Belden (BDC) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue was $604.3 million, down 12.7–13% year-over-year, but exceeded guidance; adjusted EPS was $1.51, down 21% year-over-year, and net income was $49–$62 million.

• Orders grew 9% sequentially, marking the third consecutive quarter of order growth, with a book-to-bill ratio of 1.0x.

• Free cash flow for the trailing twelve months was $234 million, supporting capital deployment and investments.

• The acquisition of Precision Optical Technologies for $289.6–$291 million was completed, expanding fiber and broadband solutions.

• Gross profit margin remained stable or improved slightly due to favorable mix and pricing.

Financial highlights

• Revenue declined 12.7–13% year-over-year to $604–$604.3 million, but exceeded guidance.

• Adjusted EBITDA was $99–$99.4 million, with a margin of 16.5%, down 130 bps year-over-year.

• Net income was $49–$62.2 million, down from the prior year.

• Gross profit margin was 37.5–38.2%, nearly flat or up 10 bps year-over-year.

• Adjusted EPS of $1.51 surpassed guidance but was down year-over-year.

Outlook and guidance

• Q3 2024 revenue guidance is $635–$650 million, with adjusted EPS of $1.55–$1.65, assuming stable market conditions.

• Long-term net leverage target remains at 1.5x, with expectations to reduce leverage as free cash flow is generated.

• The $8 EPS target for 2025 remains on track, contingent on destocking resolution and continued growth.