Balchem Corporation (NASDAQ: BCPC) shares rose over 4% in pre-market trading following its fourth-quarter earnings report, which surpassed analyst expectations on both the top and bottom lines. The company reported adjusted earnings per share of $1.31, exceeding the consensus estimate of $1.18. Revenue climbed to $263.6 million, outpacing the expected $259.6 million and showing a 9.8% year-over-year increase. Adjusted EBITDA reached a record $67.9 million, up 8.1% from the previous year, while GAAP net earnings grew 16.8% to $39.2 million. The company also generated $67.3 million in operating cash flow and $51.2 million in free cash flow during the quarter.

For the full year 2025, Balchem delivered record net sales of $1.04 billion, an 8.8% increase, and record adjusted EBITDA of $274.9 million. Adjusted earnings per share reached $5.15, compared to $4.37 in 2024. The company ended 2025 with $74.6 million in cash and a net leverage ratio of just 0.3x, significantly strengthening its balance sheet. Chairman and CEO Ted Harris highlighted the company's momentum, stating the results demonstrate continued strong growth trajectory across all three segments.

The positive results position Balchem well for continued above-market growth in 2026, supporting its commitment to dividend increases and share repurchases. The company's strong cash position and low leverage provide significant flexibility for future investments and strategic initiatives.