Balchem CEO Says Another Sports Deal Is Coming, With A More Global Reach
Ted Harris said Balchem is contemplating a new sports partnership and exploring tie-ups with beauty companies.
Balchem, which makes specialty ingredients for nutrition, food, pharmaceutical, animal health and industrial markets, is contemplating another sports partnership, Chairman, President and CEO Ted Harris said on the company's third-quarter earnings call Friday. He told analysts he expects to announce it before the next earnings call, and that it has a more international, global aspect than its first two deals.
One deal, maybe two, more
Asked by an analyst from H.C. Wainwright about future high-profile sports marketing, Harris said the company has been "very pleased with both those investments": the New York Jets partnership, which he thought was "maybe in its fourth year," and the Bayern Munich women's team. "We do think there is room for more," he said.
Harris said he does not see "a never ending" run of adding team upon team. Building on the two existing deals, he said, makes sense with "another partnership or maybe two," one of which "we should be able to announce here in the next month or so."
The company reports fourth-quarter and full-year 2026 results in February, Harris said, so the announcement he described falls before that call.
Beauty companies as partners
The same analyst asked whether Balchem might link up with companies in the aesthetics space. Harris said partnerships there are "a clear opportunity for us and something that we are exploring."
He was explicit about the company's place in that world: "we're not a cosmetics company, we're not a beauty company," but it has nutritional expertise and a nutrient portfolio that plays a role. Separately, discussing future research, he cited the rising trend of "beauty from within" and said the company has already invested in science on hair, nail and skin benefits of its nutrients, and will keep investing.
Record quarter behind the push
Balchem reported record third-quarter revenue of $291 million, up 8.6% from a year earlier. Adjusted earnings were $1.57 per diluted share, up 16.3%, and adjusted EBITDA hit a record $80 million, up 12.4%.
Harris said it was the 29th consecutive quarter of year-over-year growth in adjusted EBITDA. Balchem's market value stood at $5.5 billion in Friday trading.
Chief Financial Officer Martin Bengtsson said the company repurchased about $28 million of stock in the quarter and ended it with $66 million in cash and a net leverage ratio of 0.2 times, helped by a $650 million credit facility put in place in July.
Balchem is due at Baird's industrial conference in Chicago on November 11, with fourth-quarter results due in February.
Sources
- Balchem Non-GAAP EPS of $1.57 beats by $0.04, revenue of $290.7M beats by $1.45M (NASDAQ:BCPC) | Seeking Alpha — seekingalpha.com
- Balchem Corporation Reports Third Quarter 2026 Financial — globenewswire.com
