Balchem Corporation (NASDAQ: BCPC) reported record fourth‑quarter and full‑year 2025 results, with net sales of $263.6 million for the quarter and $1.037 billion for the year. Net earnings reached $39.2 million in Q4 and $154.8 million for the full year, while adjusted EBITDA climbed to $67.9 million in the quarter and $274.9 million for the year. Free cash flow was $51.2 million in Q4 and $173.6 million for the year, underscoring strong cash generation.
The Human Nutrition and Health segment drove the majority of growth, generating $166.1 million in Q4 sales, up 12.7% year‑over‑year. Animal Nutrition and Health added $61.2 million, a 4.9% increase, and Specialty Products contributed $34.8 million, up 6.0% YoY. These gains reflect continued demand for high‑margin specialty ingredients and the company’s focus on the “better for you” trend.
Balchem’s adjusted earnings per share of $1.31 met consensus estimates of $1.31, while revenue of $263.6 million fell slightly short of the $264.8 million consensus but exceeded the lower $259.6 million estimate. The earnings beat was largely driven by disciplined cost management and a favorable product mix, while the modest revenue miss was attributed to higher manufacturing input costs that compressed gross margin by about 40 basis points.
Gross margin compression was offset by pricing discipline and lower raw‑material costs in certain product lines. Management noted that higher manufacturing input costs partially offset gains, but pricing power in core segments helped maintain profitability. The company’s operating income reflected these dynamics, with earnings from operations of $36.8 million in Human Nutrition and Health, $6.2 million in Animal Nutrition and Health, and $10.5 million in Specialty Products.
"In the fourth quarter, Balchem's strong growth trajectory continued. We delivered record fourth quarter net sales and adjusted EBITDA, with top and bottom line growth year over year in each of our three segments, driven by ongoing progress on our focused growth platforms and our company's alignment with the favorable 'better for you' trends," said Ted Harris, Chairman, President, and CEO. "For the full year 2025, Balchem delivered another very strong year… allowing us to increase our dividend once again by a double digit percentage while further strengthening our balance sheet."
Investors responded positively to the earnings beat and record cash flow, highlighting the company’s robust performance and confidence in its growth strategy.
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