First Quarter 2026 Financial Highlights:
- Net sales were
$270 .7 million, an increase of 8.1% compared to the prior year quarter. - GAAP net earnings were
$40 .3 million, an increase of 8.7% from the prior year quarter. - Adjusted EBITDA was
$74 .3 million, an increase of 12.1% from the prior year quarter. - GAAP earnings per share was
$1.25 compared to$1.13 in the prior year quarter and adjusted earnings per share(a) was$1.33 compared to$1.22 in the prior year quarter. - Cash flows from operations were
$40.1 million , with free cash flow(a) of$33.8 million . - Sales and earnings from operations growth in all three of our reporting segments.
Recent Highlights:
- For the first time, new clinical research using functional magnetic resonance imaging indicates that choline may influence brain network efficiency in post-menopausal women. Published in the peer-reviewed journal Nutrients, the study used Balchem’s VitaCholine® ingredient, showing its effects on working memory-related brain activation and functional connectivity and suggesting that VitaCholine® may help enhance cognitive health in older adults.
- On
April 22 , we released our 2025 Sustainability Report, highlighting our sustainability initiatives and accomplishments. Guided by our core values and our vision of making the world a healthier place, our Sustainability Report demonstrates our commitment to bringing innovative solutions for global health and nutrition needs, and to operate with excellence as strong stewards of our employees, customers, shareholders, and communities.
| Results for Period Ended (Dollars in thousands, except per share data) | ||||||
| Three Months Ended | ||||||
| 2026 | 2025 | |||||
| Net sales | $ | 270,709 | $ | 250,519 | ||
| Gross margin | 101,084 | 88,168 | ||||
| Operating expenses | 45,458 | 37,153 | ||||
| Earnings from operations | 55,626 | 51,015 | ||||
| Interest and other expenses | 3,104 | 3,075 | ||||
| Earnings before income tax expense | 52,522 | 47,940 | ||||
| Income tax expense | 12,237 | 10,887 | ||||
| Net earnings | $ | 40,285 | $ | 37,053 | ||
| Diluted net earnings per common share | $ | 1.25 | $ | 1.13 | ||
| Adjusted EBITDA(a) | $ | 74,282 | $ | 66,290 | ||
| Adjusted net earnings(a) | $ | 42,991 | $ | 40,017 | ||
| Adjusted net earnings per common share(a) | $ | 1.33 | $ | 1.22 | ||
| Shares used in the calculations of diluted and adjusted net earnings per common share | 32,284 | 32,807 | ||||
| (a) See “Non-GAAP Financial Information” for a reconciliation of GAAP and non-GAAP financial measures. |
Financial Results for the First Quarter of 2026:
The Human Nutrition and Health segment generated quarterly sales of
The Animal Nutrition and Health segment generated quarterly sales of
The Specialty Products segment generated quarterly sales of
Consolidated quarterly gross margin of
Net interest expense was
First quarter cash flows provided by operating activities were
| (b) Net debt is defined as the outstanding balance on our revolving loan less cash and cash equivalents. | |
| (c) Leverage ratio is defined as net debt divided by trailing twelve months adjusted EBITDA. |
Quarterly Conference Call
A quarterly conference call will be held on
Segment Information
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 repurchases 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 current 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
Contact:
Selected Financial Data (unaudited)
($ in 000’s)
| Business Segment | Three Months Ended | |||||
| 2026 | 2025 | |||||
| Human Nutrition and Health | $ | 171,628 | $ | 158,457 | ||
| Animal Nutrition and Health | 62,189 | 57,277 | ||||
| Specialty Products | 34,727 | 33,275 | ||||
| Other(d) | 2,165 | 1,510 | ||||
| Total | $ | 270,709 | $ | 250,519 | ||
| (d) Other consists of a few minor businesses which individually do not meet the quantitative thresholds for separate presentation. | ||||||
| Business Segment Earnings Before Income Taxes: | Three Months Ended | |||||||
| 2026 | 2025 | |||||||
| Human Nutrition and Health | $ | 40,020 | $ | 37,974 | ||||
| Animal Nutrition and Health | 5,692 | 5,236 | ||||||
| Specialty Products | 11,935 | 9,585 | ||||||
| Other and Unallocated(e) | (2,021 | ) | (1,780 | ) | ||||
| Interest and other expenses | (3,104 | ) | (3,075 | ) | ||||
| Total | $ | 52,522 | $ | 47,940 | ||||
| (e) 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 | ||||||||
| Selected Balance Sheet Items | ||||||||
| (Dollars in thousands) | ||||||||
| (unaudited) | ||||||||
| Cash and cash equivalents | $ | 72,873 | $ | 74,570 | ||||
| Accounts receivable, net | 154,232 | 143,596 | ||||||
| Inventories | 146,743 | 131,449 | ||||||
| Other current assets | 15,093 | 15,999 | ||||||
| Total current assets | 388,941 | 365,614 | ||||||
| Property, plant and equipment, net | 303,070 | 306,648 | ||||||
| 811,452 | 816,375 | |||||||
| Intangible assets with finite lives, net | 156,462 | 163,289 | ||||||
| Right of use assets | 15,130 | 16,192 | ||||||
| Other assets | 18,687 | 18,134 | ||||||
| Total non-current assets | 1,304,801 | 1,320,638 | ||||||
| Total assets | $ | 1,693,742 | $ | 1,686,252 | ||||
| Current liabilities | $ | 152,540 | $ | 176,384 | ||||
| Revolving loan | 169,000 | 164,000 | ||||||
| Deferred income taxes | 53,376 | 54,143 | ||||||
| Other long-term obligations | 33,710 | 34,312 | ||||||
| Total liabilities | 408,626 | 428,839 | ||||||
| Stockholders' equity | 1,285,116 | 1,257,413 | ||||||
| Total liabilities and stockholders' equity | $ | 1,693,742 | $ | 1,686,252 | ||||
Condensed Consolidated Statements of Cash Flows (Dollars in thousands) | ||||||||
| (unaudited) | ||||||||
| Three Months Ended | ||||||||
| 2026 | 2025 | |||||||
| Cash flows from operating activities: | ||||||||
| Net earnings | $ | 40,285 | $ | 37,053 | ||||
| Adjustments to reconcile net earnings to net cash provided by operating activities: | ||||||||
| Depreciation and amortization | 12,491 | 11,014 | ||||||
| Stock compensation expense | 5,356 | 3,810 | ||||||
| Other adjustments | 970 | (105 | ) | |||||
| Changes in assets and liabilities | (19,041 | ) | (15,315 | ) | ||||
| Net cash provided by operating activities | 40,061 | 36,457 | ||||||
| Cash flows from investing activities: | ||||||||
| Capital expenditures and intangible assets acquired | (6,252 | ) | (5,559 | ) | ||||
| Cash paid for acquisitions, net of cash acquired | — | (323 | ) | |||||
| Proceeds from the sale of assets | 2 | — | ||||||
| Investment in affiliates | (42 | ) | (30 | ) | ||||
| Net cash used in investing activities | (6,292 | ) | (5,912 | ) | ||||
| Cash flows from financing activities: | ||||||||
| Proceeds from revolving loan | 52,000 | 29,000 | ||||||
| Principal payments on revolving loan | (47,000 | ) | (29,000 | ) | ||||
| Principal payments on finance leases | (51 | ) | (49 | ) | ||||
| Proceeds from stock options exercised | 6,727 | 1,668 | ||||||
| Dividends paid | (30,769 | ) | (28,263 | ) | ||||
| Repurchases of common stock | (15,690 | ) | (5,325 | ) | ||||
| Net cash used in financing activities | (34,783 | ) | (31,969 | ) | ||||
| Effect of exchange rate changes on cash | (683 | ) | 1,810 | |||||
| (Decrease) increase in cash and cash equivalents | (1,697 | ) | 386 | |||||
| Cash and cash equivalents, beginning of period | 74,570 | 49,515 | ||||||
| Cash and cash equivalents, end of period | $ | 72,873 | $ | 49,901 | ||||
Non-GAAP Financial Information
In addition to disclosing financial results in accordance with
Set forth below are reconciliations of the non-GAAP financial measures to the most directly comparable GAAP financial measures.
Table 1
(unaudited)
| Reconciliation of Non-GAAP Measures to GAAP (Dollars in thousands, except per share data) | ||||||||
| Three Months Ended | ||||||||
| 2026 | 2025 | |||||||
| Reconciliation of adjusted gross margin | ||||||||
| GAAP gross margin | $ | 101,084 | $ | 88,168 | ||||
| Amortization of intangible assets and finance leases(1) | 729 | 693 | ||||||
| Adjusted gross margin | $ | 101,813 | $ | 88,861 | ||||
| Reconciliation of adjusted earnings from operations | ||||||||
| GAAP earnings from operations | $ | 55,626 | $ | 51,015 | ||||
| Amortization of intangible assets and finance leases(1) | 4,451 | 4,112 | ||||||
| Transaction and integration costs(2) | 895 | 489 | ||||||
| Nonqualified deferred compensation plan expense(3) | (14 | ) | 34 | |||||
| Adjusted earnings from operations | $ | 60,958 | $ | 55,650 | ||||
| Reconciliation of adjusted net earnings | ||||||||
| GAAP net earnings | $ | 40,285 | $ | 37,053 | ||||
| Amortization of intangible assets and finance leases(1) | 4,523 | 4,184 | ||||||
| Transaction and integration costs(2) | 895 | 489 | ||||||
| Income tax adjustment(4) | (2,712 | ) | (1,709 | ) | ||||
| Adjusted net earnings | $ | 42,991 | $ | 40,017 | ||||
| Adjusted net earnings per common share - diluted | $ | 1.33 | $ | 1.22 | ||||
Table 2
(unaudited)
| Reconciliation of GAAP Net Earnings to EBITDA and to Adjusted EBITDA (Dollars in thousands) | ||||||||
| Three Months Ended | ||||||||
| 2026 | 2025 | |||||||
| Net earnings - as reported | $ | 40,285 | $ | 37,053 | ||||
| Add back: | ||||||||
| Provision for income taxes | 12,237 | 10,887 | ||||||
| Interest and other expenses | 3,104 | 3,075 | ||||||
| Depreciation and amortization | 12,419 | 10,942 | ||||||
| EBITDA | 68,045 | 61,957 | ||||||
| Add back: | ||||||||
| Non-cash compensation expense related to equity awards | 5,356 | 3,810 | ||||||
| Transaction and integration costs(2) | 895 | 489 | ||||||
| Nonqualified deferred compensation plan expense(3) | (14 | ) | 34 | |||||
| Adjusted EBITDA | $ | 74,282 | $ | 66,290 | ||||
Table 3
(unaudited)
| Reconciliation of GAAP Effective Income Tax Rate to Non-GAAP Effective Income Tax Rate (Dollars in thousands) | ||||||||||||
| Three Months Ended | ||||||||||||
| 2026 | Effective Tax Rate | 2025 | Effective Tax Rate | |||||||||
| GAAP Income Tax Expense | $ | 12,237 | 23.3 | % | $ | 10,887 | 22.7 | % | ||||
| Impact of ASU 2016-09(5) | 1,314 | 590 | ||||||||||
| Adjusted Income Tax Expense | $ | 13,551 | 25.8 | % | $ | 11,477 | 23.9 | % | ||||
Table 4
(unaudited)
| Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow (Dollars in thousands) | ||||||||
| Three Months Ended | ||||||||
| 2026 | 2025 | |||||||
| Net cash provided by operating activities | $ | 40,061 | $ | 36,457 | ||||
| Capital expenditures and proceeds from the sale of assets | (6,216 | ) | (5,421 | ) | ||||
| Free cash flow | $ | 33,845 | $ | 31,036 | ||||
| (1) Amortization of intangible assets and finance leases: Amortization of intangible assets and finance leases consists of amortization of customer relationships, trademarks and trade names, developed technology, regulatory registration costs, patents and trade secrets, capitalized loan issuance costs, other intangibles acquired primarily in connection with business combinations, and finance leases. We record expense relating to the amortization of these intangibles and finance leases in our GAAP financial statements. Amortization expenses for our intangible assets and finance leases are inconsistent in amount and are significantly impacted by the timing and valuation of acquisitions. Consequently, our non-GAAP adjustments exclude these expenses to facilitate an evaluation of our current operating performance and comparisons to our past operating performance. |
| (2) Transaction and integration costs: Transaction and integration costs related to acquisitions and divestitures are expensed in our GAAP financial statements. Management excludes these items for the purposes of calculating adjusted EBITDA and other non-GAAP financial measures. We believe that excluding these items from our non-GAAP financial measures is useful to investors because these are items associated with transactions that are inconsistent in amount and frequency causing comparison of current and historical financial results to be difficult. |
| (3) Nonqualified deferred compensation plan (income) expense: Gains and losses on rabbi trust assets related to our nonqualified deferred compensation plan are recorded in other (income) expense while the offsetting increases or decreases to the deferred compensation liability are recorded within earnings from operations. The increases and decreases in the deferred compensation liability are driven by market volatility and are not a true reflection of company performance. We believe excluding these amounts from our non-GAAP financial measures is useful to investors because these items are inconsistent in amount based on market conditions causing comparison of current and historical financial results to be difficult. |
| (4) Income tax adjustment: For purposes of calculating adjusted net earnings and adjusted diluted earnings per share, we adjust the provision for (benefit from) income taxes to tax effect the taxable and deductible non-GAAP adjustments described above as they have a significant impact on our income tax (benefit) provision. Additionally, the income tax adjustment is adjusted for the impact of adopting ASU 2016-09, “Improvements to Employee Share-Based Payment Accounting” and uses our non-GAAP effective rate applied to both our GAAP earnings before income tax expense and non-GAAP adjustments described above. See Table 3 for the calculation of our non-GAAP effective tax rate. |
| (5) Impact of ASU 2016-09: The primary impact of ASU No. 2016-09, "Improvements to Employee Share-Based Payment Accounting" ("ASU 2016-09"), was the recognition during the three months ended |
