Belden (BDC) Q2 2025 earnings summary

Executive summary

• Q2 2025 revenue reached $672 million, up 11% year-over-year and 5% organically, with both business segments contributing to growth and adjusted EPS rising 25% to $1.89, surpassing guidance.

• Orders increased 16% year-over-year and 8% sequentially, with a book-to-bill ratio of 1.05, reflecting sustained demand.

• Major customer wins included a multi-site data center solution and a $40 million three-year global specification award with a US automotive manufacturer.

• Free cash flow for the trailing twelve months was $216 million, supporting $100 million in share repurchases year-to-date.

• Acquired Precision Optical Technologies, adding $27.5 million in Q2 revenue.

Financial highlights

• Gross margin expanded 70 basis points year-over-year to 38.9%; adjusted EBITDA was $114 million, up 15% year-over-year, with a margin of 17.0%.

• Net income for Q2 2025 was $61 million, up from $49 million in the prior year; adjusted net income was $75.6 million, up 22% year-over-year.

• Effective tax rate for the quarter was 8.5%–12.5%, benefiting EPS by $0.11 due to discrete tax benefits and favorable geographic mix.

• Cash and cash equivalents at June 29, 2025, were $301.5 million.

• Free cash flow for Q2 2025 was $60.96 million, up from $32.23 million in Q2 2024.

Outlook and guidance

• Q3 2025 revenue guidance is $670–$685 million; adjusted EPS expected at $1.85–$1.95, GAAP EPS at $1.33–$1.43; tax rate assumption is 12.5%.

• Management targets mid-single-digit annual revenue growth, free cash flow margin near 10%, and annual adjusted EPS growth of 10–12%.

• Long-term net leverage goal is around 1.5x, with incremental adjusted EBITDA margins between 25–30%.

• Guidance reflects a balanced approach amid policy, macroeconomic, and market uncertainty.

• Sufficient liquidity is expected to fund working capital, capex, dividends, share repurchases, and short-term strategies.