Belden (BDC) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue was $604.3 million, down about 13% year-over-year, but exceeded guidance; adjusted EPS was $1.51, above expectations.

• Orders increased 9% sequentially, marking the third consecutive quarter of growth, with a book-to-bill ratio of 1.0x.

• Free cash flow for the trailing twelve months was $234 million, supporting capital deployment.

• Acquisition of Precision Optical Technologies closed for approximately $291 million, expanding fiber and broadband solutions.

• Net income for Q2 was $49 million, down from $69 million in the prior year.

Financial highlights

• Revenue declined 13% year-over-year to $604.3 million, but exceeded guidance.

• Gross profit margin was 37.5%–38.2%, nearly flat year-over-year.

• Adjusted EBITDA was $99–$99.4 million, with margin at 16.5%, down 130 bps year-over-year.

• Adjusted EPS was $1.51, down 21% year-over-year but above guidance.

• Net income margin for Q2 was 8.1%.

Outlook and guidance

• Q3 2024 revenue guidance is $635–$650 million, with adjusted EPS expected between $1.55 and $1.65.

• Sequential revenue growth anticipated as end demand increases modestly.

• Long-term EPS target of at least $8.00 for 2025 remains on track, contingent on destocking cycle completion.