Bel Fuse (US:BELFB)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] - 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 sales for Q3 2025 reached $178.98 million, a 44.8% increase from $123.64 million in Q3 2024[15] - 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, a significant increase from $8,080,000 in Q3 2024, representing a growth of 179%[25] - Non-GAAP operating income for Q3 2025 reached $32,548,000, compared to $17,833,000 in Q3 2024, marking an increase of 82.7%[25] - Non-GAAP net earnings attributable to Bel shareholders for Q3 2025 were $26,293,000, compared to $14,839,000 in Q3 2024, representing an increase of 77.1%[30] Profitability Metrics - Gross profit margin improved to 39.7%, up from 36.1% in Q3 2024[5] - Income from operations for Q3 2025 was $30.34 million, representing 16.9% of net sales, compared to $11.45 million (9.3%) in Q3 2024[15] - The percentage of adjusted EBITDA to net sales for Q3 2025 was 21.9%, compared to 17.4% in Q3 2024, indicating improved operational efficiency[25] - Total GAAP operating income for the nine months ended September 30, 2025, was $85,220,000, an increase from $51,924,000 in 2024, representing a growth of 64.0%[25] Sales Performance by Segment - 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] 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] Research and Development - Research and development costs increased to $7.55 million in Q3 2025, compared to $5.44 million in Q3 2024[15] Tax and Compensation - The company reported a provision for income taxes of $5,448,000 for Q3 2025, compared to $3,108,000 in Q3 2024, which is an increase of 75.4%[25] - Stock-based compensation for the nine months ended September 30, 2025, was $4,661,000, up from $2,782,000 in the same period of 2024, reflecting a growth of 67.6%[25] Restructuring and Gains - The company incurred restructuring charges of $219,000 in Q3 2025, compared to $1,087,000 in Q3 2024, indicating a reduction in restructuring costs[30] - A gain of $1.6 million was recorded from the sale of a building in Zhongshan, PRC[5] - The gain on the sale of properties for the nine months ended September 30, 2025, was $5,701,000, compared to no gains in the same period of 2024[30] Future Outlook - The company estimates Q4 2025 net sales between $165 million and $180 million, with gross margin expected to remain in the 37% to 39% range[3] - Strong demand was noted in commercial aerospace and defense sectors, contributing to robust performance[2] 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 modification aims to enhance investor insight into the company's operational performance[33] - The new definitions of Adjusted EBITDA and Non-GAAP EPS have been applied retroactively to all periods presented[33]