Balchem Corp

Balchem reported record second quarter consolidated revenue of $284 million, up 11.2% year over year. Gross margin dollars were $104 million, up 11.4%, and gross margin rate expanded to 36.5% of sales, up 10 basis points. GAAP earnings from operations were $59 million, up 15.1%; net income was $45 million, up 16.6%; and diluted GAAP EPS was $1.39, up 18.8%. On an adjusted basis, earnings from operations were $64 million, up 13.9%; adjusted EBITDA was $78 million, up 12.6%; adjusted net earnings were $48 million, up 15.7%; and adjusted EPS was $1.49, up 17.3%. Cash flow from operations was $47 million, free cash flow was $36 million, net debt was $89 million, and cash on hand was $63 million. For segments, Human Nutrition and Health sales were $177 million, up 10%; Animal Nutrition and Health sales were $64 million, up 15%; and Specialty Products sales were $41 million, up 8.9%. The company did not provide formal quarterly or full-year revenue/EPS guidance on the call; for the remainder of 2026, management pointed to continued healthy demand, ongoing margin performance, and an effective tax rate of about 22.5% to 23%.

CEO Ted Harris said the quarter reflected healthy broad-based growth across all three segments and continued execution on strategic growth initiatives. He highlighted market penetration of Balchem’s specialty nutrients and delivery systems, favorable better-for-you consumer trends, and strong innovation as key growth drivers. His tone was notably upbeat, emphasizing record results, 28 consecutive quarters of adjusted EBITDA growth, and confidence in the company’s long-term trajectory.

CFO Martin Bengtsson focused on the financial outperformance and balance sheet strength. He cited $284 million of net sales, $104 million of gross profit dollars, 36.5% gross margin, $78 million of adjusted EBITDA, $47 million of operating cash flow, $36 million of free cash flow, $89 million of net debt, and $63 million of cash. He also noted the revolver refinancing increased borrowing capacity from $550 million to $650 million and extended maturity to 2031, while improving pricing by 10 basis points generally and by 22.5 basis points at higher leverage tiers. On the tax line, he said the effective rate should land around 22.5% to 23% for the year, and he said the company is currently paying about 4.5% on the floating revolver balance.

Analysts asked about how Balchem evaluates new products and whether it prefers building or buying into new nutrient categories. Management said the decision depends on closeness to core capabilities, scientific support, differentiation, and whether a nutrient is still underpenetrated; they gave Optifolin+ as an internal development example and VitaCholine as an acquisition example. Questions also focused on marketing shifts in Human Nutrition and Health, where management said it is using an always-on consumer engagement model and reallocating spend toward trends such as GLP-1-related use cases and sports partnerships. On Animal Nutrition and Health, management said roughly half of the 15% sales growth was volume and half price, and that European monogastric business is recovering after antidumping duties, with ruminant growth up about 20% and driven mostly by volume.