Balchem Corporation

We'll now hand the conference over to Martin Bengtsson, Balcom's Chief Financial Officer. Please go ahead.

Thank you. Good morning, everyone. Thank you for joining our conference call this morning to discuss the results of Balcom Corporation for the quarter ending September 30th, 2026. My name is Martin Bengtsson, Chief Financial Officer, and hosting this call with me is Ted Harris, our Chairman, President and CEO. Following the advice of our council, auditors, and the SEC, at this time I would like to read our forward-looking statement. Statements made in today's call that are not historical facts are considered forward-looking statements. We can give no assurance that the expectations reflected in forward-looking statements will prove correct and various factors could cause actual results to differ materially from our expectations, including risks and factors identified in Balchem's most recent Form 10-K, 10-Q and 8-K reports. The company assumes no obligation to update these forward-looking statements. Today's call and commentary also include non-GAAP financial measures, Please refer to the reconciliations in our earnings release for further details. I will now turn the call over to Ted Harris, Chairman, President, and CEO.

Thanks, Martin. Good morning and welcome to our conference call. We were very pleased with our third quarter results reported earlier this morning, which were once again driven by healthy, broad-based growth across all three of our reporting segments. and continued solid execution on our strategic growth initiatives. Our healthy growth continues to be fueled by the ongoing market penetration of our unique portfolio of specialty nutrients and delivery systems and the favorable better for you trends within the food and nutrition markets that are well aligned with our product offerings and capabilities. As a result, We delivered record quarterly consolidated sales, debt earnings, and adjusted EBITDA, as well as solid cash flows. Before discussing our third quarter financial results in more detail, I would like to provide a few comments on the current market environment within which we are operating, and also provide you with some updates regarding some new science that has been recently published supporting our branded ingredients Vitacoline, K2 Vital, and K2 Vital Delta. We continue to see healthy demand trends across the majority of our businesses. Within human nutrition and health, we continue to see solid demand growth for our unique portfolio of ingredients and solutions. Consumer interest in supplementation and better for you food systems continue to support a healthy market environment for us. In animal nutrition and health, momentum continues to build. Both ruminant and monogastric customers continue to adopt our nutrient technologies as they look for cost-effective ways to improve animal health and productivity. And within specialty products, we continue to see healthy market demand for our specialized performance gases and services. Overall, we see a positive demand outlook for Balcamp. and we remain confident in our ability to deliver healthy growth over the long term. Turning to the growing body of science supporting our branded ingredients, I'd like to highlight two recently published studies that we believe are particularly noteworthy. The first is the MD Anderson-led pilot study that we have discussed in the past and that was recently published in Alzheimer's and Dementia Translational Research and Clinical Interventions, a peer-reviewed journal of the Alzheimer's Association. The study evaluated the potential benefits of choline supplementation in cognitively healthy ApoE4 carriers, a population at significantly increased genetic risk for developing Alzheimer's disease. Researchers examined the impact of supplementation on biomarkers associated with neurodegeneration, brain metabolism, and pathways implicated in Alzheimer's progression. The findings provide encouraging new evidence that may support the role of viticholine in lifelong brain health and further strengthen the scientific foundation of choline in healthy aging and cognition. We believe this represents another important step in positioning viticholine not only as an essential nutrient, but also as a leading science-backed ingredient in adult cognitive health. The second study I'd like to highlight is the DANCODE trial published in Circulation, a leading cardiovascular journal of the American Heart Association. The study examined the impact of vitamin K2 supplementation using Balchem's K2 Vital Delta on coronary artery calcification and cardiovascular health. The findings add important clinical evidence supporting the role of vitamin K2 in cardiovascular health and healthy aging while further strengthening the scientific leadership and commercial differentiation of our K2 Vital platform. Now, let me turn to our consolidated results for the third quarter. This morning, we reported record consolidated revenue of $291 million, an increase of 8.6% versus the prior year. We delivered record quarterly gap earnings from operations of $62 million, an increase of 14.4%. Consolidated net income closed the quarter at a record $47 million, an increase of 16%. This quarterly net income translated to diluted net earnings per share of $1.46 on a GAAP basis, up 17.7%. On an adjusted basis, we delivered record quarterly adjusted EBITDA of $80 million, an increase of 12.4%. Our quarterly adjusted net earnings were a record $50 million, An increase of 14.5%, which translated to $1.57 per diluted share, up 16.3%. Overall, it was an excellent quarter for Valchem. Record results, healthy growth across all three segments, and continued progress on our long-term strategic priorities. And with that, I'll turn the call back over to Martin to review our third quarter financial results and segment performance in more detail.