Total Revenue

+9% " " " " "

Total revenue increased from $702.1 million in Q2 2024 to $766.5 million in Q2 2025 as a result of stronger performance in core segments. This gain builds on previous period challenges—where volume and mix pressures were noted—and reflects successful sales price adjustments and improved operational execution. " " " " "

Proprietary Products

+11% " " " " "

Proprietary Products revenue grew from $559.7 million to $619.8 million YoY driven primarily by elevated demand for self-injection device platforms. This recovery from prior period declines (due to customer inventory management and unfavorable product mixes) indicates a robust rebound bolstered by strategic pricing and product mix improvements. " " " " "

High-Value Product Delivery Devices

+29% " " "

Revenue in this segment surged from $77.2 million to $99.6 million YoY due to a strong volume ramp, exemplified by the SmartDose On-Body Delivery System. Previous period reassessments and operational improvements have paved the way for strategic capacity expansion and margin-enhancing automation initiatives, driving this dramatic increase. " " "

High-Value Product Components

+11.6% " " "

High-Value Product Components revenue increased from $322.9 million to $360.3 million YoY as production efficiencies and sales price increases started to offset earlier challenges such as a negative product mix and destocking seen in prior periods. This points to a normalization trend following previous supply constraints. " " "

Americas Segment

+14% " " "

The Americas segment improved significantly, rising from $301.9 million to $344.9 million YoY. This growth appears connected to organic net sales gains in high-value products—including heightened demand for self-injection device platforms—that were already emerging in prior analyses, illustrating regional market strength. " " "

Asia Pacific Region

+9% " " "

Asia Pacific revenue increased from $63.2 million to $68.9 million YoY, reflecting steady progress despite broader global competitive pressures. While the growth is more modest than in the Americas, it aligns with the incremental improvements seen previously as the market continues to expand and operational initiatives take effect. " " "

Net Sales

FY 2025

$2.945 to $2.975 "

$3,040,000,000 to $3,060,000,000 "

raised

Adjusted Diluted EPS

FY 2025

$6.15 to $6.35 "

$6.65 to $6.85 "

raised

Tariff Impact

FY 2025

$20 to $25 "

$15,000,000 to $20,000,000 "

lowered

Capital Expenditures

FY 2025

$275 "

$275,000,000 "

no change

Organic Sales Growth

FY 2025

no prior guidance

3% to 3.75% "

no prior guidance

Revenue

Q3 2025

no prior guidance

$785,000,000 to $795,000,000 "

no prior guidance

Adjusted Diluted EPS

Q3 2025

no prior guidance

$1.65 to $1.70 "

no prior guidance

Accelerating HVP Components Growth

Discussed in Q1 2025 with emphasis on GLP-1 and Annex One driving mid‐single digit growth " " ; Q4 2024 highlighted mix shifts toward HVP and mid‐ to high-single-digit expectations " " ; Q3 2024 focused on production ramp-up in HVP devices " "

Q2 2025 reported 11.3% growth in HVP components with robust demand for GLP-1 products and Annex One upgrades contributing significantly " " "

Consistent upward momentum with strengthened execution and higher growth rates. " "

Annex One Upgrades Pipeline and Revenue Timing Uncertainty

Q1 2025 noted growth from 280 to 340 projects with timing challenges " " ; Q4 2024 described over 200 projects with revenue timing spanning 14–18 months " " ; Q3 2024 did not mention Annex One [N/A]

Q2 2025 mentioned a further increase to 370 projects with persistent multi-quarter to multi-year revenue timing uncertainty " " "

Consistent pipeline growth despite ongoing revenue timing uncertainty. " "

Operational Improvements and Capacity Expansion (including SmartDose automation and new facility ramp-ups)

Q1 2025 detailed progress on transitioning SmartDose to full automation and new biologics lines " " ; Q4 2024 outlined new automation for SmartDose and ramp-up at Dublin and Grand Rapids " " ; Q3 2024 discussed phased automation (Phoenix facility) and facility ramp-ups "

Q2 2025 emphasized the introduction of a new automated SmartDose line scheduled for early 2026 along with significant ramp-up at Dublin and resolution of labor constraints " " "

Continuous focus on automation and capacity expansion with operational improvements being steadily advanced. " "

Labor and Production Constraints Affecting Production Efficiency

Q1 2025 highlighted production constraints at an HVP plant due to customer-driven mix shifts " " ; Q4 2024 did not mention specific constraints; Q3 2024 provided no detailed discussion on labor issues [N/A]

Q2 2025 acknowledged labor constraints at a European HVP plant and detailed hiring and training initiatives to improve production efficiency " "

Ongoing constraints are being actively addressed with initiatives to smooth production efficiency. " "

Margin Pressure on SmartDose and Drug Delivery Devices

Q1 2025 explained lower SmartDose margins and challenges on drug delivery devices with plans for automation " " ; Q4 2024 reiterated margin dilutive nature of SmartDose in 2025 while planning process optimization " " ; Q3 2024 noted margin pressure driven by product mix shifts and lower production volumes " "

Q2 2025 reiterated margin pressure on SmartDose along with ongoing automation plans (new line expected in early 2026) but did not quantify margin improvement "

Persistent margin challenges remain while planned automation initiatives aim to relieve pressure gradually. "

Contract Manufacturing Dynamics and Challenges (including loss of CGM customers)

Q1 2025 discussed the exit of CGM contracts and a strategic shift toward higher-margin projects " " ; Q4 2024 detailed loss of CGM customers along with headwinds on CM margins and EPS impact " " ; Q3 2024 focused on margin expansion in CM without mention of CGM " "

Q2 2025 noted a 0.5% organic revenue increase in CM driven by new ramp-ups at Dublin while managing the phase-out of the CGM diagnostics device and identifying replacement opportunities " " " "

Ongoing strategic transition away from CGM with continued emphasis on higher-margin opportunities and operational ramp-ups. " "

Emerging GLP-1 Business Growth Opportunities

Q1 2025 highlighted GLP-1 as a key HVP growth driver contributing around 7% of revenues " " ; Q4 2024 underscored strong GLP-1 elastomer performance with multiyear contracts and robust revenue contributions " " ; Q3 2024 showed involvement in both proprietary and CM aspects of GLP-1 "

Q2 2025 reported that GLP-1 elastomer products now contributed 8% of total revenues, emphasizing sustained demand and future growth potential " "

Positive and strengthening trend as GLP-1 opportunities continue to expand and contribute more significantly to revenue. " "

Tariff Headwinds and Pricing Risks

Q1 2025 reported tariff headwinds of $20–25 million with ongoing mitigation efforts and noted pricing risk from cost pass-through uncertainties " " " " " ; Q4 2024 indicated tariffs were immaterial and discussed incentive fee headwinds affecting pricing " " " ; Q3 2024 did not mention these issues [N/A]

Q2 2025 revised tariff impact to $15–20 million while noting pricing actions contributed to organic growth and improved margins " "

Marginally reduced tariff headwinds with continuous vigilance on pricing risks; overall risk management appears slightly improved. " "

Generics Destocking Risks

Q1 2025 foresaw ongoing destocking persisting through 2025 " ; Q4 2024 expected normalization of generics orders as the year progressed " " ; Q3 2024 reported continued destocking affecting volumes and sales in generics " " "

Q2 2025 acknowledged continued destocking but noted encouraging momentum and expectations for a ramp-up in biologics demand "

Destocking remains a headwind, although early signals of market stabilization are emerging. "

Reduced Emphasis on Market Leadership in Injectables and Biologics

Q1 2025, Q4 2024, and Q3 2024 consistently emphasized strong market leadership in injectables and biologics with robust participation and growth in biologics " " " " ; no mention of a reduction in emphasis was noted

Q2 2025 made no mention of reduced emphasis; instead, it continued to underscore the company’s strong position in injectables and biologics " " "

No change observed – the focus on market leadership remains consistent and positive. " "

Earnings Guidance and EPS Uncertainty

Q1 2025 provided updated revenue and EPS guidance with concerns over tariff impact, FX uncertainties, and stock-based comp benefits " " ; Q4 2024 detailed EPS guidance with headwinds from incentives and transitions while noting potential incremental opportunities " " ; Q3 2024 raised full‐year guidance with a focus on mix improvements and cost management "

Q2 2025 raised full‐year revenue and adjusted diluted EPS guidance further, spotlighting robust Q2 performance and favorable FX benefits while noting some ongoing uncertainties (tariff, Annex One timing) " "

Improving sentiment with progressively higher guidance and EPS estimates, though some external uncertainties (tariffs, revenue timing) persist. " "