Sign in

You're signed outSign in or to get full access.

BI

BELDEN INC. (BDC)·Q4 2024 Earnings Summary

Executive Summary

  • Q4 2024 was strong: revenue $666.0M (+21% y/y; +14% organically) and adjusted EPS $1.92 (+32% y/y), both above the high end of prior guidance; GAAP EPS was $1.42 (+56% y/y). Adjusted EBITDA was $114.1M with margin 17.1% (+110 bps y/y) .
  • Both segments grew organically 14%; Automation Solutions margin expanded to 20.6% and Smart Infrastructure Solutions to 13.3% .
  • Management issued Q1 2025 guidance: revenue $605–$620M, GAAP EPS $1.03–$1.13, adjusted EPS $1.43–$1.53, including FX headwinds of ~$15M revenue and ~$0.05 EPS; tax rate 18.3% in Q1 and ~20% for the rest of 2025 .
  • Key catalysts: beat vs Q4 guidance (including a ~$0.17 EPS tailwind from lower-than-expected tax rate), order momentum (+23% y/y), Americas strength (+23% organic in Q4), and continued solutions transformation; watch for FX headwinds and “neutral” customer posture near-term .

What Went Well and What Went Wrong

What Went Well

  • Broad-based organic growth: Q4 organic revenue +14% with both segments +14%; Americas +23% organic growth .
  • Margin expansion and EPS beat: Adjusted EBITDA margin +110 bps to 17.1%; adjusted EPS $1.92 beat guidance, aided by ~$0.17 lower tax rate tailwind. “Our revenue and earnings per share both exceeded the high end of our guidance as our solutions transformation continues to progress.” — Ashish Chand .
  • Strong cash generation and capital returns: Q4 FCF $116.4M; FY FCF $223.1M; Q4 buybacks 0.5M shares for $55M; FY buybacks 1.3M shares for $133M .

What Went Wrong

  • FX and near‑term uncertainty: Management flagged FX headwinds (~$15M revenue and ~$0.05 EPS per quarter at current rates) and a neutral customer posture pressuring early 2025 visibility .
  • EMEA softness persisted: Despite discrete showing double-digit organic growth in Q4, EMEA remained weak, highlighting regional divergence .
  • FY declines despite strong exit: FY 2024 revenue -2% y/y (organic -6%), adjusted EBITDA margin -70 bps to 16.7%, and adjusted EPS -7% y/y, reflecting earlier-year market pressures .

Financial Results

MetricQ2 2024Q3 2024Q4 2024
Revenue ($M)$604.3 $654.9 $666.0
GAAP EPS ($)$1.19 $1.30 $1.42
Adjusted EPS ($)$1.51 $1.70 $1.92
Adjusted EBITDA ($M)$99.4 $112.5 $114.1
Adjusted EBITDA Margin (%)16.5% 17.2% 17.1%
Adjusted Gross Margin (%)38.2% 37.8% 38.1%

Segment performance (new segmentation):

SegmentQ3 2024 Revenue ($M)Q3 2024 EBITDA ($M)Q3 2024 EBITDA MarginQ4 2024 Revenue ($M)Q4 2024 EBITDA ($M)Q4 2024 EBITDA Margin
Smart Infrastructure Solutions$319.6 $40.4 12.7% $319.6 $42.4 13.3%
Automation Solutions$335.3 $71.8 21.4% $346.5 $71.5 20.6%

KPIs and cash flow:

KPIQ2 2024Q3 2024Q4 2024
Orders y/y (%)N/A (stability; book-to-bill 1.0) +28% +23%
Orders seq (%)+9% +8% Modestly up
Book-to-Bill1.0x N/AN/A
Backlog ($M)N/AN/A“A little over $500”
Non‑GAAP Free Cash Flow ($M)$61.0 $67.2 $116.4
Share Repurchases ($M / shares)N/A$20 / YTD $115 (1.2M) $55 / 0.5M (FY $133 / 1.3M)
Cash & Equivalents ($M)$564.8 $323.0 $370.3
Net Leverage2.1x pro forma (post-Precision) N/A1.8x year-end

Notes: Adjusted EPS in Q4 benefited by ~$0.17 from lower tax rate vs guidance .

Guidance Changes

MetricPeriodPrevious GuidanceCurrent Guidance/ActualChange
Revenue ($M)Q4 2024$645–$660 $666 actual Beat high end
GAAP EPS ($)Q4 2024$1.05–$1.15 $1.42 actual Beat high end
Adjusted EPS ($)Q4 2024$1.62–$1.72 $1.92 actual (incl. ~$0.17 tax tailwind) Beat; tax tailwind
Revenue ($M)Q1 2025N/A$605–$620 New
GAAP EPS ($)Q1 2025N/A$1.03–$1.13 New
Adjusted EPS ($)Q1 2025N/A$1.43–$1.53 New
FX ImpactQ1 2025N/A~$15M revenue; ~$0.05 EPS headwind New headwind
Tax RateQ1 2025; FY 2025N/A18.3% in Q1; ~20% for remaining quarters New detail
DividendQ1 2025 (paid Jan 9, 2025)Prior $0.05/qtr$0.05 declared Nov 21, 2024 Maintained

Earnings Call Themes & Trends

TopicPrevious Mentions (Q2 2024)Previous Mentions (Q3 2024)Current Period (Q4 2024)Trend
Solutions transformationExpanded CICs; traction in industrial; AWS integration and Fiber Tech Center Tucson; per‑quarter orders improving Orders up; steady demand; guidance framed around solutions Exceeded guidance; two solutions wins (EMEA EUR ~11M MPLS; US $3M XTran) Strengthening
Orders/destockingBook‑to‑bill 1.0; orders +9% seq; destocking moderating Orders +8% seq; +28% y/y; destocking moderation Orders +23% y/y; modestly up seq; customers neutral posture Improving
Regional trendsAmericas improving; EMEA discrete weakness N/A explicitAmericas +23% organic; EMEA still soft but discrete up double‑digit Mixed (Americas strong; EMEA lagging)
BroadbandPortfolio expansion via Precision Optical; BEAD timing 2025–2030 Broadband orders strong; segment roughly flat seq Broadband strong y/y, flat seq; solutions pull‑through Stable to improving into 2025
Tariffs/macroCautious ordering; cycle positioning N/A explicitNo evidence of Q4 order pull‑ins; within‑region manufacturing mitigates tariff risk Manageable
FXN/AN/AFX headwind ~$15M revenue and ~$0.05 EPS per quarter at current rates Headwind
Backlog/visibilityN/AN/ABacklog a little over $500M; visibility typical Stable
Technology initiativesAWS integration; data normalization (Belden Horizon) N/AHirschmann BXP managed switch; XTran MPLS deployments Expanding

Management Commentary

  • “We once again executed well and delivered results ahead of expectations. For the fourth quarter, our revenue and earnings per share both exceeded the high end of our guidance as our solutions transformation continues to progress.” — Ashish Chand .
  • “Adjusted EPS was $1.92, including the benefit of approximately $0.17 due to favorable tax rates compared to our guidance.” — Jeremy Parks .
  • “I expect 2025 to be a year of record performance for Belden… We can only achieve $8 in 2025 if business conditions improve beyond the first quarter.” — Ashish Chand .
  • “At the end of the year, our financial leverage was a reasonable 1.8x net debt to EBITDA… Our next debt maturity is not until 2027, and all of our debt is fixed with rates averaging 3.5%.” — Jeremy Parks .
  • “We don’t believe that there has been any kind of large‑scale pull‑in [ahead of tariffs]. Most of our manufacturing is within region… we did not experience any significant pull‑in in Q4.” — Ashish Chand .

Q&A Highlights

  • Seasonality and Q1 guide: Management emphasized typical 6–8% sequential decline from Q4 to Q1; no pickup needed to hit Q1 guidance .
  • $8 EPS target (2025): Still aspirational, not guidance; requires demand improvement beyond Q1 and smart capital allocation; FX is an incremental headwind .
  • End‑market posture: Energy and process markets resilient; discrete improved in Q4 despite EMEA weakness; Americas leading .
  • Tariffs/pull‑ins: No material evidence of Q4 order pull‑ins; regional manufacturing footprint limits tariff exposure .
  • Backlog/visibility: Backlog ~>$500M, stable for several quarters; visibility consistent with typical quarter .
  • Yearly seasonality shape: Q1 is usual low, rebound in Q2; Q2–Q4 similar absent macro improvement .

Estimates Context

  • S&P Global (Capital IQ) consensus estimates for BDC could not be retrieved due to provider request limit constraints; therefore, explicit comparisons to Wall Street consensus are unavailable for this report. We benchmarked results against company guidance and prior periods instead .
  • If/when accessible, we will compare actual Q4 revenue and EPS ($666.0M; GAAP $1.42; adjusted $1.92) to consensus and update implications . Values retrieved from S&P Global are unavailable at this time.

Key Takeaways for Investors

  • Quality beat vs guidance: Revenue and EPS exceeded Q4 guidance, with margin expansion; note ~$0.17 tax tailwind to adjusted EPS that may not recur .
  • Order momentum and Americas strength support 2025 setup; customers remain neutral near‑term, but PMI signs and destocking taper underpin medium‑term recovery .
  • FX is a real headwind into 2025 (~$15M revenue and ~$0.05 EPS per quarter at current rates); model conservatively for currency translation .
  • Solutions strategy is scaling (examples in energy/power T&D; vertical cross‑pollination); expect continued mix benefits to margins as software/active components expand .
  • Capital deployment remains balanced (M&A + buybacks); net leverage 1.8x with fixed-rate debt (avg ~3.5%) and no maturities until 2027, supporting flexibility .
  • Near-term trading: Positive reaction on beat and organic growth return; watch FX headlines and macro clarity; Q1 guide implies seasonal reset then potential acceleration.
  • Medium-term thesis: Reindustrialization, broadband fiber upgrades (BEAD 2025–2030), and solutions transformation drive structurally higher margins and FCF conversion; $8 EPS is attainable with macro improvement beyond Q1 and FX normalization, but not formal guidance .