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Balchem: Balchem's Strong FY2025 Results: Growth Across Segments

Balchem Corporation reported record fourth quarter consolidated sales of $264 million, a 9.8% increase from the prior year, and record full-year sales of $1.037 billion, an 8.8% growth. The company's adjusted EBITDA for the full year was $275 million, up 9.8%, and adjusted net earnings per share for the fourth quarter was $1.31, beating estimates of $1.29. Gross margin dollars for the fourth quarter were $94 million, up 8.8%, but gross margin percentage was 35.6%, down 40 basis points due to higher manufacturing input costs.

BCPC

USD 171.3

-2.11%

A-Score: 4.9/10

Publication date: February 20, 2026

Full Report

Author: Analystock.ai

📋 Highlights
  • Record Full-Year Sales: Achieved $1,037M in 2025, a 8.8% increase from the prior year, surpassing the $1B threshold for the first time.
  • Adjusted EBITDA Growth: Generated $275M in adjusted EBITDA, reflecting a 9.8% year-over-year increase driven by operational efficiency and pricing.
  • Free Cash Flow Strength: Delivered $174M in free cash flow while investing $43M in capital projects to support long-term growth.
  • Share Repurchases and Dividend Rise: Repurchased 685K shares at $158 average and boosted dividend to $0.96/share (10% increase YoY).
  • Fourth-Quarter Sales Surge: Q4 sales hit $264M, up 9.8% YoY, with adjusted net earnings of $42M, a 14.8% increase over the prior year.

Segment Performance

The Human Nutrition and Health segment drove growth with sales of $166 million, a 12.7% increase, led by higher sales in Nutrients and Food Ingredients and Solutions businesses. The Animal Nutrition and Health segment saw sales of $61 million, up 4.9%, while the Specialty Products segment delivered sales of $35 million, a 6% increase, driven by the Performance Gases business.

Valuation and Outlook

With a P/E Ratio of 35.75 and an EV/EBITDA of 21.68, the market is pricing in a certain level of growth. Analysts estimate next year's revenue growth at 4.3%. Given Balchem's strong competitive positions and differentiated product portfolio, the company is well-positioned to deliver continued top and bottom-line growth. The company's guidance on the effective tax rate of 23% for modeling purposes and its plans to continue investing in marketing and partnerships are positive indicators.

Growth Initiatives and International Expansion

Balchem is focused on expanding its presence in international markets, with half of its recent growth coming from outside the US. The company is investing in marketing campaigns for its MSM product and exploring partnerships with professional sports leagues. As Ted Harris mentioned, "We are excited about 2026, and I believe the company is well-positioned to deliver continued top and bottom-line growth on a full-year basis while further advancing our important growth initiatives."

Tariff Impact and Risk Management

The company is relatively well-shielded from the potential impact of tariffs, with a manageable effect of around $20 million. Balchem's regional manufacturing and strong market positions have allowed it to raise prices to offset tariffs. The company's diversified portfolio and geographic expansion plans help mitigate potential risks.

Balchem's A-Score