Financial Data and Key Metrics Changes - The company reported record quarterly consolidated revenue of $268 million, an increase of 11.5% year-over-year [10][11] - GAAP earnings from operations reached $55 million, up 13.7% compared to the prior year [11][14] - Consolidated net income was $40 million, reflecting a 19.1% increase from the previous year, translating to diluted net earnings per share of $1.24, up 20.4% [11][16] - Adjusted EBITDA was a record $71 million, an increase of 11% year-over-year, with an adjusted EBITDA margin rate of 26.7% [11][15] Business Line Data and Key Metrics Changes - The Human Nutrition and Health segment generated record sales of $174 million, up 14.3% from the prior year, with earnings from operations increasing by 14.8% to $41 million [17][18] - The Animal Nutrition and Health segment reported sales of $56 million, a 6.6% increase year-over-year, with earnings from operations rising by 5.2% to $4 million [18][19] - The Specialty Products segment achieved sales of $36 million, a 7.5% increase, with earnings from operations growing by 9.7% to $12 million [20][21] Market Data and Key Metrics Changes - The company noted healthy demand across most end markets, particularly in the Human Nutrition and Health segment, driven by trends towards nutrient-dense and better-for-you foods [3][4] - The Animal Nutrition and Health segment saw improved demand in both monogastric and ruminant businesses, particularly in the European market [4][19] - Specialty Products experienced growth driven by higher demand in performance gases and successful geographic expansion in plant nutrition [5][20] Company Strategy and Development Direction - The company is focused on expanding its marketing efforts and scientific research to bolster its Human Nutrition and Health segment [6][9] - There is a commitment to geographic expansion in the Specialty Products segment, particularly in Latin America and Asia Pacific [20][56] - The company is actively pursuing strategic M&A opportunities while managing debt repayment and maintaining a strong cash flow [50] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term growth outlook, citing the ability to manage through macroeconomic challenges and tariff-related impacts [23] - The company is well-positioned to leverage better-for-you trends in health and nutrition markets, expecting continued growth in its Human Nutrition and Health segment [23][18] - Management highlighted the importance of ongoing scientific research and product development to address market needs and consumer awareness [6][8] Other Important Information - The company has successfully offset tariff impacts through alternate supply chain options and pricing actions [5][6] - A new microencapsulation manufacturing facility is expected to be completed by early 2027, which will double the capacity of the old plant [44][46] Q&A Session Summary Question: Can you discuss the changes in food solutions and the outlook for each subsegment in 2026? - Management noted that the Human Nutrition and Health segment saw a 14% increase in sales, with the nutrient portfolio up about 30% and food business up nearly 7%, driven by better-for-you trends [29][30] Question: What is the opportunity for product penetration and awareness of your minerals? - Management indicated that there is significant room for growth in product penetration, estimating the market opportunities to be 3 to 4 times the current size [34][35] Question: Can you comment on international anti-dumping practices and their impact? - Management discussed preliminary anti-dumping duties on China-origin choline chloride by the EU, which could create a level playing field and boost sales [40][41] Question: What is the status of the Orange County microencapsulation facility? - Management confirmed that construction is expected to be completed by early 2027, allowing for continued growth in the encapsulate business [46][47] Question: What is the expected pace of debt repayment moving forward? - Management stated that the pace of debt repayment will depend on M&A opportunities and ongoing cash flow generation [48][50]

Financial Data and Key Metrics Changes - The company reported record quarterly consolidated revenue of $268 million, an increase of 11.5% year-over-year [10][11] - GAAP earnings from operations reached $55 million, up 13.7% compared to the prior year [11][14] - Consolidated net income was $40 million, reflecting a 19.1% increase from the previous year, translating to diluted net earnings per share of $1.24, up 20.4% [11][16] - Adjusted EBITDA was a record $71 million, an increase of 11% year-over-year, with an adjusted EBITDA margin of 26.7% [11][14] Business Segment Performance - The Human Nutrition and Health segment generated record sales of $174 million, a 14.3% increase from the prior year, with earnings from operations of $41 million, up 14.8% [16][17] - The Animal Nutrition and Health segment reported sales of $56 million, a 6.6% increase, with earnings from operations of $4 million, up 5.2% [18][19] - The Specialty Products segment achieved sales of $36 million, a 7.5% increase, with earnings from operations of $12 million, up 9.7% [20][21] Market Data and Key Metrics Changes - The company noted healthy demand across most end markets, particularly in the Human Nutrition and Health segment, driven by trends towards nutrient-dense foods [3][4] - The Animal Nutrition and Health segment saw improved demand in both monogastric and ruminant businesses, particularly in the European market [4][19] - The Specialty Products segment benefited from higher demand in Performance Gases and successful geographic expansion in Plant Nutrition [4][21] Company Strategy and Industry Competition - The company is focused on expanding its marketing efforts and scientific research to bolster its Human Nutrition and Health segment [6][10] - The company is well-positioned to manage through the current global trade environment, having offset tariff impacts through supply chain adjustments and pricing actions [5][25] - The company is investing in new technologies and facilities, such as the Orange County Microencapsulation manufacturing facility, to enhance production capacity and support growth [50][51] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term growth outlook, citing 25 consecutive quarters of year-over-year growth in adjusted EBITDA [25] - The company anticipates continued growth driven by better-for-you trends in health and nutrition markets [25][24] - Management highlighted the importance of ongoing scientific research and product awareness to drive future growth [6][36] Other Important Information - The company reported strong free cash flow of $51 million and closed the quarter with $65 million in cash [16][15] - The effective tax rate for the year is expected to be around 22.5% [54] Q&A Session Summary Question: Can you discuss the changes in Food Ingredients and Solutions and the outlook for subsegments? - Management noted a 14% increase in Human Nutrition and Health sales, with food ingredient business up nearly 7%, driven by better-for-you trends [30][32] Question: What is the current status of product penetration for nutrients like choline and K2? - Management indicated significant growth potential remains, with the market opportunities still several times the current size [36][37] Question: Can you comment on international anti-dumping practices and their potential impact? - Management discussed preliminary anti-dumping duties on Chinese choline chloride in the EU, which could create a more level playing field [44][45] Question: What is the timeline for the Orange County Microencapsulation facility and its expected impact? - The facility is expected to be completed by early 2027, doubling capacity and supporting continued double-digit growth in the encapsulates business [50][51] Question: What is the expected pace of debt repayment moving forward? - Management indicated that debt repayment will depend on M&A opportunities and maintaining a stable share count through repurchases [56][57]

Financial Data and Key Metrics Changes - The company reported record quarterly consolidated revenue of $268 million, an increase of 11.5% year-over-year [10][11] - GAAP earnings from operations reached a record $55 million, up 13.7% compared to the prior year [11][14] - Consolidated net income was $40 million, reflecting a 19.1% increase from the previous year, translating to diluted net earnings per share of $1.24, up 20.4% [11][15] - Adjusted EBITDA was a record $71 million, an increase of 11% year-over-year, with an adjusted EBITDA margin rate of 26.7% [11][14] Business Line Data and Key Metrics Changes - The Human Nutrition and Health segment generated record sales of $174 million, up 14.3% from the prior year, with earnings from operations of $41 million, an increase of 14.8% [17][18] - The Animal Nutrition and Health segment reported quarterly sales of $56 million, a 6.6% increase, with earnings from operations of $4 million, up 5.2% [18][19] - The Specialty Products segment achieved quarterly sales of $36 million, a 7.5% increase, with earnings from operations of $12 million, up 9.7% [20][21] Market Data and Key Metrics Changes - The company continues to see healthy demand across most end markets, particularly in the human nutrition and health segment, driven by trends towards nutrient-dense foods [3][4] - The animal nutrition market remains stable, with improved conditions noted in the European monogastric market [5][19] - The Specialty Products segment is benefiting from geographic expansion, particularly in Latin America and Asia Pacific [20][21] Company Strategy and Development Direction - The company is focused on expanding its marketing efforts and scientific research to bolster its Human Nutrition and Health segment [6][9] - There is an emphasis on leveraging better-for-you trends in the market to drive growth in food ingredients and solutions [29][30] - The company is actively pursuing strategic M&A opportunities while managing debt repayment and share repurchases [48] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term growth outlook for the company, citing the ability to navigate macroeconomic challenges and tariff-related impacts [22] - The company anticipates continued growth driven by better-for-you trends in health and nutrition markets [22][30] - Management highlighted the importance of ongoing investments in scientific research to support product awareness and market penetration [6][7] Other Important Information - The company has successfully offset the impact of tariffs through alternate supply chain options and pricing actions [5][6] - A new microencapsulation manufacturing facility is expected to be completed by early 2027, which will double the capacity of the old plant [42][44] Q&A Session Questions and Answers Question: Can you discuss the changes in food solutions and the outlook for each subsegment in 2026? - Management noted that the Human Nutrition and Health segment saw a 14% increase in sales, with the nutrient portfolio growing about 30% and food ingredient business up nearly 7% [28][29] Question: What is the opportunity for product penetration and awareness of your minerals and nutrients? - Management indicated that there is significant room for growth, estimating the market opportunities to be 3 to 4 times the current size, particularly for chelated minerals [33][34] Question: Can you provide an overview of the status of the European anti-dumping campaigns related to choline? - Management explained that the European Union has preliminarily imposed anti-dumping duties on Chinese choline chloride, which could create a favorable environment for the company [39][40] Question: When is the Orange County microencapsulation manufacturing facility expected to be completed? - The facility is expected to be completed by early 2027, allowing for continued growth in the encapsulate business [44][45] Question: What is the expected pace of debt repayment moving forward? - Management stated that the pace of debt repayment will depend on the timing of M&A opportunities, but they will continue to reduce debt as excess cash is generated [48]

2 • During the course of this presentation, management may make forward-looking statements regarding financial performance and future events. • 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 generall ...

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]

Financial Performance - Balchem's 2024 sales reached $954 million[9] - The company's 2024 adjusted EBITDA was $250 million, with a margin of 26.3%[12] - In Q1 2025, sales grew by 4.5% to $250.5 million from $239.7 million in Q1 2024[57] - Adjusted EBITDA for Q1 2025 increased by 8.9% to $66.3 million compared to $60.9 million in Q1 2024[59] - Adjusted net earnings for Q1 2025 rose by 19.2% to $40.0 million from $33.6 million in Q1 2024[61] - Adjusted EPS for Q1 2025 grew by 18.4% to $1.22 per share from $1.03 per share in Q1 2024[63] Business Segments - Human Nutrition & Health accounted for 63% of Balchem's 2024 revenue[15] - Animal Nutrition & Health contributed 23% to the company's 2024 revenue[15] - Specialty Products represented 14% of Balchem's 2024 revenue[15] Sustainability - Balchem reached 1.2 billion people in 2024 through its products[86] - The company has reduced its Scope 1 and 2 GHG emissions by 32%, surpassing its 2030 goal[91] - Balchem has reduced its water withdrawal by 15% from the baseline and is on track to meet its 2030 goal[93]