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Balchem Q3 2026 Earnings Report
Balchem reports record Q3 earnings with 8.6% revenue growth and 16.0% higher net earnings.
In brief
Balchem reports record Q3 earnings with 8.6% revenue growth and 16.0% higher net earnings. Balchem achieved record Q3 revenue of $290.7 million, 8.6% up from prior year, with 16.0% higher GAAP net earnings. Originally reported by The Motley Fool.
Q3 Earnings Results
Balchem reported record Q3 revenue of $290.7 million, an 8.6% increase from the prior year quarter.
GAAP Net Earnings
GAAP net earnings rose to $46.7 million, a 16.0% increase from the prior year quarter.
Adjusted EBITDA
Adjusted EBITDA reached $80.3 million, up 12.4% from the prior year quarter with a 27.6% margin.
Diluted EPS
GAAP diluted earnings per share increased to $1.46, a 17.7% rise from the prior year quarter.
Gross Margin
Gross margin expanded to 36.4%, a 70 basis point improvement driven by sales growth and favorable product mix.
Human Nutrition Segment
Human nutrition and health revenue grew 8.1% to $188.2 million driven by nutrients and food ingredients businesses.
Animal Nutrition Segment
Animal nutrition and health revenue increased 11.7% to $63.0 million from higher sales in monogastric and ruminant markets.
Specialty Products
Specialty products revenue rose 4.5% to $37.3 million due to performance gases business growth.
Operating Expenses
Operating expenses rose to $43.3 million, primarily due to higher compensation-related costs.
Free Cash Flow
Free cash flow reached $57.9 million, supporting capital allocation and growth investments.
Cash Balance
Cash balance stood at $66.3 million as of Sept. 30, 2026, including $28 million debt reduction and $28 million share repurchases.
Net Debt
Net debt was $57.7 million with a net leverage ratio of 0.2 times trailing 12-month adjusted EBITDA.
Inventories
Inventories increased to $177.0 million, reflecting inflation, volume growth, and deliberate safety stock builds.
Net Interest Expense
Net interest expense decreased to $1.9 million from $2.6 million in the prior year quarter.
Effective Tax Rate
Effective tax rate dropped to 22.2%, a decrease from 22.6% in the prior year quarter.
29th Consecutive Q Growth
Balchem achieved its 29th consecutive quarter of year-over-year growth in adjusted EBITDA.
The key point
Balchem achieved record Q3 revenue of $290.7 million, 8.6% up from prior year, with 16.0% higher GAAP net earnings.
