Bel Fuse Inc. (BELFB) Earnings

Bel Fuse Inc.

BELFB · Nasdaq

Symbol: BELFB
Type: Stock
Industry: Electronic Coils, Transformers & Other Inductors
Country: North America
Exchange: Nasdaq

Bel ( belfuse.com/ ) designs, manufactures, and markets critical electronic components, systems and solutions for customers in aerospace, defense, industrial, and data-driven markets. Understanding that our customers face increasingly complex technical challenges, Bel delivers a comprehensive portfolio of solutions including power systems, high-reliability connectors and cable assemblies, circuit protection, and networking products that enable Original Equipment Manufacturers (OEMs) to bring their innovations to market. Bel partners closely with customers to deliver both customized and standard solutions tailored to their specific applications and performance requirements. With manufacturing facilities and technical support teams worldwide, Bel serves as a strategic partner to customers who require proven reliability in demanding end markets.

Key Issues

Bullish view

FY2025 revenue rose to $0.7 billion from $0.5 billion in FY2024, while net income increased to $0.1 billion from a reported $0.0 billion. Zacks’ Strong Buy rank upgrade also signals improving earnings expectations.

Bearish view

The evidence shows only one year of reported growth and supplies no forward earnings figures or segment detail to establish whether the improvement can continue.

Analyst Consensus

See all

Buy

3 analysts

$207

Current

—

Low

$330

Average

—

High

Average target implies +59.58% versus the current price.

Earnings History

BeatMissNo estimate

Dec 2026upcoming

Next quarter

Consensus is $2.31 EPS for Dec 2026 across 4 estimates, ranging $1.92 to $2.68.

BELFB Sep 2026

Reported Oct 28, 2026

: 14.88%
: +3.49%

: $2.15
: $1.83
: —
: $220.51M

Reported results

: $220.51M; from $178.98M
: 40.94%; from 39.75%
: $39.55M; from $30.34M
: 17.94%; from 16.95%
: $26.29M; from $22.25M

Highlights

Sales and margins: Q3 revenue rose 23.2% year over year to $220.5 million and 4.7% sequentially; gross margin improved 120 basis points to 40.9%.
EPS miss: Diluted Class B GAAP EPS was $1.83, 14.9% below the $2.15 consensus, versus $1.77 a year earlier. The $26.3 million attributable to Bel shareholders included an $11.8 million redemption-value adjustment for Enercon’s noncontrolling interest.
Adjusted earnings: Non-GAAP net earnings attributable to Bel were $44.0 million versus $26.3 million a year earlier; adjusted EBITDA rose 34% to $52.5 million, or 23.8% of sales versus 21.9%.
Industrial and data strength: Industrial Technology & Data Solutions revenue grew 37.8% to $113.9 million, with gross margin up 470 basis points to 42.7%; Data Solutions sales increased 61.5%.
Aerospace and defense: Aerospace, Defense & Rugged Solutions revenue increased 10.7% to $106.6 million, but gross margin fell 150 basis points to 39.6% on mix and currency pressures.
Q4 outlook: Bel guided to revenue of $220 million–$240 million and gross margin of 40.0%–42.0%. Backlog was $680.3 million at September 30, up 54.9% from year-end, and reached $742.4 million by October 31.
Liquidity and Enercon: Bel ended September with $333.1 million of cash and no revolver borrowings, after using equity-offering proceeds to repay $197.5 million of debt. It expects to settle the $114.0 million obligation for Enercon’s remaining 20% by Q1 2027.
Cash generation: Nine-month operating cash flow rose to $66.0 million from $51.0 million, while accounts receivable and inventory increases used $32.6 million and $56.5 million, respectively.

Analysis

Bel’s third quarter paired strong top-line growth and improving operating performance with a GAAP EPS miss. Revenue of $220.5 million was up 23.2% year over year and 4.7% from Q2’s $210.7 million; operating income increased 30.4% year over year to $39.6 million, and gross margin expanded 120 basis points to 40.9%. Yet diluted Class B EPS of $1.83 missed the $2.15 consensus by 14.9%, despite rising from $1.77 a year ago. The gap is partly explained by an $11.8 million redemption-value adjustment tied to Enercon’s remaining minority interest, which reduced earnings attributable to Bel shareholders to $26.3 million.

The operating story was led by Industrial Technology & Data Solutions, where sales grew 37.8% and gross margin improved to 42.7%; the Aerospace, Defense & Rugged segment grew more modestly and saw margin compression. Adjusted EBITDA rose to $52.5 million, with margin reaching 23.8%. Management’s Q4 guidance calls for $220 million–$240 million of sales and 40.0%–42.0% gross margin, against a sharply higher backlog. Bel also enters the quarter with substantial cash and no debt after its share offering, though the Enercon buyout and working-capital investment are significant cash uses.

Sales and profitability

Q3 net sales were $220.5 million, up from $179.0 million a year earlier and $210.7 million in Q2. Gross profit reached $90.3 million, with consolidated gross margin at 40.9% versus 39.7% a year ago. Operating income increased to $39.6 million from $30.3 million, and operating margin rose to 17.9% from 16.9%. Adjusted EBITDA was $52.5 million, or 23.8% of sales, compared with $39.2 million and 21.9% in Q3 2025. Higher volume, improved absorption and pricing helped, while foreign exchange and segment mix remained offsets.

GAAP EPS and adjustments

Diluted Class B GAAP EPS of $1.83 came in below the $2.15 consensus, though it was above $1.77 in Q3 2025. Net earnings attributable to Bel shareholders increased to $26.3 million from $22.3 million; consolidated net earnings were $38.4 million. The attribution to Bel was reduced by an $11.8 million redemption-value adjustment for Enercon’s noncontrolling interest, following the revised terms for acquiring the remaining 20%. Non-GAAP net earnings attributable to Bel were $44.0 million, versus $26.3 million a year earlier; non-GAAP basic Class B EPS was $3.07 versus $2.09. These adjusted measures exclude the redemption adjustment and other specified items, including amortization, stock compensation and earnout adjustments.

Segment performance

Industrial Technology & Data Solutions: Revenue rose 37.8% to $113.9 million. Data Solutions sales increased 61.5%, and Industrial sales rose 18.1%; Transportation declined 12.8%. Segment gross margin expanded to 42.7% from 38.0%, reflecting pricing, mix, volume and factory utilization improvements, partly offset by currency costs.
Aerospace, Defense & Rugged Solutions: Revenue grew 10.7% to $106.6 million, led by rugged industrial applications and defense, with commercial air shipments lower on timing. Gross margin declined to 39.6% from 41.1%, as unfavorable currency and a higher share of industrial and distribution-channel sales outweighed operational efficiencies.

Backlog and outlook

Bel expects a strong fourth quarter and guided to net sales of $220 million–$240 million and gross margin of 40.0%–42.0%. Order backlog reached $680.3 million at September 30, an increase of $241.2 million, or 54.9%, from December 31; growth was 92.8% in Industrial Technology & Data Solutions and 30.7% in Aerospace, Defense & Rugged Solutions. Backlog rose further to $742.4 million by October 31, with continued strength from Data Solutions customers placing orders for requested 2027 shipments. Backlog is not a guarantee of revenue, as delivery schedules, production capacity, supply availability and customer changes can affect conversion.

Cash and Enercon

Cash and equivalents totaled $333.1 million at September 30, versus $57.8 million at year-end, and Bel had no outstanding revolver debt and $400 million of availability. The increase reflected the May Class B offering, which generated $441.6 million in net proceeds; $197.5 million was used to repay borrowings. The remaining Enercon 20% purchase obligation was classified as a $114.0 million current liability and is expected to be settled by Q1 2027. Nine-month operating cash flow was $66.0 million, up from $51.0 million, but higher receivables and inventory used $32.6 million and $56.5 million of cash, respectively. The working-capital build reflected higher sales and production activity.