Belden (BDC) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue reached $625 million, up 17% year-over-year, with organic growth of 11% and adjusted EPS of $1.60, up 29% year-over-year, both exceeding guidance.

• Free cash flow for the trailing twelve months was $220 million, supporting $100 million in share repurchases year-to-date and a reduction of 1.0 million shares.

• Orders increased 18% year-over-year, with a book-to-bill ratio of 1.05, and both business segments contributed to organic growth.

• The business is benefiting from trends in reindustrialization, digitization, automation, and IT/OT convergence, with a strong pipeline for solutions.

• Precision acquisition enhanced fiber and electronics offerings, contributing to revenue and expanding capabilities.

Financial highlights

• Gross margin reached 39.8%, the highest since 2020, with adjusted EBITDA margin at 16.6%, up 80 basis points year-over-year.

• Adjusted net income was $65.5 million, up 28% year-over-year; net income margin improved to 8.3%.

• Cash and cash equivalents at quarter-end were $259 million.

• Free cash flow margin was 9% for Q1 2025.

• Dividend of $0.05 per share declared and paid.

Outlook and guidance

• Q2 2025 revenue expected between $645 million and $660 million, up 7%–9% year-over-year.

• Adjusted EPS for Q2 expected between $1.67 and $1.77, up 11%–17% year-over-year; GAAP EPS guidance is $1.25–$1.35.

• Long-term targets include 10%–12% adjusted EPS growth and free cash flow margin near 10%.

• Tax rate expected at 17.5% for Q2 and 18% for the full year.

• Management remains confident in long-term growth, citing reindustrialization and digitization trends.