Bel Fuse beats Q2 estimates on connector demand, raises guidance

Bel Fuse Inc. (BELFA) reported second-quarter earnings that topped Wall Street estimates, driven by stronger-than-expected demand in its connectivity solutions segment, and lifted its full-year revenue guidance.

The company posted adjusted earnings of $1.42 a share for the three months ended June 30, compared with the $1.30 consensus estimate from analysts tracked by Visible Alpha. Revenue came in at $185.2 million, above the $178 million consensus, and up 12% from the same quarter last year.

"We delivered a strong second quarter, with revenue growth across all three of our segments," Chief Executive Farouq Tuweiq said on the earnings call. He cited particular strength in the connectivity solutions business, which serves networking, data center, and industrial customers.

Bel Fuse now expects full-year 2026 revenue of $720 million to $735 million, up from its prior range of $700 million to $720 million. The midpoint of the new guidance implies about 10% annual growth. The company maintained its adjusted operating margin forecast of 12% to 13%.

The connectivity solutions segment, the largest by revenue, saw sales climb 14% to $92.3 million. The magnetic components unit posted an 11% gain to $52.1 million, while the power segment rose 9% to $40.8 million.

Gross margin widened to 36.2% from 34.5% a year earlier, helped by favorable product mix and lower input costs. Operating expenses as a share of revenue ticked down to 22.1% from 22.8%.

Free cash flow for the quarter was $14.2 million, compared with $9.8 million in the year-ago period. The company ended the quarter with $98.5 million in cash and equivalents and no outstanding borrowings on its credit facility.

Bel Fuse's Alpha Score sits at 63 out of 100, a Moderate rating, reflecting the earnings beat and the upward revision to guidance. The stock rose 1.8% on the session to $350.95, giving it a market capitalization of about $2.4 billion.

For the third quarter, the company forecast revenue between $182 million and $190 million, above the $176 million analysts had expected, with adjusted earnings in a range of $1.35 to $1.45 a share.

"We are seeing broad-based demand across our end markets, and our backlog remains healthy," Tuweiq said. "The team is executing well on the operational improvements we have been driving."

The company's board declared a quarterly dividend of $0.12 a share, payable Sept. 15 to shareholders of record as of Sept. 1.

Bel Fuse will host an investor day in New York on Sept. 10, where management plans to discuss its long-term growth strategy and capital allocation priorities.