Q1 2025 Performance Highlights - Adjusted EPS reached $1.60, a 29% increase year-over-year[10, 17] - Adjusted Gross Margin improved to 39.8%, up 140 bps year-over-year[11, 17] - Adjusted EBITDA Margin was 16.6%, an increase of 80 bps year-over-year[11, 17] - Revenue reached $625 million, exceeding the high end of guidance[13] - Organic Revenue Growth was +11% overall, with +14% in the Americas year-over-year[13] - Orders increased by 18% year-over-year[13, 18] Cash Flow and Capital Deployment - Free Cash Flow for the trailing twelve months was $220 million[12, 13] - The company repurchased 1.0 million shares for $100 million year-to-date through April 2025[13] Segment Performance - Automation Solutions organic revenue increased by 16% year-over-year[20] - Smart Infrastructure Solutions organic revenue increased by 6% year-over-year[20] Q2 2025 Guidance - Total Revenue is projected to be between $645 million and $660 million[29] - Adjusted EPS is expected to be between $1.67 and $1.77[29]

Financial Data and Key Metrics Changes - Revenue for the first quarter totaled $625 million, up 17% year over year, exceeding the high end of guidance [7][14] - Earnings per share (EPS) came in at $1.60, up 29% compared to the prior year [7][17] - Gross margins were 39.8%, an increase of 40 basis points year over year, marking the highest since the strategic transformation began in 2020 [7][16] - Adjusted EBITDA margins improved to 16.6%, up 80 basis points year over year [7][17] - Free cash flow for the trailing twelve months was $220 million, representing 9% of total revenue [9][20] Business Line Data and Key Metrics Changes - Automation Solutions revenue grew 16% year over year, with orders up 22% [14][18] - Smart Infrastructure Solutions revenue increased by 17% year over year, with orders up 13% [14][19] - Broadband revenue was up year over year, driven by a 9% organic growth in fiber [19] Market Data and Key Metrics Changes - Organic growth for the overall business was 11%, with The Americas leading at 14% [8][14] - Orders were up 18% year over year, with a book-to-bill ratio of 1.05 [8][14] Company Strategy and Development Direction - The company is focused on a solutions transformation that enhances customer relationships and drives repeat business [10][12] - There is a strategic emphasis on acquisitions that support the solutions transformation and returning capital to shareholders through buybacks [9][10] - The company aims to bridge the gap between industrial and enterprise applications, leveraging its broad product portfolio [12][30] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about long-term growth driven by trends such as reindustrialization, digitization, and automation [27][30] - There is an expectation of continued uncertainty in the near term due to trade policy, but a positive long-term outlook remains [27][28] - Signs of recovery in global manufacturing PMIs were noted, indicating potential for broader industrial recovery [29][30] Other Important Information - The company has a strong balance sheet with a cash position of $259 million and a net debt to EBITDA ratio of 2.0 times [20] - The next debt maturity is not until 2027, with all debt fixed at an average rate of 3.5% [22] Q&A Session Summary Question: Comments on reshoring interest among manufacturers - Management noted increased confidence among large customers regarding reshoring manufacturing to the US, with discussions around long-term plans and IT/OT convergence [36][38] Question: Insights on book-to-bill in Smart Infrastructure - Smart Buildings orders were up about 8%, while Broadband orders were up 18%, indicating stronger performance in Broadband [40][41] Question: Demand pull forward and its impact - Management has not seen significant demand pull forward but noted increased interest and discussions from customers about deploying solutions [51][52] Question: Exposure to tariffs and sourcing strategies - The largest exposure is to Mexico, with most products having exemptions under USMCA, and no manufacturing in China for the US market [57][58] Question: Long-term EPS growth targets - The company is still targeting a 10% to 12% EPS CAGR but did not provide further updates on the $8 EPS goal for 2025 [59][60] Question: Margin performance between segments - Strong performance in Industrial Solutions was noted, while Smart Infrastructure experienced a sequential drop due to revenue leverage [62][64] Question: Free cash flow management - The focus remains on improving supply chain management and inventory turns, with a goal to increase free cash flow margin closer to 10% [74][75]

Financial Data and Key Metrics Changes - Revenue for the first quarter totaled $625 million, up 17% year over year, exceeding the high end of guidance [7][14] - Earnings per share (EPS) came in at $1.60, up 29% compared to the prior year [7][14] - Gross margins were 39.8%, an increase of 40 basis points year over year, marking the highest since the strategic transformation began in 2020 [7][15] - Adjusted EBITDA margins improved to 16.6%, up 80 basis points year over year [7][14] Business Line Data and Key Metrics Changes - Automation Solutions revenue increased by 16% year over year, with orders up 22% [14][17] - Smart Infrastructure Solutions revenue grew by 17% year over year, with orders up 13% [14][18] - Organic growth for the overall business was 11%, with The Americas leading at 14% [8][14] Market Data and Key Metrics Changes - Orders were up 18% year over year, with a book-to-bill ratio of 1.05 [8][14] - The Americas and APAC regions showed strong growth, while EMEA was the slowest growing region but still achieved organic growth [17][18] - Broadband revenue increased year over year, driven by a 9% organic growth in fiber [19] Company Strategy and Development Direction - The company is focused on solutions transformation, which is expected to drive future growth opportunities [7][10] - There is a strategic emphasis on reshoring and IT/OT convergence, with increased interest from customers in investing in these areas [38][39] - The company aims to maintain a disciplined capital allocation strategy, targeting acquisitions and share repurchases [9][20] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about long-term growth driven by trends such as reindustrialization, digitization, and automation [27][31] - There is an expectation of continued uncertainty in the near term due to trade policy, but a positive long-term outlook remains [28][29] - Signs of recovery in global manufacturing PMIs were noted, indicating potential for broader industrial recovery [30] Other Important Information - The company generated strong free cash flow of $220 million, representing 9% of total revenue [9][20] - The balance sheet remains strong, with a net debt to EBITDA ratio of 2.0 times [20] - The next debt maturity is not until 2027, with all debt fixed at an average rate of 3.5% [22] Q&A Session Summary Question: Comments on reshoring interest among manufacturers - Management noted increased confidence among large customers regarding reshoring manufacturing to the US, with discussions around long-term plans [36][38] Question: Insights on book-to-bill in smart infrastructure - Smart Buildings orders were up about 8%, while Broadband orders were up 18%, indicating stronger performance in broadband [40][41] Question: Quantifying discussions on reshoring - Management indicated that discussions around reshoring have increased significantly, with a sales funnel growth in the high teens [47][50] Question: Demand pull forward observations - No significant demand pull forward was observed, but there is increased interest and discussions from customers about future deployments [51][52] Question: Exposure to tariffs and sourcing changes - The largest exposure is to Mexico, with most products having exemptions under USMCA, and efforts are ongoing to adjust sourcing from China [56][57] Question: Long-term EPS growth target - The company reiterated its target of 10% to 12% EPS CAGR but did not provide updates on the specific $8 EPS goal for 2025 [58][59] Question: Margin performance between segments - Strong performance in Industrial Solutions was noted, while Smart Infrastructure experienced a sequential drop due to seasonal impacts [61][63] Question: Learnings from combined sales force - The transition to autonomous systems is seen as a multi-step journey, with customers increasingly seeking digitization and integration of IT and OT [66][68] Question: Free cash flow management - The focus remains on improving supply chain efficiency and managing working capital to enhance free cash flow margins [71][73]

First Quarter 2025 Highlights "Thanks to the efforts of our team, Belden had a strong start to the year with revenues up 17%, combined with expanding margins," said Ashish Chand, President and CEO of Belden. "Demand remains steady as customers navigate a period of increased uncertainty, with total orders up modestly on a sequential basis and up 18% compared to the prior year. I am pleased to see sustained organic growth, up 11% for the quarter, with expansion in both segments. We continue to capitalize on o ...

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Group 1 - The analyst has been monitoring major Business Development Companies (BDCs) for over three years, yielding positive total returns and dividends [1] - Roberts Berzins has over a decade of experience in financial management, focusing on corporate financial strategies and large-scale financings [1] - Berzins has contributed to the institutionalization of the REIT framework in Latvia to enhance liquidity in pan-Baltic capital markets [1] Group 2 - The analyst holds a beneficial long position in MSDL and CION through various financial instruments [2] - The article reflects the author's personal opinions and is not influenced by compensation from any company mentioned [2] Group 3 - Seeking Alpha emphasizes that past performance does not guarantee future results and does not provide specific investment recommendations [3]

Group 1 - Mr. Mavroudis is a professional portfolio manager with expertise in institutional and private portfolios, focusing on risk management and financial market analysis [1] - He has successfully navigated major crises, including the COVID-19 pandemic and the PSI, demonstrating resilience in portfolio management [1] - Mr. Mavroudis holds multiple advanced degrees and certifications, including an MSc in Financial and Banking Management and is a certified portfolio manager by the Hellenic Capital Market Commission [1] Group 2 - He is the CEO of FAST FINANCE Investment Services, a registered Greek company, indicating a strong presence in the financial services industry [1] - Mr. Mavroudis engages with the investment community through writing articles and participating in educational seminars, contributing to knowledge sharing [1]

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Lately, I have been thinking more and more about my BDC portfolio and how the underlying picks could perform going forward considering the multiplicity of risk that stem, primarily, from the current policymaking arena.Roberts Berzins has over a decade of experience in the financial management helping top-tier corporates shape their financial strategies and execute large-scale financings. He has also made significant efforts to institutionalize REIT framework in Latvia to boost the liquidity of pan-Baltic ca ...

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