Balchem (BCPC) Q2 2025 earnings summary

Executive summary

• Achieved record Q2 2025 net sales of $255.5 million, up 9.1% year-over-year, with all business segments contributing to growth.

• Net earnings rose 19.4% to $38.3 million, with margin and profit growth across all segments.

• Adjusted EBITDA reached $69.2 million, up 11.2% year-over-year, with a margin of 27.1%.

• Strategic investments in capacity expansion, scientific research, and sustainability initiatives support future growth.

• Surpassed 2030 GHG reduction goals and aligned ~70% of revenue with UN SDGs.

Financial highlights

• Q2 2025 consolidated revenue was $255.5 million, up 9.1% year-over-year; adjusted EBITDA was $69.2 million, up 11.2%.

• Net earnings for Q2 2025 were $38.3 million, up 19.4%; adjusted net earnings were $41.6 million.

• Diluted GAAP EPS was $1.17, up from $0.98; adjusted EPS was $1.27, up from $1.09.

• Gross margin was $93.1 million (36.4% of sales), up 12.2% and 90 bps year-over-year.

• Free cash flow for the quarter was $40.7 million; cash on hand at quarter-end was $65.4 million.

Outlook and guidance

• Positive outlook for the second half of 2025, with healthy demand expected across all segments.

• Strategic focus on organic growth, innovation, and targeted M&A to drive future performance.

• New microencapsulation facility in New York expected to double capacity and support double-digit growth rates; production to start late 2027 into 2028.

• Management remains confident in long-term growth, citing resilience and strong results in various market environments.

• No material impact anticipated from recent U.S. tax law changes or EU Pillar Two Directive.