Bel Fuse prelim Q2 sales rise 25% on defense, data demand

Overview

• U.S. electronic components maker's preliminary Q2 sales rose 25% yr/yr on defense, data demand

• Gross margin for preliminary Q2 improved to 39.9% from 38.7% a year earlier

• Company raised $441.6 mln in equity, paid down $197.5 mln of debt

Outlook

• Bel Fuse expects Q3-26 sales of $205 mln to $225 mln

• Company sees Q3-26 gross margin between 39% and 41%

• Bel Fuse says expanded European footprint and strong balance sheet support future growth

Result Drivers

• DEFENSE AND DATA DEMAND - Co said Q2 sales growth was driven by defense and data solutions demand and continued distribution recovery, per CEO Farouq Tuweiq

• EUROPEAN EXPANSION - Co said its Slovakia site achieved defense-manufacturer qualification to support Enercon integration and European expansion

• OPERATIONAL MILESTONES - Co cited completion of DataMate facility transition and ERP conversion as key operational milestones in the quarter

Company press release: ID:nGNX6J4vqx

Key Details

Analyst Coverage

• The stock recently traded at 25 times the next 12-month earnings vs. a P/E of 24 three months ago

Reuters Recommended Reads

• July 29 - Amphenol Q2 sales beat estimates on strong IT datacom demand

• July 29 - Littelfuse Q2 revenue beats estimates on semiconductor demand; lifts dividend

• July 28 - Electrical equipment maker Hubbell lifts profit forecast amid demand from data centers

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)