We came across a bullish thesis on Bel Fuse Inc. on Value & Error’s Substack. In this article, we will summarize the bulls’ thesis on BELFA. Bel Fuse Inc.'s share was trading at $192.34 as of January 27th. BELFA’s trailing and forward P/E were 38.94 and 28.09 respectively according to Yahoo Finance. Tetra Tech (TTEK) Soars 15% Ahead of Dividend Payment Bel Fuse Inc. designs, manufactures, markets, and sells products that power, protect, and connect electronic circuits. BELFA presents a compelling share c ...

Core Viewpoint - Bel Fuse Inc. has appointed Tom Smelker as President of Connectivity Solutions, effective January 26, 2026, to drive growth and innovation in the aerospace and defense sectors [1][4]. Group 1: Appointment and Background - Tom Smelker brings over two decades of experience in the aerospace and defense sectors, previously serving as Senior Vice President and General Manager at Mercury Systems, managing a $400+ million P&L across ten sites [2]. - At Mercury Systems, he achieved a significant turnaround in profitability and repositioned key product lines into top-performing units [2]. - Prior to Mercury Systems, Smelker spent 19 years at Raytheon, where he advanced to Senior Fellow in Secure Processing and launched a secure systems business [2][3]. Group 2: Expertise and Strategic Fit - Smelker's expertise includes ruggedized computing, RF systems, secure microelectronics, and space technologies, aligning closely with Bel's strategic priorities [3]. - His leadership experience in P&L management and global operational oversight positions him well to lead Bel's Connectivity Solutions business unit [3]. Group 3: Leadership Comments - Farouq Tuweiq, CEO of Bel, expressed enthusiasm about Smelker's appointment, highlighting his leadership skills and industry knowledge as crucial for the company's growth [4]. - Smelker noted the opportunity to contribute to Bel's commitment to innovation and its strong position in the aerospace and defense markets [4]. Group 4: Company Overview - Bel Fuse Inc. designs, manufactures, and markets products that power, protect, and connect electronic circuits, serving various industries including defense, commercial aerospace, telecommunications, and automotive [5]. - The company's product groups include Power Solutions, Connectivity Solutions, and Magnetic Solutions, with operations in facilities worldwide [5].

WEST ORANGE, N.J., Jan. 15, 2026 (GLOBE NEWSWIRE) -- Bel Fuse Inc. (Nasdaq: BELFA and BELFB) (“Bel” or “the Company”), a leading global manufacturer of products that power, protect and connect electronic circuits, today announced the anticipated retirement of Pete Bittner, President of Connectivity Solutions, effective April 3, 2026 after more than three decades of dedicated service. Pete Bittner joined Bel in 1990 and has been instrumental in driving the growth and success of the Connectivity Solutions bus ...

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Core Viewpoint - Bel Fuse Inc. is actively participating in the 28th Annual Needham Growth Conference, indicating its commitment to engaging with investors and showcasing its business strategies and growth potential [1][2]. Company Overview - Bel Fuse Inc. designs, manufactures, and markets a wide range of products that power, protect, and connect electronic circuits, serving various industries including networking, telecommunications, computing, military, aerospace, medical, transportation, and broadcasting [3]. - The company's product groups include Power Solutions and Protection, Connectivity Solutions, and Magnetic Solutions, highlighting its diverse offerings in the electronic components market [3]. Event Details - The 28th Annual Needham Growth Conference will take place on January 13, 2026, at the Lotte NY Palace Hotel in New York, featuring a presentation by CEO Farouq Tuweiq and CFO Lynn Hutkin at 1:30 PM ET [2]. - Investors can access the presentation deck and webcast through the investor relations section of Bel Fuse's website [2].

Core Viewpoint - Bel Fuse Inc. anticipates a pre-tax impairment charge of up to approximately $14 million related to its investment in Innolectric AG due to ongoing challenges in the e-Mobility market and Innolectric's insolvency proceedings [1][3][4] Investment Details - Bel acquired a noncontrolling one-third stake in Innolectric in February 2023, recognizing its potential in the e-Mobility sector driven by innovative power products and a strong intellectual property portfolio [2] - Despite Innolectric's strengths, factors such as market exits, reduced government incentives, and weaknesses in the global electric vehicle sector have led to operating losses and delayed sales [2][3] Financial Impact - The anticipated impairment charge reflects the full potential loss associated with the investment, including outstanding notes receivable from loans extended to Innolectric [3] - Bel recorded losses of $0.4 million for the nine months ended September 30, 2025, and $0.6 million for the year ended December 31, 2024, related to its minority interest in Innolectric [3] Strategic Decisions - Bel decided against acquiring the remaining two-thirds stake in Innolectric, considering the current market conditions, the time required to achieve breakeven, and other capital allocation priorities [4]

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Core Insights - The analyst has refrained from recommending a Buy on Bel Fuse Inc. (BELFB) stock until a clear inflection point indicating the company's recovery is observed [1] Group 1: Company Overview - Bel Fuse Inc. is being closely monitored for signs of recovery before investment recommendations are made [1] Group 2: Analyst Background - The analyst has a background in petroleum and gas engineering and has transitioned into finance, focusing on technology, infrastructure, and internet services [1]

Revenue Breakdown - For the nine months ended September 30, 2025, 53% of revenues were derived from Power Solutions and Protection, 34% from Connectivity Solutions, and 13% from Magnetic Solutions[115]. - Sales of Power Solutions and Protection products increased by $45.7 million (93.9%) in Q3 2025 compared to Q3 2024, driven by aerospace and defense applications[123]. - Connectivity Solutions sales rose by $6.2 million (11.0%) in Q3 2025, primarily due to higher volumes in commercial aerospace applications, which grew by $6.3 million (50.5%)[124]. - Sales of Magnetic Solutions products increased by $3.5 million (18.0%) in Q3 2025, driven by higher demand from networking customers[127]. Order Backlog - The backlog of orders amounted to $415 million at September 30, 2025, an increase of $33 million, or 9%, from December 31, 2024[118]. Labor Costs - Labor costs represented 7.8% of revenue during the first nine months of 2025, remaining flat compared to the same period in 2024[121]. - Minimum wage increases in 2025 are expected to increase annual labor costs by $1.8 million, though these costs have been largely offset by revenue increases[121]. Taxation - The effective tax rate will fluctuate based on the geographic regions where pretax profits are earned, with Asia having the lowest tax rates[121]. - The provision for income taxes increased to $5.4 million in Q3 2025 from $3.1 million in Q3 2024, with an effective tax rate of 19.5%[138]. Foreign Exchange and Market Risks - A foreign exchange transactional gain of $11.6 million was recognized during the nine months ended September 30, 2025, mainly due to currency fluctuations[121]. - The Company is exposed to market risks from foreign currency exchange rates, interest rates on long-term debt, and commodity price fluctuations[148]. - The Company uses foreign currency forward contracts to manage short-term exposure to operational cash flow fluctuations[148]. - To mitigate variable interest rate risks, the Company maintains two pay-fixed, receive-variable interest rate swap agreements[148]. Material Costs - Material costs as a percentage of sales increased to 32.2% in Q3 2025 from 31.7% in Q3 2024, driven by higher sales of Power products[129]. - The Company utilizes various metals, including copper, zinc, tin, gold, and silver, in its production processes[148]. - The Company actively monitors potential volatility in metal prices and anticipates increased material costs[148]. - Strategies implemented to mitigate negative impacts from price changes include price adjustments and productivity improvements[148]. - The Company believes it has adequate primary and secondary sources for each of its key materials[148]. Financial Performance - Total cost of sales decreased to 60.3% in Q3 2025 from 63.9% in Q3 2024, reflecting improved sales volumes[129]. - R&D expenses rose to $7.5 million in Q3 2025 from $5.4 million in Q3 2024, with Enercon's R&D costs contributing $2.0 million[131]. - SG&A expenses increased to $32.8 million in Q3 2025 from $26.7 million in Q3 2024, primarily due to Enercon's SG&A expenses[132]. - Interest expenses surged to $3.6 million in Q3 2025 from $0.4 million in Q3 2024, reflecting higher borrowings related to the Enercon acquisition[133]. - Other income (expense), net improved to $1.1 million in Q3 2025 from a loss of $1.3 million in Q3 2024, driven by reduced foreign exchange losses[135]. Cash Flow and Liquidity - Cash and cash equivalents decreased by $10.5 million during the nine months ended September 30, 2025, primarily due to increased accounts receivable[140]. - The company had $175 million of available borrowings under its revolving credit facility as of September 30, 2025[143]. - The current ratio improved to 3.1 to 1 at September 30, 2025, compared to 2.9 to 1 at December 31, 2024[141]. Derivative Financial Instruments - The primary objective for holding derivative financial instruments is to manage foreign currency exchange rate and interest rate risks[148]. - The Company enters into derivative contracts in the normal course of business to mitigate risks, not for speculative purposes[148]. - There have been no material changes regarding market risk during the nine months ended September 30, 2025[148].

Core Viewpoint - Bel Fuse Inc. is actively engaging with investors through a series of conferences scheduled for November 2025, showcasing its commitment to transparency and investor relations [1][2]. Group 1: Investor Conference Schedule - Bel Fuse Inc. will participate in the Baird 55 Annual Global Industrial Conference on November 12, 2025, with a presentation at 4:30 ET [1]. - The company will also attend the Raymond James Napa Valley Small Cap Symposium on November 17, 2025, and the Wells Fargo 9 Annual TMT Summit on November 18, 2025, with meetings scheduled throughout both days [2]. Group 2: Company Overview - Bel Fuse Inc. designs, manufactures, and markets a wide range of products that power, protect, and connect electronic circuits, serving various industries including networking, telecommunications, computing, military, aerospace, medical, transportation, and broadcasting [3]. - The company's product groups include Power Solutions and Protection, Connectivity Solutions, and Magnetic Solutions, with operations in facilities around the world [3]. Group 3: Contact Information - Investor relations can be directed to Lynn Hutkin, CFO, via email at ir@belf.com, or through Three Part Advisors, with contacts Jean Marie Young and Steven Hooser available for inquiries [4].