- Bel Fuse Inc. (BELFA, Financial) reported a robust increase in net sales for Q1 2025, reaching $152.2 million, up from $128.1 million the previous year.
- Despite an overall uptick, organic sales saw a decline of 6.4% when excluding the $32.4 million contribution from Enercon.
- Adjusted EBITDA for the quarter rose significantly to $30.9 million, making up 20.3% of sales, compared to 17.5% in Q1 2024.
Bel Fuse Inc. (BELFA) has announced its financial results for the first quarter of 2025, reporting a substantial increase in net sales to $152.2 million from $128.1 million in the corresponding period last year. The growth in net sales was prominently bolstered by a $32.4 million contribution from the acquisition of Enercon.
However, the company reported a 6.4% decline in organic sales, excluding Enercon's contribution, signaling underlying challenges despite the acquisition's impact. This highlights the company's need to address the core areas that require strengthening to achieve organic growth.
The gross profit margin for the quarter improved to 38.6%, up from 37.5% year-over-year, while GAAP net earnings grew to $17.9 million compared to $15.9 million in Q1 2024, underscoring improved profitability.
Adjusted EBITDA saw a marked rise to $30.9 million, which is 20.3% of sales, a significant increase from the previous year's figure of $22.4 million or 17.5% of sales.
Looking ahead to the second quarter of 2025, Bel Fuse anticipates potential sales of $145 million to $155 million, with expected gross margins between 37% and 39%. This outlook considers an estimated $8-10 million impact from China-related tariffs, as approximately 10% of sales are subject to US-China tariffs.
In a significant leadership change, Farouq Tuweiq will take over as President and CEO following the company's shareholder meeting in May 2025, succeeding Daniel Bernstein.
