Balchem's Q2 2025 Earnings Call: Navigating Contradictions on Tariffs, Antidumping, and Market Growth

Tariff impact and mitigation strategy, antidumping case with EU, choline products growth, macro environment and European monogastric demand, capital allocation and M&A strategy are the key contradictions discussed in Balchem's latest 2025Q2 earnings call.



Record Financial Performance:
- Balchem Corporation reported record revenue of $255 million for Q2 2025, up 9.1% year-on-year.
- The growth was driven by strong performance across all three segments: Human Nutrition & Health, Animal Nutrition & Health, and Specialty Products.

Human Nutrition & Health Segment Growth:
- The Human Nutrition & Health segment generated record sales of $161 million, up 8.7% from the previous year.
- This was fueled by increased demand for both the Food Ingredients and Solutions businesses and the Nutrients business, supported by trends towards nutrient-dense, high-protein foods.

Animal Nutrition & Health Segment Growth:
- The Animal Nutrition & Health segment reported sales of $56 million, up 13.1% compared to the prior year.
- The growth was driven by higher sales in both ruminant and monogastric species markets, supported by an anticipated increase in market share due to recent antidumping duties on Chinese choline.

Specialty Products Segment Performance:
- The Specialty Products segment delivered record sales of $37 million, up 6% year-on-year.
- This was driven by higher demand in both the Performance Gases and Plant Nutrition businesses, despite higher operating expenses.

Capacity Expansion and Operational Efficiency:
- Balchem announced plans to build a $36 million state-of-the-art food ingredient and nutraceutical microencapsulation manufacturing facility in New York.
- This investment aims to double Balchem's capacity for microencapsulation technologies, enhancing operational efficiency and supporting continued growth.