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Bel Fuse (BELFA) - 2025 Q1 - Quarterly Results
BELFABel Fuse (BELFA)2025-04-24 21:28

Financial Performance - Net sales for Q1 2025 were 152.2million,anincreasefrom152.2 million, an increase from 128.1 million in Q1 2024, with organic sales down 6.4% excluding 32.4millionfromEnercon[8]−Grossprofitmarginimprovedto38.632.4 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 15.9millioninQ12024[8]−Non−GAAPnetearningsattributabletoBelshareholderswere15.9 million in Q1 2024[8] - Non-GAAP net earnings attributable to Bel shareholders were 16.8 million, slightly down from 17.0millioninQ12024[8]−AdjustedEBITDAwas17.0 million in Q1 2024[8] - Adjusted EBITDA was 30.9 million, representing 20.3% of sales, compared to 22.4millionor17.522.4 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 128,090thousandinQ12024[19]−Grossprofitmarginimprovedto38.6128,090 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 25,023thousand,representing16.425,023 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 15,874thousand,withanetearningsmarginof12.015,874 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 22,407thousandor17.522,407 thousand or 17.5% in Q1 2024[29] - Total revenues for Q1 2025 were 23.785 million, compared to 20.352millioninQ12024,markinganincreaseof1220.352 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 155million,withagrossmarginof37155 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 5,215thousand,reflectingafocusoninnovation[19]−RestructuringchargesforQ12025amountedto5,215 thousand, reflecting a focus on innovation[19] - Restructuring charges for Q1 2025 amounted to 2.933 million, compared to 0.065millioninQ12024,showingasignificantincreaseinrestructuringcosts[34]−UnrealizedforeigncurrencyexchangelossesforQ12025were0.065 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 0.899millioninQ12024,highlightingincreasedvolatilityinforeignexchange[34]FinancialPosition−Totalcurrentassetsdecreasedslightlyto0.899 million in Q1 2024, highlighting increased volatility in foreign exchange[34] Financial Position - Total current assets decreased slightly to 368,425 thousand from 373,530thousandyear−over−year[22]−Totalliabilitiesdecreasedto373,530 thousand year-over-year[22] - Total liabilities decreased to 482,521 thousand from 508,627thousand,indicatingimprovedfinancialhealth[22]−CashandcashequivalentsattheendofQ12025were508,627 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]