believe that the global adoption of GLP-1 therapies is still in its early stages. Market access continues to expand with enablers such as Medicare expansion in the United States. When looking at clinical data, injectables continue to show meaningful efficacy advantages and a substantial reduction in adverse events when compared to oral alternatives. As a result, we anticipate continued growth in both oral and injectable GLP-1 formats as we move forward. Looking ahead, West continues to benefit from generic GLP-1 launches as customers often use the same high-value components, specifically stoppers, plungers, and line seals for primary containment as the most efficient path to commercialization. This is important as we participate in the generic GLP-1 rollout in several countries around the world. Additionally, we're encouraged by the clinical pipeline of next generation of GLP-1 molecules in development for obesity, diabetes, and metabolic conditions. These novel therapeutics offer enhanced efficacy and improved tolerability and may require more complex primary containment solutions where West's technical expertise excels. We also expect to participate in a range of new GLP-1 product launches targeting indications outside of diabetes and obesity. Shifting to standard products, which account for 19% of total company revenues and were up slightly compared to prior year. Standard products are important as they represent a funnel of upgrade opportunities. Customers convert to HVP components for a variety of reasons. While this conversion provides significant value for our customers, the positive mix shift generates incremental revenues and margins for West, all from the same volume of components. Moving to HVP delivery devices, which were up 29% organically compared to prior year. We had stronger than anticipated SmartDOS 3.5 revenues as the customer ordered additional product in advance of the transaction. On July 1, we completed the sale and transfer of the manufacturing and supply rights for SmartDOS 3.5 ML on-body delivery system and associated facilities as planned. The non-smart dose 3.5 portion of this business represents more than half of HVP delivery device revenues and was up double digits in the quarter, led by SelfDose and Crystal Xena. Turning to West's Advantage segment, which represents 17% of Q2 revenues, West's Advantage was up 1% organically in the second quarter, slightly below our expectations. due to the impact of the cyber incident. Finally, I'm very pleased that we recently announced the renewal of our existing agreements with our strategic partner, Daikyo. This allows us to continue our important partnership that has been in place for more than 50 years. I will now turn the call over to Bob to discuss the financials in more detail and update our guidance. Bob?