Balchem Corporation (NASDAQ:BCPC) reported fourth-quarter results that exceeded Wall Street expectations, sending shares up 4.46% in pre-market trading.
Adjusted earnings per share came in at $1.31, ahead of the $1.18 consensus forecast. Revenue reached $263.6 million, surpassing analysts’ expectations of $259.6 million and marking a 9.8% increase compared with the same quarter last year.
On a GAAP basis, net earnings for the quarter climbed 16.8% to $39.2 million. Adjusted EBITDA rose 8.1% to a record $67.9 million. Gross profit expanded to $93.9 million in dollar terms, although gross margin as a percentage of sales edged slightly lower due to higher input costs. The company generated $67.3 million in operating cash flow and $51.2 million in free cash flow during the quarter.
Chairman, President and CEO Ted Harris underscored the company’s ongoing momentum, stating, “In the fourth quarter, Balchem’s strong growth trajectory continued. We delivered record fourth quarter net sales and adjusted EBITDA, with top and bottom line growth year over year in each of our three segments.”
For full-year 2025, Balchem posted record net sales of $1.04 billion, up 8.8%, alongside record adjusted EBITDA of $274.9 million. Adjusted earnings per share increased to $5.15 from $4.37 in 2024. Free cash flow reached an all-time high of $173.6 million, supporting higher dividend payments and share repurchases.
Harris added, “For the full year 2025, Balchem delivered another very strong year… allowing us to increase our dividend once again by a double digit percentage while further strengthening our balance sheet.”
The company closed the year with $74.6 million in cash and a net leverage ratio of just 0.3x, leaving it well-positioned to pursue above-market growth opportunities in 2026 and beyond.