AI Takeaway
WST delivered solid FY2025 results with revenue growing 6.3% to $3.07B and gross margin expanding 140 bps to 35.9%, though net income was nearly flat at $493.7M (+0.2%) as SG&A costs surged 16.3%.
Revenue
$3.07B
++6.25% YoY
EPS (Basic)
$6.83
++1.19% YoY
Gross Margin
35.9%
++1.40% YoY
Operating Income
$584.9M
++2.63% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-K filing
WST grew total revenue 6.3% year-over-year to $3.07B in FY2025 (from $2.89B in FY2024), reflecting continued demand for its drug containment and delivery components. Gross profit expanded at a faster rate of 10.6% to $1.10B, indicating favorable product mix shift toward higher-value offerings.
Source: Source: 10-K Income Statement
Gross margin improved approximately 140 basis points to 35.9% in FY2025 from 34.5% in FY2024, suggesting improved manufacturing efficiency and/or a richer product mix, even as cost of revenue rose 4.0% to $1.97B.
Source: Source: 10-K Income Statement / Key Ratios
SG&A expenses surged 16.3% year-over-year to $393.6M, significantly outpacing revenue growth of 6.3%. This drove operating margin down approximately 70 bps to 19.0% despite the gross margin improvement, indicating elevated investment in sales infrastructure or one-time costs.
Source: Source: 10-K Income Statement
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Upgrade to unlockSG&A expenses grew 16.3% in FY2025, more than 2.5x the rate of revenue growth, compressing operating margin by ~70 bps. If this elevated cost structure persists without a corresponding acceleration in revenue, profitability could be further pressured. Management will need to demonstrate operating leverage in future periods.
Source: Source: 10-K Income Statement
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Upgrade to unlockReported EPS of $2.04 versus the $1.85 analyst consensus — a +10.2% beat for FY2025.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $3.07B | $2.89B | +6.25% |
Cost of Revenue | $1.97B | $1.89B | +3.98% |
Gross Profit | $1.1B | $998.5M | +10.57% |
Operating Income | $584.9M | $569.9M | +2.63% |
Net Income | $493.7M | $492.7M | +0.20% |
EPS (Basic) | $6.83 | $6.75 | +1.19% |
EPS (Diluted) | $6.79 | $6.69 | +1.49% |
R&D Expense | $74.3M | $69.1M | +7.53% |
SG&A Expense | $393.6M | $338.5M | +16.28% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $4.27B | $3.64B | +17.20% |
Current Assets | $1.98B | $1.54B | +28.61% |
Total Liabilities | $1.09B | $961.1M | +13.83% |
Current Liabilities | $654.9M | $550.4M | +18.99% |
Stockholders' Equity | $3.18B | $2.68B | +18.41% |
Cash & Equivalents | $791.3M | $484.6M | +63.29% |
Long-Term Debt | $202.8M | $202.6M | +0.10% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $754.8M | $653.4M | +15.52% |
Investing Cash Flow | $-285.9M | $-378.7M | +24.50% |
Financing Cash Flow | $-185.1M | $-622.6M | +70.27% |
Share Buybacks | $134M | $560.9M | -76.11% |
D&A | $171.4M | $155.4M | +10.30% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Gross Margin | 35.9% | 34.5% | +1.40% |
Operating Margin | 19.0% | 19.7% | -0.67% |
Net Margin | 16.1% | — | — |
ROE | 15.5% | — | — |
ROA | 11.6% | — | — |
Current Ratio | $3.021 | — | — |
Debt to Equity | $0.344 | — | — |
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WST reported FY2025 revenue of $3.07B, up 6.3% year-over-year, with gross profit growing faster at 10.6% to $1.10B. However, net income was nearly flat at $493.7M (+0.2%) due to a 16.3% spike in SG&A expenses, and diluted EPS came in at $6.79 vs. $6.69 in the prior year.
Although revenue grew 6.3% and gross margin expanded to 35.9%, SG&A expenses surged 16.3% to $393.6M, significantly outpacing revenue growth and compressing operating margin by ~70 bps to 19.0%. This elevated cost base absorbed most of the gross profit improvement, leaving net income essentially flat at $493.7M.
WST's balance sheet is very healthy: cash & equivalents jumped 63.3% to $791.3M, the current ratio stands at a strong 3.02, and long-term debt is minimal at $202.8M with a debt-to-equity ratio of just 0.34. Operating cash flow grew 15.5% to $754.8M, providing ample liquidity for investment and shareholder returns.
Yes, but at a dramatically reduced pace — WST repurchased $134.0M in shares in FY2025, down 76.1% from $560.9M in FY2024. This contributed to the significant build-up in cash on the balance sheet, which grew from $484.6M to $791.3M.
Key risks include the rapid escalation of SG&A costs (up 16.3%), which could continue to pressure operating margins if not controlled. WST is also exposed to pharmaceutical industry demand cycles, foreign currency fluctuations given its global operations, and raw material cost volatility in elastomers and plastics that could erode its improved gross margins.