Balchem Corp 10-Q for FY2026 Q1

Balchem Corp (BCPC)

10-Q 2026-04-30 For: 2026-03-31

Added on April 30, 2026

About this 10-Q

Balchem Corp filed this 10-Q on April 30, 2026, covering the quarter ended March 31, 2026 (FY2026 Q1).

Headline figures

Quarter ended March 31, 2026, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $270.71M; up 8.1% from $250.52M a year earlier
Net income: $40.29M; up 8.7% from net income of $37.05M a year earlier
Diluted EPS: $1.25; up 10.6% from $1.13 a year earlier

Search and read filings like this one from Claude or ChatGPT with the SEC filings MCP server →


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	March 31, 2026		December 31, 2025
Current assets:	(unaudited)
Cash and cash equivalents	$	72,873	$	74,570
Accounts receivable, net of allowance for credit losses of $1,148 and $862 at March 31, 2026 and December 31, 2025, respectively	154,232		143,596
Inventories, net	146,743		131,449
Prepaid expenses	8,955		9,778
Other current assets	6,138		6,221
Total current assets	388,941		365,614
Property, plant and equipment, net	303,070		306,648
Goodwill	811,452		816,375
Customer relationships and lists, net	127,678		132,994
Other intangible assets with finite lives, net	28,784		30,295
Right of use assets - operating leases	13,661		14,672
Right of use assets - finance lease	1,469		1,520
Other non-current assets	18,687		18,134
Total assets	$	1,693,742	$	1,686,252
Liabilities and Stockholders' Equity
Current liabilities:
Trade accounts payable	$	70,729	$	60,425
Accrued expenses	51,820		49,288
Accrued compensation and other benefits	12,698		27,896
Dividends payable	169		31,044
Income taxes payable	13,473		3,912
Operating lease liabilities - current	3,444		3,614
Finance lease liabilities - current	207		205
Total current liabilities	152,540		176,384
Revolving loan	169,000		164,000
Deferred income taxes	53,376		54,143
Operating lease liabilities - non-current	10,571		11,324
Finance lease liabilities - non-current	1,492		1,544
Other long-term obligations	21,647		21,444
Total liabilities	408,626		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; 32,128,526 and 32,058,121 shares issued and outstanding at March 31, 2026 and December 31, 2025, respectively	2,143		2,139
Additional paid-in capital	89,543		92,331
Retained earnings	1,161,681		1,121,396
Accumulated other comprehensive income	31,749		41,547
Total stockholders' equity	1,285,116		1,257,413
Total liabilities and stockholders' equity	$	1,693,742	$	1,686,252


	Three Months Ended March 31,
	2026		2025

Net sales	$	270,709	$	250,519

Cost of sales	169,625		162,351

Gross margin	101,084		88,168

Operating expenses:
Selling expenses	21,096		16,926
Research and development expenses	5,881		4,662
General and administrative expenses	18,481		15,565
	45,458		37,153

Earnings from operations	55,626		51,015

Other expenses, net:
Interest expense, net	2,213		2,924
Other expense, net	891		151
	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

Net earnings per common share - basic	$	1.26	$	1.14

Net earnings per common share - diluted	$	1.25	$	1.13


	Three Months Ended March 31,
	2026		2025

Net earnings	$	40,285	$	37,053

Other comprehensive (loss) income, net of tax:
Foreign currency translation adjustment	(10,102)		21,722
Change in postretirement benefit plans	304		(238)
Other comprehensive (loss) income	(9,798)		21,484

Comprehensive income	$	30,487	$	58,537


	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

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


	Increase/(Decrease) for the
	Three Months Ended March 31,
	2026		2025
Cost of sales	$	531	$	438
Operating expenses	4,825		3,372
Net earnings	(4,120)		(2,928)


For the Three Months Ended March 31, 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
Granted	71	178.68
Exercised	(66)	101.52
Forfeited	—	—
Canceled	(2)	139.31
Outstanding as of March 31, 2026	903	$	126.38	$	39,577	5.5

Exercisable as of March 31, 2026	653	$	114.89	$	35,662	4.5


	March 31, 2026		December 31, 2025
Raw materials	$	50,563	$	41,858
Work in progress	10,832		6,527
Finished goods	85,348		83,064
Total inventories	$	146,743	$	131,449


	March 31, 2026		December 31, 2025
Land	$	12,299	$	12,428
Building	116,549		116,395
Equipment	339,401		340,322
Construction in progress	98,604		95,229
	566,853		564,374
Less: accumulated depreciation	263,783		257,726
Property, plant and equipment, net	$	303,070	$	306,648


	Amortization Period (in years)	Gross Carrying Amount at March 31, 2026		Accumulated Amortization at March 31, 2026		Gross Carrying Amount at December 31, 2025		Accumulated Amortization at December 31, 2025
Customer relationships and lists	10-20	$	367,849	$	240,171	$	370,763	$	237,769

Trademarks and trade names	2-17	51,656		43,525		52,256		43,655
Developed technology	5-12	41,982		23,898		42,385		23,415
Other	2-18	25,140		22,571		25,178		22,454
Other intangible assets with finite lives		$	118,778	$	89,994	$	119,819	$	89,524


	For the Three Months Ended March 31, 2026
	HNH			ANH			SP			Other and Unallocated			Total
Net sales	$	171,628		$	62,189		$	34,727		$	2,165		$	270,709
Cost of sales	105,772		(1)	47,200		(1)	14,264		(1)	2,389		(1)	169,625
Gross margin	65,856			14,989			20,463			(224)			101,084
Operating expenses	25,836		(2)	9,297		(3)	8,528		(4)	1,797		(5)	45,458
Earnings from operations	40,020			5,692			11,935			(2,021)			55,626
Other expenses:
Interest expense, net													2,213
Other expense, net													891
													3,104
Earnings before income tax expense													52,522
Income tax expense													12,237
Net earnings													$	40,285


(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 and transaction and integration 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.


Business Segment Assets	March 31, 2026		December 31, 2025
Human Nutrition and Health	$	1,250,779	$	1,243,522
Animal Nutrition and Health	181,036		176,608
Specialty Products	169,768		172,076
Other and Unallocated (11)	92,159		94,046
Total	$	1,693,742	$	1,686,252


	Three Months Ended March 31,
	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


	Three Months Ended March 31,
	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	59	178.34		54	159.11
Vested	(50)	145.25		(28)	138.21
Forfeited	(1)	155.53		(1)	140.76
Non-vested balance as of March 31	155	$	162.45	147	$	148.68


	Three Months Ended March 31,
	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	%


	Three Months Ended March 31,
	2026		2025
Product Sales Revenue	$	270,216	$	250,061
Royalty Revenue	493		458
Total Revenue	$	270,709	$	250,519


Depreciation/Amortization	Three Months Ended March 31,
	2026		2025
Human Nutrition and Health	$	8,647	$	7,303
Animal Nutrition and Health	1,859		1,761
Specialty Products	1,755		1,726
Other and Unallocated	230		224
Total	$	12,491	$	11,014


Capital Expenditures	Three Months Ended March 31,
	2026		2025
Human Nutrition and Health	$	3,155	$	2,327
Animal Nutrition and Health	2,389		2,344
Specialty Products	597		722
Other and Unallocated	77		28
Total	$	6,218	$	5,421


	Foreign currency translation adjustment		Postretirement benefit plan		Total
Balance December 31, 2025	$	41,353	$	194	$	41,547
Other comprehensive (loss) income	(10,102)		304		(9,798)
Balance March 31, 2026	$	31,251	$	498	$	31,749


	Carrying Amount		Fair Value Measurements
			Level 1		Level 2		Level 3
March 31, 2026
Assets:
Money market funds (1)	$	1,508	$	1,508	$	—	$	—
Certificates of deposit with maturities of three months or less (2)	23,010		—		23,010		—
Rabbi trust funds - current (3)	23		23		—		—
Rabbi trust funds - non-current (3)	13,242		13,242		—		—

December 31, 2025
Assets:
Money market funds (1)	$	1,464	$	1,464	$	—	$	—
Rabbi trust funds - current (3)	25		25		—		—
Rabbi trust funds - non-current (3)	12,773		12,773		—		—

(1) Money market funds are categorized as cash equivalents.
(2) Certificates of deposit with original maturities of three months or less are categorized as cash equivalents. Due to the short-term nature of the instruments, the Company has determined the cost approximates fair value.
(3) 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	March 31, 2026		December 31, 2025
Operating leases	$	13,661	$	14,672
Finance leases	1,469		1,520
Total	$	15,130	$	16,192


Lease liabilities - current	March 31, 2026		December 31, 2025
Operating leases	$	3,444	$	3,614
Finance leases	207		205
Total	$	3,651	$	3,819


Lease liabilities - non-current	March 31, 2026		December 31, 2025
Operating leases	$	10,571	$	11,324
Finance leases	1,492		1,544
Total	$	12,063	$	12,868


Year
April 1, 2026 to December 31, 2026	$	3,540
2027	3,719
2028	2,930
2029	2,506
2030	2,050
2031	1,826
Thereafter	2,573
Total undiscounted lease payments	19,144
Less: Present value adjustment	(3,430)
Present value of lease liabilities	$	15,714


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.


	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	%


	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

(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 new 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. 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. Since the inception of the new program on December 9, 2025, a total of 159,539 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 10.1						Form of Agreement, Balchem Corporation Restricted Stock Grant Agreement (filed herewith).*
Exhibit 10.2						Form of Agreement, Balchem Corporation Performance Share Unit Grant Agreement (filed herewith).*
Exhibit 10.3						Form of Agreement, Balchem Corporation Stock Option Grant Agreement (filed herewith).*
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: April 30, 2026


Relative TSR Percentile [insert year 1 – year 3]	Below 25th percentile	Between 25th and 75th percentile	Above 75th percentile
Modifier (Percentage of EBITDA PSU Payout Results)	- 25%	None	+25%


Date: April 30, 2026			/s/ Theodore L. Harris
			Theodore L. Harris
			Chairman, President, and Chief Executive Officer
			(Principal Executive Officer)


Date: April 30, 2026			/s/ Martin Bengtsson
			Martin Bengtsson
			Executive Vice President and Chief Financial Officer
			(Principal Financial Officer)