Bel Fuse (BELFB) Q2 2026 earnings summary

Executive summary

• Q2 2026 net sales reached $210.7 million, up 25% year-over-year, driven by strong growth in defense and data solutions, with record channel sales and distribution recovery since mid-2022.

• Completed a $441.6 million equity raise in May 2026, using $197.5 million to repay all debt and fund future growth initiatives, including the Enercon transaction.

• Reorganized into two segments: Aerospace, Defense & Rugged Solutions (ADRS) and Industrial Technology & Data Solutions (ITDS), with both segments showing strong performance and strategic progress.

• Slovakia facility certified as a European defense manufacturer, securing eight new European defense project wins, expected to generate sales from late 2027.

• Acquisitions of dataMate and Enercon expanded market reach and product offerings, with dataMate contributing $5.9 million in net sales since acquisition.

Financial highlights

• Q2 2026 sales were $210.7 million, up 25.2% year-over-year, with gross margin improving to 39.9% from 38.7% in Q2 2025.

• Adjusted EBITDA was $48.9 million (23.2% of sales), up from $35.2 million (20.9% of sales) in Q2 2025.

• Q2 2026 GAAP net earnings attributable to shareholders were $25.5 million, down from $26.9 million in Q2 2025, while non-GAAP net earnings rose to $39.1 million from $21.0 million.

• Ended Q2 with $306.1 million in cash and securities, up from $57.8 million at year-end, after repaying $197.5 million in debt.

• SG&A expenses increased to $73.0 million for the six months, up from $60.4 million year-over-year, mainly due to higher salaries, benefits, and professional fees.

Outlook and guidance

• Q3 2026 sales projected at $205–$225 million, with gross margin guidance of 39–41%.

• Backlog reached $594.7 million at June 30, 2026, up 35.4% from year-end, indicating strong demand across both segments.

• Management expects continued growth in defense, industrial, and data solutions markets, with revenue rotation toward higher-growth, higher-margin products.

• SG&A expected to run $34–$35 million per quarter; CapEx to rise slightly in H2 2026, focused on throughput and growth projects.

• Remaining equity proceeds intended for the acquisition of the remaining 20% of Enercon or other strategic opportunities.