Belden (BDC) Q4 2024 earnings summary

Executive summary

• Q4 2024 revenue reached $666 million, up 21% year-over-year and 14% organically, exceeding guidance, with adjusted EPS of $1.92, aided by a $0.17 tax benefit.

• Full year 2024 revenue was $2,461 million, down 2% year-over-year (down 6% organically); adjusted EPS was $6.36, and free cash flow was $223 million.

• Americas organic growth was 23% in Q4, with strong performance in energy, process manufacturing, and broadband markets.

• Solutions transformation advanced, with solutions now representing 10%-12% of sales and a unified stack approach across verticals.

• Strategic capital deployment included $295 million for acquisitions and $133 million for share repurchases in 2024.

Financial highlights

• Q4 adjusted EBITDA margin was 17.1%, up 110 basis points year-over-year; adjusted gross margin was 38.1%.

• Q4 adjusted net income was $78.7 million, up 28% year-over-year; adjusted EPS was $1.92, up 32% year-over-year.

• Full year adjusted EBITDA was $411 million (16.7% margin), down 6% year-over-year; net income $263 million.

• Q4 free cash flow was $116 million, up from $105 million in the prior year quarter.

• Free cash flow for the year was $223 million, or 9.1% of revenue.

Outlook and guidance

• Q1 2025 revenue expected between $605 million and $620 million, up 13%-16% year-over-year.

• Adjusted Q1 EPS guidance is $1.43-$1.53, up 15%-23% year-over-year, including a $15 million revenue and $0.05 EPS FX headwind.

• Management targets $8 EPS for 2025 if business conditions improve beyond Q1, with long-term EPS growth targeted at 10%-12% through-cycle.

• Q1 2025 assumptions: interest expense $10.4 million, tax rate 18.3%, share count 41.1 million.