Belden (BDC) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue reached $696.4 million, up 11–11.4% year-over-year, with organic growth of 7%, exceeding guidance and reflecting strong execution in solutions strategy.

• Adjusted EPS was $1.77, up 11% year-over-year and above the high end of guidance; GAAP EPS was $1.30–$1.27.

• Adjusted EBITDA rose 13.6–14% to $118–$118.1 million, with margin expanding to 17.0%.

• Announced agreement to acquire RUCKUS Networks for $1.85–$1.846 billion in cash, accelerating the shift to integrated IT/OT networking solutions.

• The company realigned to a single reportable segment effective January 1, 2026, to accelerate its solutions-first strategy.

Financial highlights

• Gross profit for Q1 2026 was $258.1–$265.4 million, up 5–7% year-over-year; gross margin was 37.1–38.1%.

• Net income was $51.0 million, with adjusted net income at $69.7 million, up 6% year-over-year.

• Operating income rose 7.3% to $78.0 million.

• Free cash flow for the trailing twelve months ended December 2025 was $219 million; Q1 2026 free cash flow was negative $63.1 million.

• Cash and cash equivalents at quarter-end were $272–$272.2 million.

Outlook and guidance

• Q2 2026 revenue guidance: $735–$750 million; GAAP EPS: $1.53–$1.63; adjusted EPS: $1.95–$2.05, excluding any contribution from the RUCKUS acquisition.

• Management notes encouraging demand signals but limited near-term visibility due to macroeconomic and geopolitical uncertainties.

• Assumptions for Q2 include $13 million interest expense, $17.7 million depreciation, 20% tax rate, and 39.5 million share count.

• Management expects continued revenue growth, margin expansion, and free cash flow generation in line with long-term goals.