Belden(BDC) - 2025 Q2 - Quarterly Results

Belden Reports Second Quarter 2025 Results Second Quarter 2025 Highlights Belden reported strong second-quarter 2025 results, with an 11% year-over-year revenue increase to $672 million, driven by 5% organic growth, leading to a 25% rise in Adjusted EPS to $1.89 and a 16% increase in orders Q2 2025 Financial Performance Summary (YoY) | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Revenues | $672M | $604M | +11% | | Organic Revenue Growth | - | - | +5% | | Net Income | $61M | $49M | +24.5% | | GAAP EPS | $1.53 | $1.19 | +28.6% | | Adjusted EBITDA | $114M | $99M | +15% | | Adjusted EPS | $1.89 | $1.51 | +25% | - Demand remains solid, with orders increasing 16% compared to the prior year and also showing sequential growth[3] - Adjusted EPS for Q2 benefited by $0.11 from a lower-than-expected tax rate, primarily due to discrete tax benefits and a favorable geographic mix of earnings[5] Business Outlook Belden provided its financial guidance for the third quarter of 2025, anticipating continued growth, driven by confidence in long-term opportunities from customers' investments in digitization and data, despite near-term market complexities Third Quarter 2025 Guidance | Metric | Guidance Range | | :--- | :--- | | Revenues | $670M - $685M | | GAAP EPS | $1.33 - $1.43 | | Adjusted EPS | $1.85 - $1.95 | - The company sees a clear and expanding medium-term opportunity as customers continue to invest in digitizing their operations and leveraging data, which increases demand for secure and reliable network infrastructure[6] - The company is confident in its ability to deploy capital strategically to drive growth, enhance shareholder returns, and compound value over time[6] Consolidated Financial Statements (Unaudited) Condensed Consolidated Statements of Operations For the three months ended June 29, 2025, Belden's revenues grew to $672.0 million from $604.3 million in the prior-year period, translating to higher operating income of $79.2 million and net income of $61.0 million, with diluted EPS increasing to $1.53 from $1.19 year-over-year Q2 2025 vs Q2 2024 Statement of Operations (in thousands) | Metric | Three Months Ended June 29, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | Revenues | $671,992 | $604,336 | | Gross Profit | $258,568 | $226,806 | | Operating Income | $79,236 | $68,912 | | Net Income Attributable to Belden | $61,006 | $49,044 | | Diluted EPS | $1.53 | $1.19 | YTD 2025 vs YTD 2024 Statement of Operations (in thousands) | Metric | Six Months Ended June 29, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Revenues | $1,296,853 | $1,140,011 | | Gross Profit | $504,408 | $428,402 | | Operating Income | $151,862 | $121,932 | | Net Income Attributable to Belden | $112,943 | $86,357 | | Diluted EPS | $2.79 | $2.09 | Operating Segment Information In Q2 2025, both operating segments showed year-over-year growth, with Automation Solutions revenue growing to $366.0 million (21.4% EBITDA margin) and Smart Infrastructure Solutions revenue increasing to $306.0 million (11.8% EBITDA margin), both improving their EBITDA margins Q2 2025 Segment Performance (in thousands) | Segment | Revenues | EBITDA | EBITDA Margin | | :--- | :--- | :--- | :--- | | Smart Infrastructure Solutions | $306,019 | $36,224 | 11.8% | | Automation Solutions | $365,973 | $78,246 | 21.4% | Q2 2024 Segment Performance (in thousands) | Segment | Revenues | EBITDA | EBITDA Margin | | :--- | :--- | :--- | :--- | | Smart Infrastructure Solutions | $270,473 | $31,456 | 11.6% | | Automation Solutions | $333,863 | $67,737 | 20.3% | Condensed Consolidated Balance Sheets As of June 29, 2025, Belden's total assets were $3.40 billion, a slight increase from $3.33 billion at year-end 2024, primarily driven by higher receivables and inventories, while total liabilities increased mainly due to a rise in long-term debt to $1.27 billion, and total stockholders' equity decreased to $1.23 billion Balance Sheet Summary (in thousands) | Metric | June 29, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total Current Assets | $1,222,639 | $1,196,229 | | Total Assets | $3,399,657 | $3,327,938 | | Total Current Liabilities | $615,594 | $622,704 | | Long-Term Debt | $1,271,338 | $1,130,101 | | Total Stockholders' Equity | $1,234,475 | $1,294,736 | Condensed Consolidated Cash Flow Statements For the first six months of 2025, net cash provided by operating activities was $89.5 million, slightly up from $85.7 million in the prior year, while net cash used for investing activities increased to $49.3 million due to higher capital expenditures, and financing activities used $116.2 million, largely for share repurchases, resulting in a $68.8 million decrease in cash and cash equivalents Six-Month Cash Flow Summary (in thousands) | Metric | Six Months Ended June 29, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $89,470 | $85,680 | | Net cash used for investing activities | ($49,320) | ($45,660) | | Net cash used for financing activities | ($116,208) | ($67,397) | | Decrease in cash and cash equivalents | ($68,816) | ($32,293) | | Cash and cash equivalents, end of period | $301,486 | $564,751 | - Payments under the share repurchase program significantly increased to $101.0 million in the first six months of 2025, compared to $57.9 million in the same period of 2024[15] Reconciliation of Non-GAAP Measures Reconciliation of GAAP to Adjusted Results This section details the adjustments made to GAAP results to arrive at non-GAAP figures, which management believes provide better insight into underlying business trends, with Q2 2025 GAAP Net Income of $61.0 million adjusted to $75.6 million and GAAP EPS of $1.53 adjusted to $1.89, primarily due to amortization of intangibles and severance/restructuring costs - Management utilizes adjusted results to review ongoing operations without the effect of items like amortization of intangibles, restructuring costs, and acquisition-related expenses, believing it helps investors compare results and understand underlying trends[17] Q2 2025 GAAP to Non-GAAP Reconciliation Summary (in thousands, except per share) | Metric | GAAP | Adjustments | Non-GAAP (Adjusted) | | :--- | :--- | :--- | :--- | | Gross Profit | $258,568 | $2,945 | $261,513 | | Net Income | $61,006 | $14,601 | $75,607 | | Diluted EPS | $1.53 | $0.36 | $1.89 | | EBITDA | - | - | $114,064 | Reconciliation of Free Cash Flow Belden defines non-GAAP free cash flow as net cash from operating activities adjusted for capital expenditures and proceeds from asset disposals, which for the six months ended June 29, 2025, was $32.2 million, a decrease from $39.5 million in the prior-year period - The company defines free cash flow as net cash from operating activities adjusted for capital expenditures net of the proceeds from the disposal of assets, and it is used to monitor performance and liquidity[20] Free Cash Flow Reconciliation (in thousands) | Metric | Six Months Ended June 29, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | GAAP net cash provided by operating activities | $89,470 | $85,680 | | Capital expenditures | ($57,353) | ($46,246) | | Proceeds from disposal of tangible assets | $115 | $60 | | Non-GAAP free cash flow | $32,232 | $39,494 | Reconciliation of Q3 2025 Guidance The company provides a reconciliation for its third-quarter 2025 EPS guidance, adjusting the GAAP EPS range of $1.33 - $1.43 for items such as amortization of intangible assets ($0.32) and restructuring costs ($0.19) to arrive at an Adjusted EPS range of $1.85 - $1.95 Q3 2025 EPS Guidance Reconciliation | Description | Per Diluted Share | | :--- | :--- | | GAAP income per diluted share | $1.33 - $1.43 | | Amortization of intangible assets | $0.32 | | Severance, restructuring, and acquisition integration costs | $0.19 | | Adjustments related to acquisitions and divestitures | $0.01 | | Adjusted income per diluted share | $1.85 - $1.95 | Additional Information Forward-Looking Statements This section cautions investors that the report contains forward-looking statements, including financial guidance, which are not guarantees of future performance, highlighting numerous risk factors that could cause actual results to differ materially, such as global trade volatility, supply chain disruptions, inflation, currency exchange rate changes, and cyber-attacks - Forward-looking statements reflect management's current beliefs and are not guarantees of future performance[23] - Key risks include, but are not limited to: volatility in global trade and tariffs, cyber-attacks, economic uncertainties, inflation, supply chain disruptions, and the inability to successfully integrate acquisitions[23] - Belden disclaims any duty to update forward-looking statements except as required by law[24] About Belden Belden Inc. is a global company that delivers complete connection solutions, headquartered in St. Louis with a history of over 120 years, maintaining manufacturing capabilities across North America, Europe, Asia, and Africa - Belden Inc. delivers complete connection solutions to enable a safer, smarter, and more prosperous future[25] - The company is headquartered in St. Louis and has manufacturing facilities in North America, Europe, Asia, and Africa[25]