Bel Fuse (US:BELFA)2025-07-24 20:27Financial Performance - Net sales for Q2 2025 reached $168.3 million, a 26.3% increase from $133.2 million in Q2 2024[5] - GAAP net earnings attributable to Bel shareholders were $26.9 million, compared to $18.8 million in Q2 2024[5] - 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[5] - Net earnings attributable to Bel Fuse Shareholders for Q2 2025 were $26.9 million, up from $18.8 million in Q2 2024, representing a 43.5% increase[21] - Operating income for the first half of 2025 was $54.9 million, compared to $40.5 million in the same period of 2024, reflecting a 35.5% increase[21] - For the first half of 2025, GAAP net earnings were $45,115,000, a 30.1% increase from $34,680,000 in the same period of 2024[24] Profitability Metrics - Gross profit margin for Q2 2025 was 38.7%, down from 40.1% in Q2 2024[5] - Non-GAAP operating income for Q2 2025 was $28,585,000, compared to $24,232,000 in Q2 2024, reflecting a 18.5% growth[24] - Adjusted EBITDA for Q2 2025 reached $35,185,000, up 27.2% from $27,671,000 in Q2 2024, representing 20.9% of net sales[24] - The adjusted EBITDA margin improved to 20.9% in Q2 2025 from 20.8% in Q2 2024[24] Cash Flow and Assets - Cash flows from operating activities for the first half of 2025 were $28.9 million, down from $38.3 million in the same period of 2024[19] - Total assets as of June 30, 2025, were $950.6 million, slightly up from $949.8 million as of June 30, 2024[17] - Cash and cash equivalents decreased to $59.3 million from $68.3 million year-over-year[19] - Total liabilities decreased to $464.9 million as of June 30, 2025, from $508.6 million in the previous year[17] Market Outlook and Strategic Initiatives - The company anticipates Q3 2025 net sales between $165 million and $180 million, with gross margins of 37%-39%[3] - Strength was noted in defense and commercial aerospace applications, alongside a rebound in networking and distribution sales[2] - The company remains optimistic about delivering value to customers and shareholders amid evolving market dynamics[3] - The company modified its Non-GAAP financial measures to enhance investor insight into operational performance[4] - The company plans to continue utilizing non-GAAP measures for performance comparison and incentive compensation purposes[25] Costs and Charges - Research and development costs increased to $8.1 million in Q2 2025, compared to $6.0 million in Q2 2024[21] - The company reported a restructuring charge of $280,000 in Q2 2025, down from $638,000 in Q2 2024[29] - Stock-based compensation increased to $1,721,000 in Q2 2025 from $971,000 in Q2 2024[29] Tax and Foreign Exchange - The effective tax rate for Q2 2025 was 20.5%, compared to 17.8% in Q2 2024[21] - The company experienced a loss of $9,250,000 from unrealized foreign currency exchange in Q2 2025, compared to a gain of $370,000 in Q2 2024[29] Tariffs Impact - Tariffs minimally impacted performance, resulting in only $2.2 million of low-margin sales during Q2 2025[3]