Did Bel Fuse A beat or miss consensus estimates last quarter?

What were the key takeaways from Bel Fuse A’s earnings call?

What factors drove the changes in Bel Fuse A's revenue and profit?

What does Bel Fuse A do and what are its main business segments?

What is Bel Fuse A's latest dividend and current dividend yield?

What guidance did Bel Fuse A's management provide for the next earnings period?

What is the market's earnings forecast for Bel Fuse A next quarter?

What were the key takeaways from Bel Fuse A's earnings call?

- **Revenue Growth**: Q1 2025 up 18.9% YoY to $152.2M, driven by A&D (38% of sales) and AI/space (+20% YoY).
- **Profitability**: Gross margin expands to 38.6%, with Magnetics (42.6%) and Connectivity (37.9%) leading.
- **Tariff Resilience**: 75% of sales not directly impacted by tariffs; 60% of Power/Magnetics production moving to India by 2025.
- **AI Momentum**: $4.6M Q1 AI revenue from U.S. GPU manufacturers, with 20+ new customers in pipeline.
- **Defense Expansion**: Enercon's Israel-based manufacturing adds $32.4M Q1 Power segment contribution.

**【CEO Opening Remarks】**
- Q1 2025 revenue reached $152.2 million, up 18.9% YoY, driven by A&D (38% of sales) and AI/space growth (AI: $4.6M, +20% YoY; space: $2.3M, +15% YoY).
- Enercon acquisition integration progressing well, with $32.4M in Q1 Power segment contributions.
- Tariffs pose challenges, but 75% of sales are U.S.-manufactured or non-U.S. exported, limiting direct impact.

**【CFO Financial Highlights】**
- Gross margin improved to 38.6% (vs. 37.5% Q1 2024), driven by Magnetics (42.6%) and Connectivity (37.9%) segments.
- Power segment sales +37.9% YoY, offsetting declines in consumer (-$2.8M), e-mobility (-$1.6M), and rail (-$1.5M).
- Backlog of $395.7M reflects 4% QoQ growth, with defense and AI as key growth drivers.
- Q2 2025 revenue guidance: $145M-$155M, accounting for potential tariff-related delays.

**【Tariff & Supply Chain Strategy】**
- 10% of sales subject to China tariffs; 60% of Power/Magnetics production diversified to India by end-2025.
- Enercon's Israel-based defense manufacturing unaffected by tariffs; 70% of imports handled by customer as importer of record.
- $10M debt repayment in April, targeting $10M-$15M further reduction by Q2 end.

**【Q&A Key Takeaways】**
- **AI Growth**: GPU manufacturers in U.S. driving $4.6M Q1 AI revenue, with 20+ new customers in pipeline.
- **Connectivity Softness**: Commercial air down 12% YoY due to production timing, expected recovery in H2.
- **Networking Recovery**: Bookings suggest rebound in H2, offsetting Q1 2024 e-mobility normalization.
- **Enercon Synergies**: Defense funnel filling with Bel, targeting $10M+ annual revenue by 2026.
- **Tariff Mitigation**: $8M-$10M Q2 revenue at risk; 75%+ of at-risk business has alternative suppliers identified.

Bel Fuse Inc. (BELFB) Q1 2025 Earnings Call Transcript

- **Gross Margin Triumph**: 410 basis point improvement in 2024, driven by cost savings and strategic consolidation.
- **Enercon Synergy**: $20.8 million Q4 contribution and potential cross-sell opportunities in defense post-2025.
- **AI Expansion**: Power segment AI revenue set to grow from $7 million in 2024, targeting non-hyperscale customers.
- **Distribution Recovery**: Q1 2025 circuit protection orders suggest end of destocking, with connectivity segment up 5% YoY.
- **Tariff Resilience**: Passing tariffs to customers; 12-13% of revenue subject to U.S. tariffs, with Mexico tariffs under evaluation.


**【CEO Summary Section】**
- **2024 Performance Highlights**: Despite a 16% year-over-year (YoY) decline in sales, the company achieved a 410 basis point improvement in gross margin, marking the second-best year in terms of earnings, EBITDA, and stock price. The acquisition of Enercon, the largest transaction in Bel Fuse’s history, enhanced the company’s position in harsh environment applications.
- **Strategic Initiatives**: Completed two facility consolidations in 2024, resulting in $1.5 million in cost savings, with an additional $10.3 million in cumulative savings from six global consolidations since 2023. The company also added senior sales and procurement roles to drive growth and efficiency.
- **Leadership Transition**: Dan Bernstein transitioned to Chairman, with Farouq Tuweiq becoming CEO, marking the first time the role is held by someone outside the Bernstein family.

**【CFO Financial Commentary】**
- **Q4 2024 Financials**: Sales of $149.9 million (up 7% YoY), with Power Solutions & Protection (PSP) segment growing 13.2% due to Enercon contributions. Full-year gross margin improved 410 basis points to 37.5%, driven by cost reductions and favorable product mix.
- **Segment Performance**: 
  - **Power Segment**: $245.6 million in 2024, down 21.8% YoY, but gross margin increased 430 basis points to 42.4% due to Enercon and pricing actions.
  - **Connectivity Segment**: $220 million in 2024, up 5% YoY, with gross margin improving 290 basis points to 37.1%.
  - **Magnetic Segment**: $68.9 million in 2024, down 40% YoY, but gross margin rebounded 310 basis points to 25.3% due to facility consolidations.
- **Enercon Impact**: Contributed $20.8 million in Q4 sales and $72.3 million in fair value adjustments. Annual R&D and SG&A expenses for Enercon are $6.5 million and $13.5 million, respectively.

**【Q&A Key Takeaways】**
- **Enercon Integration**: Cross-selling opportunities in defense are expected to materialize beyond 2025, with Enercon’s 93% defense exposure aligning with global defense spending trends.
- **AI Growth**: Power segment AI-related revenue is projected to grow from $7 million in 2024 to a higher share in 2025, targeting non-hyperscale customers.
- **Distribution Recovery**: Distributor destocking appears to be nearing an end, with circuit protection orders increasing in Q1 2025.
- **Tariff Mitigation**: Bel plans to pass tariffs onto customers, with 12-13% of 2024 revenue subject to U.S. tariffs. Mexico tariffs could impact $20 million of 2024 revenue, but solutions are being explored.
- **M&A Outlook**: Open to selective acquisitions that enhance core competencies, with a focus on quality and strategic fit.


BELFA

BELFA fundamentals

Earnings Call

You can ask Aime