10-Q · May 5, 2026
Bel Fuse Inc. reported Q1 2026 net sales of $178.49 million and EPS of $1.81, exceeding consensus estimates and representing a year-over-year revenue increase of 17.2%. Each segment demonstrated growth, with Aerospace,…
Earnings analysis · 10-Q
BELFB earnings analysis
Filed August 4, 2026 · Our reading of the company's report
The latest report
Bel Fuse posted a strong Q2, with revenue of $210.685 million up 25.2% year over year, gross margin up 120 basis points to 39.9%, and calculated operating margin improving to 18.4% from 15.5%. Growth was broad-based…
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Bel Fuse posted a strong Q2, with revenue of $210.685 million up 25.2% year over year, gross margin up 120 basis points to 39.9%, and calculated operating margin improving to 18.4% from 15.5%. Growth was broad-based across the newly recast segments, particularly defense and Data Solutions, while backlog rose 35.4% to $594.7 million. The balance sheet strengthened after a $441.6 million equity offering enabled repayment of $197.5 million of revolver debt, although receivables and inventories each increased by more than $32 million and foreign exchange added $5.3 million to first-half labor and overhead costs.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $2.9
What stood out
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Revenue grew 25% year over year
Q2 revenue was $210.685 million, up $42.386 million, or 25.2%, from $168.299 million a year earlier and up $32.194 million, or 18.0%, from the implied $178.491 million in Q1 2026. Diluted EPS was $2.90.
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Operating margin expanded about 290 bps
Gross margin expanded 120 basis points to 39.9% from 38.7%. Operating income, calculated from $84.086 million of gross profit less $9.0 million of R&D and $36.3 million of SG&A, was approximately $38.8 million (18.4% margin), versus approximately $26.1 million (15.5% margin) a year ago.
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Defense and data solutions drove growth
Both recast segments delivered double-digit growth: Aerospace, Defense & Rugged Solutions increased $18.625 million (20.3%), led by defense sales up $14.7 million (28.4%), while Industrial Technology & Data Solutions rose $23.761 million (31.1%), led by Data Solutions up $20.7 million (54.4%).
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Backlog increased 35%
Order backlog reached $594.7 million at June 30, 2026, increasing $155.6 million (35.4%) from December 31, 2025. Backlog increased 22.2% in Aerospace, Defense & Rugged Solutions and 56.0% in Industrial Technology & Data Solutions.
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Equity raise eliminated revolver debt
Liquidity improved materially: cash and equivalents rose $248.3 million to $306.1 million, and the company repaid $197.5 million of revolver debt, leaving $0 outstanding and $400.0 million of unused capacity. The current ratio improved to 4.5x from 3.0x at year-end.
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Positive cash generation with low capex
Six-month operating cash flow was $31.8 million and capex was $4.9 million, implying approximately $26.9 million of free cash flow and capex intensity of 1.3% of $389.176 million revenue.
What to watch
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No formal risk update; FX costs increased
Item 1A says there were no material changes to risk factors disclosed in the 2025 Form 10-K. Nonetheless, the filing quantifies $5.3 million of higher labor and overhead costs in the first six months of 2026 from unfavorable foreign exchange, including $2.5 million from the Israeli shekel and $2.3 million from the Chinese renminbi.
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Receivables and inventory built up
Working capital absorbed cash: accounts receivable increased $32.1 million and inventories increased $32.2 million in the first half. DSO rose to 67 days from 64 days and inventory turns declined to 2.2x from 2.5x at December 31, 2025.
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Input costs and FX pressure margins
Q2 Aerospace, Defense & Rugged Solutions gross margin slipped to 41.1% from 41.4% despite revenue growth, as favorable mix and efficiency were partly offset by foreign currency effects. Management also notes higher prices and longer lead times for certain ICs associated with AI-enabled demand.
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Liquidity increase came with equity issuance
The $306.1 million cash balance was largely equity-financed: the May offering generated $441.6 million of net proceeds and 1,725,000 Class B shares. Management intends to use remaining proceeds for the remaining 20% Enercon interest or other acquisitions, creating deployment and potential acquisition-execution risk.
Management's outlook
The 10-Q provides no explicit quantitative revenue or EPS outlook. Management states it expects existing cash, operating cash flow and available revolver capacity to fund operations over the next 12 months and longer term; it also does not expect material revolving-borrowing interest payments for the remainder of 2026 because borrowings were $0 at June 30, 2026.
Earlier filings 4
10-K · February 24, 2026
Bel Fuse positions itself as a diversified designer and manufacturer of power, connectivity and magnetic solutions, emphasizing growth via targeted acquisitions and new product development. Bookings surged to $732.9…
10-Q · November 4, 2025
Bel Fuse reported strong Q3 results with net sales of $178,980 (in thousands) vs $123,638 in Q3 2024 (+$55,342, +44.8%), driving margin expansion and higher earnings. Gross profit rose to $71,140 (in thousands) and…
10-Q · July 31, 2025
Bel Fuse reported a strong quarter: net sales of $168.299M (up 26.4% YoY) and diluted Class B EPS of $2.14 (up from $1.50). Gross profit was $65.083M (gross margin 38.69%), operating income improved to $29.860M…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.