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Balchem Corporation (BCPC) Q3 2026 Earnings Call October 23, 2026 11:00 AM EDT

Company Participants

Carl Bengtsson - Executive VP, CFO, Treasurer and GM of Animal Nutrition & Health
Theodore Harris - CEO, President & Chairman

Conference Call Participants

Bob Labick - CJS Securities, Inc.
Daniel Harriman - Sidoti & Company, LLC
Raghuram Selvaraju - H.C. Wainwright & Co, LLC, Research Division

Presentation

Operator

Hello, everyone. Thank you for joining us, and welcome to the Balchem Third Quarter 2026 Earnings Call. [Operator Instructions] I will now hand the conference over to Martin Bengtsson, Balchem's Chief Financial Officer. Please go ahead.

Carl Bengtsson
Executive VP, CFO, Treasurer and GM of Animal Nutrition & Health

Thank you. Good morning, everyone. Thank you for joining our conference call this morning to discuss the results of Balchem Corporation for the quarter ending September 30, 2026. My name is Martin Bengtsson, Chief Financial Officer, and hosting this call with me is Ted Harris, our Chairman, President and CEO.

Following the advice of our counsel, auditors and the SEC, at this time, I would like to read our forward-looking statement. Statements made in today's call that are not historical facts are considered forward-looking statements. We can give no assurance that the expectations reflected in forward-looking statements will prove correct, and various factors could cause actual results to differ materially from our expectations, including risks and factors identified in Balchem's most recent Form 10-K, 10-Q and 8-K reports.

The company assumes no obligation to update these forward-looking statements. Today's call and commentary also include non-GAAP financial measures. Please refer to the reconciliations in our earnings release for further details.

I will now turn the call over to Ted Harris, our Chairman, President and CEO.

Theodore Harris
CEO, President & Chairman

Thanks, Martin. Good morning, and welcome to our conference call. We were

MONTVALE, N.J., Oct. 23, 2026 (GLOBE NEWSWIRE) -- Balchem Corporation (NASDAQ: BCPC) today reported financial results for its 2026 fiscal third quarter ended September 30, 2026. For the quarter, the Company reported net sales of $290.7 million, net earnings of $46.7 million, adjusted EBITDA(a) of $80.3 million, and free cash flow(a) of $57.9 million.

Ted Harris, Chairman, President and CEO of Balchem, said, “Balchem delivered another excellent quarter, with healthy growth across all three of our reporting segments and record consolidated quarterly net sales, net earnings, and adjusted EBITDA.”

Third Quarter 2026 Financial Highlights:

Net sales were $290.7 million, an increase of 8.6% from the prior year quarter.GAAP net earnings were $46.7 million, an increase of 16.0% from the prior year quarter.Adjusted EBITDA was $80.3 million, an increase of 12.4% from the prior year quarter.GAAP earnings per share were $1.46 compared to $1.24 in the prior year quarter and adjusted earnings per share(a) were $1.57 compared to $1.35 in the prior year quarter.Cash flows from operations were $69.8 million, with free cash flow of $57.9 million.Sales and earnings from operations growth in all three of our reporting segments. Recent Highlights:

At the upcoming SupplySide Global trade show, we will showcase several of our latest Human Nutrition and Health technologies and innovations, including new science supporting VitaCholine®, K2VITAL™, Optifolin+® and OptiMSM®, as well as advances in performance nutrition and functional food and beverage applications. These innovations highlight the strength of our pipeline and our continued focus on developing differentiated, science-backed solutions that address important human health and wellness trends.Balchem repurchased approximately $28 million of common stock during the third quarter and approximately $127 million over the trailing twelve months, reflecting the Company's balanced capital allocation strategy and commitment to long-term shareholder value creation. Mr. Harris added, “With strong results through the first nine months of the year and a healthy balance sheet, Balchem is well positioned to continue executing our strategic growth initiatives, and we remain excited about the future of our company.”

Results for Period EndedSeptember 30, 2026 (unaudited)
(Dollars in thousands, except per share data)  Three Months Ended
September 30,
 Nine Months Ended
September 30,
   2026   2025   2026   2025 Net sales $290,658  $267,558  $845,364  $773,544 Gross margin  105,714   95,453   310,481   276,734 Operating expenses  43,277   40,874   133,197   119,698 Earnings from operations  62,437   54,579   177,284   157,036 Interest and other expenses  2,393   2,535   6,937   8,041 Earnings before income tax expense  60,044   52,044   170,347   148,995 Income tax expense  13,316   11,755   38,719   33,375 Net earnings $46,728  $40,289  $131,628  $115,620              Diluted net earnings per common share $1.46  $1.24  $4.09  $3.54              Adjusted EBITDA (a) $80,297  $71,447  $232,522  $206,961 Adjusted net earnings (a) $50,350  $43,982  $141,437  $125,560 Adjusted net earnings per common share (a) $1.57  $1.35  $4.40  $3.84              Shares used in the calculations of diluted and adjusted net earnings per common share  32,032   32,595   32,181   32,702  (a)See “Non-GAAP Financial Information” for a reconciliation of GAAP and non-GAAP financial measures.
Financial Results for the Third Quarter of 2026:

The Human Nutrition and Health segment generated record quarterly sales of $188.2 million, an increase of $14.1 million, or 8.1%, compared to the prior year quarter. The increase was driven by higher sales within both the nutrients business and the food ingredients and solutions businesses. Record earnings from operations for this segment of $45.6 million increased $4.8 million, or 11.8%, compared to $40.8 million in the prior year quarter, primarily due to the aforementioned higher sales and favorable mix, partially offset by higher operating expenses. Excluding the effect of non-cash expense associated with amortization of acquired intangible assets and other adjustments, record adjusted earnings from operations(a) for this segment were $48.9 million, compared to $44.1 million in the prior year quarter, an increase of 10.9%.

The Animal Nutrition and Health segment generated quarterly sales of $63.0 million, an increase of $6.6 million, or 11.7%, compared to the prior year quarter. The increase was driven by higher sales in both the monogastric and ruminant species markets. Third quarter earnings from operations for this segment of $6.8 million increased $3.1 million, or 82.8%, compared to $3.7 million in the prior year quarter, primarily due to the aforementioned higher sales and favorable mix, partially offset by certain higher manufacturing input costs. Excluding the effect of non-cash expense associated with amortization of acquired intangible assets and other adjustments, adjusted earnings from operations for this segment were $7.0 million compared to $4.0 million in the prior year quarter, an increase of 73.6%.

The Specialty Products segment generated quarterly sales of $37.3 million, an increase of $1.6 million, or 4.5%, compared to the prior year quarter, due to higher sales in the performance gases business. Earnings from operations for this segment of $12.3 million increased $0.8 million, or 6.6%, compared to $11.5 million in the prior year quarter, primarily driven by the aforementioned higher sales and favorable mix, partially offset by higher operating expenses. Excluding the effect of non-cash expense associated with amortization of acquired intangible assets and other adjustments, adjusted earnings from operations for this segment were $13.1 million, compared to $12.7 million in the prior year quarter, an increase of 3.0%.

Consolidated quarterly gross margin of $105.7 million increased by $10.3 million, or 10.7%, compared to $95.5 million for the prior year comparable period. Gross margin as a percentage of sales was 36.4% compared to 35.7% in the prior year period, an increase of 70 basis points, primarily due to sales growth, favorable mix and manufacturing efficiencies, partially offset by certain higher manufacturing input costs. Operating expenses of $43.3 million for the quarter increased $2.4 million from the prior year comparable quarter, primarily due to higher compensation-related costs, partially offset by the net favorable impact of certain discrete items.

Net interest expense was $1.9 million and $2.6 million in the third quarters of 2026 and 2025, respectively. The decrease in interest expense was primarily due to lower outstanding borrowings and lower interest rates. Our effective tax rates for the three months ended September 30, 2026 and 2025 were 22.2% and 22.6%, respectively. The decrease in the effective tax rate was primarily due to higher favorable adjustments related to the filing of the prior year federal tax return and a higher foreign-derived intangible income deduction benefit, partially offset by an increase in certain state taxes.

Third quarter cash flows provided by operating activities were $69.8 million and free cash flow was $57.9 million. Net working capital of $240.8 million as of September 30, 2026 included a cash balance of $66.3 million. Significant cash payments during the quarter included net debt payments of $28.0 million, income taxes paid of $27.8 million, repurchases of common stock of $27.4 million, and capital expenditures and intangible assets acquired of $12.5 million. Outstanding debt on our revolving loan was $124.0 million as of September 30, 2026 and our net debt (b) was $57.7 million, with an overall leverage ratio (c) on a net debt basis of 0.2 times.

Mr. Harris said, “The Balchem team delivered another strong quarter in Q3 of 2026, and we remain confident in the long-term growth outlook for our company as we continue to execute our strategic growth initiatives.”

(b)Net debt is defined as the outstanding balance on our revolving loan less cash and cash equivalents.(c)Leverage ratio is defined as net debt divided by trailing twelve months adjusted EBITDA.
Quarterly Conference Call

A quarterly conference call will be held on Friday, October 23, 2026, at 11:00 AM Eastern Time (ET) to review third quarter 2026 results. Ted Harris, Chairman, President and CEO and Martin Bengtsson, CFO, will host the call. Institutional investors, analysts and other members of the financial community are invited to join the live call by dialing +1-833-461-5787 (USA/Canada toll free) or +1-585-542-9983 (International Toll), and referencing Meeting ID: 831870284, five minutes prior to the scheduled start time of the conference call. Investors and the public are invited to listen to the live webcast at https://events.q4inc.com/attendee/831870284. The conference call will be available for replay shortly after the conclusion of the call at https://events.q4inc.com/attendee/831870284 for one year.

Segment Information

Balchem Corporation reports three business segments: Human Nutrition and Health, Animal Nutrition and Health, and Specialty Products. The Human Nutrition and Health segment delivers customized food and beverage ingredient systems, as well as key nutrients into a variety of applications across the food, supplement and pharmaceutical industries. The Animal Nutrition and Health segment manufactures and supplies products to numerous animal health markets. Through Specialty Products, Balchem provides specialty-packaged performance gases for use in healthcare and other industries, and also provides chelated minerals to the micronutrient agricultural market. Sales and production of products outside of our reportable segments and other minor business activities are included in "Other and Unallocated".

Forward-Looking Statements

This release contains forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, as amended, which reflect our expectation or belief concerning future events that involve risks and uncertainties. These forward-looking statements generally are identified by the words "believe," "project," "expect," "anticipate," "estimate," "forecast," "outlook," "intend," "strategy," "future," "opportunity," "plan," "may," "should," "will," "would," "will be," "will continue," "will likely result," or the negative thereof or variations thereon or similar expressions generally intended to identify forward-looking statements. Forward-looking statements may relate to such matters as projections of revenue, margins, expenses, tax provisions, earnings, cash flows, benefit obligations, dividends, share repurchases or other financial items; any statements of the plans, strategies and objectives of management for future operations, including those relating to any statements concerning expected development, performance or market share relating to our products and services; any statements regarding future economic conditions or our performance; any statements regarding pending investigations, claims or disputes; any statements of expectation or belief; and any statements of assumptions underlying any of the foregoing. These statements are based on the Company's currently available information and our current assumptions, expectations and projections about future events. They are subject to future events, risks and uncertainties - many of which are beyond the Company’s control - as well as potentially inaccurate assumptions, that could cause actual results to differ materially from those in the forward-looking statements. Important factors and other risks that may affect the Company's business or that could cause actual results to differ materially are included in filings the Company makes with the U.S. Securities and Exchange Commission from time to time, including its Annual Report on Form 10-K, its Quarterly Reports on Form 10-Q, its Current Reports on Form 8-K, and in its other SEC filings. Reference should be made to such factors and all forward-looking statements are qualified in their entirety by the above cautionary statements. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Contact: Jacqueline Yarmolowicz, Balchem Corporation (Telephone: 845-326-5600)

Selected Financial Data (unaudited)
($ in 000’s)

Business Segment Net Sales: Three Months Ended
September 30,
 Nine Months Ended
September 30,
   2026   2025   2026   2025 Human Nutrition and Health $188,227  $174,088  $536,749  $493,318 Animal Nutrition and Health  62,990   56,376   189,633   169,681 Specialty Products  37,294   35,683   112,532   106,143 Other (d)  2,147   1,411   6,450   4,402 Total $290,658  $267,558  $845,364  $773,544              (d) Other consists of a few minor businesses which individually do not meet the quantitative thresholds for separate presentation.
Business Segment Earnings Before Income Taxes: Three Months Ended
September 30, Nine Months Ended
September 30,   2026   2025   2026   2025 Human Nutrition and Health $45,633  $40,831  $128,034  $117,147 Animal Nutrition and Health  6,789   3,713   17,708   12,463 Specialty Products  12,301   11,534   37,129   32,388 Other and Unallocated (e)  (2,286)  (1,499)  (5,587)  (4,962)Interest and other expenses  (2,393)  (2,535)  (6,937)  (8,041)Total $60,044  $52,044  $170,347  $148,995          (e) Other and Unallocated consists of a few minor businesses which individually do not meet the quantitative thresholds for separate presentation and corporate expenses that have not been allocated to a segment. Unallocated corporate expenses consist of transaction and integration costs of $578 and $1,495 for the three and nine months ended September 30, 2026, respectively, and $333 and $1,227 for the three and nine months ended September 30, 2025, respectively. Selected Balance Sheet Items      (Dollars in thousands) September 30, 2026
 December 31, 2025
  (unaudited)
          Cash and cash equivalents $66,264  $74,570 Accounts receivable, net  145,635   143,596 Inventories  177,006   131,449 Other current assets  15,972   15,999 Total current assets  404,877   365,614        Property, plant and equipment, net  306,135   306,648 Goodwill  807,487   816,375 Intangible assets with finite lives, net  147,366   163,289 Right of use assets  17,683   16,192 Other assets  20,024   18,134 Total non-current assets  1,298,695   1,320,638        Total assets $1,703,572  $1,686,252        Current liabilities $164,115  $176,384 Revolving loan  124,000   164,000 Deferred income taxes  52,273   54,143 Other long-term obligations  36,407   34,312 Total liabilities  376,795   428,839        Stockholders' equity  1,326,777   1,257,413        Total liabilities and stockholders' equity $1,703,572  $1,686,252  Balchem Corporation
Condensed Consolidated Statements of Cash Flows
(Dollars in thousands)
(unaudited)  Nine Months Ended September 30,   2026   2025 Cash flows from operating activities:    Net earnings $131,628  $115,620 Adjustments to reconcile net earnings to net cash provided by operating activities:    Depreciation and amortization  37,100   33,969 Stock compensation expense  16,316   14,298 Other adjustments  3,037   (1,692)Changes in assets and liabilities  (31,537)  (12,914)Net cash provided by operating activities  156,544   149,281      Cash flows from investing activities:    Capital expenditures and intangible assets acquired  (29,605)  (27,275)Cash paid for acquisitions, net of cash acquired  —   (323)Proceeds from the sale of assets  7   267 Investment in affiliates  (155)  (144)Net cash used in investing activities  (29,753)  (27,475)     Cash flows from financing activities:    Proceeds from revolving loan  88,000   70,000 Principal payments on revolving loan  (128,000)  (106,000)Principal payments on finance leases  (153)  (145)Cash paid for financing costs  (1,943)  — Proceeds from stock options exercised  11,589   6,867 Dividends paid  (30,773)  (28,276)Repurchases of common stock  (71,925)  (54,008)Net cash used in financing activities  (133,205)  (111,562)     Effect of exchange rate changes on cash  (1,892)  5,334      (Decrease) increase in cash and cash equivalents  (8,306)  15,578      Cash and cash equivalents, beginning of period  74,570   49,515 Cash and cash equivalents, end of period $66,264  $65,093 
Non-GAAP Financial Information

In addition to disclosing financial results in accordance with United States (U.S.) generally accepted accounting principles (GAAP), this earnings release contains non-GAAP financial measures that we believe are helpful in understanding and comparing our past financial performance and our future results. The non-GAAP financial measures in this press release include adjusted gross margin, adjusted earnings from operations, adjusted net earnings and the related adjusted diluted per share amounts, EBITDA, adjusted EBITDA, adjusted income tax expense, free cash flow, net debt, and leverage ratio. The non-GAAP financial measures disclosed by the Company exclude certain business combination accounting adjustments and certain other items related to acquisitions, certain equity compensation, nonqualified deferred compensation plan expense (income), and certain one-time or unusual transactions. Detailed non-GAAP adjustments are described in the reconciliation tables below and also explained in the related footnotes. These non-GAAP financial measures should not be considered a substitute for, or superior to, financial measures calculated in accordance with GAAP, and the financial results calculated in accordance with GAAP and reconciliations from these results should be carefully evaluated. Investors should not consider non-GAAP measures as alternatives to the related GAAP measures.

Set forth below are reconciliations of the non-GAAP financial measures to the most directly comparable GAAP financial measures.

Table 1
(unaudited)

Reconciliation of Non-GAAP Measures to GAAP
(Dollars in thousands, except per share data)  Three Months Ended
September 30, Nine Months Ended
September 30,   2026   2025   2026   2025 Reconciliation of adjusted gross margin        GAAP gross margin $105,714  $95,453  $310,481  $276,734 Amortization of intangible assets and finance leases (1)  715   739   2,162   2,156 Adjusted gross margin $106,429  $96,192  $312,643  $278,890          Reconciliation of adjusted earnings from operations        GAAP earnings from operations $62,437  $54,579  $177,284  $157,036 Amortization of intangible assets and finance leases (1)  4,333   4,394   13,137   12,819 Transaction and integration costs (2)  578   333   1,495   1,227 Nonqualified deferred compensation plan expense (3)  (45)  404   572   839 Restructuring costs (4)  —   —   —   (192)Adjusted earnings from operations $67,303  $59,710  $192,488  $171,729          Reconciliation of adjusted net earnings        GAAP net earnings $46,728  $40,289  $131,628  $115,620 Amortization of intangible assets and finance leases (1)  4,433   4,467   13,381   13,035 Transaction and integration costs (2)  578   333   1,495   1,227 Restructuring costs (4)  —   —   —   (192)Income tax adjustment (5)  (1,389)  (1,107)  (5,067)  (4,130)Adjusted net earnings $50,350  $43,982  $141,437  $125,560          Adjusted net earnings per common share - diluted $1.57  $1.35  $4.40  $3.84 
Table 2 
(unaudited)

Reconciliation of GAAP Net Earnings to EBITDA and to Adjusted EBITDA
(Dollars in thousands)  Three Months Ended
September 30,
 Nine Months Ended
September 30,  2026   2025   2026   2025 Net earnings - as reported $46,728  $40,289  $131,628  $115,620 Add back:          Provision for income taxes  13,316   11,755   38,719   33,375 Interest and other expenses  2,393   2,535   6,937   8,041 Depreciation and amortization  12,288   11,481   36,855   33,753 EBITDA  74,725   66,060   214,139   190,789 Add back:          Non-cash compensation expense related to equity awards  5,039   4,650   16,316   14,298 Transaction and integration costs (2)  578   333   1,495   1,227 Nonqualified deferred compensation plan expense (3)  (45)  404   572   839 Restructuring costs (4)  —   —   —   (192)Adjusted EBITDA $80,297  $71,447  $232,522  $206,961 
Table 3
(unaudited)

Reconciliation of GAAP Effective Income Tax Rate to Non-GAAP Effective Income Tax Rate
(Dollars in thousands)  Three Months Ended September 30,  2026  Effective Tax Rate  2025  Effective Tax RateGAAP Income Tax Expense $13,316  22.2% $11,755  22.6%Impact of ASU 2016-09 (6)  260     21   Adjusted Income Tax Expense $13,576  22.6% $11,776  22.6%   Nine Months Ended September 30,  2026  Effective Tax Rate  2025  Effective Tax RateGAAP Income Tax Expense $38,719  22.7% $33,375  22.4%Impact of ASU 2016-09 (6)  1,550     894   Adjusted Income Tax Expense $40,269  23.6% $34,269  23.0%
Table 4
(unaudited)

Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow
(Dollars in thousands)  Three Months Ended
September 30, Nine Months Ended
September 30,   2026   2025   2026   2025 Net cash provided by operating activities $69,772  $65,572  $156,544  $149,281 Capital expenditures and proceeds from the sale of assets  (11,863)  (14,891)  (28,559)  (26,866)Free cash flow $57,909  $50,681  $127,985  $122,415  (1) Amortization of intangible assets and finance leases: Amortization of intangible assets and finance leases consists of amortization of customer relationships, trademarks and trade names, developed technology, regulatory registration costs, patents and trade secrets, capitalized loan issuance costs, other intangibles acquired primarily in connection with business combinations, and finance leases. We record expense relating to the amortization of these intangibles and finance leases in our GAAP financial statements. Amortization expenses for our intangible assets and finance leases are inconsistent in amount and are significantly impacted by the timing and valuation of acquisitions. Consequently, our non-GAAP adjustments exclude these expenses to facilitate an evaluation of our current operating performance and comparisons to our past operating performance. (2) Transaction and integration costs: Transaction and integration costs related to acquisitions and divestitures are expensed in our GAAP financial statements. Management excludes these items for the purposes of calculating adjusted EBITDA and other non-GAAP financial measures. We believe that excluding these items from our non-GAAP financial measures is useful to investors because these are items associated with transactions that are inconsistent in amount and frequency causing comparison of current and historical financial results to be difficult. (3) Nonqualified deferred compensation plan (income) expense: Gains and losses on rabbi trust assets related to our nonqualified deferred compensation plan are recorded in other (income) expense while the offsetting increases or decreases to the deferred compensation liability are recorded within earnings from operations. The increases and decreases in the deferred compensation liability are driven by market volatility and are not a true reflection of company performance. We believe excluding these amounts from our non-GAAP financial measures is useful to investors because these items are inconsistent in amount based on market conditions causing comparison of current and historical financial results to be difficult. (4) Restructuring costs: Restructuring costs related to a reorganization of the business are recorded in our GAAP financial statements. Management excludes these items for the purposes of calculating adjusted EBITDA and other non-GAAP financial measures. We believe that excluding these items from our non-GAAP financial measures is useful to investors because these items are inconsistent in amount and frequency causing comparison of current and historical financial results to be difficult. (5) Income tax adjustment: For purposes of calculating adjusted net earnings and adjusted diluted earnings per share, we adjust the provision for (benefit from) income taxes to tax effect the taxable and deductible non-GAAP adjustments described above as they have a significant impact on our income tax (benefit) provision. Additionally, the income tax adjustment is adjusted for the impact of adopting ASU 2016-09, “Improvements to Employee Share-Based Payment Accounting” and uses our non-GAAP effective rate applied to both our GAAP earnings before income tax expense and non-GAAP adjustments described above. See Table 3 for the calculation of our non-GAAP effective tax rate. (6) Impact of ASU 2016-09: The primary impact of ASU No. 2016-09, "Improvements to Employee Share-Based Payment Accounting" ("ASU 2016-09"), was the recognition during the three and nine months ended September 30, 2026 and 2025, of excess tax benefits as a reduction to the provision for income taxes and the classification of these excess tax benefits in operating activities in the consolidated statement of cash flows instead of financing activities. Management excludes this item for the purpose of calculating adjusted Income Tax Expense. We believe that excluding the item in our non-GAAP financial measures is useful to investors because it is inconsistent in amount and frequency causing comparison of current and historical financial results to be difficult.

MONTVALE, N.J., Sept. 09, 2026 (GLOBE NEWSWIRE) -- Balchem Corporation (NASDAQ: BCPC), a global specialty ingredient manufacturer for health and nutrition markets, announced they will participate in the 9th Annual Wells Fargo Consumer Conference on September 23, 2026. Ted Harris, Chairman of the Board, President and Chief Executive Officer, Martin Bengtsson, Chief Financial Officer and Allison Baurichter, Senior Director Investor Relations will participate in the conference.

About Balchem Corporation

Balchem Corporation develops, manufactures and markets specialty ingredients that improve and enhance the health and well-being of life on the planet, providing state-of-the-art solutions and the finest quality products for a range of industries worldwide. The company reports three business segments: Human Nutrition & Health; Animal Nutrition & Health; and Specialty Products. The Human Nutrition & Health segment delivers customized food and beverage ingredient systems, as well as key nutrients into a variety of applications across the food, supplement and pharmaceutical industries. The Animal Nutrition & Health segment manufactures and supplies products to numerous animal health markets. Through Specialty Products, Balchem provides specialty-packaged chemicals for use in healthcare and other industries, and also provides chelated minerals to the micronutrient agricultural market.

Contact:Jacqueline Yarmolowicz
Balchem Corporation (Telephone: 845-326-5600)

Balchem Corporation (BCPC) Q2 2026 Earnings Call Transcript

MONTVALE, N.J., July 17, 2026 (GLOBE NEWSWIRE) -- Balchem Corporation (NASDAQ: BCPC) today announced that a conference call will be held on Friday, July 31, 2026, at 11:00 AM Eastern Time (ET) to review second quarter results. Ted Harris, Chairman of the Board, President and CEO, and Martin Bengtsson, CFO, will host the call.

Second quarter results will be published prior to the market opening on Friday, July 31, 2026. The press release, and its accompanying financial exhibits, will also be available on the Company website, www.balchem.com, prior to the conference call.

Institutional investors, analysts and other members of the financial community are invited to join the live call by dialing +1-833-461-5787 (USA/Canada toll free) or +1-585-542-9983 (International Toll), and referencing Meeting ID: 980453675, five minutes prior to the scheduled start time of the conference call. Investors and the public are invited to listen to the live webcast at https://events.q4inc.com/attendee/980453675.                                                

The conference call will be available for replay shortly after the conclusion of the call at https://events.q4inc.com/attendee/980453675 for one year.

About Balchem Corporation

Balchem Corporation develops, manufactures, and markets specialty ingredients that improve and enhance the health and well-being of life on the planet, providing state-of-the-art solutions and the finest quality products for a range of industries worldwide. The company reports three business segments: Human Nutrition & Health; Animal Nutrition & Health; and Specialty Products. The Human Nutrition & Health segment delivers customized food and beverage ingredient systems, as well as key nutrients into a variety of applications across the food, supplement, and pharmaceutical industries. The Animal Nutrition & Health segment manufactures and supplies products to numerous animal health markets. Through Specialty Products, Balchem provides specialty-packaged chemicals for use in healthcare and other industries, and also provides chelated minerals to the micronutrient agricultural market.

Contact:Jacqueline Yarmolowicz, Executive Assistant
Telephone: 845-326-5600
E-mail: [email protected]    

Balchem delivered strong Q4 results, with revenue up nearly 10% year-over-year and all segments posting growth. BCPC boasts a 17-year streak of double-digit dividend hikes, supported by a payout ratio consistently below 20%. The stock trades at a roughly 25% discount to its estimated fair value, with robust forward return potential exceeding 14%.

Sherwin-Williams (SHW - Free Report) came out with quarterly earnings of $2.35 per share, beating the Zacks Consensus Estimate of $2.24 per share. This compares to earnings of $2.25 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of +4.91%. A quarter ago, it was expected that this paint and coatings maker would post earnings of $2.12 per share when it actually produced earnings of $2.23, delivering a surprise of +5.19%.

Over the last four quarters, the company has surpassed consensus EPS estimates three times.

Sherwin-Williams, which belongs to the Zacks Chemical - Specialty industry, posted revenues of $5.67 billion for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 1.79%. This compares to year-ago revenues of $5.31 billion. The company has topped consensus revenue estimates four times over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

Sherwin-Williams shares have added about 3.7% since the beginning of the year versus the S&P 500's gain of 4.8%.

What's Next for Sherwin-Williams?While Sherwin-Williams has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for Sherwin-Williams was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $3.53 on $6.57 billion in revenues for the coming quarter and $11.82 on $24.68 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Chemical - Specialty is currently in the bottom 26% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

One other stock from the same industry, Balchem (BCPC - Free Report) , is yet to report results for the quarter ended March 2026. The results are expected to be released on April 30.

This chemical company is expected to post quarterly earnings of $1.33 per share in its upcoming report, which represents a year-over-year change of +9%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.

Balchem's revenues are expected to be $266.5 million, up 6.4% from the year-ago quarter.

Balchem Corporation (BCPC) Q1 2026 Earnings Call Transcript