Belden Q1 2025 slides: revenue up 17%, EPS exceeds guidance as both segments grow

Belden Inc . (NYSE:BDC) released its first quarter 2025 earnings presentation on May 1, showing strong financial performance that exceeded guidance across key metrics. The company’s stock rose 2.8% in premarket trading following the announcement, reaching $106 per share.

Quarterly Performance Highlights

Belden reported Q1 2025 revenue of $624.9 million, a 17% increase compared to the same period last year, exceeding the high end of the company’s guidance range. Adjusted earnings per share reached $1.60, up 29% year-over-year, while adjusted EBITDA margin expanded by 80 basis points to 16.6%.

The company demonstrated strong organic growth of 11% overall, with particularly robust performance in the Americas where organic revenue grew 14% year-over-year. Orders for the quarter increased 18% compared to Q1 2024, with a book-to-bill ratio of 1.05 versus 1.03 in the prior year period, indicating continued demand strength.

As shown in the following financial performance overview:

Gross profit for the quarter was $248.5 million, up 21% from $205.6 million in Q1 2024, with gross margin expanding 140 basis points to 39.8%. Net income increased 28% to $65.5 million.

Segment Analysis

Both of Belden’s business segments delivered strong results in the first quarter. The Automation Solutions segment, which represents the larger portion of the company’s business, reported revenue of $351 million, up 16% year-over-year. Segment EBITDA increased 25% to $73 million, with EBITDA margin expanding to 20.9% from 19.5% in the prior year period. Orders in this segment were up 22% compared to Q1 2024.

The Smart Infrastructure Solutions segment also performed well, with revenue of $274 million, up 17% year-over-year. Segment EBITDA grew 21% to $31 million, with EBITDA margin improving to 11.4% from 11.0% in the prior year period.

The segment performance is illustrated in the following chart:

Belden highlighted a key win in the quarter demonstrating the long-term value of its solution relationships. The company secured a smart infrastructure solutions win with an automated warehouse customer, which is expected to lead to larger expansion opportunities and a complete end-to-end solution over time.

Balance Sheet and Cash Flow

Belden maintained a strong financial position, generating $220 million in free cash flow for the trailing twelve months, representing 9% of revenue. This is slightly lower than the $223 million reported at the end of Q4 2024 and $241 million in Q1 2024.

The company actively deployed capital during the quarter, repurchasing 1.0 million shares for $100 million year-to-date through April 2025. Cash and cash equivalents stood at $259 million at the end of Q1 2025, down from $370 million at the end of Q4 2024 and $507 million in Q1 2024, reflecting the company’s capital deployment activities.

Net leverage increased slightly to 2.0x from 1.8x at the end of Q4 2024, moving further from the company’s target of 1.5x.

The following chart illustrates these balance sheet and cash flow metrics:

Guidance and Outlook

Looking ahead to the second quarter of 2025, Belden provided guidance for total revenue between $645 million and $660 million, with adjusted earnings per share expected to be in the range of $1.67 to $1.77. This guidance is based on assumptions of $11.3 million in interest expense, a tax rate of 17.5%, and a share count of 40.2 million.

The Q2 2025 guidance is presented in the following table:

For the longer term, Belden reaffirmed its commitment to delivering shareholder value through mid-single-digit organic revenue growth, 25-30% incremental EBITDA margins, approximately 10% free cash flow margin, and 10-12% compound annual growth rate in earnings per share.

Strategic Initiatives

Belden continues to execute on its clearly defined strategy focused on four key components: growing its portfolio of networking and data products, advancing solutions capabilities, enhancing growth through selective M&A, and delivering long-term growth in earnings and free cash flow generation.

The company is targeting 12 priority verticals where data generation and usage are increasing significantly, including automotive, consumer packaged goods, material handling, chemical, power transmission and distribution, mass transit, data centers, healthcare, hospitality, higher education, semiconductor, and broadband/telco.

Belden’s long-term value creation targets through 2028 include:

The company’s capital allocation priorities remain focused on driving organic growth through reinvestment, filling key solutions gaps with strategic M&A, and returning capital to shareholders through share repurchases and dividends, all while maintaining a target net leverage of approximately 1.5x.

Belden’s strong Q1 2025 results and positive outlook for Q2 suggest the company is successfully executing its strategy and benefiting from secular growth trends in automation, hybrid networks, and critical infrastructure, positioning it well for continued growth in the coming quarters.

Full presentation:

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