Balchem Corporation reported record financial results for its second quarter ended June 30, 2025, with net sales reaching $255.5 million, a 9.1% increase year-over-year. The company also achieved record adjusted EBITDA of $69.2 million and generated $40.7 million in free cash flow.
All three reporting segments contributed to this growth, with Human Nutrition & Health sales rising 8.7% to a record $160.8 million, and Animal Nutrition & Health sales increasing 13.1% to $56.0 million. Specialty Products also posted record sales of $37.2 million, up 6.0%.
A significant development for the Animal Nutrition & Health segment is the European Commission's provisional decision to impose anti-dumping duties ranging from 95.4% to 120.8% on Chinese choline chloride imports, effective July 1, 2025. This action is expected to create a more level playing field and contribute positively to the segment's growth.
Furthermore, Balchem announced a planned $36 million investment in a new micro-encapsulation facility, which is projected to more than double current capacity. This strategic expansion is aimed at supporting continued double-digit growth in the Human Nutrition & Health segment and is expected to begin production in late 2027 or early 2028.
The company also repurchased $33.3 million of its common stock during the quarter, demonstrating a commitment to shareholder value. Net interest expense decreased to $2.8 million from $4.2 million in the prior year, primarily due to lower outstanding borrowings.
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