Balchem Corporation Reports Fourth Quarter and Full Year 2025 Financial Results

MONTVALE, N.J., Feb. 20, 2026 (GLOBE NEWSWIRE) — Balchem Corporation (NASDAQ: BCPC) reported today financial results for its 2025 fiscal fourth quarter and full year ended December 31, 2025. For the quarter, the Company reported net sales of $263.6 million, net earnings of $39.2 million, adjusted EBITDA^(a) of $67.9 million, and free cash flow^(a) of $51.2 million. For the full year 2025, the Company reported net sales of $1.037 billion, net earnings of $154.8 million, adjusted EBITDA of $274.9 million, and free cash flow of $173.6 million.

Ted Harris, Chairman, President, and CEO of Balchem said, “In the fourth quarter, Balchem’s strong growth trajectory continued. We delivered record fourth quarter net sales and adjusted EBITDA, with top and bottom line growth year over year in each of our three segments, driven by ongoing progress on our focused growth platforms and our company’s alignment with the favorable ‘better for you’ trends.”

Fourth Quarter 2025 Financial Highlights:

• Net sales of $263.6 million, an increase of 9.8% compared to the prior year quarter.

• GAAP net earnings were $39.2 million, an increase of 16.8% from the prior year quarter.

• Adjusted EBITDA was $67.9 million, an increase of 8.1% from the prior year quarter.

• GAAP earnings per share of $1.21 compared to $1.03 in the prior year quarter and adjusted earnings per share^(a) of $1.31 compared to $1.13 in the prior year quarter.

• Cash flows from operations were $67.3 million, with free cash flow of $51.2 million.

• Sales and earnings from operations growth in all three of our reporting segments.

Mr. Harris added, “For the full year 2025, Balchem delivered another very strong year, with record net sales, adjusted EBITDA, and free cash flow, allowing us to increase our dividend once again by a double digit percentage while further strengthening our balance sheet.”

Full Year 2025 Financial Highlights:

• Record full year net sales of $1.037 billion, an increase of 8.8% compared to the prior year.

• Record GAAP net earnings were $154.8 million, an increase of 20.5% from the prior year. These net earnings resulted in record GAAP earnings per share of $4.75 compared to $3.93 in the prior year.

• Record adjusted EBITDA was $274.9 million, an increase of 9.8%, from the prior year.

• Record adjusted net earnings were $167.9 million, an increase of 17.4% from the prior year. These adjusted net earnings resulted in record adjusted earnings per share of $5.15 compared to $4.37 in the prior year.

• Record cash flows from operations were $216.6 million for 2025, with record free cash flow of $173.6 million.

Mr. Harris continued, “As we look ahead to 2026 and beyond, I continue to be excited about our future and believe we are well positioned to deliver ongoing above market growth for our shareholders.”

Financial Results for the Fourth Quarter of 2025:

The Human Nutrition and Health segment generated fourth quarter sales of $166.1 million, an increase of $18.8 million, or 12.7%, compared to the prior year quarter. The increase was driven by higher sales within both the nutrients business and the food ingredients and solutions businesses. Fourth quarter earnings from operations for this segment were $36.8 million, an increase of $3.0 million, or 8.9%, compared to $33.8 million in the prior year quarter, primarily due to the aforementioned higher sales and a favorable mix, partially offset by certain higher manufacturing input costs and higher operating expenses. Excluding the effect of non-cash expense associated with amortization of acquired intangible assets and other adjustments, adjusted earnings from operations^(a) for this segment were $40.0 million, compared to $36.5 million in the prior year quarter, an increase of 9.6%.

The Animal Nutrition and Health segment generated quarterly sales of $61.2 million, an increase of $2.8 million, or 4.9%, compared to the prior year quarter. The increase was driven by higher sales in both the ruminant species and monogastric species markets. Fourth quarter earnings from operations for this segment were $6.2 million, an increase of $0.5 million, or 8.6%, compared to $5.7 million in the prior year quarter, primarily due to the aforementioned higher sales and a favorable mix, partially offset by certain higher manufacturing input costs and higher operating expenses. Excluding the effect of non-cash expense associated with amortization of acquired intangible assets and other adjustments, adjusted earnings from operations for this segment were $6.5 million, compared to $5.9 million in the prior year quarter, an increase of 9.2%.

The Specialty Products segment generated fourth quarter sales of $34.8 million, an increase of $2.0 million, or 6.0%, compared to the prior year quarter, due to higher sales in the performance gases business. Fourth quarter earnings from operations for this segment were $10.5 million, an increase of $0.6 million, or 5.5%, compared to $10.0 million in the prior year quarter, primarily driven by the aforementioned higher sales, partially offset by higher operating expenses. Excluding the effect of non-cash expense associated with amortization of acquired intangible assets and other adjustments, adjusted earnings from operations for this segment were $11.6 million, compared to $10.9 million in the prior year quarter, an increase of 6.0%.

Consolidated quarterly gross margin of $93.9 million increased by $7.6 million, or 8.8%, compared to $86.3 million for the prior year comparable period. Gross margin as a percentage of sales was 35.6% as compared to 36.0% in the prior year period, a decrease of 40 basis points, primarily due to certain higher manufacturing input costs. Operating expenses of $41.6 million for the quarter increased $2.7 million from the prior year comparable quarter, primarily due to higher compensation-related expenses, partially offset by lower transaction costs. Excluding non-cash operating expenses associated with amortization of intangible assets of $3.7 million, operating expenses were $38.0 million, or 14.4% of sales.

Net interest expense was $1.9 million and $2.8 million in the fourth quarters of 2025 and 2024, respectively. The decrease in interest expense was due to lower outstanding borrowings and lower interest rates. Our effective tax rates for the three months ended December 31, 2025 and 2024 were 21.6% and 24.5%, respectively. The decrease in the effective tax rate from the prior year was primarily due to a decrease in certain foreign taxes.

For the quarter ended December 31, 2025, cash flows provided by operating activities were $67.3 million and free cash flow was $51.2 million. The $189.2 million of net working capital on December 31, 2025 included a cash balance of $74.6 million. Significant cash payments during the quarter included repurchases of common stock of $53.6 million, capital expenditures and intangible assets acquired of $16.2 million, and income taxes paid of $8.1 million. Outstanding debt on our revolving loan was $164.0 million as of December 31, 2025 and our net debt ^(b) was $89.4 million, with an overall leverage ratio ^(c) on a net debt basis of 0.3 times.

Ted Harris, Chairman, President, and CEO of Balchem said, “2025 was another very strong year for Balchem and I would like to thank all of our over 1,300 employees for their contributions to these results and the progress we have made on our strategic growth initiatives.”

Quarterly Conference Call

A quarterly conference call will be held on Friday, February 20, 2026, at 11:00 AM Eastern Time (ET) to review fourth quarter 2025 results. Ted Harris, Chairman, President and CEO and Martin Bengtsson, CFO will host the call. Institutional investors, analysts and other members of the financial community are invited to join the live call by dialing 800-715-9871 (toll free USA/Canada), +1-646-307-1963 (USA/International) or 647-932-3411 (Canada/Toronto), and referencing Conference ID 4400943, five minutes prior to the scheduled start time of the conference call. Investors and the public are invited to listen to the live webcast at https://events.q4inc.com/attendee/732063713. The conference call will be available for replay shortly after the conclusion of the call at https://events.q4inc.com/attendee/732063713 for one year.

Segment Information

Balchem Corporation reports three business segments: Human Nutrition and Health, Animal Nutrition and Health, and Specialty Products. The Human Nutrition and Health segment delivers customized food and beverage ingredient systems, as well as key nutrients into a variety of applications across the food, supplement and pharmaceutical industries. The Animal Nutrition and Health segment manufactures and supplies products to numerous animal health markets. Through Specialty Products, Balchem provides specialty-packaged performance gases for use in healthcare and other industries, and also provides chelated minerals to the micronutrient agricultural market. Sales and production of products outside of our reportable segments and other minor business activities are included in “Other and Unallocated”.

Forward-Looking Statements

This release contains forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, as amended, which reflect our expectation or belief concerning future events that involve risks and uncertainties. These forward-looking statements generally are identified by the words “believe,” “project,” “expect,” “anticipate,” “estimate,” “forecast,” “outlook,” “intend,” “strategy,” “future,” “opportunity,” “plan,” “may,” “should,” “will,” “would,” “will be,” “will continue,” “will likely result,” or the negative thereof or variations thereon or similar expressions generally intended to identify forward-looking statements. Forward-looking statements may relate to such matters as projections of revenue, margins, expenses, tax provisions, earnings, cash flows, benefit obligations, dividends, share purchases or other financial items; any statements of the plans, strategies and objectives of management for future operations, including those relating to any statements concerning expected development, performance or market share relating to our products and services; any statements regarding future economic conditions or our performance; any statements regarding pending investigations, claims or disputes; any statements of expectation or belief; and any statements of assumptions underlying any of the foregoing. These statements are based on the Company’s currently available information and our reasonable assumptions, expectations and projections about future events. They are subject to future events, risks and uncertainties – many of which are beyond the Company’s control – as well as potentially inaccurate assumptions, that could cause actual results to differ materially from those in the forward-looking statements. Important factors and other risks that may affect the Company’s business or that could cause actual results to differ materially are included in filings the Company makes with the U.S. Securities and Exchange Commission from time to time, including its Annual Report on Form 10-K, its Quarterly Reports on Form 10-Q, its Current Reports on Form 8-K, and in its other SEC filings. Reference should be made to such factors and all forward-looking statements are qualified in their entirety by the above cautionary statements. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Contact: Jacqueline Yarmolowicz, Balchem Corporation (Telephone: 845-326-5600)

Selected Financial Data (unaudited)
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Business Segment Net Sales:

Business Segment Earnings Before Income Taxes:

Non-GAAP Financial Information

In addition to disclosing financial results in accordance with United States (U.S.) generally accepted accounting principles (GAAP), this earnings release contains non-GAAP financial measures that we believe are helpful in understanding and comparing our past financial performance and our future results. The non-GAAP financial measures in this press release include adjusted gross margin, adjusted earnings from operations, adjusted net earnings and the related adjusted per diluted share amounts, EBITDA, adjusted EBITDA, adjusted income tax expense, free cash flow, net debt, and leverage ratio. The non-GAAP financial measures disclosed by the company exclude certain business combination accounting adjustments and certain other items related to acquisitions, certain equity compensation, nonqualified deferred compensation plan expense (income), and certain one-time or unusual transactions. Detailed non-GAAP adjustments are described in the reconciliation tables below and also explained in the related footnotes. These non-GAAP financial measures should not be considered a substitute for, or superior to, financial measures calculated in accordance with GAAP, and the financial results calculated in accordance with GAAP and reconciliations from these results should be carefully evaluated. Investors should not consider non-GAAP measures as alternatives to the related GAAP measures.

Set forth below are reconciliations of the non-GAAP financial measures to the most directly comparable GAAP financial measures.

Table 1
(unaudited)

Table 2
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