Momentum investing revolves around the idea of following a stock's recent trend in either direction. In "long context," investors will be essentially be "buying high, but hoping to sell even higher." With this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving that way. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.Even though momentum is a popular stock characte ...

I've called Bel Fuse Inc. (NASDAQ: BELFB ) a Hold twice this year, once in February and again in May. Both times, my view was that the company was executing steadily but didn't have enough organic I'm Emmanuel Onwusah—a financial analyst, writer, and recovering engineer. I hold FMVA® and BIDA® certifications from the Corporate Finance Institute, and I spend most of my time creating pitch decks, building models, analyzing companies, and trying to make sense of where value meets narrative. My background is in ...

or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (MARK ONE) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended June 30, 2025 For the transition period from ___________ to ____________ Commission File No. 000-11676 BEL FUSE INC. (Exact name of registrant as specified in its charter) New Jersey 22-1463699 (State of ...

Core Viewpoint - Bel Fuse Inc. is conducting its Q2 2025 earnings call, indicating a focus on discussing the company's financial performance and future outlook [1][2]. Group 1: Company Overview - The earnings call is led by key executives including Farouq Tuweiq (President, CEO & Director) and Lynn Hutkin (CFO, Treasurer, Secretary & Principal Accounting Officer) [1]. - Analysts from various firms are participating in the call, highlighting the interest from the investment community [1]. Group 2: Forward-Looking Statements - The company will make forward-looking statements regarding its expected operating and financial performance for future periods, including guidance for 2025 [4]. - These statements are based on current expectations and reflect the company's views only as of the date of the call [4]. - The company disclaims any obligation to update these forward-looking statements or outlook [4].

Bel Fuse (BELFB) reported $168.3 million in revenue for the quarter ended June 2025, representing a year-over-year increase of 26.3%. EPS of $1.67 for the same period compares to $1.50 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $151.24 million, representing a surprise of +11.28%. The company delivered an EPS surprise of +21.9%, with the consensus EPS estimate being $1.37.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and h ...

Bel Fuse (BELFB) came out with quarterly earnings of $1.67 per share, beating the Zacks Consensus Estimate of $1.37 per share. This compares to earnings of $1.5 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of +21.90%. A quarter ago, it was expected that this maker of electronic products for circuits would post earnings of $1.05 per share when it actually produced earnings of $1.35, delivering a surprise of +28.57%.Over the las ...

[Financial Highlights and Outlook](index=1&type=section&id=Financial%20Highlights%20and%20Outlook) The company reported strong Q2 2025 results with a 26.3% sales increase driven by key sectors and provided a positive outlook for Q3 Q2 2025 Key Financial Metrics vs. Q2 2024 | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Net Sales | $168.3M | $133.2M | +26.3% | | Gross Profit Margin | 38.7% | 40.1% | -1.4 p.p. | | GAAP Net Earnings | $26.9M | $18.8M | +43.1% | | Adjusted EBITDA | $35.2M | $27.7M | +27.1% | | Adjusted EBITDA Margin | 20.9% | 20.8% | +0.1 p.p. | - Performance was driven by strength in **defense and commercial aerospace applications**, and a rebound in **networking and distribution sales** following a prolonged period of inventory destocking[2](index=2&type=chunk) Q3 2025 Financial Outlook | Metric | Guidance | | :--- | :--- | | Net Sales | $165M - $180M | | Gross Margins | 37% - 39% | - The company noted that tariffs had a minimal impact on performance, accounting for only **$2.2 million** of low-margin sales in Q2[3](index=3&type=chunk) [Financial Statements](index=5&type=section&id=Financial%20Statements) Financial statements show significant year-over-year growth, a solid balance sheet with reduced debt, and decreased cash from operations [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Net sales and net earnings showed significant growth for both the second quarter and first half of 2025 compared to the prior year Statement of Operations Highlights (in thousands) | Metric | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | :--- | :--- | | Net Sales | $168,299 | $133,205 | $320,537 | $261,295 | | Gross Profit | $65,083 | $53,396 | $123,902 | $101,474 | | Income from Operations | $29,860 | $22,623 | $54,883 | $40,477 | | Net Earnings Attributable to Bel | $26,861 | $18,806 | $44,735 | $34,680 | | Class B EPS (diluted) | $2.14 | $1.50 | $3.58 | $2.76 | [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The balance sheet as of June 30, 2025 reflects stable assets, reduced liabilities due to debt repayment, and increased stockholders' equity Balance Sheet Highlights (in thousands) | Metric | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $59,284 | $68,253 | | Total Current Assets | $378,615 | $373,530 | | Total Assets | $950,580 | $949,789 | | Long-term debt | $250,000 | $287,500 | | Total Liabilities | $464,871 | $508,627 | | Stockholders' equity | $404,743 | $360,576 | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Cash from operations decreased year-over-year, while cash used in financing increased significantly due to repayments of long-term debt Cash Flow Summary - Six Months Ended June 30 (in thousands) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $28,864 | $38,344 | | Net cash used in investing activities | $(1,679) | $(25,956) | | Net cash used in financing activities | $(39,841) | $(15,849) | | Net decrease in cash and cash equivalents | $(8,969) | $(4,395) | - The primary use of cash in financing activities during the first half of 2025 was **$42.5 million for repayments of long-term debt**[20](index=20&type=chunk) [Product Group Highlights](index=9&type=section&id=Product%20Group%20Highlights) Q2 2025 sales growth was led by Power and Magnetic Solutions, with notable gross margin expansion in the Magnetic Solutions group Q2 2025 Product Group Performance vs. Q2 2024 | Product Group | Sales (Q2-25) | % Change | Gross Margin (Q2-25) | Basis Point Change | | :--- | :--- | :--- | :--- | :--- | | Power Solutions and Protection | $86,799K | 48.2% | 41.9% | (380) | | Connectivity Solutions | $59,202K | 2.4% | 39.2% | 30 | | Magnetic Solutions | $22,298K | 32.5% | 28.7% | 230 | YTD 2025 Product Group Performance vs. YTD 2024 | Product Group | Sales (YTD 2025) | % Change | Gross Margin (YTD 2025) | Basis Point Change | | :--- | :--- | :--- | :--- | :--- | | Power Solutions and Protection | $169,853K | 43.0% | 42.2% | (260) | | Connectivity Solutions | $109,932K | -1.9% | 38.6% | 100 | | Magnetic Solutions | $40,752K | 34.1% | 26.9% | 510 | [GAAP to Non-GAAP Reconciliation](index=10&type=section&id=GAAP%20to%20Non-GAAP%20Reconciliation) Reconciliations from GAAP to Non-GAAP metrics show increased Adjusted EBITDA and slightly lower Non-GAAP EPS for Q2 2025 - In Q4 2024, the company modified its Non-GAAP definitions to also exclude **stock-based compensation, amortization of intangibles, and unrealized foreign currency exchange gains/losses**[4](index=4&type=chunk)[26](index=26&type=chunk)[33](index=33&type=chunk) [Reconciliation to Non-GAAP Operating Income and Adjusted EBITDA](index=10&type=section&id=Reconciliation%20to%20Non-GAAP%20Operating%20Income%20and%20Adjusted%20EBITDA) Adjusted EBITDA increased to $35.2 million for Q2 2025 and $66.1 million for the first half, showing year-over-year growth Adjusted EBITDA Reconciliation Highlights (in thousands) | Metric | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | :--- | :--- | | GAAP Operating Income | $29,860 | $22,623 | $54,883 | $40,477 | | Non-GAAP Operating Income | $28,585 | $24,232 | $52,812 | $42,955 | | Adjusted EBITDA | $35,185 | $27,671 | $66,096 | $50,078 | [Reconciliation to Non-GAAP EPS](index=11&type=section&id=Reconciliation%20to%20Non-GAAP%20EPS) Q2 2025 Non-GAAP EPS was $1.67, adjusted from GAAP EPS of $2.14, primarily due to currency gains and a property sale GAAP vs. Non-GAAP EPS (Class B) | Metric | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | :--- | :--- | | GAAP EPS | $2.14 | $1.50 | $3.58 | $2.76 | | Non-GAAP EPS | $1.67 | $1.70 | $3.02 | $3.04 | [Appendix](index=2&type=section&id=Appendix) This section contains corporate information, conference call details, a business overview, and forward-looking statements [Conference Call](index=2&type=section&id=Conference%20Call) A conference call to discuss results is scheduled for July 25, 2025, with webcast and replay information provided - A conference call is scheduled for **8:30 a.m. ET on Friday, July 25, 2025**, with live and replay access available via phone and webcast[6](index=6&type=chunk) [About Bel](index=2&type=section&id=About%20Bel) Bel designs and manufactures products for powering, protecting, and connecting electronics across various key industries - Bel's business is organized into three product groups: **Power Solutions and Protection, Connectivity Solutions, and Magnetic Solutions**[7](index=7&type=chunk) - The company serves a broad range of industries, including **networking, telecommunications, defense, commercial aerospace, transportation, and eMobility**[7](index=7&type=chunk) [Forward-Looking Statements](index=2&type=section&id=Forward-Looking%20Statements) This section contains a safe harbor statement outlining risks and uncertainties related to forward-looking guidance - This section contains a standard **"safe harbor" provision** under the Private Securities Litigation Reform Act of 1995[8](index=8&type=chunk) - Key risks highlighted include difficulties integrating the **November 2024 acquisition of Enercon**, cyclical demand, and geopolitical risks related to operations in Israel[8](index=8&type=chunk)[9](index=9&type=chunk)

Core Viewpoint - The article compares Bel Fuse (BELFB) and Rockwell Automation (ROK) to determine which stock is more attractive to value investors, highlighting BELFB as the superior option based on various valuation metrics [1][6]. Valuation Metrics - BELFB has a forward P/E ratio of 16.41, significantly lower than ROK's forward P/E of 34.70, indicating that BELFB may be undervalued relative to ROK [5]. - The PEG ratio for BELFB is 1.09, while ROK's PEG ratio is 3.81, suggesting that BELFB offers better value when considering expected earnings growth [5]. - BELFB's P/B ratio stands at 3.34, compared to ROK's P/B of 10.6, further supporting the argument that BELFB is more attractively priced [6]. Investment Outlook - Both BELFB and ROK have a Zacks Rank of 2 (Buy), indicating positive earnings estimate revisions and improving earnings outlooks [3]. - BELFB holds a Value grade of B, while ROK has a Value grade of C, reinforcing the conclusion that BELFB is the more favorable choice for value investors [6].

Financial Performance - 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]. - The backlog of orders increased to $395.7 million as of March 31, 2025, up $14.1 million or 4% from December 31, 2024, with a 7% rise in the Power Solutions and Protection segment[108]. - Sales in the Power Solutions and Protection segment increased by $22.8 million (37.9%) in Q1 2025, driven by new markets in aerospace and defense[112]. - Connectivity Solutions sales decreased by $3.6 million (6.5%) in Q1 2025, primarily due to declines in commercial aerospace and industrial markets[114]. - 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]. Cost and Expenses - Labor costs represented 8.4% of revenue in Q1 2025, up from 8.0% in Q1 2024, influenced by minimum wage increases in the PRC and Mexico[109]. - The gross margin for the Power Solutions and Protection segment was 42.6% in Q1 2025, down from 44.0% in Q1 2024, affected by non-recurring items in the previous year[111]. - Cost of sales as a percentage of revenue decreased from 62.5% in Q1 2024 to 61.4% in Q1 2025, with material costs rising to 29.4% from 28.1%[116]. - 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's 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, attributed to higher borrowings related to the Enercon acquisition[121]. Foreign Exchange and Taxation - The company realized a foreign exchange transactional gain of $4.3 million in Q1 2025, benefiting from favorable currency fluctuations[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]. - The provision for income taxes rose to $5.5 million in Q1 2025 from $4.5 million in Q1 2024, with an effective tax rate of 23.0% compared to 22.0%[125]. 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]. Strategic Acquisitions - The company acquired an 80% stake in Enercon in November 2024, which is expected to contribute to sales in the Power Solutions and Protection segment in 2025[108]. Market Conditions - Approximately 75% of the company's global sales are not currently subject to new U.S. tariffs, while 25% are affected, primarily from the PRC and Israel[109]. - Inflationary pressures continue to impact input costs, with the company focusing on pricing actions and cost-saving initiatives to manage these fluctuations[109].

Financial Data and Key Metrics Changes - Sales for Q1 2025 reached $152.2 million, reflecting an 18.9% increase from Q1 2024 [10] - Gross margin improved to 38.6% in Q1 2025, up from 37.5% in Q1 2024, driven by a favorable product mix and cost reduction programs [11][12] - Total backlog of orders reached $395.7 million, an increase of $14.1 million or 4% compared to December 31, 2024 [20] Business Line Data and Key Metrics Changes - Aerospace and defense (A&D) end markets accounted for 38% of global sales, making it the largest segment [7] - Power solutions and protection sales amounted to $83.1 million, a 37.9% increase year-over-year, largely driven by A&D exposure [13] - Connectivity solutions sales for Q1 2025 reached $50.7 million, a decrease of 6.5% compared to Q1 2024, primarily due to a decline in commercial air applications [16] - Magnetic Solutions Group recorded sales of $18.5 million, representing a 36.1% increase compared to Q1 2024 [18] Market Data and Key Metrics Changes - AI contributed $4.6 million in revenue during Q1 2025, with double-digit growth compared to Q1 2024 [8] - Sales into the consumer market decreased by $2.8 million due to trade restrictions on a Chinese supplier [13] - eMobility sales saw a $1.6 million year-over-year decline in Q1 2025 [14] Company Strategy and Development Direction - The recent acquisition of Enercon has diversified the company from an end markets and geographic perspective [7] - The company is focusing on supplier diversification and regional sourcing strategies in response to rising geopolitical tensions and tariff increases [36] - Plans to shift more products from China to India to mitigate tariff impacts and enhance operational flexibility [85] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about growth in defense, space, and AI markets, while acknowledging challenges in the power segment [25][26] - The company anticipates that Q2 will be impacted by customer push-out requests related to tariffs, but expects to navigate through these challenges [32] - Management emphasized the importance of building a nimble and resilient organization to adapt to changing market conditions [34] Other Important Information - R&D expenses reached $7.2 million in Q1 2025, higher than Q1 2024 due to the acquisition of Enercon [20] - Selling, general, and administrative expenses totaled $29.5 million, representing 19.4% of sales, with increases attributed to Enercon expenses [21] - The company is actively working to amend its credit facility to increase capacity and extend maturity [39] Q&A Session Summary Question: Impact of tariffs by product segment - Connectivity is largely unimpacted by US tariffs as most manufacturing occurs in the US and UK, while approximately 60% of Power and Magnetic segments are also not subject to tariffs [50][52] Question: Decline in Connectivity sales - The decline was primarily driven by reduced commercial air production levels, with some softness in the industrial area [55] Question: AI revenue details - AI revenue is largely from GPU manufacturers, focusing on private next-gen companies rather than large public firms [62] Question: Enterprise business growth - The enterprise business is performing better than expected, with strong growth and alignment with customers [72][76] Question: Facility consolidations and operational changes - The company has fully exited a facility in China and is shifting more production to India to mitigate tariff risks [84][86] Question: Design activity and market dynamics - Design activity is stabilizing, with a focus on second and third-tier customers to drive growth [110][111]