Executive Summary

Q2 2025 delivered strong top-line growth and broad-based execution: net sales $168.3M (+26.3% y/y), GAAP net earnings attributable to Bel shareholders $26.9M, non-GAAP EPS (Class A) $1.58; adjusted EBITDA $35.2M (20.9% margin) .
Results materially beat Wall Street: revenue beat by ~$17.4M and non-GAAP EPS beat by ~$0.57; EBITDA beat by ~$3.5M versus S&P Global consensus estimates; beats were helped by improved on-time shipments and intraquarter turns, defense/commercial aerospace strength, and networking/distribution recovery in certain segments (Estimates from S&P Global).*
Gross margin was 38.7% (down 140 bps y/y), with connectivity and magnetics margin expansion offset by mix and PSP compression; operating margin improved y/y to 17.7% .
Q3 2025 outlook: net sales $165–$180M and gross margins 37–39%; management cited strong Q2 bookings and expected sequential growth in H2 as key stock catalysts .
Tariff impact was limited in Q2 (only ~$2.2M of low-margin sales); management emphasized agility in supply and regional diversification, reducing risk to margins and demand durability .

What Went Well and What Went Wrong

What Went Well

Revenue and EPS upside versus consensus: revenue $168.3M vs ~$150.9M*, EPS (Primary/non-GAAP) $1.58 vs ~$1.01*; EBITDA also beat ($35.2M vs ~$28.9M*) (S&P Global). Management highlighted improved on-time shipments and better intraquarter turns .*
End-market strength and segment execution: defense and commercial aerospace were strong; networking and distribution saw recovery in certain segments, contributing to broad-based demand .
Bookings and outlook: strong Q2 bookings underpin guidance for Q3 with sequential growth expected in H2; “Gross margins aligned with guidance, reflecting operational stability” .

What Went Wrong

Gross margin contraction: consolidated GM 38.7% vs 40.1% in Q2-24 (−140 bps), driven largely by mix and PSP pressures; PSP GM fell 380 bps y/y to 41.9% .
Tariffs remain a macro headwind: while Q2 impact was minimal (~$2.2M low-margin sales), ongoing tariff uncertainty limits visibility and can pressure customer ordering patterns .
Operating costs up: SG&A rose to $30.9M vs $24.1M y/y, reflecting scale and integration, offsetting some gross profit expansion .

Financial Results

Consolidated metrics (quarterly trend and y/y context)

Metric	Q4 2024	Q1 2025	Q2 2025
Revenue ($USD Millions)	$149.9	$152.2	$168.3
Gross Margin %	37.5%	38.6%	38.7%
Operating Income ($USD Millions)	$12.4	$25.0	$29.9
Operating Margin %	8.3%	16.4%	17.7%
GAAP EPS (Class A)	$(0.14)	$1.36	$2.03
GAAP EPS (Class B)	$(0.14)	$1.43	$2.14
Non-GAAP EPS (Class A)	$1.45	$1.28	$1.58
Adjusted EBITDA ($USD Millions)	$30.3	$30.9	$35.2

Metric	Q2 2024	Q2 2025
Revenue ($USD Millions)	$133.2	$168.3
Gross Margin %	40.1%	38.7%
Operating Income ($USD Millions)	$22.6	$29.9
GAAP EPS (Class A)	$1.43	$2.03
Non-GAAP EPS (Class A)	$1.61	$1.58
Adjusted EBITDA ($USD Millions)	$27.7	$35.2

Consensus vs Actual (S&P Global)

Metric	Q2 2024 Estimate	Q2 2024 Actual	Q1 2025 Estimate	Q1 2025 Actual	Q2 2025 Estimate	Q2 2025 Actual
Revenue ($USD Millions)	130.2*	133.2	147.9*	152.2	150.9*	168.3
Primary EPS (Non-GAAP) ($)	0.89*	1.46	0.83*	1.28	1.01*	1.58
EBITDA ($USD Millions)	20.0*	26.5*	24.4*	28.6*	28.9*	32.5*

Values retrieved from S&P Global.*
Note: Company-reported Adjusted EBITDA for Q2 2025 was $35.2M; S&P Global “actual” EBITDA (standardized) reflects a different definition .*

Segment/Product Group Breakdown (Q2-25 vs Q2-24)

Product Group	Sales Q2-24 ($M)	Sales Q2-25 ($M)	y/y %	GM% Q2-24	GM% Q2-25	bps Δ
Power Solutions & Protection	$58.6	$86.8	+48.2%	45.7%	41.9%	−380
Connectivity Solutions	$57.8	$59.2	+2.4%	38.9%	39.2%	+30
Magnetic Solutions	$16.8	$22.3	+32.5%	26.4%	28.7%	+230
Total	$133.2	$168.3	+26.3%	40.1%	38.7%	−140

Balance Sheet and Cash Flow (as of Q2-25/YTD)

Metric	Q4 2024	Q2 2025
Cash & Equivalents ($USD Millions)	$68.3	$59.3
Total Assets ($USD Millions)	$949.8	$950.6
Long-term Debt ($USD Millions)	$287.5	$250.0
Stockholders’ Equity ($USD Millions)	$360.6	$404.7
CFO (YTD, $USD Millions)	$77.7 FY-24	$28.9 H1-25
Capex (YTD, $USD Millions)	$14.1 FY-24	$6.7 H1-25

Guidance Changes

Metric	Period	Previous Guidance	Current/Actual	Change
Net Sales ($USD Millions)	Q2 2025	$145–$155 (Apr 24)	Actual $168.3	Beat vs guidance
Gross Margin %	Q2 2025	37–39% (Apr 24)	Actual 38.7%	In range
Net Sales ($USD Millions)	Q3 2025	—	$165–$180	New
Gross Margin %	Q3 2025	—	37–39%	New
Dividend (per share)	Q2/Q3 cadence	$0.06 (A), $0.07 (B) declared Apr 28	$0.06 (A), $0.07 (B) declared Jul 31; payable Oct 31	Maintained

Earnings Call Themes & Trends

Note: A Q2 2025 earnings call transcript was not available in our document corpus; we used Q4 2024 and Q1 2025 transcripts and the Q2 press release to track themes .

Topic	Previous Mentions (Q4 2024)	Previous Mentions (Q1 2025)	Current Period (Q2 2025)	Trend
AI adoption (Power segment)	~$7M 2024; ramp beginning	$4.6M in Q1; double-digit y/y growth; largely GPU manufacturers	Recovery in networking/distribution supports AI exposure in certain segments	Upward momentum
Defense & Aerospace strength	Largest end-market post Enercon; multiyear tailwinds	Defense/space strong; Connectivity defense/space growth	Strength evident in defense and commercial aerospace	Sustained strength
Tariffs & supply chain	New tariffs (China +10%); plan to pass through; regional moves	75% sales not subject; ~10% China into U.S.; guidance haircut; pass-through strategy	Minimal Q2 impact (~$2.2M low-margin); continued monitoring	Managing through; reduced risk
Networking/distribution destock	Signs of recovery expected in 2025	Networking bookings rebounding later in year	Rebound in certain segments	Gradual recovery
Procurement/automation initiatives	Global procurement and consolidations driving savings	Cost optimization via analytics/KPIs; automation focus	Operational stability; margins aligned with guidance	Execution progress
Enercon integration	Accretive; backlog mix; leverage; redeemable NCI accounting	Robust growth outlook; U.S./Israel/Europe exposure	Ongoing contribution underpinning defense strength	Positive integration

Management Commentary

“We are pleased with our second quarter results, which exceeded expectations due to improved on-time shipments and enhanced intraquarter turns… Strength was evident in defense and commercial aerospace applications, alongside a rebound in networking and distribution sales… For Q3… net sales of $165–$180M and gross margins of 37–39%.” – Farouq Tuweiq, President & CEO .
“Tariffs minimally impacted performance, resulting in only $2.2 million of low-margin sales during the second quarter.” – Farouq Tuweiq .
“Gross margins aligned with guidance, reflecting operational stability.” – Farouq Tuweiq .

Q&A Highlights

A Q2 2025 earnings call transcript was not found; we highlight persistent themes from the Q1 2025 Q&A likely relevant to Q2:

Tariff exposure by segment: Connectivity largely unimpacted; Power/Magnetics ~60% not impacted; DR manufacturing subject to 10% tariff; pass-through strategy reiterated .
AI customer profile: primarily next-gen GPU manufacturers (non-hyperscalers), with engineering-led co-development; revenue ramps as customers scale .
Networking recovery: bookings improving; expected rebound later in 2025 .
Footprint flexibility: active shifts from China to India to mitigate tariff risk and maintain approvals in defense-grade operations .

Estimates Context

Revenue beat: Actual $168.3M vs ~~$150.9M consensus (+~~$17.4M, +11.5%)* (S&P Global) .*
EPS beat: Actual Primary/non-GAAP EPS $1.58 vs ~~$1.01 consensus (+~~$0.57, +56%)* (S&P Global) .*
EBITDA beat: Actual standardized EBITDA ~$32.5M vs ~~$28.9M consensus (+~~$3.6M, +12%); company Adjusted EBITDA was higher at $35.2M (definition difference) .

Values retrieved from S&P Global.*
Implication: Sell-side models should raise H2 revenue/EPS on bookings strength, intraquarter turns, defense/aerospace demand, and emerging networking/distribution recovery. Tariff sensitivity appears lower than feared given Q2 impact and regionalization strategy .

Key Takeaways for Investors

Q2 was a clean beat on revenue and EPS; operational cadence (on-time shipments, intraquarter turns) and strong end-market mix drove upside .
Defense/commercial aerospace remain powerful demand anchors; Enercon integration continues to diversify and elevate margin profile over time .
Networking/distribution recovery is materializing; watch bookings trajectory and PSP margin mix as recovery progresses .
Tariff risk appears contained; Q2 impact minimal; continued regional diversification (India/U.S./Mexico/UK) lowers volatility and supports margin stability .
Q3 guide ($165–$180M; GM 37–39%) signals sequential growth into H2; strong bookings support near-term trading setup .
Balance sheet improved (debt reduced to $250M, equity to $404.7M); ongoing cash generation and debt paydown provide optionality for procurement and operating initiatives .
Dividend maintained; capital return complements growth execution and defensive end-market exposure .

Notes:

A Q2 2025 earnings call transcript was not found in our document set; we relied on the Q2 press release, Q1/Q4 transcripts, and related press releases for synthesis .
All company metrics cited are from Bel Fuse’s press releases and 8-Ks. Estimates and consensus comparisons are from S&P Global (values marked with *).

BEL FUSE INC /NJ (BELFA)·Q2 2025 Earnings Summary