Balchem Corporation Reports 9.1% Revenue Growth in Q2 2025

Balchem Corporation reported a notable increase in financial performance for the second quarter and first half of 2025, as detailed in its latest 10-Q filing. For the three months ended June 30, 2025, the company achieved net sales of $255.5 million, a 9.1% increase from $234.1 million in the same period of 2024. The gross margin also improved, rising to $93.1 million, or 36.4% of net sales, compared to $83.0 million, or 35.5% of net sales, in the prior year. Net earnings for the quarter reached $38.3 million, up from $32.1 million, translating to earnings per share of $1.18, compared to $0.99 in the previous year.

In the first half of 2025, Balchem's net sales totaled $506.0 million, a 6.8% increase from $473.7 million in the first half of 2024. The gross margin for this period was $181.3 million, representing 35.8% of net sales, compared to $164.5 million, or 34.7% of net sales, in the prior year. Net earnings for the six months ended June 30, 2025, were $75.3 million, an increase from $61.1 million in the same period of 2024, with diluted earnings per share rising to $2.30 from $1.87.

The company experienced significant growth across its business segments. The Human Nutrition & Health segment reported net sales of $160.8 million for the second quarter, up 8.7% year-over-year, driven by higher sales in food ingredients and nutrient businesses. The Animal Nutrition & Health segment saw a 13.1% increase in sales to $56.0 million, while the Specialty Products segment grew by 6.0% to $37.2 million. The increase in sales was attributed to higher volumes, favorable pricing, and positive foreign currency impacts.

Operationally, Balchem's total assets increased to $1.68 billion as of June 30, 2025, up from $1.58 billion at the end of 2024. The company reported a significant rise in cash and cash equivalents, which reached $65.4 million, compared to $49.5 million at the end of the previous year. The workforce also expanded, with approximately 1,364 full-time employees as of June 30, 2025. The company continues to focus on strategic initiatives, including potential acquisitions and investments in production facilities, to enhance its market position.

Looking ahead, Balchem remains optimistic about its growth trajectory, despite potential challenges such as macroeconomic conditions and competitive dynamics. The company is actively pursuing additional acquisition opportunities and expects to continue generating sufficient cash flow to support its operations and capital investments. The recent anti-dumping investigation in the European Union regarding choline chloride imports from China may also impact future sales and pricing strategies.