Balchem Corp 10-Q for FY2026 Q3

Balchem Corp (BCPC)

10-Q 2026-10-23 For: 2026-09-30

Added on October 23, 2026

About this 10-Q

Balchem Corp filed this 10-Q on October 23, 2026, covering the quarter ended September 30, 2026 (FY2026 Q3).

Balchem reported third-quarter net sales of 290,658 and net earnings of 46,728, and nine-month net sales of 845,364 and net earnings of 131,628, all in thousands. AI summary

Headline figures

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

Revenue: $290.66M; up 8.6% from $267.56M a year earlier
Net income: $46.73M; up 16.0% from net income of $40.29M a year earlier
Diluted EPS: $1.46; up 17.7% from $1.24 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	September 30, 2026		December 31, 2025
Current assets:	(unaudited)
Cash and cash equivalents	$	66,264	$	74,570
Accounts receivable, net of allowance for credit losses of $1,262 and $862 at September 30, 2026 and December 31, 2025, respectively	145,635		143,596
Inventories, net	177,006		131,449
Prepaid expenses	9,933		9,778
Other current assets	6,039		6,221
Total current assets	404,877		365,614
Property, plant and equipment, net	306,135		306,648
Goodwill	807,487		816,375
Customer relationships and lists, net	120,076		132,994
Other intangible assets with finite lives, net	27,290		30,295
Right of use assets - operating leases	16,319		14,672
Right of use assets - finance lease	1,364		1,520
Other non-current assets	20,024		18,134
Total assets	$	1,703,572	$	1,686,252
Liabilities and Stockholders' Equity
Current liabilities:
Trade accounts payable	$	72,037	$	60,425
Accrued expenses	59,154		49,288
Accrued compensation and other benefits	26,400		27,896
Dividends payable	164		31,044
Income taxes payable	2,385		3,912
Operating lease liabilities - current	3,762		3,614
Finance lease liabilities - current	213		205
Total current liabilities	164,115		176,384
Revolving loan	124,000		164,000
Deferred income taxes	52,273		54,143
Operating lease liabilities - non-current	13,085		11,324
Finance lease liabilities - non-current	1,384		1,544
Other long-term obligations	21,938		21,444
Total liabilities	376,795		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; 31,824,039 and 32,058,121 shares issued and outstanding at September 30, 2026 and December 31, 2025, respectively	2,123		2,139
Additional paid-in capital	47,221		92,331
Retained earnings	1,253,024		1,121,396
Accumulated other comprehensive income	24,409		41,547
Total stockholders' equity	1,326,777		1,257,413
Total liabilities and stockholders' equity	$	1,703,572	$	1,686,252


	Three Months Ended September 30,				Nine Months Ended September 30,
	2026		2025		2026		2025

Net sales	$	290,658	$	267,558	$	845,364	$	773,544

Cost of sales	184,944		172,105		534,883		496,810

Gross margin	105,714		95,453		310,481		276,734

Operating expenses:
Selling expenses	20,690		19,092		62,923		55,318
Research and development expenses	5,343		4,496		15,758		13,458
General and administrative expenses	17,244		17,286		54,516		50,922
	43,277		40,874		133,197		119,698

Earnings from operations	62,437		54,579		177,284		157,036

Other expenses, net:
Interest expense, net	1,934		2,629		6,085		8,319
Other expense (income), net	459		(94)		852		(278)
	2,393		2,535		6,937		8,041

Earnings before income tax expense	60,044		52,044		170,347		148,995

Income tax expense	13,316		11,755		38,719		33,375

Net earnings	$	46,728	$	40,289	$	131,628	$	115,620

Net earnings per common share - basic	$	1.47	$	1.25	$	4.13	$	3.57

Net earnings per common share - diluted	$	1.46	$	1.24	$	4.09	$	3.54


	Three Months Ended September 30,				Nine Months Ended September 30,
	2026		2025		2026		2025

Net earnings	$	46,728	$	40,289	$	131,628	$	115,620

Other comprehensive (loss) income, net of tax:
Foreign currency translation adjustment	(2,791)		85		(17,427)		65,583
Change in postretirement benefit plans	(9)		(1)		289		(240)
Other comprehensive (loss) income	(2,800)		84		(17,138)		65,343

Comprehensive income	$	43,928	$	40,373	$	114,490	$	180,963


	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
Net earnings	46,728		46,728		—		—	—		—
Other comprehensive loss	(2,800)		—		(2,800)		—	—		—
Repurchases of common stock, including excise tax	(28,414)		—		—		(170,618)	(11)		(28,403)
Shares and options issued under stock plans	8,885		—		—		39,123	2		8,883
Balance - September 30, 2026	$	1,326,777	$	1,253,024	$	24,409	31,824,039	$	2,123	$	47,221


	Increase/(Decrease) for the				Increase/(Decrease) for the
	Three Months Ended September 30,				Nine Months Ended September 30,
	2026		2025		2026		2025
Cost of sales	$	555	$	382	$	1,733	$	1,356
Operating expenses	4,484		4,268		14,583		12,942
Net earnings	(3,910)		(3,626)		(12,610)		(11,131)


For the Nine Months Ended September 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	(113)	102.69
Forfeited	(1)	143.43
Canceled	(2)	139.31
Outstanding as of September 30, 2026	855	$	127.57	$	32,936	5.1

Exercisable as of September 30, 2026	639	$	116.86	$	30,721	4.2


	September 30, 2026		December 31, 2025
Raw materials	$	55,660	$	41,858
Work in progress	8,816		6,527
Finished goods	112,530		83,064
Total inventories	$	177,006	$	131,449


	September 30, 2026		December 31, 2025
Land	$	12,211	$	12,428
Building	142,382		116,395
Equipment	364,399		340,322
Construction in progress	64,178		95,229
	583,170		564,374
Less: accumulated depreciation	277,035		257,726
Property, plant and equipment, net	$	306,135	$	306,648


	Amortization Period (in years)	Gross Carrying Amount at September 30, 2026		Accumulated Amortization at September 30, 2026		Gross Carrying Amount at December 31, 2025		Accumulated Amortization at December 31, 2025
Customer relationships and lists	10-20	$	365,861	$	245,785	$	370,763	$	237,769

Trademarks and trade names	2-17	51,547		44,132		52,256		43,655
Developed technology	5-12	41,707		25,020		42,385		23,415
Other	2-18	26,130		22,942		25,178		22,454
Other intangible assets with finite lives		$	119,384	$	92,094	$	119,819	$	89,524


	For the Three Months Ended September 30, 2026
	HNH			ANH			SP			Other and Unallocated			Total
Net sales	$	188,227		$	62,990		$	37,294		$	2,147		$	290,658
Cost of sales	117,788		(1)	48,022		(1)	16,183		(1)	2,951		(1)	184,944
Gross margin	70,439			14,968			21,111			(804)			105,714
Operating expenses	24,806		(2)	8,179		(3)	8,810		(4)	1,482		(5)	43,277
Earnings from operations	45,633			6,789			12,301			(2,286)			62,437
Other expenses:
Interest expense, net													1,934
Other expense, net													459
													2,393
Earnings before income tax expense													60,044
Income tax expense													13,316
Net earnings													$	46,728


(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.


(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.


	Nine Months Ended September 30,
	2026		2025
Cash flows from operating activities:
Net earnings	$	131,628	$	115,620

Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization	37,100		33,969
Stock compensation expense	16,316		14,298
Deferred income taxes	(860)		(273)
Provision for (recovery of) credit losses	410		(118)
Unrealized loss (gain) on foreign currency transactions and deferred compensation	944		(1,207)
Loss (gain) on disposal of assets and asset impairment	2,543		(94)
Changes in assets and liabilities
Accounts receivable	(2,985)		(8,900)
Inventories	(47,332)		2,622
Prepaid expenses and other current assets	(194)		24
Accounts payable and accrued expenses	19,474		(9,024)
Income taxes	(1,677)		1,440
Other	1,177		924
Net cash provided by operating activities	156,544		149,281

Cash flows from investing activities:
Capital expenditures and intangible assets acquired	(29,605)		(27,275)
Cash paid for acquisitions, net of cash acquired	—		(323)
Proceeds from sale of assets	7		267
Investment in affiliates	(155)		(144)
Net cash used in investing activities	(29,753)		(27,475)

Cash flows from financing activities:
Proceeds from revolving loan	88,000		70,000
Principal payments on revolving loan	(128,000)		(106,000)
Principal payments on finance leases	(153)		(145)
Cash paid for financing costs	(1,943)		—
Proceeds from stock options exercised	11,589		6,867
Dividends paid	(30,773)		(28,276)
Repurchases of common stock	(71,925)		(54,008)
Net cash used in financing activities	(133,205)		(111,562)

Effect of exchange rate changes on cash	(1,892)		5,334


	Nine Months Ended September 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


	Nine Months Ended September 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	66	177.16		65	158.89
Vested	(52)	145.16		(34)	137.78
Forfeited	(5)	156.26		(3)	148.11
Non-vested balance as of September 30	156	$	163.10	150	$	149.84


	Nine Months Ended September 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	%


(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	September 30, 2026		December 31, 2025
Human Nutrition and Health	$	1,248,693	$	1,243,522
Animal Nutrition and Health	198,148		176,608
Specialty Products	168,600		172,076
Other and Unallocated (21)	88,131		94,046
Total	$	1,703,572	$	1,686,252


Depreciation/Amortization	Three Months Ended September 30,				Nine Months Ended September 30,
	2026		2025		2026		2025
Human Nutrition and Health	$	8,653	$	7,615	$	25,771	$	22,462
Animal Nutrition and Health	1,820		1,834		5,520		5,424
Specialty Products	1,652		1,872		5,081		5,394
Other and Unallocated	264		231		728		689
Total	$	12,389	$	11,552	$	37,100	$	33,969


Capital Expenditures	Nine Months Ended September 30,
	2026		2025
Human Nutrition and Health	$	11,929	$	14,075
Animal Nutrition and Health	13,744		9,940
Specialty Products	2,568		2,768
Other and Unallocated	325		350
Total	$	28,566	$	27,133


	Foreign currency translation adjustment		Postretirement benefit plan		Total
Balance December 31, 2025	$	41,353	$	194	$	41,547
Other comprehensive (loss) income	(17,427)		289		(17,138)
Balance September 30, 2026	$	23,926	$	483	$	24,409


	Carrying Amount		Fair Value Measurements
			Level 1		Level 2		Level 3
September 30, 2026
Assets:
Money market funds (1)	$	2,234	$	2,234	$	—	$	—
Certificate of deposit with maturities of three months or less (2)	3,403		—		3,403
Rabbi trust funds - current (3)	1,028		1,028		—		—
Rabbi trust funds - non-current (3)	13,234		13,234		—		—

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	September 30, 2026		December 31, 2025
Operating leases	$	16,319	$	14,672
Finance leases	1,364		1,520
Total	$	17,683	$	16,192


Lease liabilities - current	September 30, 2026		December 31, 2025
Operating leases	$	3,762	$	3,614
Finance leases	213		205
Total	$	3,975	$	3,819


Lease liabilities - non-current	September 30, 2026		December 31, 2025
Operating leases	$	13,085	$	11,324
Finance leases	1,384		1,544
Total	$	14,469	$	12,868


Year
October 1, 2026 to December 31, 2026	$	1,491
2027	4,702
2028	3,954
2029	3,381
2030	2,853
2031	2,627
Thereafter	3,270
Total undiscounted lease payments	22,278
Less: Present value adjustment	(3,834)
Present value of lease liabilities	$	18,444


Business Segment Net Sales	Three Months Ended September 30,				Nine Months Ended September 30,
(in thousands)	2026		2025		2026		2025
Human Nutrition & Health	$	188,227	$	174,088	$	536,749	$	493,318
Animal Nutrition & Health	62,990		56,376		189,633		169,681
Specialty Products	37,294		35,683		112,532		106,143
Other and Unallocated (1)	2,147		1,411		6,450		4,402
Total	$	290,658	$	267,558	$	845,364	$	773,544


Business Segment Earnings From Operations	Three Months Ended September 30,				Nine Months Ended September 30,
(in thousands)	2026		2025		2026		2025
Human Nutrition & Health	$	45,633	$	40,831	$	128,034	$	117,147
Animal Nutrition & Health	6,789		3,713		17,708		12,463
Specialty Products	12,301		11,534		37,129		32,388
Other and Unallocated (1)	(2,286)		(1,499)		(5,587)		(4,962)
Total	$	62,437	$	54,579	$	177,284	$	157,036


(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 $578 and $1,495 for the three and nine months ended September 30, 2026, respectively, and $333 and $1,227 for the three and nine months ended September 30, 2025, respectively.


	Three Months Ended September 30,				Increase (Decrease)
(in thousands)	2026		2025				% Change
Net sales	$	290,658	$	267,558	$	23,100	8.6	%
Gross margin	105,714		95,453		10,261		10.7	%
Operating expenses	43,277		40,874		2,403		5.9	%
Earnings from operations	62,437		54,579		7,858		14.4	%
Interest and other expenses	2,393		2,535		(142)		(5.6)	%
Income tax expense	13,316		11,755		1,561		13.3	%
Net earnings	$	46,728	$	40,289	$	6,439	16.0	%


	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

July 1-31, 2026	112,138	$	164.23	112,138	$	582,208,785
August 1-31, 2026	53	$	175.89	53	$	623,533,744
September 1-30, 2026	58,427	$	167.25	58,427	$	583,122,624
Third Quarter	170,618			170,618

Total	443,747			443,747

(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 513,406 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						Amendment No. 1 to Amended and Restated Credit Agreement, dated as of July 24, 2026, among Balchem, the Foreign Borrower, the Domestic Guarantors, the Agents, and the lenders party thereto (incorporated by reference to Exhibit 10.1 of the Company's Current Report on Form 8-K filed July 27, 2026).
Exhibit 10.2						Omnibus Reaffirmation and Amendment Agreement, dated as of July 24, 2026, among Balchem, the Domestic Guarantors and JPMorgan Chase Bank, N.A. (incorporated by reference to Exhibit 10.2 to the Company's Current Report on Form 8-K filed on July 27, 2026).
Exhibit 19.1						Balchem Corporation Insider Trading Policy (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: October 23, 2026


Date: October 23, 2026			/s/ Theodore L. Harris
			Theodore L. Harris
			Chairman, President, and Chief Executive Officer
			(Principal Executive Officer)


Date: October 23, 2026			/s/ Martin Bengtsson
			Martin Bengtsson
			Executive Vice President and Chief Financial Officer
			(Principal Financial Officer)