Bel Fuse Inc.

Q2 revenue was $210.7 million, up 25% year over year. Gross margin was 39.9%, up 120 basis points from last year, and adjusted EBITDA was $48.9 million versus $35.2 million a year ago, with adjusted EBITDA margin at 23.2% versus 20.9%. Segment revenue was $111 million in ADRS, up 20.6%, and $100 million in ITDS, up 31.1%; defense revenue in ADRS was $66.5 million, up 28.4%, and data solutions revenue in ITDS was about $58 million, up 55%. For Q3, management guided to sales of $205 million to $225 million and gross margin of 39% to 41%. They also expect SG&A to run around $34 million to $35 million in future quarters. Cash and securities ended at $306.1 million, after the May equity raise generated about $440 million net proceeds and the company repaid its full $197.5 million debt balance.

Farouq Tuweiq struck an upbeat tone, saying the quarter reflected “robustness across the majority” of end markets, especially defense and data solutions, and that channel sales reached their highest level since mid-2022. He emphasized that the Slovakia site’s defense certification and eight European defense project wins were ahead of schedule and part of a broader European A&D expansion strategy. He also framed the business as still being in an evolution phase, with ongoing investment in people, process, and portfolio mix to improve returns.

Lynn Hutkin highlighted stronger financial quality and flexibility, pointing to $210.7 million of revenue, 39.9% gross margin, and $48.9 million of adjusted EBITDA. She said the company ended with $306.1 million of cash and securities after raising about $440 million net, and used proceeds to repay the full $197.5 million debt balance. She also cited working-capital investment to support growth, including $32 million increases in both receivables and inventories versus Q4 2025, and noted CapEx was $4.9 million in the first half of 2026 with slightly higher CapEx expected in the second half.

Analysts focused on whether defense growth can sustain, what the Slovakia certification means for Europe, and how much of the margin upside came from pricing versus operational leverage. Management said defense demand looks strong based on bookings and new wins, but revenue is a lagging indicator; capacity is not the main constraint today, though they are adding headcount and engineers and watching material supply availability. On margins, they said Q2 improvement was mostly operational leverage, while price increases on new orders should start benefiting Q3 and Q4; FX was also a headwind in Q2, but management expects less pressure going forward. They also addressed M&A discipline, saying they will be selective despite having cash and opportunities in the market.