Bel Fuse Inc. Reports 19% Revenue Growth to $152.2 Million in Q1 2025

Bel Fuse Inc. reported a significant increase in financial performance for the first quarter of 2025, with net sales reaching $152.2 million, up 19% from $128.1 million in the same period last year. The company's gross profit also rose to $58.8 million, compared to $48.1 million in the prior year, reflecting a gross margin of 38.6%. Net earnings attributable to Bel shareholders increased to $17.9 million, or $1.36 per Class A share and $1.43 per Class B share, compared to $15.9 million, or $1.19 and $1.26 per share, respectively, in the first quarter of 2024.

The company attributed its improved performance to several factors, including a 37.9% increase in sales from its Power Solutions and Protection segment, which benefited from new applications in aerospace and defense. However, this growth was partially offset by declines in other segments, particularly Connectivity Solutions, which saw a 6.5% decrease in sales. The overall increase in revenue was also supported by a favorable foreign exchange environment and operational efficiencies from facility consolidations.

In terms of strategic developments, Bel Fuse completed the acquisition of an 80% stake in Enercon Technologies in November 2024, which is expected to contribute significantly to its revenue in 2025. The acquisition was financed through a combination of cash on hand and borrowings, resulting in an increase in long-term debt to $280 million as of March 31, 2025. The company is also planning to acquire the remaining 20% stake in Enercon by early 2027, contingent on certain performance metrics.

Operationally, Bel Fuse reported a backlog of orders amounting to $395.7 million as of March 31, 2025, reflecting a 4% increase from the previous quarter. The company noted a 7% rise in backlog within its Power Solutions and Protection segment, although there was a 5% decline in the Connectivity Solutions segment. The company’s employee headcount remained stable, with no significant changes reported during the quarter.

Looking ahead, Bel Fuse expressed cautious optimism about its future performance, citing ongoing challenges such as inflationary pressures, supply chain constraints, and the impact of global tariffs. The company is actively monitoring these factors and is committed to managing costs and optimizing its operations to sustain growth. The management anticipates that the integration of Enercon will enhance its competitive position in the market, particularly in defense-related sectors, and contribute positively to its financial results in the coming quarters.