Executive Summary

Q3 2025 delivered strong top-line and margin performance: net sales $179.0M (+44.8% y/y), gross margin 39.7% (+360 bps y/y), GAAP net earnings attributable to Bel shareholders $22.3M; Adjusted EBITDA $39.2M (21.9% of sales) .
The company beat Wall Street consensus: revenue $178.98M vs $171.86M estimate and EPS beat versus S&P Global Primary EPS consensus ($1.68 Class A vs $1.24 consensus; BELFA Primary EPS “actual” tracked at $1.65)*. Drivers included commercial aerospace and defense strength, plus rebound in networking and distribution .
Q4 2025 guidance set at net sales $165–$180M and gross margin 37–39%, reflecting typical holiday seasonality while maintaining healthy profitability .
Board declared regular quarterly cash dividends of $0.06 (Class A) and $0.07 (Class B), payable Jan 30, 2026—supporting capital return continuity .

Note: The Q3 2025 earnings call transcript was not available in the document system as of Nov 20, 2025; the company hosted the call on Oct 30, 2025 .
*Values retrieved from S&P Global.

What Went Well and What Went Wrong

What Went Well

Revenue and profitability inflection: Net sales $179.0M (+44.8% y/y); gross margin 39.7% (+360 bps y/y); Adjusted EBITDA $39.2M (21.9% of sales) .
Segment breadth: Power Solutions and Protection +93.9% y/y to $94.4M; Connectivity +11.0% y/y to $61.9M; Magnetic +18.0% y/y to $22.7M, with margin expansion across all segments .
CEO tone and demand drivers: “Strong third quarter… performance driven by robust demand in commercial aerospace, defense, and a continued rebound among networking and distribution customers,” highlighting volume leverage on margins .

What Went Wrong

Interest expense elevated vs prior year: Q3 interest expense $3.63M vs $0.41M in Q3-24 (linked to acquisition financing and capital structure), partially offset by other income gains .
SG&A increased y/y to $32.8M (18.3% of sales), reflecting scale and integration costs; R&D also higher y/y at $7.55M supporting product and end-market initiatives .
Non-GAAP adjustments remain material (earnout adjustment $1.86M; amortization of intangibles $3.70M; stock-based comp $1.76M; gain on PRC building sale $1.63M), requiring careful interpretation of underlying run-rate profitability .

Financial Results

Consolidated Metrics vs Prior Quarters and Estimates

Metric	Q1 2025	Q2 2025	Q3 2025
Revenue ($USD Millions)	$152.238	$168.299	$178.980
Gross Margin %	38.6%	38.7%	39.7%
Operating Margin % (Income from operations as % of sales)	16.4%	17.7%	16.9%
Net Income Margin % (Net earnings as % of sales)	12.0%	15.9%	12.6%
GAAP EPS – Class A ($)	$1.36	$2.03	$1.68
GAAP EPS – Class B ($)	$1.43	$2.14	$1.77
Non-GAAP EPS – Class A ($)	$1.28	$1.58	$1.99
Non-GAAP EPS – Class B ($)	$1.35	$1.67	$2.09
Revenue Consensus Mean* ($USD Millions)	$147.9*	$150.9*	$171.9*
Primary EPS Consensus Mean* ($)	$0.83*	$1.01*	$1.24*

Note: Wall Street consensus values retrieved from S&P Global; BELFA S&P Global “actual” Primary EPS recorded as $1.28 (Q1), $1.58 (Q2), $1.65 (Q3), showing beats vs consensus*.

Segment Breakdown (Q3 2025 vs Q3 2024)

Segment	Net Sales Q3-24 ($M)	Net Sales Q3-25 ($M)	YoY Change	GM% Q3-24	GM% Q3-25	bps Change
Power Solutions & Protection	$48.68	$94.41	+93.9%	39.4%	41.8%	+240
Connectivity Solutions	$55.72	$61.87	+11.0%	36.6%	40.3%	+370
Magnetic Solutions	$19.24	$22.70	+18.0%	27.3%	29.0%	+170
Total	$123.64	$178.98	+44.8%	36.1%	39.7%	+360

KPIs

KPI	Q1 2025	Q2 2025	Q3 2025
Adjusted EBITDA ($USD Millions)	$30.911	$35.185	$39.200
Cash and Equivalents ($USD Millions)	$65.927	$59.284	$57.743
Long-Term Debt ($USD Millions)	$280.000	$250.000	$225.000

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Net Sales ($USD Millions)	Q4 2025	N/A	$165–$180	Introduced
Gross Margin (%)	Q4 2025	N/A	37–39%	Introduced
Dividend per Share ($)	Payable Jan 30, 2026	Regular quarterly: $0.06 (Class A) / $0.07 (Class B)	Maintained at $0.06 (Class A) / $0.07 (Class B)	Maintained

Earnings Call Themes & Trends

Topic	Previous Mentions (Q-2 and Q-1)	Current Period (Q3)	Trend
AI/Technology initiatives	Q1: AI revenue $4.6M; early-stage GPU customers; double-digit y/y growth; design-in focus . Q2 PR: demand strength across A&D; recovering networking .	CEO highlights strong demand in defense/aerospace; continued rebound in networking/distribution driving higher volume leverage .	Strengthening; broader demand tailwinds; AI not explicitly quantified in Q3 PR.
Tariffs/Macro	Q1 call: detailed tariff exposure; ~25% imports to U.S., ~10% China; intent to pass through tariffs; shift capacity to India; customer importer-of-record structure .	Q3 PR focused on operations and demand; no tariff detail; Q4 guide incorporates holiday seasonality .	Unchanged operational stance; macro commentary muted in Q3 PR.
Networking & Distribution	Q1: networking down but bookings improving; expectation of rebound in 2H .	CEO cites rebound among networking and distribution as Q3 driver .	Improving sequentially.
Defense/Aerospace	Q1: A&D 38% of sales; Enercon robust; margin mix benefits .	Q3 growth drivers included commercial aerospace and defense; segment GM expansion .	Strong and broadening.
Regional manufacturing/footprint	Q1: exiting fuse line in China; shifting at-risk revenue to India; multi-site approvals required in defense .	Not addressed in Q3 PR; underlying footprint strategy unchanged.	Continuing strategic pivot to India.
R&D execution	Q1 R&D $7.2M; Enercon inclusion; stable run-rate .	Q3 R&D $7.55M supporting product initiatives .	Sustained investment level.

Management Commentary

“Bel delivered a strong third quarter, with sales and gross margin percentage at the high end of our guidance… driven by robust demand in commercial aerospace, defense, and a continued rebound among networking and distribution customers. Our gross margin expansion reflects the leverage gained from higher sales volumes” — Farouq Tuweiq, President & CEO .
“Looking ahead to the fourth quarter… we estimate net sales of $165 to $180 million and expect gross margin to remain healthy in the 37 to 39 percent range” — Farouq Tuweiq .
Q1 color on AI and end-markets: “AI contributed to $4.6 million of revenue… space contributed $2.3 million… double-digit growth” — Daniel Bernstein .
Tariffs strategy and footprint: “We will be looking to pass all tariff exposures onward… started moving some products from China into our India operations… expect to do more so as time goes on” — Farouq Tuweiq .

Q&A Highlights

Tariff exposure and pass-through: Customer importer-of-record structure reduces Bel’s direct tariff handling; approach remains customer-by-customer with focus on passing through costs; manufacturing shifts to India underway .
AI revenue drivers: GPU manufacturers (primarily private next-gen) with co-development partnerships driving step-up revenue; AI viewed as base case with upside via other channels .
Connectivity softness and recovery: Commercial air softness drove Q1 decline; expectation of recovery as production ramps; defense and space strong .
Enercon integration and synergy: Business performing ahead of expectations; robust margin and growth profile; funnel-building for revenue synergies across regions .

Note: Q3 2025 earnings call transcript unavailable in system; call was held Oct 30, 2025 per company notice .

Estimates Context

Q3 revenue beat: $178.98M vs $171.86M consensus*; Q2 beat: $168.30M vs $150.94M consensus*; Q1 beat: $152.24M vs $147.93M consensus* (actuals from company, estimates from S&P Global).
Q3 EPS beat: Class A GAAP EPS $1.68 vs S&P Primary EPS consensus $1.24*; S&P Global tracked BELFA Primary EPS “actual” at $1.65, close to company’s reported per-share (minor methodology/class difference)*.
Q4 2025 consensus revenue $171.06M* sits near the mid-point of company guidance ($165–$180M), suggesting modest risk of stable seasonality; Primary EPS consensus $1.27* provides a baseline for potential beats if aerospace/defense and networking remain firm*.

*Values retrieved from S&P Global.

Key Takeaways for Investors

Momentum broad-based: Aerospace/defense and recovering networking/distribution drove significant y/y growth and margin expansion; segment margins improved across Power, Connectivity, and Magnetic .
Quality of earnings improving: Adjusted EBITDA margin expanded to 21.9%; non-GAAP adjustments are transparent (earnout, intangibles amortization, stock-based comp, FX), aiding comparability across periods .
Balance sheet de-risking: Long-term debt reduced to $225M by Sept 30 and cash $57.7M; improved capacity to manage macro volatility and invest in footprint shifts .
Q4 setup: Guidance embeds holiday seasonality but maintains strong margin profile (37–39%); consensus sits near mid-point—potential upside if demand trends persist .
Strategic footprint: Ongoing shift of at-risk production from China to India and disciplined tariff pass-through should mitigate macro/trade risk over time .
Near-term trading: Beat vs consensus and healthy Q4 margin guide are positive; watch for any tariff/transcript updates and booking trends in networking/distribution as catalysts .
Medium-term thesis: Enercon integration, AI/design-in pipeline, and defense exposure support durable growth and margin resilience; continued deleveraging and SG&A discipline are levers for EPS compounding .

Cross-References and Notes

All Q3 figures in the 8-K Item 2.02 exhibit align with the press release (net sales, margins, EPS, segment tables), confirming consistency of reported metrics .
Non-GAAP definitions were modified in Q4 2024 to exclude stock-based compensation, intangibles amortization, and unrealized FX; applied consistently across periods, improving operational comparability .

BEL FUSE INC /NJ (BELFA)·Q3 2025 Earnings Summary