Bel Fuse (US:BELFA)2025-10-29 20:24Financial Performance - Net sales for Q3 2025 reached $179.0 million, a 44.8% increase from $123.6 million in Q3 2024[5] - Gross profit margin improved to 39.7%, up from 36.1% in Q3 2024[5] - GAAP net earnings attributable to Bel shareholders were $22.3 million, compared to $8.1 million in Q3 2024[5] - Adjusted EBITDA was $39.2 million, representing 21.9% of sales, compared to $21.5 million or 17.4% of sales in Q3 2024[5] - Net earnings attributable to Bel Fuse shareholders for Q3 2025 were $22.25 million, up from $8.08 million in Q3 2024[15] - GAAP net earnings for Q3 2025 were $22,555,000, compared to $8,080,000 in Q3 2024, representing a 179% increase[25] - Non-GAAP operating income for Q3 2025 was $32,548,000, up from $17,833,000 in Q3 2024, reflecting an 82.8% growth[25] - Adjusted EBITDA for Q3 2025 reached $39,200,000, which is a 82.5% increase from $21,469,000 in Q3 2024[25] - The percentage of adjusted EBITDA to net sales improved to 21.9% in Q3 2025 from 17.4% in Q3 2024[25] - For the nine months ended September 30, 2025, GAAP net earnings were $67,670,000, compared to $42,760,000 for the same period in 2024, marking a 58.2% increase[25] - Non-GAAP net earnings attributable to Bel shareholders for the nine months ended September 30, 2025, were $66,985,000, up from $53,105,000 in 2024, a 26.2% increase[30] Sales and Segment Performance - Power Solutions and Protection segment sales increased by 93.9% to $94.41 million in Q3 2025[22] - Connectivity Solutions segment sales grew by 11.0% to $61.87 million in Q3 2025[22] - The performance was driven by strong demand in commercial aerospace and defense sectors, along with a rebound in networking and distribution[2] Cash Flow and Assets - Total assets as of September 30, 2025, were $952.80 million, slightly up from $949.79 million at the end of 2024[18] - Cash and cash equivalents decreased to $57.74 million from $68.25 million at the end of 2024[18] - Net cash provided by operating activities for the nine months ended September 30, 2025, was $51.04 million, down from $65.72 million in the same period of 2024[20] Costs and Expenses - Research and development costs increased to $7.55 million in Q3 2025, compared to $5.44 million in Q3 2024[15] - The company incurred restructuring charges of $219,000 in Q3 2025, compared to $1,087,000 in Q3 2024[30] - Stock-based compensation for the nine months ended September 30, 2025, was $4,661,000, compared to $2,782,000 in 2024, indicating a 67.6% increase[30] - Acquisition-related costs for Q3 2025 were $4,292,000, compared to $0 in Q3 2024, indicating increased investment in growth strategies[30] Non-GAAP Financial Measures - Non-GAAP financial measures have been adjusted to enhance investor insight into operational performance[4] - In Q4 2024, the company revised its Non-GAAP financial measures, including Adjusted EBITDA and Non-GAAP EPS, to exclude stock-based compensation, amortization of intangibles, and unrealized foreign currency exchange gains/losses[33] - The changes in Non-GAAP measures are intended to enhance investor insight into the company's operational performance[33] - The modified definitions of Adjusted EBITDA and Non-GAAP EPS have been applied to all periods presented in the financial reports[33] Internal Collaboration and Future Outlook - The company emphasizes strong internal collaboration to focus on growth and new opportunities[3] - For Q4 2025, the company estimates net sales between $165 million and $180 million, with gross margin expected to remain in the 37% to 39% range[3] - A gain of $1.6 million was recorded from the sale of a building in Zhongshan, PRC[5]