Bel Fuse (BELFB) 28th Annual Needham Growth Conference Virtual summary

Company Overview and Transformation

• Over 75 years in business, with $657M in annual sales as of TTM 9/30/25, and nearly 21% EBITDA margin.

• Shifted from a magnetics-focused company to three segments: power, connectivity, and magnetics, with power now exceeding 50% of sales, connectivity about a third, and magnetics down to 13%.

• Major transformation in profitability: EBITDA margin rose from 5% in 2020 to nearly 21% in 2025.

• Named by Forbes as one of America's most successful small companies for 2026.

• Headquarters in New Jersey, serving diverse end markets including networking, industrial, aerospace/defense, and distribution, with a blue-chip customer base.

Market Trends and Demand Outlook

• 2025 saw robust demand across all business units, with recovery driven by actual demand rather than restocking.

• Aerospace and defense sales now represent approximately 40% of total sales, with significant growth since 2021.

• Networking and AI-related applications are key growth drivers, with AI contributing about 13% of trailing 12-month sales.

• Commercial aerospace and space segments are expanding, with space revenues rising from $1-2M to $9-10M in two years.

• Positive end market trends and continued strength in 2025, with a rebound expected in the second half, especially in aerospace, defense, networking, and AI.

Strategic Initiatives and Operational Improvements

• Portfolio rotation included divestitures and business closures, focusing on higher-margin, embedded customer relationships.

• Completed a five-year ERP implementation, multiple pricing strategy rounds, and significant facility consolidations.

• Implemented pay-for-performance, SKU-level profitability analysis, and sales team restructuring.

• Introduced CRM systems, dashboards, and new sales leadership to drive growth.

• Cost structure remains lean, with ongoing investments in systems and targeted hiring for European defense growth.