Balchem Corp

Latest Results (15.05.2026):

Balchem Corporation — First quarter of 2026: Balchem reported a strong start to FY2026 with record Q1 results: net sales of $270.7 million (up 8.1% YoY), GAAP net earnings of $40.3 million (up 8.7%), adjusted EBITDA of $74.3 million (up 12.1%), and free cash flow of $33.8 million. Management described broad-based sales and earnings growth across all three reporting segments and highlighted resilient cash generation and strategic progress amid global market uncertainties.

Headline financials

Net sales $270.7M (+8.1% YoY); GAAP net earnings $40.3M (+8.7% YoY); adjusted EBITDA $74.3M (+12.1% YoY). GAAP diluted EPS $1.25 vs $1.13 prior year; adjusted diluted EPS $1.33 vs $1.22 prior year.

Segment performance

All three segments grew: Human Nutrition & Health sales $171.6M (+8.3%) with operating income $40.0M (+5.4%); Animal Nutrition & Health sales $62.2M (+8.6%) with operating income $5.7M (+8.7%); Specialty Products sales $34.7M (+4.4%) with operating income $11.9M (+24.5%).

Margins and operating expense

Gross margin $101.1M (+14.6%) and margin rate 37.3% (up 210 bps YoY), driven by sales growth and manufacturing efficiencies partially offset by raw material inflation. Operating expenses rose to $45.5M (up $8.3M), mainly from higher compensation and professional services.

Cash flow and capital allocation

Operating cash flow $40.1M and free cash flow $33.8M. Cash balance $72.9M as of March 31, 2026. Significant uses: $30.8M dividends, $15.7M share repurchases, and ~$6.3M capital expenditures/intangible asset spend in Q1.

Balance sheet and leverage

Outstanding revolver balance $169.0M; reported net debt $96.1M and net-debt leverage of 0.3x (trailing 12-month adjusted EBITDA basis), indicating modest leverage and liquidity flexibility.

Non-GAAP adjustments and tax

Adjusted net earnings were $43.0M and adjusted EBITDA $74.3M; adjustments exclude amortization, transaction/integration costs, equity compensation and related tax impacts. GAAP effective tax rate was 23.3% (vs 22.7% prior year), slightly higher due to state tax increases.

Recent strategic and research highlights

Company flagged new clinical research (VitaCholine®) suggesting choline may improve brain network efficiency in post‑menopausal women and released its 2025 Sustainability Report. Management reiterated confidence in long‑term growth while remaining cautious and flexible amid geopolitical and trade uncertainty.