Balchem Corporation Delivers Record First Quarter 2026 Results: Robust Growth Across All Segments and Strategic Progress

MONTVALE, NJ, April 30, 2026 – Balchem Corporation (NASDAQ: BCPC) has announced outstanding financial results for its first quarter ended March 31, 2026, marking a robust start to the year with record sales, earnings, and strong operational performance. The company also highlighted significant developments that could have a material impact on shareholders and the BCPC share price.

Key Financial Highlights

• Net sales reached an all-time Q1 high of \$270.7 million, up 8.1% compared to Q1 2025.
• GAAP net earnings were \$40.3 million, an increase of 8.7% over the prior year period.
• Adjusted EBITDA surged to \$74.3 million, a 12.1% increase year-over-year.
• GAAP earnings per share (EPS) rose to \$1.25 (up from \$1.13 last year); adjusted EPS climbed to \$1.33 (from \$1.22).
• Operating cash flows were \$40.1 million, and free cash flow came in at \$33.8 million.
• Growth in sales and operating earnings was realized across all three operating segments: Human Nutrition & Health, Animal Nutrition & Health, and Specialty Products.

Segment Performance Details

Human Nutrition and Health

• Sales rose to \$171.6 million, up 8.3% (\$13.2 million) driven by strength in both nutrients and food ingredients/solutions businesses.
• Segment operating earnings increased 5.4% to \$40 million, and adjusted operating earnings grew 6% to \$43.4 million, with gains from higher sales and a favorable mix offset in part by higher costs.

Animal Nutrition and Health

• Sales climbed to \$62.2 million, up 8.6% (\$4.9 million) year-over-year, supported by growth in both monogastric and ruminant markets.
• Operating earnings for the segment improved 8.7% to \$5.7 million, while adjusted operating earnings rose 8.2% to \$5.9 million.

Specialty Products

• Sales of \$34.7 million, up 4.4% (\$1.5 million), driven by strong performance in the performance gases business.
• Segment operating earnings hit a record \$11.9 million, a 24.5% jump, and adjusted earnings were \$12.8 million (up 21.2%).

Additional Financial Metrics

• Gross margin improved significantly by 14.6% to \$101.1 million, with gross margin as a percentage of sales up 210 basis points to 37.3%, reflecting sales growth and manufacturing efficiencies despite raw material inflation.
• Operating expenses increased by \$8.3 million to \$45.5 million, largely due to higher compensation and professional services costs.
• Net interest expense declined to \$2.2 million (from \$2.9 million), reflecting lower borrowings and interest rates.
• Effective tax rate ticked up to 23.3% (from 22.7%), primarily due to higher state taxes.
• Net working capital stood at \$236.4 million, with a cash balance of \$72.9 million at quarter-end.
• Dividend payments of \$30.8 million and share repurchases of \$15.7 million were executed in the quarter.
• Net debt was \$96.1 million, and the company maintained a low net leverage ratio of 0.3x trailing twelve months adjusted EBITDA.

Strategic and Operational Updates

• Balchem published its 2025 Sustainability Report, underlining a strong commitment to sustainability, innovation, and corporate stewardship.
• Breakthrough clinical research using functional MRI has, for the first time, indicated that Balchem’s proprietary ingredient, VitaCholine®, may improve brain network efficiency and working memory in post-menopausal women. This study suggests VitaCholine® could enhance cognitive health in older adults, a potentially significant market opportunity and a differentiator for Balchem’s Human Nutrition portfolio.

Management Commentary

Ted Harris, Chairman, President, and CEO, expressed confidence in Balchem’s strategic direction and resilience, stating:

“The first quarter was an excellent start to the year for Balchem, with sales and earnings growth in all three segments. We delivered record first quarter net sales, adjusted EBITDA, and net earnings, as well as strong cash flows. I am very pleased with how we have started 2026, both financially and strategically, with record Q1 financial results and solid progress being made on our strategic growth initiatives. These results highlight the strength and resilience of our business model which will undoubtedly serve us well as we maneuver through the geopolitical environment and the changing global trade outlook.”

He reiterated confidence in the company’s long-term growth outlook despite geopolitical and trade uncertainties, emphasizing a focus on strategic initiatives and flexibility to adapt as market conditions evolve.

Conference Call and Investor Information

A quarterly investor conference call will be held on April 30, 2026, at 11:00 AM ET, hosted by Ted Harris (CEO) and Martin Bengtsson (CFO). Institutional investors and analysts can participate via phone or webcast. A replay will be available for one year.

Key Takeaways for Investors and Shareholders

• Record Q1 results across sales, net earnings, and EBITDA signal strong momentum and potentially positive sentiment for share price performance.
• Expansion in all business segments and robust free cash flow generation support both operational stability and capacity for continued dividends and buybacks.
• Breakthrough clinical research on VitaCholine® opens up a new, potentially lucrative market in cognitive health for older adults, which could drive future revenue and valuation.
• Sustainability initiatives and prudent balance sheet management (low leverage, significant cash reserves) further strengthen the company’s investment case.
• Management’s confidence and commitment to strategic growth, despite global macroeconomic headwinds, should be viewed positively by shareholders.

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