Balchem's three segments all delivered double-digit revenue growth in Q2 2026, driving record net sales of $284M and adjusted EBITDA of $77.9M. The company sees momentum continuing.
Balchem Corporation (NASDAQ: BCPC) reported record quarterly net sales of $284.0 million for the second quarter ended June 30, 2026. Net earnings hit $44.6 million and adjusted EBITDA reached $77.9 million, both also records, the company said Thursday.
CEO Ted Harris called the quarter “another very strong quarter for Balchem with healthy growth in all three of our reporting segments.” He pointed to record net sales, net earnings, and adjusted EBITDA on a consolidated basis, plus solid cash flows.
The Human Nutrition and Health segment generated record quarterly sales of $176.9 million, up 10.0% from a year earlier. Earnings from operations for the segment rose 10.5% to $42.4 million. The company attributed the gains to higher sales in both the nutrients business and the food ingredients and solutions businesses, partially offset by higher manufacturing input costs and operating expenses. Adjusted earnings from operations, excluding amortization of acquired intangibles and other adjustments, came in at $45.9 million, up 10.9%.
Animal Nutrition and Health posted sales of $64.5 million, a 15.0% increase. The company said higher sales in monogastric and ruminant species markets drove the growth. Segment earnings from operations jumped 48.7% to $5.2 million. Adjusted earnings from operations were $5.6 million, up 47.7%.
The Specialty Products segment delivered record quarterly sales of $40.5 million, up 8.9%, with gains in both performance gases and plant nutrition. Segment earnings from operations rose 14.4% to a record $12.9 million. Adjusted earnings from operations reached $13.9 million, up 12.1%.
Consolidated gross margin increased 11.4% to $103.7 million, or 36.5% of sales, up 10 basis points from 36.4% a year ago. Operating expenses rose $2.8 million to $44.5 million, mainly on higher compensation costs.
Net interest expense fell to $1.9 million from $2.8 million, reflecting lower outstanding borrowings and lower interest rates. The effective tax rate was 22.8%, up from 21.9%, primarily due to lower tax benefits from stock-based compensation.
Cash from operations was $46.7 million in the quarter, generating free cash flow of $36.2 million. The company ended June with $63.2 million in cash and $152.0 million drawn on its revolving loan. Net debt stood at $88.8 million, giving a leverage ratio of 0.3 times. During the quarter, Balchem repurchased $28.8 million of common stock, paid $27.8 million in income taxes, made $17.0 million in net debt payments, and spent $10.9 million on capital expenditures and intangible assets.
Harris added that the first half of 2026 “continue the strong growth momentum we have built over the years” and expressed confidence in the long-term outlook.
Balchem operates three segments: Human Nutrition and Health, which supplies customized food and beverage ingredient systems and nutrients; Animal Nutrition and Health, which serves animal health markets; and Specialty Products, which provides specialty-packaged performance gases and chelated minerals for agriculture. The company is currently unscored by AlphaScala's proprietary model. More details are available on the BCPC stock page.
A conference call to discuss the results is scheduled for 11:00 a.m. Eastern Time on Friday, July 31.
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