Bel Fuse (BELFB) Q1 2026 earnings summary

Executive summary

• Q1 2026 net sales rose 17.2% year-over-year to $178.5 million, with strong momentum in both Aerospace, Defense & Rugged Solutions (ADRS) and Industrial Technology & Data Solutions (ITDS) segments, and gross margin improved to 39.0% from 38.6%.

• Non-GAAP net earnings increased to $22.8 million, while GAAP net earnings declined to $11.4 million due to higher SG&A, R&D, and FX impacts.

• Completed acquisition of dataMate for $16 million in March 2026, expanding the Ethernet and broadband portfolio and U.S. manufacturing footprint.

• Realigned business units to ADRS and ITDS to enhance customer focus and operational agility.

• Achieved annual sales of $702 million and adjusted EBITDA of $146 million (20.9% of sales) for the trailing twelve months ended March 31, 2026.

Financial highlights

• Q1 2026 sales reached $178.5 million, up 17.2% year-over-year, with gross profit margin at 39.0% (up 40 bps), and gross profit of $69.6 million.

• Adjusted EBITDA was $34.5 million (19.3% of sales), up from $30.9 million, while GAAP operating income was $23.7 million, down from $25.0 million in Q1 2025.

• Net cash from operating activities was $13.8 million, up from $8.1 million in Q1 2025; cash and cash equivalents at quarter-end were $59.4 million.

• EPS for Class A shares was $0.86 (down from $1.36); Class B shares $0.91 (down from $1.43).

• Debt reduced from $288 million in 2021 to $62 million in 2025, with net leverage declining from 2.1x to 0.14x.

Outlook and guidance

• Q2 2026 sales guidance is $195 million–$215 million, with gross margin expected between 38%–40%.

• Backlog grew 21% sequentially to $531.3 million, supporting continued strong demand in defense, aerospace, and data solutions.

• SG&A expected at $33–$35 million per quarter; R&D at ~$8 million per quarter.

• Positive end market trends in aerospace, defense, networking, and AI expected to drive growth into 2026.