Belden (BDC) investor relations material

Executive summary

• Q2 2025 revenue reached $672M, up 11% year-over-year and above guidance, with adjusted EPS of $1.89, up 25% YoY, and GAAP EPS at $1.53, reflecting strong execution and solutions transformation.

• Organic growth was 5% overall, with all major regions contributing; orders rose 16% YoY and 8% sequentially, and book-to-bill was 1.05.

• Major customer wins included a multi-site data center solution and a $40M three-year global specification award with a US automotive manufacturer, supporting long-term growth.

• Free cash flow for the trailing twelve months was $216M; 1M shares repurchased YTD for $100M, reflecting disciplined capital allocation.

• The company remains well positioned for sustainable growth, supported by secular trends in automation, digitization, and IT/OT convergence.

Financial highlights

• Revenue: $672M, up 11% YoY and above guidance; organic growth of 5%.

• Adjusted gross margin increased 70 bps YoY to 38.9%; adjusted EBITDA margin up 50 bps to 17%.

• Net income for Q2 2025 was $61M, up from $49M YoY; adjusted net income was $75.6M, up 22% YoY.

• Effective tax rate for the quarter was 8.5%–12.3%, benefiting EPS by $0.11 due to discrete tax items.

• Cash and equivalents at quarter end were $301M; free cash flow for Q2 2025 was $60.96M.

Outlook and guidance

• Q3 2025 revenue guidance is $670M–$685M, up 2%–5% YoY; adjusted EPS expected at $1.85–$1.95, GAAP EPS at $1.33–$1.43.

• Q3 tax rate expected at 12.5%; full year slightly over 15%.

• 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%.

• Near-term demand expected to remain steady, with performance mirroring seasonal patterns; medium- and long-term outlooks remain constructive.