Message from Our CEO on Sustainability.
To our employees, customers, shareholders, and communities:
Balchem is committed to making the world a healthier place by delivering trusted, innovative, and science-based solutions that address global health and nutritional needs. We achieve this while operating our facilities and businesses in a manner that meets the expectations of our employees, customers, shareholders, and communities we serve.
Our 2025 Sustainability Report provides an update on a wide range of existing and new sustainability initiatives across our company. We are proud of the progress we continue to make and believe this report clearly demonstrates how sustainability remains integral to our strategy and our vision of making the world a healthier place.
Overall, 2025 was another highly successful year for Balchem, marked by meaningful advancements in our growth strategies, strong business performance, and continued progress on our sustainability priorities. For the full year 2025, Balchem delivered another very strong year, with record net sales, adjusted EBITDA, and free cash flow, allowing us to increase our dividend once again by a double-digit percentage while further strengthening our balance sheet.
We made excellent progress executing our growth strategies; driving growth through innovation and geographic expansion, accelerating growth through M&A, and delivering on our winning business and functional strategies while also strengthening our culture and capabilities. At the same time, we advanced our sustainability efforts, making meaningful strides toward our 2030 environmental goals, strengthening employee well‑being and safety programs, and continuing to embed sustainability across our operations.
We remain firmly committed to our 2030 sustainability goals, which include reducing Scope 1 and Scope 2 greenhouse gas (“GHG”) emissions and water withdrawal by 25% on an absolute basis from our 2020 baseline.
Following our accomplishments in 2024, Balchem is proud to share that in 2025, we again surpassed our 2030 GHG emissions reduction goal, achieving a 31% absolute decrease since 2020. This progress supports the successful execution of our strategic growth initiatives and sustainability roadmap.
We remain dedicated to lowering our environmental footprint by collaborating with our supply chain partners, stakeholders, and industry colleagues to drive significant reductions in Scope 3 GHG emissions. Through active engagement, innovative approaches, and responsible sourcing, we seek to advance sustainability throughout our entire value chain. We will keep pursuing opportunities for greater efficiency, low-carbon solutions, and best practices that foster a more sustainable future. In 2025, Balchem reduced water withdrawal by about 16% compared to our 2020 baseline, marking substantial progress toward our water reduction goal. We are actively implementing water-use reduction programs at several manufacturing sites and are confident in our ability to reach our 2030 water use reduction target.
Balchem is well positioned within the markets we serve and we are encouraged by the progress we are making across our broad-based sustainability efforts. We look forward to another strong year in 2026 and are grateful for the continued support of our stakeholders as, together, we strive to make the world a healthier place.
Ted Harris