BALCHEM CORP (BCPC)
SIC breadcrumb: Manufacturing > Chemicals And Allied Products > SIC 2800 Chemicals & Allied Products
SEC company page: https://www.sec.gov/edgar/browse/?CIK=9326. Latest filing source: 0000009326-26-000007.
Selected Fundamentals
| Metric | Value | Unit | FY | Filed |
|---|---|---|---|---|
| Revenue | 1,037,161,000 | USD | 2025 | 2026-02-20 |
| Net income | 154,845,000 | USD | 2025 | 2026-02-20 |
| Assets | 1,686,252,000 | USD | 2025 | 2026-02-20 |
Financials
Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-02-20. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000009326.json. Derived margins are computed from the extracted annual SEC facts.
| Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | 553,204,000 | 594,790,000 | 643,679,000 | 643,705,000 | 703,644,000 | 799,023,000 | 942,358,000 | 922,439,000 | 953,684,000 | 1,037,161,000 |
| Net income | 55,972,000 | 90,071,000 | 78,573,000 | 79,671,000 | 84,623,000 | 96,104,000 | 105,367,000 | 108,543,000 | 128,475,000 | 154,845,000 |
| Operating income | 90,838,000 | 96,903,000 | 107,100,000 | 102,553,000 | 111,147,000 | 127,502,000 | 145,186,000 | 159,193,000 | 182,909,000 | 209,326,000 |
| Gross profit | 180,861,000 | 189,009,000 | 204,252,000 | 211,367,000 | 223,897,000 | 243,174,000 | 280,451,000 | 302,056,000 | 336,206,000 | 370,633,000 |
| Diluted EPS | 1.75 | 2.79 | 2.42 | 2.45 | 2.60 | 2.94 | 3.25 | 3.35 | 3.93 | 4.75 |
| Assets | 948,626,000 | 963,636,000 | 981,355,000 | 1,155,682,000 | 1,165,843,000 | 1,199,325,000 | 1,624,512,000 | 1,597,211,000 | 1,575,371,000 | 1,686,252,000 |
| Liabilities | 427,593,000 | 346,755,000 | 289,737,000 | 412,015,000 | 337,610,000 | 322,310,000 | 686,228,000 | 543,227,000 | 425,458,000 | 428,839,000 |
| Stockholders' equity | 521,033,000 | 616,881,000 | 691,618,000 | 743,667,000 | 828,233,000 | 877,015,000 | 938,284,000 | 1,053,984,000 | 1,149,913,000 | 1,257,413,000 |
| Cash and cash equivalents | 38,643,000 | 40,416,000 | 54,268,000 | 65,672,000 | 84,571,000 | 103,239,000 | 66,560,000 | 64,447,000 | 49,515,000 | 74,570,000 |
| Net margin | 10.12% | 15.14% | 12.21% | 12.38% | 12.03% | 12.03% | 11.18% | 11.77% | 13.47% | 14.93% |
| Operating margin | 16.42% | 16.29% | 16.64% | 15.93% | 15.80% | 15.96% | 15.41% | 17.26% | 19.18% | 20.18% |
Financial Charts
Quarterly
Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-04-30. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000009326.json.
| Quarter | End Date | Revenue | Net Income | Diluted EPS | Method |
|---|---|---|---|---|---|
| 2022-Q2 | 2022-06-30 | 0.92 | reported discrete quarter | ||
| 2022-Q3 | 2022-09-30 | 0.78 | reported discrete quarter | ||
| 2023-Q2 | 2023-03-31 | 22,710,000 | reported discrete quarter | ||
| 2023-Q1 | 2023-03-31 | 0.70 | reported discrete quarter | ||
| 2023-Q2 | 2023-06-30 | 231,252,000 | 0.93 | reported discrete quarter | |
| 2023-Q3 | 2023-06-30 | 30,110,000 | reported discrete quarter | ||
| 2023-Q3 | 2023-09-30 | 229,948,000 | 0.90 | reported discrete quarter | |
| 2023-Q4 | 2023-12-31 | 228,699,000 | 26,648,000 | derived Q4 = FY annual - nine-month YTD | |
| 2024-Q1 | 2024-03-31 | 239,659,000 | 28,986,000 | 0.89 | reported discrete quarter |
| 2024-Q2 | 2024-03-31 | 28,986,000 | reported discrete quarter | ||
| 2024-Q3 | 2024-06-30 | 32,069,000 | reported discrete quarter | ||
| 2024-Q2 | 2024-06-30 | 234,081,000 | 0.98 | reported discrete quarter | |
| 2024-Q3 | 2024-09-30 | 239,940,000 | 1.03 | reported discrete quarter | |
| 2024-Q4 | 2024-12-31 | 240,004,000 | 33,583,000 | derived Q4 = FY annual - nine-month YTD | |
| 2025-Q1 | 2025-03-31 | 250,519,000 | 37,053,000 | 1.13 | reported discrete quarter |
| 2025-Q2 | 2025-03-31 | 37,053,000 | reported discrete quarter | ||
| 2025-Q3 | 2025-06-30 | 38,278,000 | reported discrete quarter | ||
| 2025-Q2 | 2025-06-30 | 255,467,000 | 1.17 | reported discrete quarter | |
| 2025-Q3 | 2025-09-30 | 267,558,000 | 1.24 | reported discrete quarter | |
| 2025-Q4 | 2025-12-31 | 263,617,000 | 39,225,000 | derived Q4 = FY annual - nine-month YTD | |
| 2026-Q1 | 2026-03-31 | 270,709,000 | 40,285,000 | 1.25 | reported discrete quarter |
Quarterly Charts
Macro Cross-References
- CPIAUCSL - Consumer Price Index for All Urban Consumers: All Items in U.S. City Average
- UNRATE - Unemployment Rate
- FEDFUNDS - Federal Funds Effective Rate
- CES0500000003 - Average Hourly Earnings of All Employees, Total Private
- DFEDTARU - Federal Funds Target Range - Upper Limit
- DFEDTARL - Federal Funds Target Range - Lower Limit
- DGS3MO - Market Yield on U.S. Treasury Securities at 3-Month Constant Maturity
- DGS2 - Market Yield on U.S. Treasury Securities at 2-Year Constant Maturity
- DGS10 - Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity
- DGS30 - Market Yield on U.S. Treasury Securities at 30-Year Constant Maturity
- T10Y2Y - 10-Year Treasury Constant Maturity Minus 2-Year Treasury Constant Maturity
- CPILFESL - Consumer Price Index for All Urban Consumers: All Items Less Food and Energy
- CPIUFDSL - Consumer Price Index for All Urban Consumers: Food
- CPIENGSL - Consumer Price Index for All Urban Consumers: Energy
- CUSR0000SAH1 - Consumer Price Index for All Urban Consumers: Shelter
- PCEPI - Personal Consumption Expenditures: Chain-type Price Index
- PCEPILFE - Personal Consumption Expenditures Excluding Food and Energy: Chain-type Price Index
- PPIACO - Producer Price Index by Commodity: All Commodities
- T10YIE - 10-Year Breakeven Inflation Rate
- U6RATE - Total Unemployed, Plus All Marginally Attached Workers Plus Total Employed Part Time for Economic Reasons
- PAYEMS - All Employees, Total Nonfarm
- CIVPART - Labor Force Participation Rate
- EMRATIO - Employment-Population Ratio
- UNEMPLOY - Unemployed
- CE16OV - Employment Level
- ICSA - Initial Claims
- JTSJOL - Job Openings: Total Nonfarm
- JTSQUR - Quits: Total Nonfarm
- GDPC1 - Real Gross Domestic Product
- A191RL1Q225SBEA - Real Gross Domestic Product: Percent Change from Preceding Period
- INDPRO - Industrial Production: Total Index
- TCU - Capacity Utilization: Total Index
- HOUST - New Privately-Owned Housing Units Started: Total Units
- PERMIT - New Privately-Owned Housing Units Authorized in Permit-Issuing Places: Total Units
- RSAFS - Advance Retail Sales: Retail Trade
- PCE - Personal Consumption Expenditures
- DSPIC96 - Real Disposable Personal Income
- PSAVERT - Personal Saving Rate
- M2SL - M2
- BOPGSTB - U.S. International Trade in Goods and Services: Balance
- MSPUS - Median Sales Price of Houses Sold for the United States
- HSN1F - New One Family Houses Sold: United States
- RHORUSQ156N - Homeownership Rate in the United States
- TTLCONS - Total Construction Spending: Total Construction in the United States
- RRVRUSQ156N - Rental Vacancy Rate in the United States
- TOTALSL - Total Consumer Credit Owned and Securitized
- REVOLSL - Revolving Consumer Credit Owned and Securitized
- DRCCLACBS - Delinquency Rate on Credit Card Loans, All Commercial Banks
- GDP - Gross Domestic Product
- GPDI - Gross Private Domestic Investment
- GCE - Government Consumption Expenditures and Gross Investment
- PCEC - Personal Consumption Expenditures
- NETEXP - Net Exports of Goods and Services
- GFDEBTN - Federal Debt: Total Public Debt
- GFDEGDQ188S - Federal Debt: Total Public Debt as Percent of Gross Domestic Product
- FYFSD - Federal Surplus or Deficit
- FGRECPT - Federal Government Current Receipts
- FGEXPND - Federal Government: Current Expenditures
- MANEMP - All Employees, Manufacturing
- USCONS - All Employees, Construction
- USTRADE - All Employees, Retail Trade
- USFIRE - All Employees, Financial Activities
- USGOVT - All Employees, Government
- AWHAETP - Average Weekly Hours of All Employees, Total Private
- DGORDER - Manufacturers' New Orders: Durable Goods
- NEWORDER - Manufacturers' New Orders: Nondefense Capital Goods Excluding Aircraft
- BUSINV - Total Business Inventories
- EXPGS - Exports of Goods and Services
- IMPGS - Imports of Goods and Services
- IR - Import Price Index (End Use): All Commodities
- PPIFIS - Producer Price Index by Commodity: Final Demand
Latest quarter (10-Q)
Latest 10-Q source: 0000009326-26-000018.
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations (All amounts in thousands, except share and per share data) Forward-Looking Statements This report 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. Actions and performance could differ materially from what is contemplated by the forward-looking statements contained in this report. Factors that might cause differences from the forward-looking statements include those referred to or identified in Item 1A of the Annual Report on Form 10-K for the year ended December 31, 2025 and other factors that may be identified elsewhere in this report. Reference should be made to such factors and all forward-looking statements are qualified in their entirety by the above cautionary statements. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Factors that may affect our forward-looking statements include, among other things: (1) our ability to manage risks associated with our sales to customers and manufacturing operations outside the United States, including changes in tariffs, sanctions, trade restrictions and trade relations, political and economic instability and geopolitical tensions; (2) supply chain disruptions due to political unrest, terrorist acts, and national and international conflicts; (3) reliability and sufficiency of our manufacturing facilities; (4) our ability to recruit and retain a highly qualified and motivated workforce; (5) our ability to effectively manage labor relations; (6) the effects of global climate change or other unexpected events, including global health crises, that may disrupt our operations; (7) our ability to manage risks related to our information technology and operational technology systems and cybersecurity; (8) our reliance on third-party vendors for many of the critical elements of our global information and operational technology infrastructure and their failure to provide effective support for such infrastructure; (9) disruption and breaches of our information systems; (10) increased competition and our ability to anticipate evolving trends in the market; (11) global economic conditions, including inflation, recession, changes in tariffs and trade relations; (12) raw material shortages or price increases; (13) currency translation and currency transaction risks; (14) interest rate risks; (15) our ability to successfully consummate and manage acquisitions, joint ventures and divestitures; (16) our ability to effectively manage and implement restructuring initiatives or other organizational changes; (17) changes in our relationships with our vendors, changes in tax or trade policy, interruptions in our operations or supply chain, political or financial instability and geopolitical tensions; (18) adverse publicity or consumer concern regarding the safety or quality of food products containing our products; (19) the outcome of any litigation, governmental investigations or proceedings; (20) product liability claims and recalls; (21) our ability to protect our brand reputation and trademarks; (22) claims of infringement of intellectual property rights by third parties; (23) risks related to corporate social responsibility and reputational matters; (24) improper conduct by any of our employees, agents or business partners; (25) changes to, or changes in interpretations of, current laws and regulations, and loss of governmental permits and approvals; and (26) regulatory requirements for ethylene oxide users that have impacted, and may continue to impact, such users’ ability to use the ethylene oxide process to sterilize medical devices, among other things. Overview We develop, manufacture, distribute and market specialty performance ingredients and products for the nutritional, food, pharmaceutical, animal health, performance gases, plant nutrition and industrial markets. Our three reportable segments are strategic businesses that offer products and services to different markets: Human Nutrition & Health, Animal Nutrition & Health, and Specialty Products. Sales and production of products outside of our reportable segments and other minor business activities are included in "Other and Unallocated". Balchem is committed to solving today's challenges to shape a healthier tomorrow by operating responsibly and providing innovative solutions for the health and nutritional needs of the world. Sustainability is at the heart of our company's vision to make the world a healthier place and plays an important role in our strategies and in long-term value creation for our stakeholders. Our framework focuses on the sustainability topics most relevant to our business and stakeholders, and has been fully integrated into our governance structure and everyday operations. We are very proud of our significant progress relating to the Company's corporate social responsibilities and will continue to foster these fundamental principles broadly along our entire value chain, develop new ideas and technologies that help us work smarter, and help build a world that is a better place to live. 23 Table of Contents As of March 31, 2026, we employed approximately 1,368 full time employees worldwide. We continue to see improvement in the labor markets and we feel that our team has been successful in attracting and retaining skilled and experienced employees in a competitive landscape. Additionally, we continue to enhance and leverage our existing technology capabilities to further optimize productivity and performance, and explore new solutions to drive efficiencies. Recent Developments Geopolitical Conflicts We are monitoring the heightened geopolitical tensions in the Middle East, including conflicts involving Iran, which may have certain effects on our business and broader consequences, including increased energy prices, certain raw material costs, increased freight costs, and volatility in shipping patterns. All above impacts may adversely affect the global economy and may have the effect of heightening the operational risks disclosed in the "Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2025. Supreme Court Tariff Ruling In February 2026, the U.S. Supreme Court issued a ruling striking down certain tariffs previously imposed under the International Emergency Economic Powers Act (“IEEPA”). While the online portal and process to submit IEEPA tariff refund requests became available on April 20, 2026, the availability, timing, and amount of any potential refunds related to these tariffs remain highly uncertain and are subject to ongoing legal, regulatory, and administrative developments. Following the ruling, the U.S. presidential administration imposed additional tariffs under other statutory authorities, resulting in a rapidly evolving tariff environment. At this time, we cannot reasonably estimate the total financial impact of these developments; however, we do not expect them to have a material effect on our future results of operations or cash flows. We will continue to monitor and evaluate new information as it becomes available. Segment Results We sell products for all three segments through our own sales force, independent distributors, and sales agents. The following tables summarize consolidated net sales by segment and business segment earnings from operations for the three months ended March 31, 2026 and 2025: Business Segment Net Sales Three Months Ended March 31, (in thousands) 2026 2025 Human Nutrition & Health $ 171,628 $ 158,457 Animal Nutrition & Health 62,189 57,277 Specialty Products 34,727 33,275 Other and Unallocated (1) 2,165 1,510 Total $ 270,709 $ 250,519 Business Segment Earnings From Operations Three Months Ended March 31, (in thousands) 2026 2025 Human Nutrition & Health $ 40,020 $ 37,974 Animal Nutrition & Health 5,692 5,236 Specialty Products 11,935 9,585 Other and Unallocated (1) (2,021) (1,780) Total $ 55,626 $ 51,015 (1) Other and Unallocated consists of a few minor businesses which individually do not meet the quantitative thresholds for separate presentation and corporate expenses that have not been allocated to a segment. Unallocated corporate expenses consist of transaction and integration costs of $895 and $489 for the three months ended March 31, 2026 and 2025, respectively. 24 Table of Contents Results of Operations - Three Months Ended March 31, 2026 and 2025 Net Earnings Three Months Ended March 31, Increase (Decrease) (in thousands) 2026 2025 % Change Net sales $ 270,709 $ 250,519 $ 20,190 8.1 % Gross margin 101,084 88,168 12,916 14.6 % Operating expenses 45,458 37,153 8,305 22.4 % Earnings from operations 55,626 51,015 4,611 9.0 % Interest and other expenses 3,104 3,075 29 0.9 % Income tax expense 12,237 10,887 1,350 12.4 % Net earnings $ 40,285 $ 37,053 $ 3,232 8.7 % Net Sales Three Months Ended March 31, Increase (Decrease) (in thousands) 2026 2025 % Change Human Nutrition & Health $ 171,628 $ 158,457 $ 13,171 8.3 % Animal Nutrition & Health 62,189 57,277 4,912 8.6 % Specialty Products 34,727 33,275 1,452 4.4 % Other 2,165 1,510 655 43.4 % Total $ 270,709 $ 250,519 $ 20,190 8.1 % •The increase in net sales within the Human Nutrition & Health segment for the first quarter of 2026 as compared to the first quarter of 2025 was driven by higher sales within both the nutrients business and the food ingredients and solutions businesses. Total sales for this segment grew 8.3%, with volume and mix contributing 7.1%, the change in foreign currency exchange rates contributing 1.6%, and average selling prices contributing -0.5%. •The increase in net sales within the Animal Nutrition & Health segment for the first quarter of 2026 compared to the first quarter of 2025 was driven by higher sales in both the monogastric and ruminant species markets. Total sales for this segment increased by 8.6%, with average selling prices contributing 6.5%, the change in foreign currency exchange rates contributing 2.2%, and volume and mix contributing -0.2%. •The increase in net sales within the Specialty Products segment for the first quarter of 2026 compared to the first quarter of 2025 was due to higher sales in the performance gases business. Total sales for this segment increased by 4.4%, with average selling prices contributing 4.0%, the change in foreign currency exchange rates contributing 3.3%, and volume and mix contributing -2.9%. •Sales may fluctuate in future periods based on macroeconomic conditions, competitive dynamics, changes in customer preferences, and our ability to successfully introduce new products to the market. Gross Margin Three Months Ended March 31, Increase (Decrease) (in thousands) 2026 2025 % Change Gross margin $ 101,084 $ 88,168 $ 12,916 14.6 % % of net sales 37.3 % 35.2 % Gross margin dollars increased in the first quarter of 2026 compared to the first quarter of 2025 due to the sales growth and manufacturing efficiencies, partially offset by raw [Excerpt truncated for page length; source filing is linked above.]
Latest 10-K MD&A
Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations
(All amounts in thousands, except share and per share data)
The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our Consolidated Financial Statements and the related notes included in this report. Refer to Part II, Item 7 in our Annual Report on Form 10-K for the fiscal year ended December 31, 2024 (filed with the SEC on February 21, 2025) for additional discussion of our financial condition and results of operations for the year ended December 31, 2023. In addition, discussion of year-to-year comparisons between 2024 and 2023 are not included in this Annual Report on Form 10-K, and can be found in "Management's Discussion and Analysis of Financial Condition and Results of Operations" in Part II, Item 7 of the Company's Annual Report on Form 10-K for the year ended December 31, 2024. Those statements in the following discussion that are not historical in nature should be considered to be forward-looking statements that are inherently uncertain. See “Cautionary Statement Regarding Forward-Looking Statements.”
Overview
We develop, manufacture, distribute and market specialty performance ingredients and products for the nutritional, food, pharmaceutical, animal health, plant nutrition, sterilization, fumigation, and industrial markets. Our three reportable segments are strategic businesses that offer products and services to different markets: Human Nutrition and Health, Animal Nutrition and Health, and Specialty Products, as more fully described in Note 10, Segment Information, of the consolidated financial statements. Sales and production of products outside of our reportable segments and other minor business activities are included in "Other and Unallocated".
Recent Developments
Anti-Dumping Investigation in the European Union
In late June 2025, the European Commission announced that it would impose provisional duties between 95.4% and 120.8% on imports into the European Union of choline chloride originating in the People’s Republic of China, effective July 1, 2025. The investigation was initiated by the European Commission in late October 2024, following a complaint lodged by Balchem Italia Srl and another complainant. On December 19, 2025, the European Commission published their final decision to set definitive duties between 90.0% and 115.9%. Further, the European Commission set rules to make it clear that the country of origin of choline chloride, regardless of form, will be the country where the chemical reaction between trimethylamine hydrochloride and ethylene oxide takes place.
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Table of Contents
Segment Results
We sell products for all three segments through our own sales force, independent distributors, and sales agents.
The following tables summarize consolidated net sales by segment and business segment earnings from operations for the three years ended December 31, 2025, 2024 and 2023 (in thousands):
Business Segment Net Sales
2025
2024
2023
Human Nutrition and Health
$
659,387
$
600,258
$
550,751
Animal Nutrition and Health
230,852
214,710
238,326
Specialty Products
140,976
132,749
125,965
Other and Unallocated (1)
5,946
5,967
7,397
Total
$
1,037,161
$
953,684
$
922,439
Business Segment Earnings From Operations
2025
2024
2023
Human Nutrition and Health
$
153,906
$
135,957
$
102,419
Animal Nutrition and Health
18,687
14,013
27,576
Specialty Products
42,901
39,906
34,579
Other and Unallocated (1)
(6,168)
(6,967)
(5,381)
Total
$
209,326
$
182,909
$
159,193
(1) Other and Unallocated consists of a few minor businesses which individually do not meet the quantitative thresholds for separate presentation and corporate expenses that have not been allocated to a segment. Unallocated corporate expenses consist of: (i) Transaction and integration costs of $1,242, $1,484 and $1,617 for years ended December 31, 2025, 2024 and 2023, respectively, and (ii) Unallocated amortization expense of $0, $0, and $312 for years ended December 31, 2025, 2024, and 2023, respectively, related to an intangible asset in connection with a company-wide ERP system implementation.
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Table of Contents
Results of Operations - Fiscal Year 2025 compared to Fiscal Year 2024
Summary of Consolidated Statements of Earnings
(in thousands)
2025
2024
Increase
(Decrease)
% Change
Net sales
$
1,037,161
$
953,684
$
83,477
8.8
%
Gross margin
370,633
336,206
34,427
10.2
%
Operating expenses
161,307
153,297
8,010
5.2
%
Earnings from operations
209,326
182,909
26,417
14.4
%
Interest and other expenses
10,296
16,456
(6,160)
(37.4)
%
Income tax expense
44,185
37,978
6,207
16.3
%
Net earnings
$
154,845
$
128,475
$
26,370
20.5
%
Management's discussion and analysis of the Consolidated Statements of Earnings is included below:
Net Sales
Increase
(Decrease)
(in thousands)
2025
2024
% Change
Human Nutrition and Health
$
659,387
$
600,258
$
59,129
9.9
%
Animal Nutrition and Health
230,852
214,710
16,142
7.5
%
Specialty Products
140,976
132,749
8,227
6.2
%
Other
5,946
5,967
(21)
(0.4)
%
Total
$
1,037,161
$
953,684
$
83,477
8.8
%
•The increase in net sales within the Human Nutrition and Health segment for 2025 compared to 2024 was driven by higher sales within both the nutrients business and the food ingredients and solutions businesses. Total sales for this segment grew 9.9%, with volume and mix contributing 6.6%, average selling prices contributing 2.8%, and the change in foreign currency exchange rates contributing 0.4%.
•The increase in net sales within the Animal Nutrition and Health segment for 2025 compared to 2024 was driven by higher sales in both the ruminant and monogastric species markets. Total sales for this segment increased by 7.5%, with average selling prices contributing 5.6%, volume and mix contributing 1.0%, and the change in foreign currency exchange rates contributing 0.9%.
•The increase in net sales within the Specialty Products segment for 2025 compared to 2024 was due to higher sales within both the performance gases market and the plant nutrition business. Total sales for this segment increased by 6.2%, with average selling prices contributing 4.0%, the change in foreign currency exchange rates contributing 1.3%, and volume and mix contributing 0.9%.
•Sales may fluctuate in future periods based on macroeconomic conditions, competitive dynamics, changes in customer preferences, and our ability to successfully introduce new products to the market.
Gross Margin
(in thousands)
2025
2024
Increase
(Decrease)
% Change
Gross margin
$
370,633
$
336,206
$
34,427
10.2
%
% of net sales
35.7
%
35.3
%
Gross margin dollars increased for 2025 compared to 2024 due to higher sales and a favorable mix, partially offset by certain higher manufacturing input costs.
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Table of Contents
Operating Expenses
(in thousands)
2025
2024
Increase
(Decrease)
% Change
Operating expenses
$
161,307
$
153,297
$
8,010
5.2
%
% of net sales
15.6
%
16.1
%
The increase in operating expenses was primarily due to an increase in compensation-related expenses of $8,327 and higher professional services of $3,856, partially offset by lower amortization expense of $2,376 and a decrease in agent and broker commissions of $1,132.
Earnings From Operations
(in thousands)
2025
2024
Increase
(Decrease)
% Change
Human Nutrition and Health
$
153,906
$
135,957
$
17,949
13.2
%
Animal Nutrition and Health
18,687
14,013
4,674
33.4
%
Specialty Products
42,901
39,906
2,995
7.5
%
Other and unallocated
(6,168)
(6,967)
799
11.5
%
Earnings from operations
$
209,326
$
182,909
$
26,417
14.4
%
% of net sales (operating margin)
20.2
%
19.2
%
•Human Nutrition & Health segment earnings from operations increased $17,949 primarily due to a gross margin contribution of $22,438. The increase in gross margin was driven by the aforementioned higher sales and a favorable mix, partially offset by certain higher manufacturing input costs. The increase in gross margin was partially offset by an increase in operating expenses of $4,489, primarily due to higher compensation-related costs of $5,909, partially offset by lower amortization of $2,329.
•Animal Nutrition & Health segment earnings from operations increased $4,674 primarily due to a gross margin contribution of $7,259. The increase in gross margin was driven by the aforementioned higher sales and a favorable mix, partially offset by certain higher manufacturing input costs. The increase in gross margin was partially offset by an increase in operating expenses of $2,585, primarily driven by higher compensation-related expenses of $2,147.
•Specialty Products segment earnings from operations increased $2,995 primarily due to a gross margin contribution of $4,065. The increase in gross margin was driven by the aforementioned higher sales. This was partially offset by an increase in operating expenses of $1,070, primarily related to higher professional services of $831.
Other Expenses (Income)
(in thousands)
2025
2024
Increase
(Decrease)
% Change
Interest expense, net
$
10,219
$
16,528
$
(6,309)
(38.2)
%
Other expense (income), net
77
(72)
149
206.9
%
$
10,296
$
16,456
$
(6,160)
(37.4)
%
Interest expense for 2025 and 2024 was primarily related to outstanding borrowings under the 2022 Credit Agreement. The decrease in net interest expense is mainly due to lower outstanding borrowings.
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Income Tax Expense
(in thousands)
2025
2024
Increase
(Decrease)
% Change
Income tax expense
$
44,185
$
37,978
$
6,207
16.3
%
Effective tax rate
22.2
%
22.8
%
The decrease in the effective tax rate was primarily due to a decrease in certain state and foreign taxes partially offset by lower tax benefits from stock-based compensation.
Liquidity and Capital Resources
Contractual Obligations
Our short-term purchase obligations primarily include contractual arrangements in the form of purchase orders with suppliers. As of December 31, 2025, such purchase obligations were $134,910. For debt obligations, see Note 7, Revolving Loan, and for operating and finance lease obligations, see Note 18, Leases.
We are not aware of any current or pending demands on, or commitments for, our liquid assets that will materially affect our liquidity.
There were no material changes during the year ended December 31, 2025 outside the ordinary course of business in the specified contractual obligations set forth in our Annual Report on Form 10-K for the year ended December 31, 2024.
We expect our operations to continue generating sufficient cash flow to fund working capital requirements and necessary capital investments. We are actively pursuing additional acquisition candidates. We could seek additional bank loans or access to financial markets to fund such acquisitions, our operations, working capital, necessary capital investments or other cash requirements should we deem it necessary to do so.
Cash
Cash and cash equivalents increased to $74,570 at December 31, 2025 from $49,515 at December 31, 2024. At December 31, 2025, we had $61,986 of cash and cash equivalents held by our foreign subsidiaries. We presently intend to permanently reinvest these funds in foreign operations by continuing to make additional plant related investments, and potentially invest in partnerships or acquisitions; therefore, we do not currently expect to repatriate these funds in order to fund U.S. operations or obligations. However, if these funds are needed for U.S. operations, we could be required to pay additional withholding taxes to repatriate these funds. Working capital was $189,230 at December 31, 2025 as compared to $156,085 at December 31, 2024, an increase of $33,145. Significant cash payments during the year included repurchases of common stock of $107,636, capital expenditures and intangible assets acquired of $43,489, income taxes paid of $37,749, the payment of the 2024 declared dividend in 2025 of $28,287, and net payments on the revolving loan of $26,000.
(in thousands)
2025
2024
Increase
(Decrease)
% Change
Cash flows provided by operating activities
$
216,556
$
181,999
$
34,557
19.0
%
Cash flows used in investing activities
(43,891)
(59,736)
15,845
26.5
%
Cash flows used in financing activities
(152,810)
(133,815)
(18,995)
(14.2)
%
Operating Activities
The increase in cash flows from operating activities was primarily driven by the increase in net earnings and the impact from the changes in working capital.
Investing Activities
We continue to invest in corporate projects, improvements across all production facilities, and intangible assets. Total investments in property, plant and equipment and intangible assets were $43,489 and $35,661 for the years ended December 31, 2025 and 2024, respectively. Capital expenditures are projected to be approximately $40,000 to $45,000 for 2026. As mentioned above, we expect that our operations will continue to generate sufficient cash flow to fund the commitments for capital expenditures. These capital expenditures are part of our continuous efforts to support our growing businesses. Cash paid to acquire an existing toll
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manufacturer to add capacity amounted to $323 and $24,164 for the years ended December 31, 2025 and 2024, respectively, net of cash acquired.
Financing Activities
In 2025, we borrowed $88,000 to fund share repurchases and the payment of the 2024 dividend, and made total loan repayments of $114,000, resulting in $386,000 available under the 2022 Credit Agreement (see Note 7, Revolving Loan) as of December 31, 2025.
On December 9, 2025, the Company's Board of Directors approved a new stock repurchase program (the "December 2025 program"), which replaced the previously approved June 1999 program. The December 2025 program authorizes the repurchases of up to and including 4,000,000 shares of the Company's ordinary shares. This new stock repurchase program has no expiration date, does not oblige the Company to acquire any particular amount of the Company's ordinary shares, and may be terminated at any time. As of December 9, 2025, the 1999 program was terminated and all remaining authorized shares (5,742 shares) were expired. Since the inception of the December 2025 program, a total of 69,659 shares have been repurchased. We intend to acquire shares from time to time at prevailing market prices if and to the extent we deem it is advisable to do so based on our assessment of corporate cash flow, market conditions and other factors. Open market repurchases of common stock could be made pursuant to a share repurchase agreement in compliance with Rule 10b-18 or a trading plan established pursuant to Rule 10b5-1 under the Securities Exchange Act of 1934, as amended, which would permit common stock to be repurchased at a time that we might otherwise be precluded from doing so under insider trading laws or self-imposed trading restrictions. We also repurchase (withhold) shares from employees in connection with the tax settlement of vested shares and/or exercised stock options, as applicable, under the Company's omnibus incentive plan. Such repurchases of shares from employees are funded with existing cash on hand. Repurchases of common stock were $107,636 and $5,682 for the years ended December 31, 2025 and 2024, respectively.
Proceeds from stock options exercised were $9,307 and $17,228 for the years ended December 31, 2025 and 2024, respectively. Dividend payments were $28,287 and $25,576 during 2025 and 2024, respectively.
Other Matters Impacting Liquidity
We have a liability of $6,731 for uncertain tax positions, including the related interest and penalties, recorded in accordance with ASC 740-10, for which we are unable to reasonably estimate the timing of settlement, if any.
We currently provide postretirement benefits in the form of two retirement medical plans, as discussed in Note 14, Employee Benefit Plans. The liability recorded in other long-term liabilities on the consolidated balance sheets as of December 31, 2025 and December 31, 2024 was $1,122 and $1,522, respectively, and the plans are not funded. Historical cash payments made under these plans have typically been less than $200 per year. We do not anticipate any changes to the payments made in the current year for the plans.
Balchem NV ("Chemogas") has an unfunded defined benefit plan. The plan provides for the payment of a lump sum at retirement or payments in case of death of the covered employees. The amount recorded for these obligations on our balance sheet as of December 31, 2025 and December 31, 2024 was $869 and $613, respectively, and was included in other long-term obligations.
We provide an unfunded, nonqualified deferred compensation plan maintained for the benefit of a select group of management or highly compensated employees. Assets of the plan are held in a rabbi trust, which are included in "Other non-current assets" on the consolidated balance sheets. They are subject to additional risk of loss in the event of bankruptcy or insolvency of the Company. The deferred compensation liability was $12,806 as of December 31, 2025, of which $12,781 was included in "Other long-term obligations" and $25 was included in "Accrued compensation and other benefits" on our consolidated balance sheets. The deferred compensation liability was $11,470 as of December 31, 2024, of which $11,449 was included in "Other long-term obligations" and $21 was included in "Accrued compensation and other benefits" on our consolidated balance sheets. The related rabbi trust assets was $12,798 as of December 31, 2025, of which $12,773 was included in "Other non-current assets" and $25 was included in "Other current assets" on the Company's consolidated balance sheets. The related rabbi trust assets was $11,465 as of December 31, 2024, and was included in "Other non-current assets" on the Company's consolidated balance sheets.
Related Party Transactions
We were engaged in related party transactions with St. Gabriel CC Company, LLC for the years ended December 31, 2025 and December 31, 2024. Refer to Note 17, Related Party Transactions.
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Critical Accounting Estimates
Critical accounting estimates are those estimates made in accordance with generally accepted accounting principles that involve a significant level of estimation uncertainty and have had or are reasonably likely to have a material impact on our financial condition or results of operations. Our management is required to make these critical accounting estimates and assumptions during the preparation of consolidated financial statements in accordance with accounting principles generally accepted in the United States of America. These estimates and assumptions impact the reported amount of assets and liabilities and disclosures of contingent assets and liabilities as of the date of the consolidated financial statements. Estimates and assumptions are reviewed periodically, and the effects of revisions are reflected in the consolidated financial statements in the period they are determined to be necessary. Actual results could differ from those estimates.
Our critical accounting estimates are those that require application of management's most difficult, subjective or complex judgments, often as a result of the need to make estimates about the effect of matters that are inherently uncertain and that may change in subsequent periods. Management considers the following to be critical accounting estimates.
Goodwill and Intangible Assets
The valuation methods and assumptions used in valuing goodwill and identified intangibles and assessing the impairment of goodwill and identified intangibles involves a significant level of estimation uncertainty. In addition, the assumptions used in determining the useful life of an intangible asset involves a significant level of estimation uncertainty. Refer to the Goodwill and Acquired Intangible Assets section in Note 1, Business Description and Summary of Significant Accounting Policies, for details related to the valuation and impairment process of both goodwill and intangible assets. Changes in market conditions, laws and regulations, and key assumptions made in future quantitative assessments, including expected cash flows, competitive factors and discount rates, could result in the recognition of an impairment charge, and in turn could have a material impact on our financial condition or results of operations in subsequent periods.
Significant Accounting Policies and Recent Accounting Pronouncements
See Note 1, Business Description and Summary of Significant Accounting Policies, in Notes to Consolidated Financial Statements regarding significant accounting policies and recent accounting pronouncements.