10-Q · April 30, 2026
Balchem Corporation reported impressive Q1 2026 results with revenues of $270.7 million and EPS of $1.33, both surpassing analyst expectations. Revenue increased by 8.1% compared to Q1 2025, reflecting strong…
Earnings analysis · 10-Q
BCPC earnings analysis
Filed October 23, 2026 · Our reading of the company's report
The latest report
Balchem delivered broad-based third-quarter growth, with revenue up 8.6% year over year to $290.658 million, gross margin rising to 36.4%, and operating margin expanding to 21.5%. Human Nutrition & Health led sales…
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Balchem delivered broad-based third-quarter growth, with revenue up 8.6% year over year to $290.658 million, gross margin rising to 36.4%, and operating margin expanding to 21.5%. Human Nutrition & Health led sales growth, while Animal Nutrition & Health produced particularly strong operating leverage, with earnings up 82.8%. Cash generation remained solid and liquidity improved through a larger, longer-dated revolving facility, although cash declined, inventories pressured operating cash flow, and geopolitical, tariff and variable-rate debt risks remain. No quantitative forward revenue or EPS guidance was provided.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $1.46
What stood out
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Revenue growth remained strong
Third-quarter revenue was $290.658 million, up $23.100 million, or 8.6%, from $267.558 million in the prior-year quarter. Revenue also increased from $284 million in 2026 Q2 based on the quarterly history provided.
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Margins and operating profit improved
Gross margin expanded to 36.4% from 35.7% year over year, while operating margin increased to 21.5% from 20.4%. Gross margin dollars rose 10.7% to $105.714 million and operating earnings rose 14.4% to $62.437 million.
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Human Nutrition led segment growth
Human Nutrition & Health remained the largest growth contributor, with sales of $188.227 million, up 8.1%, driven by higher nutrients and food ingredients sales; volume and mix contributed 12.7%, partially offset by average selling prices of negative 4.4%.
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Animal Nutrition accelerated sharply
Animal Nutrition & Health sales increased 11.7% to $62.990 million and operating earnings increased 82.8% to $6.789 million, supported by higher monogastric and ruminant sales and average selling prices contributing 8.5%.
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Cash generation remained robust
Operating cash flow increased 4.9% to $156.544 million for the first nine months, despite working-capital pressure from higher inventories. Capital investment in property, plant and equipment and intangible assets was $29.605 million.
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Liquidity flexibility expanded
The amended credit facility increased the revolving commitment from $550.000 million to $650.000 million and extended maturity from July 27, 2027 to July 24, 2031; $526.000 million was available at September 30, 2026.
What to watch
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Geopolitical and tariff exposure persists
Item 1A states that there were no material changes to the risk factors in the 2025 Form 10-K, which identified 26 categories of risk. The filing nevertheless continues to highlight geopolitical conflicts and tariffs as potential sources of energy, raw-material, freight and shipping-cost volatility.
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Cash declined and is concentrated overseas
The company reported cash of $66.264 million at September 30, 2026, down from $74.570 million at December 31, 2025, while $57.919 million was held by foreign subsidiaries. Repatriation of foreign cash may create withholding-tax obligations.
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Variable-rate debt creates interest risk
A 100-basis-point change in interest rates applied to September 30 borrowings would change annual interest expense and cash flow by approximately $1.240 million. The company also had $526.000 million available under its revolving facility, creating ongoing exposure to variable-rate debt and potential acquisition borrowings.
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Cost inflation and one-time charges
Operating expenses increased 5.9% year over year to $43.277 million, including $3.743 million of higher compensation costs and a $1.915 million non-cash impairment charge. These increases were partially offset by a $4.000 million favorable legal settlement.
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Inventory build pressured working capital
Operating cash flow was $156.544 million versus $149.281 million a year earlier, but management said the increase was partially offset by working-capital changes, primarily an increase in inventories. The filing does not quantify the inventory increase.
Management's outlook
No quantitative revenue or EPS guidance was provided. Management expects operations to continue generating sufficient cash flow for working capital and necessary capital investments and stated that it is actively pursuing additional acquisition candidates.
Earlier filings 4
10-K · February 20, 2026
Balchem describes a product-led growth strategy focused on differentiated human and animal nutrition ingredients, microencapsulation and specialty gases, investing in R&D and manufacturing capacity. 2025 showed…
10-Q · October 21, 2025
Balchem reported Q3 net sales of $267.6M and diluted EPS of $1.24, both ahead of year‑ago levels. Gross margin and operating margin improved modestly to 35.7% and 20.4%, respectively, while operating cash flow for the…
10-Q · July 31, 2025
Balchem reported Q2 net sales of $255,467,000 (up $21,386,000 vs. Q2 2024) and diluted EPS of $1.17, both modestly ahead of consensus. Gross margin improved to 36.5% (93,113/255,467) and operating income rose to…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.