Bel Fuse (BELFB) - 2025 Q2 - Quarterly Results

Financial Highlights and Outlook 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] 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] Financial Statements 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 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 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 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] Product Group Highlights 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 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][26][33] Reconciliation to Non-GAAP Operating Income and Adjusted EBITDA 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 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 This section contains corporate information, conference call details, a business overview, and forward-looking statements Conference Call 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] About Bel 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] - The company serves a broad range of industries, including networking, telecommunications, defense, commercial aerospace, transportation, and eMobility[7] Forward-Looking Statements 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] - Key risks highlighted include difficulties integrating the November 2024 acquisition of Enercon, cyclical demand, and geopolitical risks related to operations in Israel[8][9]