Balchem Corp 10-Q for FY2026 Q2

Balchem Corp (BCPC)

10-Q 2026-07-31 For: 2026-06-30

Added on July 31, 2026

About this 10-Q

Balchem Corp filed this 10-Q on July 31, 2026, covering the quarter ended June 30, 2026 (FY2026 Q2).

Headline figures

Quarter ended June 30, 2026, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $284M; up 11.2% from $255.47M a year earlier
Net income: $44.62M; up 16.6% from net income of $38.28M a year earlier
Diluted EPS: $1.39; up 18.8% from $1.17 a year earlier

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Maryland						13-2578432
(State or other jurisdiction of incorporation or organization)						(I.R.S. Employer Identification Number)


Title of each class	Trading symbol	Name of each exchange on which registered
Common Stock, par value $.06-2/3 per share	BCPC	The Nasdaq Stock Market LLC


Assets	June 30, 2026		December 31, 2025
Current assets:	(unaudited)
Cash and cash equivalents	$	63,174	$	74,570
Accounts receivable, net of allowance for credit losses of $1,128 and $862 at June 30, 2026 and December 31, 2025, respectively	148,973		143,596
Inventories, net	161,551		131,449
Prepaid expenses	8,527		9,778
Prepaid income taxes	868		—
Other current assets	5,331		6,221
Total current assets	388,424		365,614
Property, plant and equipment, net	304,702		306,648
Goodwill	808,809		816,375
Customer relationships and lists, net	123,728		132,994
Other intangible assets with finite lives, net	27,915		30,295
Right of use assets - operating leases	12,703		14,672
Right of use assets - finance lease	1,417		1,520
Other non-current assets	19,306		18,134
Total assets	$	1,687,004	$	1,686,252
Liabilities and Stockholders' Equity
Current liabilities:
Trade accounts payable	$	70,451	$	60,425
Accrued expenses	51,791		49,288
Accrued compensation and other benefits	19,965		27,896
Dividends payable	166		31,044
Income taxes payable	—		3,912
Operating lease liabilities - current	3,172		3,614
Finance lease liabilities - current	210		205
Total current liabilities	145,755		176,384
Revolving loan	152,000		164,000
Deferred income taxes	52,943		54,143
Operating lease liabilities - non-current	9,895		11,324
Finance lease liabilities - non-current	1,438		1,544
Other long-term obligations	22,595		21,444
Total liabilities	384,626		428,839
Commitments and contingencies (Note 15)
Stockholders' equity:
Preferred stock, $25 par value. Authorized 2,000,000 shares; none issued and outstanding	—		—
Common stock, $0.0667 par value. Authorized 120,000,000 shares; 31,955,534 and 32,058,121 shares issued and outstanding at June 30, 2026 and December 31, 2025, respectively	2,132		2,139
Additional paid-in capital	66,741		92,331
Retained earnings	1,206,296		1,121,396
Accumulated other comprehensive income	27,209		41,547
Total stockholders' equity	1,302,378		1,257,413
Total liabilities and stockholders' equity	$	1,687,004	$	1,686,252


	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025

Net sales	$	283,997	$	255,467	$	554,706	$	505,986

Cost of sales	180,314		162,354		349,939		324,705

Gross margin	103,683		93,113		204,767		181,281

Operating expenses:
Selling expenses	21,137		19,300		42,233		36,226
Research and development expenses	4,534		4,300		10,415		8,962
General and administrative expenses	18,791		18,071		37,272		33,636
	44,462		41,671		89,920		78,824

Earnings from operations	59,221		51,442		114,847		102,457

Other expenses, net:
Interest expense, net	1,938		2,766		4,151		5,690
Other (income) expense, net	(498)		(335)		393		(184)
	1,440		2,431		4,544		5,506

Earnings before income tax expense	57,781		49,011		110,303		96,951

Income tax expense	13,166		10,733		25,403		21,620

Net earnings	$	44,615	$	38,278	$	84,900	$	75,331

Net earnings per common share - basic	$	1.40	$	1.18	$	2.66	$	2.33

Net earnings per common share - diluted	$	1.39	$	1.17	$	2.63	$	2.30


	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025

Net earnings	$	44,615	$	38,278	$	84,900	$	75,331

Other comprehensive (loss) income, net of tax:
Foreign currency translation adjustment	(4,534)		43,776		(14,636)		65,498
Change in postretirement benefit plans	(6)		(1)		298		(239)
Other comprehensive (loss) income	(4,540)		43,775		(14,338)		65,259

Comprehensive income	$	40,075	$	82,053	$	70,562	$	140,590


	Total Stockholders' Equity		Retained Earnings		Accumulated Other Comprehensive Income (Loss)		Common Stock			Additional Paid-in Capital
							Shares	Amount
Balance - December 31, 2025	$	1,257,413	$	1,121,396	$	41,547	32,058,121	$	2,139	$	92,331
Net earnings	40,285		40,285		—		—	—		—
Other comprehensive loss	(9,798)		—		(9,798)		—	—		—
Repurchases of common stock	(14,923)		—		—		(89,880)	(6)		(14,917)
Shares and options issued under stock plans	12,139		—		—		160,285	10		12,129
Balance - March 31, 2026	1,285,116		1,161,681		31,749		32,128,526	2,143		89,543
Net earnings	44,615		44,615		—		—	—		—
Other comprehensive loss	(4,540)		—		(4,540)		—	—		—
Repurchases of common stock, including excise tax	(29,800)		—		—		(183,249)	(12)		(29,788)
Shares and options issued under stock plans	6,987		—		—		10,257	1		6,986
Balance - June 30, 2026	$	1,302,378	$	1,206,296	$	27,209	31,955,534	$	2,132	$	66,741

Balance - December 31, 2024	$	1,149,913	$	997,493	$	(23,747)	32,527,244	$	2,170	$	173,997
Net earnings	37,053		37,053		—		—	—		—
Other comprehensive income	21,484		—		21,484		—	—		—
Repurchases of common stock	(5,325)		—		—		(32,869)	(2)		(5,323)
Shares and options issued under stock plans	5,576		—		—		117,169	7		5,569
Balance - March 31, 2025	1,208,701		1,034,546		(2,263)		32,611,544	2,175		174,243
Net earnings	38,278		38,278		—		—	—		—
Other comprehensive income	43,775		—		43,775		—	—		—
Repurchases of common stock, including excise tax	(33,348)		—		—		(204,965)	(13)		(33,335)
Shares and options issued under stock plans	10,507		—		—		48,975	3		10,504
Balance - June 30, 2025	$	1,267,913	$	1,072,824	$	41,512	32,455,554	$	2,165	$	151,412


	Increase/(Decrease) for the				Increase/(Decrease) for the
	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
Cost of sales	$	647	$	536	$	1,178	$	974
Operating expenses	5,274		5,302		10,099		8,674
Net earnings	(4,580)		(4,577)		(8,700)		(7,506)


For the Six Months Ended June 30, 2026	Shares (000s)	Weighted Average Exercise Price		Aggregate Intrinsic Value		Weighted Average Remaining Contractual Term
Outstanding as of December 31, 2025	900	$	120.48	$	29,888	5.2
Granted	71	178.68
Exercised	(77)	100.34
Forfeited	(1)	143.43
Canceled	(2)	139.31
Outstanding as of June 30, 2026	891	$	126.79	$	38,255	5.3

Exercisable as of June 30, 2026	642	$	115.27	$	34,455	4.3


For the Six Months Ended June 30, 2025	Shares (000s)	Weighted Average Exercise Price		Aggregate Intrinsic Value		Weighted Average Remaining Contractual Term
Outstanding as of December 31, 2024	962	$	114.81	$	46,346	5.8
Granted	51	159.18
Exercised	(68)	91.48
Forfeited	—	—
Canceled	—	—
Outstanding as of June 30, 2025	945	$	118.88	$	38,084	5.6

Exercisable as of June 30, 2025	638	$	106.87	$	33,375	4.4


	June 30, 2026		December 31, 2025
Raw materials	$	52,217	$	41,858
Work in progress	7,018		6,527
Finished goods	102,316		83,064
Total inventories	$	161,551	$	131,449


	June 30, 2026		December 31, 2025
Land	$	12,247	$	12,428
Building	141,513		116,395
Equipment	360,187		340,322
Construction in progress	60,700		95,229
	574,647		564,374
Less: accumulated depreciation	269,945		257,726
Property, plant and equipment, net	$	304,702	$	306,648


	Amortization Period (in years)	Gross Carrying Amount at June 30, 2026		Accumulated Amortization at June 30, 2026		Gross Carrying Amount at December 31, 2025		Accumulated Amortization at December 31, 2025
Customer relationships and lists	10-20	$	366,663	$	242,935	$	370,763	$	237,769

Trademarks and trade names	2-17	51,591		43,823		52,256		43,655
Developed technology	5-12	41,818		24,452		42,385		23,415
Other	2-18	25,532		22,751		25,178		22,454
Other intangible assets with finite lives		$	118,941	$	91,026	$	119,819	$	89,524


	For the Three Months Ended June 30, 2026
	HNH			ANH			SP			Other and Unallocated			Total
Net sales	$	176,894		$	64,454		$	40,511		$	2,138		$	283,997
Cost of sales	109,873		(1)	50,087		(1)	17,942		(1)	2,412		(1)	180,314
Gross margin	67,021			14,367			22,569			(274)			103,683
Operating expenses	24,640		(2)	9,140		(3)	9,676		(4)	1,006		(5)	44,462
Earnings from operations	42,381			5,227			12,893			(1,280)			59,221
Other expenses:
Interest expense, net													1,938
Other income, net													(498)
													1,440
Earnings before income tax expense													57,781
Income tax expense													13,166
Net earnings													$	44,615


(1) Cost of sales are primarily comprised of raw materials consumed in the manufacture of product, as well as manufacturing labor, depreciation expense, and other overhead expenses necessary to convert purchased materials and supplies into finished product. Cost of sales also includes inbound freight and duty costs, outbound freight costs for shipping products to customers, warehousing costs, quality control and obsolescence expense.

(2) Operating expenses within HNH are primarily comprised of compensation-related costs, professional services, including advertising and marketing costs, and amortization expense in connection with certain acquired intangible assets.

(3) Operating expenses within ANH are primarily comprised of compensation-related costs and professional services, including advertising and marketing costs.

(4) Operating expenses within SP are primarily comprised of compensation-related costs, professional services, and amortization expense in connection with certain acquired intangible assets.

(5) Operating expenses within Other and Unallocated are primarily comprised of compensation-related costs.


(6) Cost of sales are primarily comprised of raw materials consumed in the manufacture of product, as well as manufacturing labor, depreciation expense, and other overhead expenses necessary to convert purchased materials and supplies into finished product. Cost of sales also includes inbound freight and duty costs, outbound freight costs for shipping products to customers, warehousing costs, quality control and obsolescence expense.

(7) Operating expenses within HNH are primarily comprised of compensation-related costs, professional services, including advertising and marketing costs, and amortization expense in connection with certain acquired intangible assets.

(8) Operating expenses within ANH are primarily comprised of compensation-related costs and professional services, including advertising and marketing costs.

(9) Operating expenses within SP are primarily comprised of compensation-related costs, professional services, and amortization expense in connection with certain acquired intangible assets.

(10) Operating expenses within Other and Unallocated are primarily comprised of compensation-related costs and transaction and integration costs.


	Six Months Ended June 30,
	2026		2025
Cash flows from operating activities:
Net earnings	$	84,900	$	75,331

Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization	24,711		22,417
Stock compensation expense	11,277		9,648
Deferred income taxes	(354)		(124)
Provision for (recovery of) credit losses	274		(108)
Unrealized loss (gain) on foreign currency transactions and deferred compensation	688		(843)
Loss (gain) on disposal of assets and asset impairment	492		(117)
Changes in assets and liabilities
Accounts receivable	(6,452)		(13,262)
Inventories	(31,434)		(13,074)
Prepaid expenses and other current assets	1,935		(618)
Accounts payable and accrued expenses	4,823		8,682
Income taxes	(4,832)		(4,410)
Other	744		187
Net cash provided by operating activities	86,772		83,709

Cash flows from investing activities:
Capital expenditures and intangible assets acquired	(17,138)		(12,372)
Cash paid for acquisitions, net of cash acquired	—		(323)
Proceeds from sale of assets	7		267
Investment in affiliates	(95)		(105)
Net cash used in investing activities	(17,226)		(12,533)

Cash flows from financing activities:
Proceeds from revolving loan	80,000		63,000
Principal payments on revolving loan	(92,000)		(63,000)
Principal payments on finance leases	(102)		(97)
Proceeds from stock options exercised	7,742		6,222
Dividends paid	(30,772)		(28,265)
Repurchases of common stock	(44,484)		(38,589)
Net cash used in financing activities	(79,616)		(60,729)

Effect of exchange rate changes on cash	(1,326)		5,465


	Six Months Ended June 30,
	2026		2025
Dividend yields	0.5	%	0.6	%
Expected volatilities	23.5	%	26.0	%
Risk-free interest rates	3.8	%	4.5	%
Expected lives	5.2 years		5.2 years


	Six Months Ended June 30,
	2026			2025
	Shares (000s)	Weighted Average Grant Date Fair Value		Shares (000s)	Weighted Average Grant Date Fair Value
Non-vested balance as of December 31	147	$	150.15	122	$	141.62
Granted	62	177.50		54	159.14
Vested	(51)	144.89		(30)	137.83
Forfeited	(5)	154.65		(1)	145.96
Non-vested balance as of June 30	153	$	162.86	145	$	148.91


	Six Months Ended June 30,
	2026		2025
Dividend yields	—	%	—	%
Expected volatilities	22.8	%	25.5	%
Risk-free interest rates	3.5	%	4.3	%
Initial TSR's	16.0	%	-8.8	%


	For the Three Months Ended June 30, 2025
	HNH			ANH			SP			Other and Unallocated			Total
Net sales	$	160,773		$	56,028		$	37,185		$	1,481		$	255,467
Cost of sales	99,467		(11)	44,486		(11)	16,571		(11)	1,830		(11)	162,354
Gross margin	61,306			11,542			20,614			(349)			93,113
Operating expenses	22,964		(12)	8,028		(13)	9,345		(14)	1,334		(15)	41,671
Earnings from operations	38,342			3,514			11,269			(1,683)			51,442
Other expenses:
Interest expense, net													2,766
Other income, net													(335)
													2,431
Earnings before income tax expense													49,011
Income tax expense													10,733
Net earnings													$	38,278


(11) Cost of sales are primarily comprised of raw materials consumed in the manufacture of product, as well as manufacturing labor, depreciation expense, and other overhead expenses necessary to convert purchased materials and supplies into finished product. Cost of sales also includes inbound freight and duty costs, outbound freight costs for shipping products to customers, warehousing costs, quality control and obsolescence expense.

(12) Operating expenses within HNH are primarily comprised of compensation-related costs, professional services, including advertising and marketing costs, and amortization expense in connection with certain acquired intangible assets.

(13) Operating expenses within ANH are primarily comprised of compensation-related costs and professional services, including advertising and marketing costs.

(14) Operating expenses within SP are primarily comprised of compensation-related costs, professional services, and amortization expense in connection with certain acquired intangible assets.

(15) Operating expenses within Other and Unallocated are primarily comprised of compensation-related costs and transaction and integration costs.


(16) Cost of sales are primarily comprised of raw materials consumed in the manufacture of product, as well as manufacturing labor, depreciation expense, and other overhead expenses necessary to convert purchased materials and supplies into finished product. Cost of sales also includes inbound freight and duty costs, outbound freight costs for shipping products to customers, warehousing costs, quality control and obsolescence expense.

(17) Operating expenses within HNH are primarily comprised of compensation-related costs, professional services, including advertising and marketing costs, and amortization expense in connection with certain acquired intangible assets.

(18) Operating expenses within ANH are primarily comprised of compensation-related costs and professional services, including advertising and marketing costs.

(19) Operating expenses within SP are primarily comprised of compensation-related costs, professional services, and amortization expense in connection with certain acquired intangible assets.

(20) Operating expenses within Other and Unallocated are primarily comprised of compensation-related costs and transaction and integration costs.


Business Segment Assets	June 30, 2026		December 31, 2025
Human Nutrition and Health	$	1,249,206	$	1,243,522
Animal Nutrition and Health	184,755		176,608
Specialty Products	168,224		172,076
Other and Unallocated (21)	84,819		94,046
Total	$	1,687,004	$	1,686,252


Depreciation/Amortization	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
Human Nutrition and Health	$	8,471	$	7,544	$	17,118	$	14,847
Animal Nutrition and Health	1,841		1,829		3,700		3,590
Specialty Products	1,674		1,796		3,429		3,522
Other and Unallocated	234		234		464		458
Total	$	12,220	$	11,403	$	24,711	$	22,417


Capital Expenditures	Six Months Ended June 30,
	2026		2025
Human Nutrition and Health	$	7,939	$	6,026
Animal Nutrition and Health	7,168		4,424
Specialty Products	1,422		1,685
Other and Unallocated	174		107
Total	$	16,703	$	12,242


	Foreign currency translation adjustment		Postretirement benefit plan		Total
Balance December 31, 2025	$	41,353	$	194	$	41,547
Other comprehensive (loss) income	(14,636)		298		(14,338)
Balance June 30, 2026	$	26,717	$	492	$	27,209


	Carrying Amount		Fair Value Measurements
			Level 1		Level 2		Level 3
June 30, 2026
Assets:
Money market funds (1)	$	1,517	$	1,517	$	—	$	—
Rabbi trust funds - current (2)	25		25		—		—
Rabbi trust funds - non-current (2)	14,059		14,059		—		—

December 31, 2025
Assets:
Money market funds (1)	$	1,464	$	1,464	$	—	$	—
Rabbi trust funds - current (2)	25		25		—		—
Rabbi trust funds - non-current (2)	12,773		12,773		—		—

(1) Money market funds are categorized as cash equivalents.
(2) Rabbi trust funds - current and Rabbi trust funds - non-current are included in "Other current assets" and "Other non-current assets" on the consolidated balance sheets, respectively.


Right of use assets	June 30, 2026		December 31, 2025
Operating leases	$	12,703	$	14,672
Finance leases	1,417		1,520
Total	$	14,120	$	16,192


Lease liabilities - current	June 30, 2026		December 31, 2025
Operating leases	$	3,172	$	3,614
Finance leases	210		205
Total	$	3,382	$	3,819


Lease liabilities - non-current	June 30, 2026		December 31, 2025
Operating leases	$	9,895	$	11,324
Finance leases	1,438		1,544
Total	$	11,333	$	12,868


Year
July 1, 2026 to December 31, 2026	$	2,405
2027	3,734
2028	2,944
2029	2,521
2030	2,065
2031	1,826
Thereafter	2,539
Total undiscounted lease payments	18,034
Less: Present value adjustment	(3,319)
Present value of lease liabilities	$	14,715


Business Segment Net Sales	Three Months Ended June 30,				Six Months Ended June 30,
(in thousands)	2026		2025		2026		2025
Human Nutrition & Health	$	176,894	$	160,773	$	348,522	$	319,230
Animal Nutrition & Health	64,454		56,028		126,643		113,305
Specialty Products	40,511		37,185		75,238		70,460
Other and Unallocated (1)	2,138		1,481		4,303		2,991
Total	$	283,997	$	255,467	$	554,706	$	505,986


Business Segment Earnings From Operations	Three Months Ended June 30,				Six Months Ended June 30,
(in thousands)	2026		2025		2026		2025
Human Nutrition & Health	$	42,381	$	38,342	$	82,401	$	76,316
Animal Nutrition & Health	5,227		3,514		10,919		8,750
Specialty Products	12,893		11,269		24,828		20,854
Other and Unallocated (1)	(1,280)		(1,683)		(3,301)		(3,463)
Total	$	59,221	$	51,442	$	114,847	$	102,457


(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 $22 and $917 for the three and six months ended June 30, 2026, respectively, and $405 and $894 for the three and six months ended June 30, 2025, respectively.


	Three Months Ended June 30,				Increase (Decrease)
(in thousands)	2026		2025				% Change
Net sales	$	283,997	$	255,467	$	28,530	11.2	%
Gross margin	103,683		93,113		10,570		11.4	%
Operating expenses	44,462		41,671		2,791		6.7	%
Earnings from operations	59,221		51,442		7,779		15.1	%
Interest and other expenses	1,440		2,431		(991)		(40.8)	%
Income tax expense	13,166		10,733		2,433		22.7	%
Net earnings	$	44,615	$	38,278	$	6,337	16.6	%


	Total Number of Shares Purchased (1)	Average Price Paid Per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (2)	Maximum Number (or Approximate Dollar Value) of Shares that May Yet Be Purchased Under the Plans or Programs (2)(3)
January 1-31, 2026	53,543	$	158.94	53,543	$	616,178,274
February 1-28, 2026	36,337	$	176.46	36,337	$	677,687,748
March 1-31, 2026	—	$	—	—	$	677,687,748
First Quarter	89,880			89,880

April 1-30, 2026	290	$	170.42	290	$	654,441,942
May 1-31, 2026	49,991	$	160.06	49,991	$	606,640,523
June 1-30, 2026	132,968	$	162.36	132,968	$	593,781,228
Second Quarter	183,249			183,249

Total	273,129			273,129

(1) The Company repurchased shares from open market purchases and/or withheld shares from employees in connection with the tax settlement of vested shares under the Company's omnibus incentive plan.

(2) On December 9, 2025, the Board of Directors of the Company approved a stock repurchase 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. The 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. Since the inception of the new program on December 9, 2025, a total of 342,788 shares have been repurchased under the December 2025 program.

(3) Dollar amounts in this column equal the number of shares remaining available for repurchases under the stock repurchase program as of the last date of the applicable month multiplied by the monthly average price paid per share.


Exhibit Number						Description
Exhibit 31.1						Certification of Chief Executive Officer pursuant to Rule 13a-14(a).
Exhibit 31.2						Certification of Chief Financial Officer pursuant to Rule 13a-14(a).
Exhibit 32.1						Certification of Chief Executive Officer pursuant to Rule 13a-14(b) and Section 1350 of Chapter 63 of Title 18 of the United States Code.
Exhibit 32.2						Certification of Chief Financial Officer pursuant to Rule 13a-14(b) and Section 1350 of Chapter 63 of Title 18 of the United States Code.
101.INS						XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.
101.SCH						Inline XBRL Taxonomy Extension Schema Document
101.CAL						Inline XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF						Inline XBRL Taxonomy Extension Definition Linkbase Document
101.LAB						Inline XBRL Taxonomy Extension Label Linkbase Document
101.PRE						Inline XBRL Taxonomy Extension Presentation Linkbase Document
104						Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)

* Compensatory plan or arrangement.


			BALCHEM CORPORATION

			By: /s/ Theodore L. Harris
			Theodore L. Harris, Chairman, President, and Chief Executive Officer

			By: /s/ Martin Bengtsson
			Martin Bengtsson, Executive Vice President and Chief Financial Officer

Date: July 31, 2026


Date: July 31, 2026			/s/ Theodore L. Harris
			Theodore L. Harris
			Chairman, President, and Chief Executive Officer
			(Principal Executive Officer)