Bel Fuse (BELFB) - 2025 Q1 - Quarterly Results

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 $22.4 million or 17.5% of sales in Q1 2024[8] - Operating income increased by 40.1% to$ 25,023 thousand, representing 16.4% of net sales, compared to $17,854 thousand or 13.9% in the prior year[19] - Net earnings attributable to Bel Fuse shareholders reached$ 17,874 thousand, a 12.6% increase from $15,874 thousand in Q1 2024[19] - Adjusted EBITDA for Q1 2025 was$ 30,911 thousand, up from $22,407 thousand, with a margin of 20.3%[29] - The earnings per share (EPS) for Class A shareholders was$ 1.36 for Q1 2025, up from $1.19 in Q1 2024, marking a 14% increase[34] Sales and Market Trends - Projected GAAP net sales for Q2 2025 are expected to be between$ 145 million and $155 million, with a gross margin of 37% to 39%[5] - Approximately 75% of global sales are not currently subject to recent U.S. tariffs, with about 10% of consolidated sales related to products manufactured in China[5] - The company anticipates continued strength in defense, space, and AI end markets throughout the year[4] - Power Solutions and Protection segment sales grew by 37.9% to$ 83,054 thousand, while Connectivity Solutions saw a decline of 6.5% to $50,730 thousand[26] Costs and Expenses - Research and development costs rose to$ 7,222 thousand, up from $5,215 thousand, reflecting a focus on innovation[19] - The company reported a restructuring charge of$ 2,933,000 in Q1 2025, compared to $371,000 in Q1 2024, indicating a significant increase in restructuring activities[34] - Unrealized foreign currency exchange losses amounted to$ 3,663,000 in Q1 2025, compared to losses of $868,000 in Q1 2024, highlighting increased volatility in foreign exchange[34] Financial Position - Total current assets decreased slightly to$ 368,425 thousand from $373,530 thousand year-over-year[22] - Long-term debt decreased to$ 280,000 thousand from $287,500 thousand, indicating improved financial stability[22] - The effective tax rate increased to 23.0% in Q1 2025 from 22.0% in Q1 2024[19] Non-GAAP Measures - Non-GAAP measures for Q1 2025 showed total earnings of$ 23,012,000, a decrease from $21,716,000 in Q1 2024, reflecting a 6% decline[34] - The company has revised its definitions of Non-GAAP measures to exclude stock-based compensation and amortization of intangibles, enhancing clarity in operational performance[37] - The company plans to continue utilizing non-GAAP measures for performance comparison and incentive compensation determination[40] 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] Additional Information - The supplementary information for Q1 2025 is preliminary and subject to change prior to the filing of the Quarterly Report on Form 10-Q[38]