Belden (BDC) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue reached $655 million, up 4–4.5% year-over-year and 8% sequentially, exceeding guidance and driven by acquisitions such as Precision Optical Technologies and Voleatech.

• Adjusted EPS was $1.70, up 13% sequentially but down 4% year-over-year; GAAP EPS was $1.30, down 24% year-over-year.

• Orders increased 8% sequentially and 28% year-over-year, reflecting strong demand across segments.

• Free cash flow for the trailing twelve months was $211 million, supporting ongoing investments, acquisitions, and share repurchases.

• Year-to-date, $115 million was used for share repurchases, reducing share count by 1.2 million.

Financial highlights

• Gross profit margin was 37.8%, down 40 basis points sequentially; gross profit for Q3 was $244–$247.6 million.

• Adjusted EBITDA was $113 million, margin 17.2%, up 70 bps sequentially but down from 18.4% a year ago.

• Net income for Q3 was $54 million, down from $72 million in the prior-year quarter.

• Cash and equivalents at quarter-end were $323 million; total debt stood at $1.23 billion.

• Net leverage was 2.1x, above the 1.5x target.

Outlook and guidance

• Q4 2024 revenue expected between $645–$660 million, up 17–20% year-over-year.

• Adjusted EPS guidance for Q4 is $1.62–$1.72, up 11–18% year-over-year; GAAP EPS guidance is $1.05–$1.15.

• Management targets at least $8.00 adjusted EPS by 2025, with 10–12% annual growth thereafter and mid-single-digit organic revenue CAGR.