EARNINGS RESULTS May 2025 1 st QUARTER 2025 Connect to what's possible. Forward-Looking Statements and Non-GAAP Financial Measures Forward-Looking Statements Our commentary and responses to your questions may contain forward-looking statements, including our outlook for the second quarter of 2025 and beyond. Forward-looking statements include projections of sales, earnings, general economic conditions, market conditions, working capital, market shares, free cash flow, pricing levels, and effective tax rates ...

Belden (BDC) Q1 2025 Earnings Call May 01, 2025 08:30 AM ET Speaker0 Ladies and gentlemen, thank you for standing by. Welcome to this morning's Belden Reports First Quarter twenty twenty five Results. Just a reminder, this call is being recorded. At this time, you are in a listen only mode. Later, we will conduct a question and answer session. If you would like to ask a question, please press star one on your touch tone phone. If you are in the question queue and would like to withdraw your question, I woul ...

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]

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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