Balchem Net Earnings Climb 16% As Sales Grow In All Three Segments

Balchem, which makes specialty ingredients for human and animal nutrition and supplies specialty gases, said net earnings rose 16.0% to $46.7 million in the third quarter on net sales of $290.7 million, up 8.6% from a year earlier. Sales and operating earnings grew in all three of its reporting segments, the company said Friday in an 8-K.

Earnings per share and margin

Diluted earnings per share were $1.46, against $1.24 a year earlier. On an adjusted basis they were $1.57, against $1.35. Adjusted EBITDA, a measure of operating profit before interest, taxes, depreciation and certain other items, rose 12.4% to $80.3 million.

Gross margin was 36.4% of sales, against 35.7% a year earlier. The company attributed the gain to sales growth, favorable mix and manufacturing efficiencies, partly offset by higher manufacturing input costs.

Chairman, President and CEO Ted Harris called it "another excellent quarter" and said it set records for consolidated quarterly net sales, net earnings and adjusted EBITDA.

Animal nutrition nearly doubles profit

Animal Nutrition and Health, which supplies encapsulated nutrients and choline chloride for animal feed, posted sales of $63.0 million, up 11.7%. Its operating earnings rose 82.8% to $6.8 million from $3.7 million, helped by higher sales and favorable mix and partly offset by higher manufacturing input costs.

Human Nutrition and Health, the largest segment, grew sales 8.1% to $188.2 million, with operating earnings up 11.8% to $45.6 million. Specialty Products, which sells performance gases and chelated minerals, grew sales 4.5% to $37.3 million, and its operating earnings rose 6.6% to $12.3 million.

Cash, debt and buybacks

Operating cash flow was $69.8 million and free cash flow was $57.9 million. Net debt stood at $57.7 million at quarter-end, with $124.0 million outstanding on the revolving loan and cash of $66.3 million.

Balchem repurchased about $28 million of its stock in the quarter and about $127 million over the trailing twelve months. Shares closed at $173.23 on Thursday, up 1.43%, before the results came out Friday morning.

The company holds a conference call at 11:00 a.m. ET Friday with Harris and CFO Martin Bengtsson. It also plans to showcase new science on VitaCholine, K2VITAL, Optifolin+ and OptiMSM at the upcoming SupplySide Global trade show.

For the first nine months, net earnings reached $131.6 million against $115.6 million a year earlier, and diluted earnings per share were $4.09 against $3.54.

Sources

• 8-K Filing — BALCHEM CORP (BCPC) — SEC EDGAR
• Exhibit exhibit991-q32026.htm — BALCHEM CORP 8-K exhibit — SEC EDGAR
• Balchem Corporation Reports Third Quarter 2026 Financial — globenewswire.com