Bel Fuse Inc. — Third Quarter 2026 Earnings Summary

Financial Performance:

• Net sales for Q3 2026 were $220.5 million, a 23.2% increase from $179.0 million in Q3 2025.
• Gross profit margin improved to 40.9% in Q3 2026 from 39.7% in Q3 2025.
• GAAP net earnings attributable to Bel shareholders were $26.3 million in Q3 2026, compared to $22.3 million in Q3 2025.
• Non-GAAP net earnings attributable to Bel shareholders were $44.0 million in Q3 2026, compared to $26.3 million in Q3 2025.
• Adjusted EBITDA was $52.5 million (23.8% of sales) in Q3 2026, up from $39.2 million (21.9% of sales) in Q3 2025.
• For the nine months ended September 30, 2026, net sales were $609.7 million compared to $499.5 million in the prior year period.
• Cash and cash equivalents increased to $333.1 million as of September 30, 2026, from $57.8 million as of December 31, 2025.
• Long-term debt was $0 as of September 30, 2026, down from $197.5 million as of December 31, 2025.
• Net cash provided by operating activities for the nine months ended September 30, 2026, was $66.0 million, compared to $51.0 million in the prior year period.
• Net cash used in investing activities was $26.1 million for the nine months ended September 30, 2026, primarily driven by a $16.2 million acquisition and $11.0 million in capital expenditures.
• Net cash provided by financing activities was $234.6 million for the nine months ended September 30, 2026, driven by $441.6 million in proceeds from the issuance of common stock, partially offset by $217.5 million in repayments under the revolving line of credit.

Guidance and Future Outlook:

• The company provided Q4 2026 guidance for net sales of $220 million to $240 million.
• The company provided Q4 2026 guidance for gross margin of 40.0% to 42.0%.
• Management expressed confidence in a strong fourth quarter, citing momentum across key end markets and focused execution.

Business Segments and Product Lines:

• The Aerospace, Defense & Rugged Solutions segment reported Q3 2026 sales of $106.6 million, a 10.7% increase from Q3 2025, with a gross margin of 39.6% (down 150 basis points from 41.1%).
• The Industrial Technology & Data Solutions segment reported Q3 2026 sales of $113.9 million, a 37.8% increase from Q3 2025, with a gross margin of 42.7% (up 470 basis points from 38.0%).
• Management highlighted that performance was led by the Data Solutions sector and the Industrials end market.
• For the nine months ended September 30, 2026, the Aerospace, Defense & Rugged Solutions segment sales were $316.9 million (up 16.8%), and the Industrial Technology & Data Solutions segment sales were $292.8 million (up 28.3%).

Market and Competitive Landscape:

• The press release does not contain specific data regarding market share, specific competitor actions, or detailed market trend analysis beyond general references to momentum in key end markets.

Risks and Challenges:

• Risks include the potential failure to complete the intended acquisition of the remaining 20% stake in Enercon.
• Potential risks involve difficulties in integrating previously acquired companies, supply chain constraints, and capacity constraints.
• Risks related to international operations, specifically manufacturing in China and Israel, and fluctuations in foreign currency exchange rates.
• Other risks include labor shortages, inflationary pressures on input costs, and regulatory or trade environment changes.

Management Commentary and Tone:

• Farouq Tuweiq, President and CEO, stated the company is "pleased with our strong third quarter results," noting performance led by the Data Solutions sector and Industrials end market.
• Management emphasized "momentum across key end markets" and "focused execution across our global organization."
• The tone regarding the future outlook is positive, with management expressing excitement about how the year is shaping up and a focus on creating long-term value for shareholders.

Other Key Points:

• The company completed an acquisition of a business for $16.2 million (net of cash acquired) during the nine months ended September 30, 2026.
• The company issued common stock generating $441.6 million in proceeds during the nine months ended September 30, 2026.
• The company paid dividends of $2.7 million to common shareholders and $3.3 million to noncontrolling interest during the nine months ended September 30, 2026.
• The company paid $3.5 million for contingent consideration during the nine months ended September 30, 2026.
• The company sold a property in Hong Kong, recognizing a gain of $976,000 during the nine months ended September 30, 2026.
• The company paid off $217.5 million of its revolving line of credit during the nine months ended September 30, 2026.
• A conference call to discuss these results is scheduled for 8:30 a.m. ET on Thursday, October 29, 2026.