Montvale, NJ, October 21, 2025 - Balchem Corporation (NASDAQ: BCPC) reported today financial results for its 2025 fiscal third quarter ended September 30, 2025. For the quarter, the Company reported net sales of $267.6 million, net earnings of $40.3 million, adjusted EBITDA(a) of $71.4 million, and free cash flow(a) of $50.7 million.

Ted Harris, Chairman, President and CEO of Balchem said, “In the third quarter, our company continued to deliver strong growth, fueled by the ongoing market penetration of our unique portfolio of specialty nutrients and delivery systems, and the favorable ‘better for you’ trends within the food and nutrition markets that are well aligned with our food ingredient formulation systems and capabilities.”

•Record net sales of $267.6 million, an increase of $27.6 million, or 11.5%, compared to the prior year quarter.

•GAAP net earnings were $40.3 million, an increase of 19.1%, from the prior year quarter.

•Record adjusted EBITDA was $71.4 million, an increase of 11.0%, from the prior year quarter.

•GAAP earnings per share of $1.24 compared to $1.03 in the prior year quarter and record adjusted earnings per share(a) of $1.35 compared to $1.13 in the prior year quarter.

•Cash flows from operations were $65.6 million, with free cash flow(a) of $50.7 million.

•Sales and earnings from operations growth in all three of our reporting segments.

•Balchem has received the necessary approvals to move forward with the project to build its new state-of-the-art food ingredient and nutraceutical microencapsulation manufacturing facility in Orange County, NY, which will more than double capacity for its fast-growing microencapsulation technologies.

•We have seen good results year to date from our sponsored research efforts with five new studies being published in the third quarter, one of which being the long awaited choline "biomarker" study, a double-blind randomized control feeding study at the University of North Carolina that successfully identified that choline and betaine concentrations in plasma, when measured together, do indeed predict dietary choline intake in healthy humans.

•Strong cash flows in the third quarter enabled us to make net repayments on our revolving debt of $36.0 million, bringing our net debt (b) to $88.9 million, with an overall leverage ratio (c) on a net debt basis of 0.3 times.

Mr. Harris said, “The third quarter was another excellent quarter for Balchem. We delivered record financial results, with strong growth in all three of our reporting segments, while continuing to make good progress on our strategic growth initiatives.”

The Human Nutrition and Health segment generated record sales of $174.1 million, an increase of $21.8 million, or 14.3%, 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 $40.8 million increased $5.3 million, or 14.8%, compared to $35.6 million in the prior year quarter, primarily due to the aforementioned higher sales and a favorable mix, partially offset by certain higher manufacturing input costs and 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 $44.1 million, compared to $39.0 million in the prior year quarter, an increase of 13.2%.

The Animal Nutrition and Health segment generated quarterly sales of $56.4 million, an increase of $3.5 million, or 6.6%, compared to the prior year quarter. The increase was driven by higher sales in both the ruminant and monogastric species markets. Third quarter earnings from operations for this segment of $3.7 million increased $0.2 million, or 5.2%, compared to $3.5 million in the prior year quarter, primarily due to the aforementioned higher sales and a favorable mix, partially offset by certain higher manufacturing input costs and 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 $4.0 million for both the current and prior year quarter.

The Specialty Products segment generated quarterly sales of $35.7 million, an increase of $2.5 million, or 7.5%, compared to the prior year quarter, due to higher sales in both the performance gases and plant nutrition businesses. Record earnings from operations for this segment were $11.5 million, compared to $10.5 million in the prior year comparable quarter, an increase of 9.7%, primarily driven by the aforementioned higher sales. Excluding the effect of non-cash expense associated with amortization of acquired intangible assets and other adjustments, record adjusted earnings from operations for this segment were $12.7 million, compared to $11.7 million in the prior year quarter, an increase of 8.8%.

Consolidated quarterly gross margin of $95.5 million increased by $10.1 million, or 11.8%, compared to $85.4 million for the prior year comparable period. Gross margin as a percentage of sales was 35.7% as compared to 35.6% in the prior year period, an increase of 10 basis points. Operating expenses of $40.9 million for the quarter increased $3.5 million from the prior year comparable quarter, primarily due to an increase in professional services and higher compensation-related costs.

Net interest expense was $2.6 million and $4.1 million in the third quarters of 2025 and 2024, respectively. The decrease in interest expense was primarily due to lower outstanding borrowings. Our effective tax rates for the three months ended September 30, 2025 and 2024 were 22.6% and 22.9%, respectively. The lower effective tax rate was primarily due to certain lower state taxes.

Third quarter cash flows provided by operating activities were $65.6 million and free cash flow was $50.7 million. The $217.3 million of net working capital on September 30, 2025 included a cash balance of $65.1 million. Significant cash payments during the quarter included net repayments on the revolving loan of $36.0 million, repurchases of common stock of $15.4 million, and capital expenditures and intangible assets acquired of $14.9 million.

Ted Harris said, “Once again, I would like to take this opportunity to thank the entire Balchem team for their contributions to the excellent performance of the company, and for continuing to advance our strategic priorities.”

A quarterly conference call will be held on Tuesday, October 21, 2025, at 11:00 AM Eastern Time (ET) to review third quarter 2025 results. Ted Harris, Chairman, President and CEO and Martin Bengtsson, CFO will host the call. Institutional investors and analysts are invited to join the live call by dialing 800-715-9871 (toll free USA/Canada), +1-646-307-1963 (USA/International) or 647-932-3411 (Canada/Toronto), five minutes prior to the scheduled start time of the conference call. All others are invited to listen to the live webcast at https://events.q4inc.com/attendee/857727932. The conference call will be available for replay shortly after the conclusion of the call at https://events.q4inc.com/attendee/857727932 for one year.

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".

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)

(unaudited)

						Nine Months Ended September 30,
						2025						2024
Cash flows from operating activities:
Net earnings						$	115,620					$	94,892
Adjustments to reconcile net earnings to net cash provided by operating       activities:
Depreciation and amortization						33,969						37,077
Stock compensation expense						14,298						12,787
Other adjustments						(1,692)						(1,022)
Changes in assets and liabilities						(12,914)						(14,052)
Net cash provided by operating activities						149,281						129,682
Cash flows from investing activities:
Capital expenditures and intangible assets acquired						(27,275)						(22,936)
Cash paid for acquisitions, net of cash acquired						(323)						—
Proceeds from the sale of assets						267						272
Investment in affiliates						(144)						(113)
Net cash used in investing activities						(27,475)						(22,777)
Cash flows from financing activities:
Proceeds from revolving loan						70,000						26,000
Principal payments on revolving loan						(106,000)						(108,569)
Principal payments on finance leases						(145)						(169)
Proceeds from stock options exercised						6,867						15,084
Dividends paid						(28,276)						(25,572)
Repurchases of common stock						(54,008)						(5,376)
Net cash used in financing activities						(111,562)						(98,602)
Effect of exchange rate changes on cash						5,334						944
Increase in cash and cash equivalents						15,578						9,247
Cash and cash equivalents, beginning of period						49,515						64,447
Cash and cash equivalents, end of period						$	65,093					$	73,694

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 per diluted share amounts, EBITDA, adjusted EBITDA, adjusted income tax expense, free cash flow, and net debt. 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.

(unaudited)

(unaudited)

(unaudited)

(unaudited)