Core Insights - Bel Fuse Inc. reported strong preliminary financial results for Q2 and the first half of 2025, exceeding expectations due to improved shipment times and inventory management [2][3] - The company experienced growth in defense and commercial aerospace sectors, alongside a recovery in networking and distribution sales after a prolonged period of inventory destocking [2][3] Financial Performance - Q2 2025 net sales reached $168.3 million, a 26.3% increase from $133.2 million in Q2 2024 [7] - Gross profit margin for Q2 2025 was 38.7%, down from 40.1% in Q2 2024 [7] - GAAP net earnings attributable to Bel shareholders were $26.9 million, compared to $18.8 million in Q2 2024 [7] - Adjusted EBITDA for Q2 2025 was $35.2 million, representing 20.9% of sales, compared to $27.7 million or 20.8% of sales in Q2 2024 [7][22] Future Guidance - For Q3 2025, the company anticipates net sales between $165 million and $180 million, with gross margins projected at 37% to 39% [3] - The optimistic outlook is supported by strong bookings in Q2 and expected sequential growth in the second half of the year [3] Product Group Performance - Power Solutions and Protection sales increased by 48.2% to $86.8 million in Q2 2025, with a gross margin of 41.9% [20] - Connectivity Solutions saw a slight increase of 2.4% in sales to $59.2 million, with a gross margin of 39.2% [20] - Magnetic Solutions experienced a 32.5% increase in sales to $22.3 million, with a gross margin of 28.7% [20] Operational Highlights - The company reported minimal impact from tariffs, with only $2.2 million in low-margin sales during Q2 [3] - Bel Fuse's strategic approach has been validated by its ability to deliver solid results amid market uncertainties [3]

Core Viewpoint - Bel Fuse Inc. is set to release preliminary financial results for the second quarter on July 24, 2025, with a conference call scheduled for July 25, 2025, at 8:30 a.m. ET [1] Company Overview - Bel Fuse Inc. designs, manufactures, and markets a wide range of products that power, protect, and connect electronic circuits [2] - The company's products are utilized in various industries, including defense, commercial aerospace, networking, telecommunications, computing, general industrial, high-speed data transmission, transportation, and eMobility [2] - Bel's product categories include Power Solutions and Protection, Connectivity Solutions, and Magnetic Solutions, with operations in facilities worldwide [2]

Company Transition - Dan Bernstein transitions from President and CEO to Chairman of the Board after over 45 years of service, marking a significant milestone for Bel Fuse Inc. [1] - Under Bernstein's leadership since 2001, Bel Fuse's revenue grew from under $100 million to over $600 million, and the company completed 19 strategic acquisitions [2]. New Leadership - Farouq Tuweiq, previously CFO, steps into the role of CEO, bringing a data-driven leadership style and a strong financial foundation to the company [3]. - Tuweiq's background in investment banking and strategic leadership is expected to support Bel's growth strategy and future goals [3]. Company Overview - Bel Fuse designs, manufactures, and markets products that power, protect, and connect electronic circuits, serving various industries including defense, aerospace, telecommunications, and automotive [5]. - The company's product groups include Power Solutions, Connectivity Solutions, and Magnetic Solutions, with operations in multiple facilities worldwide [5].

Group 1: Appointment of CFO - Bel Fuse Inc. announced the appointment of Lynn Hutkin as Chief Financial Officer (CFO) effective immediately after the Annual Meeting of Shareholders on May 27, 2025 [1] - Lynn Hutkin will succeed Farouq Tuweiq, who will transition to the role of President and CEO on the same date [1] - Hutkin has been with Bel since 2007, holding various roles, most recently as Vice President of Financial Reporting and Investor Relations [2] Group 2: Background and Experience of Lynn Hutkin - Throughout her tenure at Bel, Hutkin has been involved in mergers and acquisitions, bank financing, corporate insurance, and employee benefit programs [2] - She began her career at Arthur Andersen in the audit group and has held finance roles in various companies, including a $250 million publicly-traded courier company [2] - Hutkin holds a B.S. in Accountancy from Bentley University and is a licensed CPA in New Jersey [2] Group 3: Statements from Leadership - Farouq Tuweiq expressed excitement about continuing to work with Hutkin and acknowledged her integral role in strengthening financial practices at Bel [3] - Lynn Hutkin expressed honor in stepping into the CFO role and enthusiasm for the future goals of the company [3] Group 4: Company Overview - Bel Fuse Inc. designs, manufactures, and markets products that power, protect, and connect electronic circuits, serving various industries including defense, aerospace, telecommunications, and automotive [4] - The company's product groups include Power Solutions, Connectivity Solutions, and Magnetic Solutions, with applications in multiple sectors [4]

Revenue and Growth - For the three months ended March 31, 2025, the company's revenue was $152.2 million, an increase of 18.9% from $128.1 million in the same period of 2024[111]. - Power Solutions and Protection segment generated $83.1 million in revenue, a 37.9% increase from $60.2 million in the first quarter of 2024[112]. - Magnetic Solutions segment revenue increased to $18.5 million, up 36.3% from $13.6 million in the same period of 2024[111]. - Sales of Magnetic Solutions products increased by $4.9 million (36.1%) in Q1 2025 compared to Q1 2024, driven by demand from networking customers and distribution channels[115]. Order Backlog - The backlog of orders increased to $395.7 million as of March 31, 2025, up $14.1 million or 4% from December 31, 2024[108]. Costs and Expenses - Labor costs represented 8.4% of revenue in Q1 2025, up from 8.0% in Q1 2024, influenced by wage increases in the PRC and Mexico[109]. - R&D expenses rose to $7.2 million in Q1 2025 from $5.2 million in Q1 2024, largely due to the inclusion of Enercon's R&D expenses of $1.7 million[119]. - SG&A expenses increased to $29.5 million in Q1 2025 from $24.9 million in Q1 2024, primarily due to Enercon SG&A expenses of $6.0 million[120]. - Interest expense surged to $4.2 million in Q1 2025 from $0.4 million in Q1 2024, mainly due to higher borrowings related to the Enercon acquisition[121]. - Inflationary pressures are anticipated to continue affecting input costs, including raw materials and labor[109]. Tax and Income - The provision for income taxes was $5.5 million in Q1 2025, up from $4.5 million in Q1 2024, with an effective tax rate of 23.0% compared to 22.0% in the prior year[125]. - The effective tax rate will fluctuate based on the geographic regions where pretax profits are earned, with Asia having the lowest rates[110]. - Other income increased to $2.6 million in Q1 2025 from $1.8 million in Q1 2024, driven by foreign exchange gains of $4.3 million compared to $0.6 million in Q1 2024[123]. Cash Flow and Liquidity - Cash and cash equivalents decreased by $2.3 million in Q1 2025, with accounts receivable down by $8.2 million due to lower sales volume[127]. - The current ratio improved to 3.3:1 at March 31, 2025, compared to 2.9:1 at December 31, 2024[128]. - The company had $45 million of available borrowings under its revolving credit facility at March 31, 2025, with no mandatory principal payments due in 2025[130]. - The company expects to meet foreseeable liquidity and capital resource requirements through existing cash, investments, and anticipated cash flows from operations[129]. Acquisition - The company acquired an 80% stake in Enercon in November 2024, expected to contribute to sales in 2025[108]. Foreign Exchange - The company realized a foreign exchange transactional gain of $4.3 million during the three months ended March 31, 2025, due to favorable currency fluctuations[110].

Company Overview - Bel Fuse Inc. is a leading global manufacturer of products that power, protect, and connect electronic circuits [1] - The company operates in various industries including defense, commercial aerospace, networking, telecommunications, computing, general industrial high-speed data transmission, transportation, and eMobility [1] - Bel's product groups include Power Solutions and Protection, Connectivity Solutions, and Magnetic Solutions [1] Investor Conference Schedule - Bel Fuse Inc. will participate in Oppenheimer's 20th Annual Industrial Growth Conference on May 8, 2025, with a fireside chat at 12:45 pm ET [2] - The company will also attend the 22nd Annual Craig-Hallum Institutional Investor Conference on May 28, 2025, at the Depot Renaissance Hotel Minneapolis [2] - Additionally, Bel will be present at the KeyBanc Industrial & Basics Conference on May 29, 2025, at the InterContinental Boston [2]

Financial Performance - Net sales for Q1 2025 were $152.2 million, an increase from $128.1 million in Q1 2024, with organic sales down 6.4% excluding $32.4 million from Enercon[8] - Gross profit margin improved to 38.6%, up from 37.5% in Q1 2024[8] - GAAP net earnings attributable to Bel shareholders were $17.9 million, compared to $15.9 million in Q1 2024[8] - Non-GAAP net earnings attributable to Bel shareholders were $16.8 million, slightly down from $17.0 million in Q1 2024[8] - Adjusted EBITDA was $30.9 million, representing 20.3% of sales, compared to $22.4 million or 17.5% of sales in Q1 2024[8] - Net sales for Q1 2025 increased by 18.9% to $152,238 thousand compared to $128,090 thousand in Q1 2024[19] - Gross profit margin improved to 38.6% in Q1 2025 from 37.5% in Q1 2024, with gross profit rising to $58,819 thousand[19] - Operating income increased by 40.2% to $25,023 thousand, representing 16.4% of net sales, compared to 13.9% in the prior year[19] - Net earnings attributable to Bel Fuse shareholders reached $17,874 thousand, up from $15,874 thousand, with a net earnings margin of 12.0%[19] - Adjusted EBITDA for Q1 2025 was $30,911 thousand, which is 20.3% of net sales, compared to $22,407 thousand or 17.5% in Q1 2024[29] - Total revenues for Q1 2025 were $23.785 million, compared to $20.352 million in Q1 2024, marking an increase of 12%[34] Market Outlook - Projected GAAP net sales for Q2 2025 are estimated to be between $145 million and $155 million, with a gross margin of 37% to 39%[5] - The company anticipates continued strength in defense, space, and AI end markets throughout the year[4] - The company anticipates continued growth in the upcoming quarters, driven by new product launches and market expansion strategies[35] Cost and Expenses - Research and development costs rose to $7,222 thousand, up from $5,215 thousand, reflecting a focus on innovation[19] - Restructuring charges for Q1 2025 amounted to $2.933 million, compared to $0.065 million in Q1 2024, showing a significant increase in restructuring costs[34] - Unrealized foreign currency exchange losses for Q1 2025 were $3.663 million, compared to losses of $0.899 million in Q1 2024, highlighting increased volatility in foreign exchange[34] Financial Position - Total current assets decreased slightly to $368,425 thousand from $373,530 thousand year-over-year[22] - Total liabilities decreased to $482,521 thousand from $508,627 thousand, indicating improved financial health[22] - Cash and cash equivalents at the end of Q1 2025 were $65,927 thousand, down from $71,320 thousand in Q1 2024[25] Leadership Changes - Farouq Tuweiq has been appointed as Bel's President and CEO, effective immediately after the Annual Meeting of Shareholders in May 2025[8] Tariff and Trade Considerations - Approximately 75% of global sales are not currently subject to recent U.S. tariffs, with about 10% of consolidated sales related to products manufactured in China[5] - The company is closely monitoring the evolving tariff landscape and assessing potential alternatives[5] Strategic Initiatives - Bel Fuse is focusing on integrating recent acquisitions to enhance operational efficiency and market reach[35] - The company has modified its Non-GAAP financial measures to exclude stock-based compensation, amortization of intangibles, and unrealized foreign currency exchange gains/losses, enhancing clarity in operational performance[37] - The company plans to utilize Non-GAAP measures for performance comparisons and incentive compensation determinations, providing additional insights for investors[40]

Core Insights - Bel Fuse Inc. reported preliminary financial results for Q1 2025, showing a significant increase in net sales and gross profit margin compared to the same period last year [1][9] - The company anticipates continued strength in defense, space, and AI markets, which are expected to offset declines in rail, e-Mobility, and consumer markets [3][4] - A management transition is set to occur, with Farouq Tuweiq appointed as the new President and CEO [5][9] Financial Performance - Net sales reached $152.2 million, up from $128.1 million in Q1 2024, marking an 18.9% increase [9] - Gross profit margin improved to 38.6%, compared to 37.5% in Q1 2024 [9] - GAAP net earnings attributable to Bel shareholders were $17.9 million, an increase from $15.9 million in Q1 2024 [9] Market Dynamics - The company is experiencing increased demand in defense and commercial aerospace sectors, as well as in the emerging AI market [3] - Approximately 75% of global sales are not currently affected by recent U.S. tariffs, with only about 10% of sales linked to products manufactured in China [4] - The company has adjusted its Q2 2025 sales guidance to $145 to $155 million, accounting for potential impacts from tariffs [4] Product Group Performance - Power Solutions and Protection sales increased to $83.1 million from $60.2 million, while Connectivity Solutions saw a decline of 6.5% [18] - Magnetic Solutions experienced a 36.1% increase in sales, reflecting strong demand [18] Non-GAAP Financial Measures - Non-GAAP net earnings attributable to Bel shareholders were $16.8 million, slightly down from $17.0 million in Q1 2024 [9] - Adjusted EBITDA for Q1 2025 was $30.9 million, representing 20.3% of sales, compared to $22.4 million or 17.5% of sales in Q1 2024 [9][19]

Core Viewpoint - Bel Fuse Inc. is set to release preliminary financial results for the first quarter on April 24, 2025, with a conference call scheduled for April 25, 2025 [1] Company Overview - Bel Fuse Inc. designs, manufactures, and markets a wide range of products that power, protect, and connect electronic circuits [2] - The company's products are utilized in various industries including defense, commercial aerospace, networking, telecommunications, computing, general industrial, high-speed data transmission, transportation, and eMobility [2] - Bel's product categories include Power Solutions and Protection, Connectivity Solutions, and Magnetic Solutions, with operations in facilities worldwide [2]

Core Insights - Bel Fuse Inc. has opened a new facility in Manesar, Gurugram, India, marking a significant milestone following the acquisition of Enercon in November 2024 [1][2] - The new facility will double the manufacturing capacity for Bel's Power Solutions and Protection segment in India, enhancing the company's manufacturing footprint outside of China [1][2] - The original Enercon factory, which opened in 2018, has grown from 17 associates to over 200 associates, indicating substantial growth in workforce and operations [1] 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 defense, commercial aerospace, telecommunications, and eMobility [3] - The company's product groups include Power Solutions and Protection, Connectivity Solutions, and Magnetic Solutions, with applications in automotive, medical, broadcasting, and consumer electronics markets [3]