Belden Inc. — Third Quarter 2026 Earnings Summary

Financial Performance:

• Reported record revenues of $966 million for the quarter ended September 27, 2026, an increase of 38% year-over-year (y/y) and 11% organically compared to $698 million in the prior year period.
• Recorded record orders of $1,017 million, up 46% y/y and 16% organically, resulting in a book-to-bill ratio of 1.05x.
• Reported GAAP net loss of $11 million (GAAP EPS of ($0.29)), compared to net income of $57 million (GAAP EPS of $1.41) in the prior year, primarily due to non-cash purchase accounting charges related to the Ruckus acquisition.
• Adjusted EBITDA reached $171 million, a 44% increase y/y from $119 million, with an adjusted EBITDA margin of 17.7%, up 70 basis points from 17.0% in the prior year.
• Adjusted EPS was $2.26, representing a 15% increase y/y from $1.97.
• For the nine months ended September 27, 2026, revenues totaled $2.41 billion, up from $1.99 billion in the prior year period.

Guidance and Future Outlook:

• Provided fourth quarter 2026 revenue guidance of $960 million to $980 million.
• Provided fourth quarter 2026 GAAP EPS guidance of $0.24 to $0.39.
• Provided fourth quarter 2026 Adjusted EPS guidance of $2.20 to $2.35.
• Expects the data center business to grow by more than 50% in 2027 following a new agreement.
• Management anticipates strong underlying demand, record order levels entering the quarter, and a building solutions pipeline driven by data center and physical AI customers.
• Outlook remains disciplined regarding near-term macroeconomic and supply chain environments, with long-term fundamentals strengthening.

Business Segments and Product Lines:

• Signed a $100 million agreement to supply fiber solutions to a major US data center customer for delivery in 2027.
• The Ruckus integration is progressing with a growing cross-selling funnel and positive customer conversations.
• The company is positioning itself as a networking partner for physical AI and automation.

Market and Competitive Landscape:

• Demand remains robust across key markets driven by AI and automation investments in networking infrastructure from the data center to the factory floor.
• The company operates in a competitive global market where it faces risks related to substitute products and competitive responses.

Risks and Challenges:

• GAAP results were negatively impacted by $100 million in non-cash charges related to the amortization of acquired intangible assets and inventory fair value step-up from the Ruckus acquisition.
• Forward-looking statements highlight risks including the inability to integrate Ruckus or realize synergies, supply chain disruptions, raw material price volatility, currency exchange rate fluctuations, and potential cyber-attacks.
• Risks also include the unpredictability of order timing, channel inventory impacts, and the inability to successfully implement AI into product offerings.

Management Commentary and Tone:

• Ashish Chand, President and CEO, described the quarter as "another record quarter" and expressed confidence in the opportunity ahead.
• Management highlighted the milestone of surpassing $1 billion in quarterly orders for the first time.
• The tone was confident regarding the momentum in data centers and physical AI, while maintaining discipline on near-term macroeconomic factors.

Other Key Points:

• The Ruckus acquisition resulted in significant purchase accounting adjustments, including $54.8 million in amortization of intangibles for the quarter.
• Cash and cash equivalents were $380.7 million as of September 27, 2026, down from $389.9 million at December 31, 2025.
• Long-term debt increased to $3.03 billion as of September 27, 2026, from $1.29 billion at December 31, 2025.
• Goodwill increased to $2.03 billion as of September 27, 2026, from $1.04 billion at December 31, 2025.
• Net cash provided by operating activities for the nine months ended September 27, 2026, was $240.2 million.
• Free cash flow for the nine months ended September 27, 2026, was $107.4 million.
• Common stock dividends declared per share were $0.05 for the quarter.
• Payments under the share repurchase program totaled $31.8 million for the nine months ended September 27, 2026.