Company Overview - Balchem Corporation is a global specialty ingredient manufacturer focused on health and nutrition markets [2] - The company operates through three business segments: Human Nutrition & Health, Animal Nutrition & Health, and Specialty Products [2] Business Segments - The Human Nutrition & Health segment provides customized food and beverage ingredient systems and key nutrients for food, supplement, and pharmaceutical applications [2] - The Animal Nutrition & Health segment supplies products to various animal health markets [2] - Specialty Products segment offers specialty-packaged chemicals for healthcare and other industries, as well as chelated minerals for the micronutrient agricultural market [2] Upcoming Events - Balchem Corporation will present at the H.C. Wainwright 27 Annual Global Investment Conference on September 9, 2025, with key executives participating [1]

Company Performance - Balchem (BCPC) reported quarterly earnings of $1.27 per share, exceeding the Zacks Consensus Estimate of $1.25 per share, and up from $0.98 per share a year ago, representing an earnings surprise of +1.60% [1] - The company posted revenues of $255.47 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 1.41%, compared to $234.08 million in the same quarter last year [2] - Over the last four quarters, Balchem has surpassed consensus EPS estimates just once and topped consensus revenue estimates two times [2] Market Outlook - Balchem shares have declined approximately 6.7% since the beginning of the year, while the S&P 500 has gained 8.2% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the coming quarter is $1.36 on revenues of $261.58 million, and for the current fiscal year, it is $5.15 on revenues of $1.03 billion [7] Industry Context - The Chemical - Specialty industry, to which Balchem belongs, is currently ranked in the bottom 33% of over 250 Zacks industries, indicating potential challenges for stock performance [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5] - The current status of estimate revisions for Balchem translates into a Zacks Rank 3 (Hold), suggesting the shares are expected to perform in line with the market in the near future [6]

[PART I FINANCIAL INFORMATION](index=3&type=section&id=PART%20I%20FINANCIAL%20INFORMATION) [Financial Statements (unaudited)](index=3&type=section&id=Item%201.%20Financial%20Statements%20(unaudited)) The unaudited condensed consolidated financial statements show a stronger financial position as of June 30, 2025, compared to year-end 2024, with increased assets, sales, and profitability Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2025 (unaudited) | December 31, 2024 | | :--- | :--- | :--- | | **Total current assets** | $364,855 | $313,770 | | **Total assets** | $1,678,247 | $1,575,371 | | **Total current liabilities** | $138,137 | $157,685 | | **Total liabilities** | $410,334 | $425,458 | | **Total stockholders' equity** | $1,267,913 | $1,149,913 | Condensed Consolidated Statements of Earnings Highlights (in thousands, except per share data) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | **Net sales** | $255,467 | $234,081 | $505,986 | $473,740 | | **Gross margin** | $93,113 | $82,994 | $181,281 | $164,508 | | **Earnings from operations** | $51,442 | $45,797 | $102,457 | $87,473 | | **Net earnings** | $38,278 | $32,069 | $75,331 | $61,055 | | **Net earnings per share - diluted** | $1.17 | $0.98 | $2.30 | $1.87 | Condensed Consolidated Statements of Cash Flows Highlights (in thousands) | Cash Flow Activity | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $83,709 | $78,380 | | **Net cash used in investing activities** | ($12,533) | ($13,596) | | **Net cash used in financing activities** | ($60,729) | ($64,210) | | **Increase (decrease) in cash** | $15,912 | ($709) | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=26&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management reported strong performance for Q2 and the first half of 2025, with net sales rising 9.1% and 6.8% respectively, driven by volume and mix growth across all segments Q2 2025 vs Q2 2024 Performance Summary (in thousands) | Metric | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | **Net sales** | $255,467 | $234,081 | 9.1% | | **Gross margin** | $93,113 | $82,994 | 12.2% | | **Earnings from operations** | $51,442 | $45,797 | 12.3% | | **Net earnings** | $38,278 | $32,069 | 19.4% | H1 2025 vs H1 2024 Performance Summary (in thousands) | Metric | H1 2025 | H1 2024 | % Change | | :--- | :--- | :--- | :--- | | **Net sales** | $505,986 | $473,740 | 6.8% | | **Gross margin** | $181,281 | $164,508 | 10.2% | | **Earnings from operations** | $102,457 | $87,473 | 17.1% | | **Net earnings** | $75,331 | $61,055 | 23.4% | - Sales growth in Q2 2025 was primarily driven by volume and mix, which contributed **8.4%** to the Human Nutrition & Health segment's **8.7%** growth and **7.7%** to the Animal Nutrition & Health segment's **13.1%** growth[95](index=95&type=chunk) - Cash flow from operations increased to **$83.7 million** in H1 2025 from **$78.4 million** in H1 2024, mainly due to higher net earnings, with **$38.6 million** used for stock repurchases and **$28.3 million** for dividend payments[111](index=111&type=chunk)[112](index=112&type=chunk)[113](index=113&type=chunk) [Segment Results](index=27&type=section&id=Segment%20Results) All three business segments reported increased net sales and operating earnings for both the three and six-month periods ended June 30, 2025 Net Sales by Segment (in thousands) | Segment | Q2 2025 | Q2 2024 | % Change | H1 2025 | H1 2024 | % Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Human Nutrition & Health | $160,773 | $147,928 | 8.7% | $319,230 | $300,672 | 6.2% | | Animal Nutrition & Health | $56,028 | $49,557 | 13.1% | $113,305 | $103,478 | 9.5% | | Specialty Products | $37,185 | $35,094 | 6.0% | $70,460 | $66,707 | 5.6% | Earnings from Operations by Segment (in thousands) | Segment | Q2 2025 | Q2 2024 | % Change | H1 2025 | H1 2024 | % Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Human Nutrition & Health | $38,342 | $33,367 | 14.9% | $76,316 | $66,624 | 14.5% | | Animal Nutrition & Health | $3,514 | $2,693 | 30.5% | $8,750 | $4,753 | 84.1% | | Specialty Products | $11,269 | $11,228 | 0.4% | $20,854 | $19,427 | 7.3% | - In late June 2025, the European Commission announced provisional anti-dumping duties on choline chloride imports from China, following a complaint lodged by Balchem Italia Srl, which is expected to impact the Animal Nutrition & Health segment[90](index=90&type=chunk) [Liquidity and Capital Resources](index=34&type=section&id=Liquidity%20and%20Capital%20Resources) The company's liquidity position strengthened, with cash and cash equivalents increasing to **$65.4 million** at June 30, 2025, from **$49.5 million** at year-end 2024 - Cash and cash equivalents increased by **$15.9 million** during the first six months of 2025, ending the period at **$65.4 million**[111](index=111&type=chunk) Cash Flow Summary - H1 2025 vs H1 2024 (in thousands) | Activity | H1 2025 | H1 2024 | | :--- | :--- | :--- | | **Operating Activities** | $83,709 | $78,380 | | **Investing Activities** | ($12,533) | ($13,596) | | **Financing Activities** | ($60,729) | ($64,210) | - The company repurchased **$38.6 million** of common stock in H1 2025, a significant increase from **$5.2 million** in H1 2024[111](index=111&type=chunk)[116](index=116&type=chunk) - As of June 30, 2025, the company had **$360 million** available under its 2022 Credit Agreement[115](index=115&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=36&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company is exposed to market risks from fluctuating interest rates on its revolving loan and from foreign currency exchange rate changes due to its international operations - A **100 basis point** increase or decrease in interest rates would result in an approximate **$1.9 million** change in annual interest expense[124](index=124&type=chunk) - The company is exposed to foreign currency exchange risk as the financial results of its foreign subsidiaries are translated into U.S. dollars for consolidation[125](index=125&type=chunk) - The company is exposed to commodity price risks for its primary raw materials and manages these exposures through pricing and operational means[124](index=124&type=chunk) [Controls and Procedures](index=36&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, evaluated the company's disclosure controls and procedures and concluded they were effective as of June 30, 2025 - The CEO and CFO concluded that the company's disclosure controls and procedures were effective at a reasonable assurance level as of June 30, 2025[126](index=126&type=chunk) - No material changes were made to the internal controls over financial reporting during the quarter ended June 30, 2025[127](index=127&type=chunk) [PART II OTHER INFORMATION](index=36&type=section&id=PART%20II%20OTHER%20INFORMATION) [Legal Proceedings](index=36&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various legal proceedings in the normal course of business, with management not expecting a material adverse effect on its financial position or results - The company is party to various legal proceedings, but management believes the ultimate outcome will not have a material effect on its financial condition[76](index=76&type=chunk)[129](index=129&type=chunk) - A settlement was reached with the EPA and DOJ in January 2025 regarding alleged violations at the Verona, Missouri facility, involving a **$300 thousand** civil penalty and other community benefit projects[75](index=75&type=chunk) [Risk Factors](index=37&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes to the risk factors previously disclosed in the company's Annual Report on Form 10-K for the year ended December 31, 2024 - No material changes in Risk Factors were identified compared to the Annual Report on Form 10-K for the year ended December 31, 2024[130](index=130&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=37&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During the second quarter of 2025, the company repurchased a total of **204,965** shares through open market purchases and shares withheld for employee tax settlements Share Repurchase Activity - Q2 2025 | Period | Total Shares Purchased | Average Price Paid Per Share | | :--- | :--- | :--- | | April 1-30, 2025 | 49,616 | $156.24 | | May 1-31, 2025 | 155,055 | $164.24 | | June 1-30, 2025 | 294 | $158.35 | | **Second Quarter Total** | **204,965** | | - Since the inception of the stock repurchase program in June 1999, a total of **3,379,862** shares have been repurchased out of a total authorization of **3,763,038** shares[131](index=131&type=chunk) [Other Information](index=38&type=section&id=Item%205.%20Other%20Information) During the fiscal quarter ended June 30, 2025, no directors or officers of the company adopted, modified, or terminated a Rule 10b5-1 trading arrangement - No directors or officers adopted, modified, or terminated a Rule 10b5-1 trading arrangement during Q2 2025[132](index=132&type=chunk) [Exhibits](index=39&type=section&id=Item%206.%20Exhibits) The report includes required certifications from the CEO and CFO pursuant to Rule 13a-14(a) and Section 1350, as well as Inline XBRL data files - Exhibits filed include CEO and CFO certifications (Exhibits 31.1, 31.2, 32.1, 32.2) and XBRL data files[133](index=133&type=chunk)

Financial Data and Key Metrics Changes - The company reported record quarterly consolidated revenue of $255 million, a 9.1% increase year-over-year [11] - GAAP earnings from operations reached $51 million, up 12.3% compared to the prior year [15] - Consolidated net income was $38 million, reflecting a 19.4% increase, translating to diluted net earnings per share of $1.17, up 19 cents or 19.4% year-over-year [12][17] - Adjusted EBITDA was a record $69 million, an increase of 11.2%, with an adjusted EBITDA margin of 27.1%, up 50 basis points from the prior year [12][16] Business Segment Performance - The Human Nutrition and Health segment generated record sales of $161 million, an increase of 8.7% from the prior year, with earnings from operations of $38 million, up 14.9% [17][18] - The Animal Nutrition and Health segment reported sales of $56 million, a 13.1% increase, with earnings from operations of $4 million, up 30.5% [19][20] - The Specialty Products segment achieved record sales of $37 million, a 6% increase, with earnings from operations of $11 million, up 0.4% [21][22] Market Data and Key Metrics Changes - Demand in the human nutrition and health segment is driven by trends towards nutrient-dense, high-protein, and low-sugar foods [5] - The European Commission's provisional antidumping duties on Chinese choline are expected to positively impact the animal nutrition segment [5][21] - The overall market for feed-grade choline in Europe is projected to grow at low single digits, influenced by protein production [32] Company Strategy and Industry Competition - The company is focused on expanding its scientific and clinical research pipeline, with over 20 active clinical studies aimed at evaluating the benefits of various nutrients [7] - A new $36 million microencapsulation manufacturing facility is planned to double production capacity and support growth initiatives [10][11] - The company aims to leverage its strong market positions and value-added product portfolio to navigate the evolving global trade environment [6][23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver results amid varying market conditions, highlighting a positive outlook for the second half of the year [23] - The company is well-positioned to manage through the current global trade environment, with a robust U.S. manufacturing footprint and minimal reliance on China [6] - Management noted that the demand picture for monogastric markets in Europe is stable, with potential for increased market share due to the antidumping duties [30][32] Other Important Information - Cash flows from operations were $47 million, with free cash flow of $41 million, and the company closed the quarter with $65 million in cash [17] - The effective tax rate for 2025 is expected to be between 22% and 23%, with a slight decrease anticipated in the second half of the year [58][59] Q&A Session Summary Question: Update on the macro environment and European monogastric demand - Management indicated that demand is relatively stable, with potential for increased market share due to antidumping duties [30][32] Question: Details on the new manufacturing facility - The facility is expected to double capacity and will be funded through existing cash resources and debt, with production anticipated to start in late 2027 to 2028 [44][45] Question: Status of VitaCholine ProFlo and strategic outlook - The product is being integrated into multivitamin lines, with positive reception, and the company is evolving towards a stronger focus on health-related products [53][52] Question: Impact of tariffs and update on CureMark - Tariffs have increased the cost impact to approximately $25 million, but the company is managing this through supply chain adjustments and pricing strategies [62] - CureMark is preparing to file a BLA, with no further specifics available at this time [66] Question: Breakdown of growth in Human Nutrition and Health - The nutrients business grew at 8.8% and the food ingredient solutions business at 8.6%, indicating strong performance across both areas [80]

Financial Data and Key Metrics Changes - The company reported record quarterly consolidated revenue of $255 million, a 9.1% increase year-over-year [11] - GAAP earnings from operations reached $51 million, up 12.3% compared to the prior year [12] - Consolidated net income was $38 million, reflecting a 19.4% increase, translating to diluted net earnings per share of $1.17, up 19 cents or 19.4% year-over-year [12][18] - Adjusted EBITDA was a record $69 million, an increase of 11.2%, with an adjusted EBITDA margin of 27.1%, up 50 basis points from the prior year [12][17] Business Segment Performance - The Human Nutrition and Health segment generated record sales of $161 million, an increase of 8.7% from the prior year, with earnings from operations of $38 million, up 14.9% [18][19] - The Animal Nutrition and Health segment reported quarterly sales of $56 million, a 13.1% increase, with earnings from operations of $4 million, up 30.5% [20][21] - The Specialty Products segment achieved record quarterly sales of $37 million, a 6% increase, with earnings from operations of $11 million, up 0.4% [22][23] Market Data and Key Metrics Changes - Demand in the Human Nutrition and Health segment is driven by trends towards nutrient-dense, high-protein, and low-sugar foods [5] - The Animal Nutrition and Health segment is benefiting from improved market conditions and the European Commission's provisional antidumping duties on Chinese choline, expected to positively impact growth [5][21] - The Specialty Products segment is experiencing higher demand in both performance gases and plant nutrition businesses [6] Company Strategy and Industry Competition - The company is focused on expanding its scientific and clinical research pipeline, with over 20 active clinical studies aimed at evaluating the benefits of various nutrients [7] - A new $36 million microencapsulation manufacturing facility is planned to double production capacity, supporting growth in the fast-growing microencapsulation technologies [10][11] - The company is well-positioned to manage through the current global trade environment, with a manufacturing and sales model that minimizes reliance on China [6] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term growth outlook, citing strong market positions and a value-added product portfolio [24] - The company remains flexible to adjust to evolving market conditions and is optimistic about continued growth in the second half of the year [6][23] - Management highlighted the importance of ongoing investments in marketing and scientific research to support growth in human health and nutrition [50][51] Other Important Information - Cash flows from operations were $47 million, with free cash flow of $41 million, and the company ended the quarter with $65 million in cash [18] - The effective tax rate for 2025 is expected to be between 22% and 23%, with a slight decrease anticipated in the second half of the year [59] Q&A Session Summary Question: Update on European monogastric demand and growth drivers for Animal Nutrition and Health - Management indicated that European monogastric demand is stable, with potential for increased market share due to antidumping duties on Chinese suppliers [30][31] - Growth is expected from the ruminant side, particularly in dairy, and the companion animal business is also seen as a growth opportunity [34] Question: Details on the new manufacturing facility - The new facility is expected to double production capacity and is funded through existing cash resources and debt facilities, with production anticipated to start in late 2027 to 2028 [36][46] Question: Status of VitaCholine ProFlo and strategic outlook for human health - Management noted positive reception for VitaCholine ProFlo and emphasized the company's ongoing evolution towards health-focused products, while not shifting towards pharmaceuticals [54][52] Question: Impact of tariffs and update on CureMark - Tariffs have increased the cost impact to approximately $25 million, but the company is managing this through supply chain adjustments and pricing strategies [62] - CureMark is preparing to file a BLA, with the company having completed necessary manufacturing preparations [65]

Financial Performance - Q2 2025 - Sales increased by 9.1% to $255.5 million in Q2 2025, compared to $234.1 million in Q2 2024[54] - Adjusted EBITDA increased by 11.2% to $69.2 million in Q2 2025[56] - Adjusted Net Earnings increased by 16.8% to $41.6 million in Q2 2025, compared to $35.6 million in Q2 2024[58] - Adjusted EPS increased by 16.5% to $1.27 per share in Q2 2025, compared to $1.09 per share in Q2 2024[59, 60] Financial Performance - YTD 2025 - Sales increased by 6.8% to $506.0 million YTD 2025, compared to $473.7 million YTD 2024[63] - Adjusted EBITDA increased by 10.1% to $135.5 million YTD 2025[65] - Adjusted Net Earnings increased by 18.0% to $81.6 million YTD 2025, compared to $69.2 million YTD 2024[67] - Adjusted EPS increased by 17.5% to $2.49 per share YTD 2025, compared to $2.12 per share YTD 2024[69] Overall Company Financials - 2024 Sales were $954 million[9] - 2024 Adjusted EBITDA was $250 million with a margin of 26.3%[11]

Company Performance - Blachem (BCPC) reported quarterly earnings of $1.27 per share, exceeding the Zacks Consensus Estimate of $1.25 per share, and up from $0.98 per share a year ago, representing an earnings surprise of +1.60% [1] - The company posted revenues of $255.47 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 1.41%, compared to year-ago revenues of $234.08 million [2] - Over the last four quarters, Blachem has surpassed consensus EPS estimates just once and topped consensus revenue estimates two times [2] Stock Outlook - Blachem shares have declined approximately 6.7% since the beginning of the year, while the S&P 500 has gained 8.2% [3] - The current consensus EPS estimate for the upcoming quarter is $1.36 on revenues of $261.58 million, and for the current fiscal year, it is $5.15 on revenues of $1.03 billion [7] Industry Context - The Chemical - Specialty industry, to which Blachem belongs, is currently ranked in the bottom 33% of over 250 Zacks industries, indicating potential challenges for stock performance [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact investor sentiment [5]

Balchem Q2 2025 Earnings Release [Financial Highlights](index=1&type=section&id=Financial%20Highlights) Balchem reported record Q2 2025 financial results, driven by strong growth across all segments and strategic initiatives Q2 2025 Key Financial Metrics (YoY) | Metric | Q2 2025 ($M) | Q2 2024 ($M) | Change | | :--- | :--- | :--- | :--- | | Net Sales | $255.5M | $234.1M | +9.1% | | Net Earnings (GAAP) | $38.3M | $32.1M | +19.4% | | Adjusted EBITDA | $69.2M | $62.3M | +11.2% | | Diluted EPS (GAAP) | $1.17 | $0.98 | +19.4% | | Adjusted EPS | $1.27 | $1.09 | +16.5% | | Cash Flow from Operations | $47.3M | $45.0M | +5.1% | | Free Cash Flow | $40.7M | $38.4M | +6.0% | - Announced intent to build a new **$36 million** state-of-the-art food ingredient and nutraceutical micro-encapsulation manufacturing facility in Orange County, NY, expected to more than double the company's capacity for these technologies[4](index=4&type=chunk) - The European Commission announced provisional anti-dumping duties of **95.4% to 120.8%** on choline chloride imports from China, effective July 1, 2025, expected to create a more level playing field[3](index=3&type=chunk)[4](index=4&type=chunk) [Consolidated Financial Results](index=2&type=section&id=Consolidated%20Financial%20Results) Robust financial health in Q2 and H1 2025, with strong net sales growth, expanded gross margin, and robust cash flow - Consolidated gross margin for Q2 2025 increased by **12.2%** to **$93.1 million**, with the gross margin percentage rising **90 basis points** to **36.4%** compared to the prior year, primarily due to a favorable product mix[9](index=9&type=chunk) - Operating expenses increased by **$4.5 million** from the prior year quarter, mainly due to higher compensation-related costs and professional services[9](index=9&type=chunk) - Net interest expense decreased to **$2.8 million** in Q2 2025 from **$4.2 million** in Q2 2024, primarily due to lower outstanding borrowings[10](index=10&type=chunk) [Consolidated Income Statement](index=2&type=section&id=Consolidated%20Income%20Statement) Consolidated Financial Results (unaudited, in thousands) | | Three Months Ended June 30, | Six Months Ended June 30, | | :--- | :--- | :--- | | | **2025** | **2024** | **2025** | **2024** | | **Net sales** | **$255,467** | **$234,081** | **$505,986** | **$473,740** | | Gross margin | $93,113 | $82,994 | $181,281 | $164,508 | | Earnings from operations | $51,442 | $45,797 | $102,457 | $87,473 | | **Net earnings** | **$38,278** | **$32,069** | **$75,331** | **$61,055** | | Diluted net earnings per share | $1.17 | $0.98 | $2.30 | $1.87 | | **Adjusted EBITDA** | **$69,224** | **$62,270** | **$135,514** | **$123,136** | | Adjusted net earnings | $41,561 | $35,577 | $81,578 | $69,161 | [Segment Performance](index=3&type=section&id=Segment%20Performance) Net Sales by Business Segment (in thousands) | Segment | Q2 2025 | Q2 2024 | Change | H1 2025 | H1 2024 | Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Human Nutrition & Health | $160,773 | $147,928 | +8.7% | $319,230 | $300,672 | +6.2% | | Animal Nutrition & Health | $56,028 | $49,557 | +13.1% | $113,305 | $103,478 | +9.5% | | Specialty Products | $37,185 | $35,094 | +6.0% | $70,460 | $66,707 | +5.6% | Earnings from Operations by Business Segment (in thousands) | Segment | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Human Nutrition & Health | $38,342 | $33,367 | +14.9% | | Animal Nutrition & Health | $3,514 | $2,693 | +30.5% | | Specialty Products | $11,269 | $11,228 | +0.4% | [Financial Position (Balance Sheet)](index=6&type=section&id=Selected%20Balance%20Sheet%20Items) Selected Balance Sheet Items (in thousands) | Account | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Cash and Cash Equivalents | $65,427 | $49,515 | | Total Current Assets | $364,855 | $313,770 | | Total Assets | $1,678,247 | $1,575,371 | | Total Liabilities | $410,334 | $425,458 | | Stockholders' Equity | $1,267,913 | $1,149,913 | [Cash Flow Statement](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Cash Flow Summary - Six Months Ended June 30 (in thousands) | Category | 2025 | 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $83,709 | $78,380 | | Net cash used in investing activities | ($12,533) | ($13,596) | | Net cash used in financing activities | ($60,729) | ($64,210) | | **Increase (decrease) in cash** | **$15,912** | **($709)** | | Cash and cash equivalents, end of period | $65,427 | $63,738 | - Significant cash uses in H1 2025 included **$38.6 million** for repurchases of common stock, **$28.3 million** for dividends paid, and **$12.4 million** for capital expenditures[20](index=20&type=chunk) [Non-GAAP Financial Measures Reconciliation](index=8&type=section&id=Non-GAAP%20Financial%20Information) Non-GAAP financial measures are presented to clarify core operational performance by excluding inconsistent items Reconciliation of GAAP Net Earnings to Adjusted EBITDA (in thousands) | | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | **Net Earnings (GAAP)** | **$38,278** | **$32,069** | **$75,331** | **$61,055** | | Add: Taxes, Interest, D&A | $24,494 | $26,161 | $49,398 | $52,448 | | **EBITDA** | **$62,772** | **$58,230** | **$124,729** | **$113,503** | | Add: Other Adjustments | $6,452 | $4,040 | $10,785 | $9,633 | | **Adjusted EBITDA** | **$69,224** | **$62,270** | **$135,514** | **$123,136** | Reconciliation of GAAP Net Earnings to Adjusted Net Earnings (in thousands) | | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | **Net Earnings (GAAP)** | **$38,278** | **$32,069** | **$75,331** | **$61,055** | | Adjustments (pre-tax) | $4,588 | $5,416 | $9,269 | $12,330 | | Income Tax Adjustment | ($1,314) | ($1,908) | ($3,023) | ($4,224) | | **Adjusted Net Earnings** | **$41,561** | **$35,577** | **$81,578** | **$69,161** | Reconciliation to Free Cash Flow (in thousands) | | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | Net cash from operating activities | $47,252 | $44,992 | $83,709 | $78,380 | | Capital expenditures & asset sales | ($6,554) | ($6,602) | ($11,975) | ($13,175) | | **Free Cash Flow** | **$40,698** | **$38,390** | **$71,734** | **$65,205** |

Core Insights - Balchem Corporation reported record financial results for the second quarter of 2025, with net sales of $255.5 million, net earnings of $38.3 million, and adjusted EBITDA of $69.2 million, reflecting strong growth across all reporting segments [1][2][4][7]. Financial Performance - Net sales increased by $21.4 million, or 9.1%, compared to the prior year quarter [7]. - GAAP net earnings rose by 19.4% to $38.3 million from $32.1 million in the prior year quarter [7]. - Adjusted EBITDA reached a record $69.2 million, an increase of 11.2% from the previous year [7]. - Diluted net earnings per share were $1.17, up from $0.98 in the prior year quarter, while adjusted earnings per share were $1.27 compared to $1.09 [7][8]. Segment Performance - The Human Nutrition and Health segment generated record sales of $160.8 million, an increase of 8.7%, with earnings from operations rising by 14.9% to $38.3 million [9]. - The Animal Nutrition and Health segment reported sales of $56.0 million, a 13.1% increase, with earnings from operations growing by 30.5% to $3.5 million [10]. - The Specialty Products segment achieved record sales of $37.2 million, a 6.0% increase, with earnings from operations slightly up by 0.4% to $11.3 million [11]. Cash Flow and Investments - Cash flows from operations were $47.3 million, with free cash flow of $40.7 million [7][14]. - The company announced plans to build a new $36 million micro-encapsulation manufacturing facility in Orange County, NY, which will more than double its capacity for micro-encapsulation technologies [7]. Market Environment - The European Commission's decision to impose provisional anti-dumping duties of 95.4% to 120.8% on choline chloride imports from China is expected to create a more competitive market environment for Balchem [4][7].

Core Viewpoint - Balchem Corporation will hold a conference call on July 31, 2025, to discuss its second quarter 2025 results, with key executives participating [1][2]. Group 1: Conference Call Details - The second quarter results will be published before the market opens on July 31, 2025, and will be available on the company website [2]. - Participants can join the live call by dialing specific numbers or listening to the live webcast [3]. - The conference call will be available for replay for one year after the event [3]. Group 2: Company Overview - Balchem Corporation develops and markets specialty ingredients aimed at enhancing health and well-being across various industries [4]. - The company operates in three segments: Human Nutrition & Health, Animal Nutrition & Health, and Specialty Products [4]. - The Human Nutrition & Health segment focuses on customized food and beverage ingredients, while the Animal Nutrition & Health segment supplies products for animal health markets [4].