Financial Data and Key Metrics Changes - Revenue for the second quarter reached $672 million, an 11% increase year over year, exceeding the high end of guidance [6][17] - Earnings per share (EPS) grew 25% to $1.89, also above the high end of guidance [6][18] - Gross margins increased by 70 basis points year over year to 38.9%, while adjusted EBITDA margins expanded by 50 basis points to 17% [7][18] - Free cash flow for the trailing twelve months was $216 million, aligning with expectations [8][22] Business Line Data and Key Metrics Changes - Automation Solutions revenue grew 10% year over year, with orders up 11% [18][20] - Smart Infrastructure Solutions revenue increased by 13% year over year, with orders up 23% [18][21] - Broadband business revenue also saw growth, including 5% organic growth in fiber products [21] Market Data and Key Metrics Changes - All major regions experienced growth, with a book to bill ratio of 1.05 compared to 1.0 in the prior year [7] - Order activity was strong, with orders up 8% sequentially and 16% year over year [7][17] Company Strategy and Development Direction - The company is focused on solutions transformation, aiming to deliver high-value offerings and enhance earnings power [6][8] - Recent wins include a multi-site solutions award with a hyperscale data center customer and a global specification from a major US automotive manufacturer, showcasing the effectiveness of the solutions strategy [9][12] - The company is pursuing strategic acquisitions to support its solutions transformation and enhance its product offerings [8][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the automation business, noting steady improvement and growth across various geographies [35] - There is cautious optimism regarding the smart infrastructure solutions business, with some uncertainty in broader market conditions [37][39] - The medium and long-term outlook remains positive, driven by trends in reindustrialization, automation, and digitization [28][29] Other Important Information - The company has repurchased 1 million shares for $100 million, demonstrating a commitment to disciplined capital allocation [8][22] - The effective tax rate for the quarter was 12.3%, benefiting adjusted EPS by $0.11 [18][19] Q&A Session Summary Question: Insights on the second half demand environment - Management noted steady improvement in the automation business and growth in key verticals, while the smart infrastructure solutions business showed mixed signals [35][36] Question: Margin performance and future leverage - Management indicated that the EBITDA margin should continue to be modeled with a roughly 25% incremental margin year over year [40][41] Question: Concerns about sequential margin performance - Management acknowledged some noise from quarter to quarter but emphasized that underlying business conditions remain healthy [44] Question: Update on hyperscale market engagement - Management confirmed ongoing focus on both white space and gray space in data centers, with a robust pipeline of opportunities [47][50] Question: Context on the multimillion-dollar contract for modular cooling - Management highlighted the contract's significance in addressing energy management challenges faced by hyperscale data centers [57][58] Question: Tracking of solutions sales towards the 20% target - Management reported that automation solutions are on track to meet the 20% target, with ongoing investments in smart infrastructure solutions [60][61] Question: Sustainability of the lower tax rate - Management indicated that the current tax benefits are more discrete in nature, suggesting a long-term tax rate closer to 20% moving forward [65] Question: Factors affecting Smart Infrastructure Solutions margins - Management attributed margin pressures to investments in solutions initiatives and higher copper costs [70][71] Question: M&A pipeline focus areas - Management outlined a robust M&A pipeline aimed at closing technology gaps and enhancing access to end customers [72][75] Question: Insights on fiber and broadband market dynamics - Management noted strong performance in fiber sales, particularly in DOCSIS upgrades, while maintaining a focus on distribution networks [79][81] Question: Impact of copper volatility on guidance - Management confirmed that current guidance incorporates recent copper price fluctuations, with a typical two-month lag for price adjustments [83][86]

Financial Data and Key Metrics Changes - Revenue for the second quarter reached $672 million, up 11% year over year, exceeding the high end of guidance [5][17] - Earnings per share (EPS) grew 25% to $1.89, also above the high end of guidance [5][19] - Gross margins increased by 70 basis points year over year to 38.9%, while adjusted EBITDA margins expanded by 50 basis points to 17% [6][19] - Free cash flow for the trailing twelve months was $216 million, aligning with expectations [7][24] Business Line Data and Key Metrics Changes - Automation Solutions revenue grew 10% year over year, with orders up 11% [20] - Smart Infrastructure Solutions revenue increased by 13% year over year, with orders up 23% [21] - Broadband business revenue also saw growth, including 5% organic growth in fiber products [22] Market Data and Key Metrics Changes - All major regions experienced growth, contributing to a 5% organic growth overall [6] - Order activity was strong, with orders up 8% sequentially and 16% year over year [6][18] Company Strategy and Development Direction - The company is focused on solutions transformation, aiming to deliver high-value offerings and enhance earnings power [6][29] - Recent wins include a multi-site solutions award with a hyperscale data center customer and a global specification from a major US automotive manufacturer, showcasing the effectiveness of the solutions strategy [8][12] - The company is positioned to benefit from trends in reindustrialization, automation, digitization, and IT/OT convergence [28][29] Management's Comments on Operating Environment and Future Outlook - Management noted ongoing uncertainty in the macro environment but expressed confidence in the medium and long-term outlook due to fundamental trends driving the business [27][28] - The company expects steady near-term demand, with third-quarter performance likely to mirror typical seasonal patterns [27][28] Other Important Information - The company has a robust M&A pipeline focused on technology gaps, customer access, and software capabilities [69][72] - The effective tax rate for the second quarter was 12.3%, benefiting adjusted EPS by $0.11 [19][20] Q&A Session Summary Question: Thoughts on the second half demand environment - Management sees steady improvement in automation solutions and growth in key verticals, but acknowledges uncertainty in smart infrastructure solutions [34][35] Question: Margin performance and future leverage - Management indicated that the incremental EBITDA margin remains around 25% and that there are no significant changes expected [39] Question: Context on the hyperscale award - The hyperscale contract is a multimillion-dollar deal expected to play out over several years, addressing energy management challenges faced by data center providers [54][56] Question: Update on solutions sales tracking - Solutions sales are on track to reach the target of 20% by 2028, with automation solutions leading the way [58][59] Question: Comments on fiber and broadband market - The company is focused on the distribution portion of the broadband network, with strong sales in fiber products [76][78] Question: Impact of copper volatility on guidance - Guidance incorporates current copper prices, with a typical two-month lag for passing through costs to customers [80][83]

EARNINGS RESULTS July 2025 2 nd QUARTER 2025 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 third 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 disclaims any oblig ...

[Belden Reports Second Quarter 2025 Results](index=1&type=section&id=Belden%20Reports%20Second%20Quarter%202025%20Results) [Second Quarter 2025 Highlights](index=1&type=section&id=Second%20Quarter%202025%20Highlights) Belden reported strong second-quarter 2025 results, with an 11% year-over-year revenue increase to $672 million, driven by 5% organic growth, leading to a 25% rise in Adjusted EPS to $1.89 and a 16% increase in orders Q2 2025 Financial Performance Summary (YoY) | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Revenues | $672M | $604M | +11% | | Organic Revenue Growth | - | - | +5% | | Net Income | $61M | $49M | +24.5% | | GAAP EPS | $1.53 | $1.19 | +28.6% | | Adjusted EBITDA | $114M | $99M | +15% | | Adjusted EPS | $1.89 | $1.51 | +25% | - Demand remains solid, with orders increasing **16%** compared to the prior year and also showing sequential growth[3](index=3&type=chunk) - Adjusted EPS for Q2 benefited by **$0.11** from a lower-than-expected tax rate, primarily due to discrete tax benefits and a favorable geographic mix of earnings[5](index=5&type=chunk) [Business Outlook](index=1&type=section&id=Outlook) Belden provided its financial guidance for the third quarter of 2025, anticipating continued growth, driven by confidence in long-term opportunities from customers' investments in digitization and data, despite near-term market complexities Third Quarter 2025 Guidance | Metric | Guidance Range | | :--- | :--- | | Revenues | $670M - $685M | | GAAP EPS | $1.33 - $1.43 | | Adjusted EPS | $1.85 - $1.95 | - The company sees a clear and expanding medium-term opportunity as customers continue to invest in digitizing their operations and leveraging data, which increases demand for secure and reliable network infrastructure[6](index=6&type=chunk) - The company is confident in its ability to deploy capital strategically to drive growth, enhance shareholder returns, and compound value over time[6](index=6&type=chunk) [Consolidated Financial Statements (Unaudited)](index=3&type=section&id=Consolidated%20Financial%20Statements) [Condensed Consolidated Statements of Operations](index=3&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20OPERATIONS) For the three months ended June 29, 2025, Belden's revenues grew to $672.0 million from $604.3 million in the prior-year period, translating to higher operating income of $79.2 million and net income of $61.0 million, with diluted EPS increasing to $1.53 from $1.19 year-over-year Q2 2025 vs Q2 2024 Statement of Operations (in thousands) | Metric | Three Months Ended June 29, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | Revenues | $671,992 | $604,336 | | Gross Profit | $258,568 | $226,806 | | Operating Income | $79,236 | $68,912 | | Net Income Attributable to Belden | $61,006 | $49,044 | | Diluted EPS | $1.53 | $1.19 | YTD 2025 vs YTD 2024 Statement of Operations (in thousands) | Metric | Six Months Ended June 29, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Revenues | $1,296,853 | $1,140,011 | | Gross Profit | $504,408 | $428,402 | | Operating Income | $151,862 | $121,932 | | Net Income Attributable to Belden | $112,943 | $86,357 | | Diluted EPS | $2.79 | $2.09 | [Operating Segment Information](index=4&type=section&id=OPERATING%20SEGMENT%20INFORMATION) In Q2 2025, both operating segments showed year-over-year growth, with Automation Solutions revenue growing to $366.0 million (21.4% EBITDA margin) and Smart Infrastructure Solutions revenue increasing to $306.0 million (11.8% EBITDA margin), both improving their EBITDA margins Q2 2025 Segment Performance (in thousands) | Segment | Revenues | EBITDA | EBITDA Margin | | :--- | :--- | :--- | :--- | | Smart Infrastructure Solutions | $306,019 | $36,224 | 11.8% | | Automation Solutions | $365,973 | $78,246 | 21.4% | Q2 2024 Segment Performance (in thousands) | Segment | Revenues | EBITDA | EBITDA Margin | | :--- | :--- | :--- | :--- | | Smart Infrastructure Solutions | $270,473 | $31,456 | 11.6% | | Automation Solutions | $333,863 | $67,737 | 20.3% | [Condensed Consolidated Balance Sheets](index=5&type=section&id=CONDENSED%20CONSOLIDATED%20BALANCE%20SHEETS) As of June 29, 2025, Belden's total assets were $3.40 billion, a slight increase from $3.33 billion at year-end 2024, primarily driven by higher receivables and inventories, while total liabilities increased mainly due to a rise in long-term debt to $1.27 billion, and total stockholders' equity decreased to $1.23 billion Balance Sheet Summary (in thousands) | Metric | June 29, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total Current Assets | $1,222,639 | $1,196,229 | | Total Assets | $3,399,657 | $3,327,938 | | Total Current Liabilities | $615,594 | $622,704 | | Long-Term Debt | $1,271,338 | $1,130,101 | | Total Stockholders' Equity | $1,234,475 | $1,294,736 | [Condensed Consolidated Cash Flow Statements](index=6&type=section&id=CONDENSED%20CONSOLIDATED%20CASH%20FLOW%20STATEMENTS) For the first six months of 2025, net cash provided by operating activities was $89.5 million, slightly up from $85.7 million in the prior year, while net cash used for investing activities increased to $49.3 million due to higher capital expenditures, and financing activities used $116.2 million, largely for share repurchases, resulting in a $68.8 million decrease in cash and cash equivalents Six-Month Cash Flow Summary (in thousands) | Metric | Six Months Ended June 29, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $89,470 | $85,680 | | Net cash used for investing activities | ($49,320) | ($45,660) | | Net cash used for financing activities | ($116,208) | ($67,397) | | Decrease in cash and cash equivalents | ($68,816) | ($32,293) | | Cash and cash equivalents, end of period | $301,486 | $564,751 | - Payments under the share repurchase program significantly increased to **$101.0 million** in the first six months of 2025, compared to **$57.9 million** in the same period of 2024[15](index=15&type=chunk) [Reconciliation of Non-GAAP Measures](index=7&type=section&id=RECONCILIATION%20OF%20NON-GAAP%20MEASURES) [Reconciliation of GAAP to Adjusted Results](index=7&type=section&id=Reconciliation%20of%20GAAP%20to%20Adjusted%20Results) This section details the adjustments made to GAAP results to arrive at non-GAAP figures, which management believes provide better insight into underlying business trends, with Q2 2025 GAAP Net Income of $61.0 million adjusted to $75.6 million and GAAP EPS of $1.53 adjusted to $1.89, primarily due to amortization of intangibles and severance/restructuring costs - Management utilizes adjusted results to review ongoing operations without the effect of items like amortization of intangibles, restructuring costs, and acquisition-related expenses, believing it helps investors compare results and understand underlying trends[17](index=17&type=chunk) Q2 2025 GAAP to Non-GAAP Reconciliation Summary (in thousands, except per share) | Metric | GAAP | Adjustments | Non-GAAP (Adjusted) | | :--- | :--- | :--- | :--- | | Gross Profit | $258,568 | $2,945 | $261,513 | | Net Income | $61,006 | $14,601 | $75,607 | | Diluted EPS | $1.53 | $0.36 | $1.89 | | EBITDA | - | - | $114,064 | [Reconciliation of Free Cash Flow](index=9&type=section&id=Reconciliation%20of%20Free%20Cash%20Flow) Belden defines non-GAAP free cash flow as net cash from operating activities adjusted for capital expenditures and proceeds from asset disposals, which for the six months ended June 29, 2025, was $32.2 million, a decrease from $39.5 million in the prior-year period - The company defines free cash flow as net cash from operating activities adjusted for capital expenditures net of the proceeds from the disposal of assets, and it is used to monitor performance and liquidity[20](index=20&type=chunk) Free Cash Flow Reconciliation (in thousands) | Metric | Six Months Ended June 29, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | GAAP net cash provided by operating activities | $89,470 | $85,680 | | Capital expenditures | ($57,353) | ($46,246) | | Proceeds from disposal of tangible assets | $115 | $60 | | **Non-GAAP free cash flow** | **$32,232** | **$39,494** | [Reconciliation of Q3 2025 Guidance](index=9&type=section&id=Reconciliation%20of%202025%20Guidance) The company provides a reconciliation for its third-quarter 2025 EPS guidance, adjusting the GAAP EPS range of $1.33 - $1.43 for items such as amortization of intangible assets ($0.32) and restructuring costs ($0.19) to arrive at an Adjusted EPS range of $1.85 - $1.95 Q3 2025 EPS Guidance Reconciliation | Description | Per Diluted Share | | :--- | :--- | | GAAP income per diluted share | $1.33 - $1.43 | | Amortization of intangible assets | $0.32 | | Severance, restructuring, and acquisition integration costs | $0.19 | | Adjustments related to acquisitions and divestitures | $0.01 | | **Adjusted income per diluted share** | **$1.85 - $1.95** | [Additional Information](index=10&type=section&id=Additional%20Information) [Forward-Looking Statements](index=10&type=section&id=Forward-Looking%20Statements) This section cautions investors that the report contains forward-looking statements, including financial guidance, which are not guarantees of future performance, highlighting numerous risk factors that could cause actual results to differ materially, such as global trade volatility, supply chain disruptions, inflation, currency exchange rate changes, and cyber-attacks - Forward-looking statements reflect management's current beliefs and are not guarantees of future performance[23](index=23&type=chunk) - Key risks include, but are not limited to: volatility in global trade and tariffs, cyber-attacks, economic uncertainties, inflation, supply chain disruptions, and the inability to successfully integrate acquisitions[23](index=23&type=chunk) - Belden disclaims any duty to update forward-looking statements except as required by law[24](index=24&type=chunk) [About Belden](index=10&type=section&id=About%20Belden) Belden Inc. is a global company that delivers complete connection solutions, headquartered in St. Louis with a history of over 120 years, maintaining manufacturing capabilities across North America, Europe, Asia, and Africa - Belden Inc. delivers complete connection solutions to enable a safer, smarter, and more prosperous future[25](index=25&type=chunk) - The company is headquartered in St. Louis and has manufacturing facilities in North America, Europe, Asia, and Africa[25](index=25&type=chunk)

Group 1 - Roberts Berzins has over a decade of experience in financial management, assisting top-tier corporates in shaping financial strategies and executing large-scale financings [1] - Significant efforts have been made to institutionalize the REIT framework in Latvia to enhance the liquidity of pan-Baltic capital markets [1] - Development of national SOE financing guidelines and frameworks for channeling private capital into affordable housing stock has been a focus area [1] - Roberts is a CFA Charterholder and holds an ESG investing certificate, with experience from an internship at the Chicago Board of Trade [1] - Active involvement in "thought-leadership" activities supports the development of pan-Baltic capital markets [1]

Group 1 - The article provides a review of market activity in the Business Development Company (BDC) sector, focusing on both individual news and broader market trends [1] - It highlights the importance of yield and risk management in investment strategies within the BDC sector [1] - The article encourages the use of Interactive Investor Tools for navigating various investment markets, including BDCs, Closed-End Funds (CEFs), and preferred stocks [1] Group 2 - The article promotes Investor Guides related to CEFs and preferred stocks, indicating a resource for investors seeking more information [2] - A no-risk trial offer for a 2-week free trial is mentioned, suggesting an opportunity for investors to explore services without initial commitment [2]

Group 1 - The Company, Chicago Atlantic BDC, Inc., is a specialty finance company regulated as a business development company, focusing on maximizing risk-adjusted returns on equity by investing primarily in direct loans to privately held middle-market companies, particularly in the cannabis sector [4] - The financial results for the second quarter ended June 30, 2025, will be released before the market opens on August 14, 2025, followed by a conference call at 9:00 a.m. Eastern Time [2][6] - The conference call will be accessible to the general public via a live audio webcast on the Company's website [2][3]

Core Viewpoint - Gladstone Investment (NASDAQ: GAIN) is positioned to benefit from higher equity-driven returns in a record stock market, making it a favorable addition to passive income investment portfolios [1]. Group 1: Company Overview - Gladstone Investment is classified as a business development company (BDC) [1]. - The company is expected to capitalize on the current market conditions, particularly the record highs in the stock market [1]. Group 2: Investment Strategy - The stock of Gladstone Investment is being overweighted in passive income investment portfolios due to its potential for growth [1]. - The focus is on innovation, disruption, and growth buyouts, indicating a strategy that seeks to identify value stocks within the market [1].

Group 1 - Crescent Capital BDC, Inc. (NASDAQ: CCAP) is a business development company that is currently underappreciated despite having an above-average non-accrual ratio [1] - The company focuses on high-tech and early growth sectors, indicating a strategy that emphasizes innovation and disruption [1] Group 2 - The article highlights the importance of research and investment opportunities in the context of the current market landscape [1]

Group 1 - The private credit and business development company (BDC) segments have faced significant volatility in 2023, with a relatively stable outlook for 2025, lacking clear growth catalysts or impediments [1] - A major tariff announcement has impacted the overall sentiment in the private credit and BDC sectors, indicating potential challenges ahead [1] - Roberts Berzins has extensive experience in financial management and has contributed to the development of financial strategies and frameworks in Latvia, particularly in enhancing the liquidity of pan-Baltic capital markets [1]