Oct 29, 2026 earnings call — HVP growth drives raised guidance
Revenues of $874 million and adjusted EPS of $2.66; raised full-year revenue guidance to $3.41 billion-$3.42 billion.
Revenue $0.9B (est $0.8B) · EPS $2.66 (est $2.20) · Next-quarter revenue outlook $3.4B–$3.4B
Key quotes
"The highlight was HVP Components, which grew 20%, driven by both GLP-1 and non-GLP-1 components demand and HVP upgrades."
"Adjusted operating margins of 25.3% were up 420 basis points compared to the prior year, driven primarily by the gross margin expansion and leveraging our SG&A cost base."
"If we start on these projects now, the right assumption is probably 18 to 24 months for those to come online and deliver a meaningful contribution to the growth of the company."
Analyst Q&A 12
Why Asia sales grew so fast
Q (Paul Knight · KeyBanc): He asked why Asia grew 42% and what drove that growth.
A: They said Asia is a small base but provided many new customer opportunities. Growth was driven across India and China and linked to the introduction of GLP-1s. They said it is early but there is opportunity to keep growing there.
"We are excited about the growth, as that market continues to provide us with lots of new customer opportunities." — Michel Lagarde (CEO)
GLP-1 growth drivers and one-offs
Q (Daniel Markowitz · Evercore): He asked how Medicare Bridge, outside-U.S. generics, and a shift to multi-dose affected GLP-1 elastomer sales. He also asked if Q3 had any one-time items and for the outlook into 2027.
A: They said the GLP-1 class is transformative and still early in its potential. They said there were no one-time items in the quarter, the Medicare Bridge is increasing access, and there are growth opportunities outside the U.S. with generics and next-generation molecules.
"I was just going to say to build on that, we didn't see any kind of one-time things there." — Bob McMahon (CFO)
Cause of HVP device sales rise
Q (Matt Larew · William Blair): He asked if the strong HVP delivery device performance (ex SmartDose) came from a single drug launch or specific customer wins, or if it reflects broader demand.
A: They said the growth was broad-based, not from one particular launch or molecule. Products like Crystal Zenith and Admin Systems reached multiple customers and markets. They cautioned HVP can be lumpy and said they do not expect Q3's growth to repeat in Q4.
"I would not say it is indicative of any one particular new launch or molecule." — Bob McMahon (CFO)
Priorities to strengthen customer ties
Q (Justin Bowers · Deutsche Bank): He asked Michel about his priorities for the next six to 12 months and ways to fortify West's competitive position.
A: He praised the team and said the top priority is to forge closer, more strategic relationships with customers. He also highlighted continuous improvement, digitization, and automation to raise performance and support demand planning and innovation adoption.
"With regards to areas for improvement or priorities, I highlighted some of them in the prepared remarks, but there is an opportunity to forge even closer relationships with our customers." — Michel Lagarde (CEO)
Are margins staying high?
Q (Larry Solow · CJS): He asked whether the recent margin level is a new floor and if mid-40s on the proprietary side is a reasonable starting point.
A: They said this is not the new floor but they are optimistic about continued margin expansion. They noted no one-time items in Q3 and cited positive mix shift, leveraging factory output, price, and SG&A leverage. They expect further margin expansion over the next several years and view SmartDose divestiture as helpful.
"I wouldn't say that this is the new floor, but we are very optimistic about our continued margin expansion growth." — Bob McMahon (CFO)
M&A focus and GLP-1 growth view
Q (Doug Schenkel · UBS): He asked how Michel views portfolio gaps and what M&A criteria he'll use. He also asked if ~10% remains the right planning assumption for GLP-1 revenue.
A: He said the primary focus is strengthening the company's organic growth, and the bar for M&A will be very high and patient. On GLP-1s, he said percentages may be harder to comp but they remain very bullish and expect to participate broadly across current players, new molecules, and biosimilars/generics.
"The first focus will always be about continuing to strengthen the organic prospects of the company." — Michel Lagarde (CEO)
CapEx level and capacity plans
Q (David Windley · Jefferies): He asked if West can meet demand by driving efficiency in the footprint or if a multi-year elevated CapEx regime is coming.
A: They said they are comfortable with a 6%-8% CapEx range and expect to stay inside it. They plan to use continuous improvement and tech transfers to de-bottleneck and increase output from current capacity, and they are investing in the next wave of finishing capacity with higher ROI.
"Look, as Bob mentioned, I think we're very comfortable with the 6%-8% sort of range." — Michel Lagarde (CEO)
New U.S. guidance and drug handling update
Q (Luke Sergott · Barclays): He asked how the HHS draft guidance similar to Annex 1 will affect the market and for an update on drug handling progress versus expectations this quarter and in Q4.
A: They said regulators often follow each other and the focus on contamination drives global upgrades to HVP Components, creating a secular, long-term growth trend. Most revenue upgrades to date were in Europe, but pipeline projects are increasingly outside Europe. On drug handling, West Vantage is progressing as expected, ramping higher-value contracts and rolling off legacy projects.
"We are seeing now very clearly that in the guidance that the U.S. is now embarking on." — Michel Lagarde (CEO)
How HVP share may change
Q (Brendan Smith · TD Cowen): He asked where HVP mix may go over the next year and how the 2026 exit run rate compares to the prior 7%-9% long-range plan.
A: They said both HVP and biologics benefit from multiple growth tailwinds and the portfolio will continue to be robust. They do not give a specific HVP revenue target but expect HVP to grow faster than the overall company and for its share to rise over time.
"We don't have a specific target of revenue, but we do expect that HVP will be growing faster than the overall company." — Bob McMahon (CFO)
Biologics growth and expected pricing
Q (Curtis Moiles · BNP Paribas): He asked if the 26% year-to-date biologics growth is sustainable and whether pricing growth (4% this quarter) should continue.
A: They said biologics benefit from a record innovation pipeline and continued focus from pharma and biotech, so biologics should continue to drive growth. On price, the right long-term planning assumption remains 2%-3%, though this year is a bit ahead.
"I think you'll see real continued focus on that part of it, because these large molecules are proven to be really the key to addressing some of these unmet medical needs as our customers are developing those products." — Michel Lagarde (CEO)
Plans for West Vantage platform
Q (Mac Etoch · Stephens): He asked how Michel plans to leverage West Vantage long term and how he views the platform's importance.
A: He said the core of the company is its products, which drive most revenue and profit. West Vantage's role is to improve the business by moving to higher value-added components and executing well so that its contribution strengthens over time.
"I think if you look at our company, the core of it are its products, right?" — Michel Lagarde (CEO)
When new HVP capacity will be ready
Q (Avantika Dhabaria · BofA): She asked when the new wave of HVP capacity will come online and if the existing footprint can support near-term demand.
A: They said the investments are inside the existing footprint and lead times are similar to past projects. If started now, expect 18 to 24 months to come online. They also said current capacity, plus labor investments at HVP sites, should support near-term demand as new capacity is added.
"If we start on these projects now, the right assumption is probably 18 to 24 months for those to come online and deliver a meaningful contribution to the growth of the company." — Michel Lagarde (CEO)