WST · 10-Q · 2026Q3 · Full report

Operating Expense Trends

WEST PHARMACEUTICAL SERVICES INC · 2026-10-29 · Importance 41 · Surprise 22 · In source text

Consolidated SG&A increased 9.9% to $112.9 million in the third quarter of 2026 and 15.1% to $330.0 million in the first nine months, while SG&A as a share of sales was 12.9% and 12.7%, respectively. Nine-month Proprietary Products SG&A rose 11.5% to $209.0 million, primarily due to higher annual incentive compensation and headcount-related salary increases. Corporate and unallocated SG&A increased 25.6% to $96.8 million for the first nine months, including $9.2 million of nonrecurring professional fees related to legal matters and the May 2026 cybersecurity incident and $9.7 million of SmartDose® sale and other M&A professional services. R&D costs were $53.8 million for the first nine months, up 2.5%, with investment in injectable components, formulation and packaging, containment systems, self-injection systems, and drug administration consumables.

Key facts

• WEST PHARMACEUTICAL SERVICES INC’s corporate and unallocated SG&A increased $19.7 million, or 25.6%, in the nine months ended September 30, 2026, including $9.2 million in nonrecurring professional fees and $9.7 million for SmartDose® sale and other M&A professional services. source
• WEST PHARMACEUTICAL SERVICES INC’s consolidated SG&A costs increased $10.2 million, or 9.9%, in the three months ended September 30, 2026, and $43.4 million, or 15.1%, in the nine months ended September 30, 2026, compared with 2025. source
• WEST PHARMACEUTICAL SERVICES INC’s Proprietary Products SG&A increased $8.9 million, or 13.6%, in the three months ended September 30, 2026, primarily due to incentive compensation, headcount-related salaries and wages, and professional fees. source
• WEST PHARMACEUTICAL SERVICES INC recorded pre-tax charges of $6.3 million and $9.3 million for the three and nine months ended September 30, 2026, respectively, related to its two existing restructuring programs. source
• WEST PHARMACEUTICAL SERVICES INC’s consolidated R&D costs increased $1.2 million, or 7.0%, and $1.3 million, or 2.5%, for the three and nine months ended September 30, 2026, respectively, for investments in injectable components, formulation and packaging, containment systems, self-injection systems, and drug-administration consumables. source
• The loss of key personnel or highly skilled employees could affect West’s results. source
• The availability and cost of skilled employees needed for increased production, managerial, research and other needs could affect West’s results, including availability and cost of professional employees and employees under collective bargaining agreements. source
• The cost and progress of developing, obtaining regulatory approval for, and marketing new products could affect West’s results. source

Impact estimates