Balchem (BCPC) investor relations material

Executive summary

• Achieved record Q1 2026 consolidated sales of $270.7 million, up 8.1% year-over-year, with growth across all business segments and strong cash flows.

• Adjusted EBITDA increased 12.1% to $74.3 million, with net earnings up 8.7% to $40.3 million and adjusted net earnings at $43 million.

• Strategic growth initiatives, including research on VitaCholine and sustainability efforts, advanced with the release of the 2025 Sustainability Report.

• Demonstrated resilience and adaptability amid evolving global market and geopolitical conditions.

• Continued healthy demand in end markets, especially in Human Nutrition and Health, driven by trends toward nutrient-dense, high-protein, and low-sugar foods.

Financial highlights

• Quarterly consolidated revenue reached $270.7 million, up 8.1% year-over-year, with gross margin dollars at $101.1 million and margin percent expanding to 37.3%.

• GAAP earnings from operations were $55.6 million, up 9%, and adjusted EBITDA was $74.3 million, up 12.1% with a margin of 27.4%.

• Net income was $40.3 million, up 8.7%, with GAAP EPS at $1.25 and adjusted EPS at $1.33, both up year-over-year.

• Cash flows from operations were $40.1 million, with free cash flow of $33.8 million and $72.9 million in cash at quarter-end.

• Repurchases of common stock totaled $15.7 million and dividend payments were $30.8 million in Q1 2026.

Outlook and guidance

• Expectation of continued quarterly year-over-year consolidated growth, supported by strategic initiatives and innovation, despite modest margin compression from input cost inflation and pricing lag.

• Management remains confident in long-term growth and plans to remain nimble amid geopolitical and global trade uncertainties.

• Effective tax rate for planning remains at 23%, with some quarterly fluctuations expected.

• Management expects sufficient cash flow to fund working capital and capital investments, and is actively pursuing additional acquisition candidates.

• No material impact expected from recent Supreme Court tariff ruling or new tariffs; monitoring ongoing developments.