Belden Inc. (NYSE: BDC) (“Belden” or the “Company”), a leading
global supplier of complete connection solutions, today reported
fiscal fourth quarter and full year results for the period ended
December 31, 2024.
Fourth Quarter 2024 Highlights
- Revenues of $666 million, up 21% y/y and up 14% y/y
organically
- GAAP EPS of $1.42, up 56% y/y
- Adjusted EPS of $1.92, up 32% y/y
- Repurchased 0.5 million shares for $55 million during the
quarter
Full Year 2024 Highlights
- Revenues of $2,461 million, down 2% y/y and down 6% y/y
organically
- GAAP EPS of $4.80, down 15% y/y
- Adjusted EPS of $6.36, down 7% y/y
- Free Cash Flow of $223 million, up 3% y/y
- Repurchased 1.3 million shares for $133 million during the
year
“I am proud of our team for delivering an excellent quarter and
ending the year on a high note,” said Ashish Chand, President and
CEO of Belden. “Demand continues to remain steady, with sequential
orders up modestly for the quarter and increasing 9% for the year.
Performance during the quarter was strong, marked by 21%
year-over-year revenue growth with expanding margins. As business
conditions continue to improve, I am pleased to report that our
revenues grew organically in the fourth quarter by 14% with
strength in both segments. Free cash flow for the year reached $223
million, providing the business with ample capital to allocate
towards compelling acquisition opportunities while also returning
capital to shareholders through share repurchases when
appropriate.”
Fourth Quarter 2024
Revenues for the quarter increased $115 million, or 21%, to $666
million from $551 million in the year-ago period. Revenues
increased 14% organically, with Automation Solutions and Smart
Infrastructure Solutions both up 14%. Net income was $58 million,
compared to $39 million in the year-ago period. Net income as a
percentage of revenues was 8.8%, compared to 7.0% in the year-ago
period. EPS totaled $1.42 for the quarter, compared to $0.91 in the
year-ago period.
Adjusted EBITDA was $114 million, up $26 million, or 29%,
compared to $88 million in the year-ago period. Adjusted EBITDA
margin was 17.1%, up 110 bps, compared to 16.0% in the year-ago
period. Adjusted EPS was $1.92, increasing 32% compared to $1.46 in
the year-ago period. Relative to our prior guidance, Adjusted EPS
benefited in the fourth quarter by $0.17 from a lower-than-expected
tax rate. Adjusted results are non-GAAP measures, and a non-GAAP
reconciliation table is provided as an appendix to this
release.
Full Year 2024
Revenues for the year decreased $51 million, or 2%, to $2,461
million from $2,512 million in the prior year. Revenues were down
6% organically, with Automation Solutions down 6% and Smart
Infrastructure Solutions down 5%. Net income was $198 million,
compared to $243 million in the prior year. Net income as a
percentage of revenues was 8.1%, compared to 9.7% in the prior
year. EPS totaled $4.80 for the year, compared to $5.66 in the
prior year.
Adjusted EBITDA was $411 million, down $27 million, or 6%,
compared to $438 million in the prior year. Adjusted EBITDA margin
was 16.7%, down 70 bps, compared to 17.4% in the prior year.
Adjusted EPS was $6.36, decreasing 7% compared to $6.83 in the
prior year. Adjusted results are non-GAAP measures, and a non-GAAP
reconciliation table is provided as an appendix to this
release.
Outlook
“As we continue to drive our solutions transformation, we
anticipate first quarter performance to reflect typical seasonality
and stable demand,” said Dr. Chand. “Our customers are managing
through short-term uncertainties, and we expect further clarity as
the quarter progresses. We are confident in the long-term growth
potential of our key markets, our team’s ability to execute
effectively, and our capacity to allocate capital strategically to
maximize shareholder returns while driving sustained growth and
compounding value for the business over time.”
For the first quarter, we anticipate order patterns to align
with typical seasonality and expect our customers to remain in a
neutral posture as they navigate this dynamic environment. Revenues
are expected to be in the range of $605 million to $620 million,
representing a 13% to 16% increase over the prior-year quarter.
GAAP EPS is expected to be in the range of $1.03 to $1.13,
representing a 14% to 26% increase over the prior-year quarter.
Adjusted EPS is expected to be in the range of $1.43 to $1.53,
representing a 15% to 23% increase over the prior-year quarter.
First quarter guidance includes a currency exchange headwind of
approximately $15 million in revenues and $0.05 of EPS.
First Quarter
2025:
Guidance
Revenues (million)
$605 - $620
GAAP EPS
$1.03 - $1.13
Adjusted EPS
$1.43 - $1.53
Earnings Conference Call
Management will host a conference call today at 8:30 am ET to
discuss the results. The listen-only audio of the conference call
will be broadcast live online at https://investor.belden.com. The
dial-in number for participants is 1-866-575-6539 with confirmation
code 7220743. A replay of this conference call will remain
accessible in the investor relations section of the Company’s
website for a limited time.
Earnings per Share (EPS) and Organic Growth
All references to EPS within this earnings release refer to net
income per diluted share attributable to Belden stockholders.
Organic growth is calculated as the change in revenues excluding
the impacts from currency exchange rates, copper prices,
acquisitions, and divestitures.
BELDEN INC.
CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS
(Unaudited)
Three Months Ended
Twelve Months Ended
December 31, 2024
December 31, 2023
December 31, 2024
December 31, 2023
(In thousands, except per
share data)
Revenues
$
666,042
$
551,243
$
2,460,979
$
2,512,084
Cost of sales
(416,226
)
(344,878
)
(1,538,757
)
(1,557,118
)
Gross profit
249,816
206,365
922,222
954,966
Selling, general and administrative
expenses
(137,362
)
(126,414
)
(494,603
)
(492,702
)
Research and development expenses
(28,968
)
(25,883
)
(112,365
)
(116,427
)
Amortization of intangibles
(14,307
)
(10,113
)
(48,794
)
(40,375
)
Gain on sale of assets
—
—
—
12,056
Operating income
69,179
43,955
266,460
317,518
Interest expense, net
(10,849
)
(8,032
)
(38,303
)
(33,625
)
Non-operating pension benefit (cost)
(962
)
401
(215
)
1,863
Income before taxes
57,368
36,324
227,942
285,756
Income tax benefit (expense)
1,014
2,185
(29,528
)
(43,200
)
Net income
58,382
38,509
198,414
242,556
Less: Net income (loss) attributable to
noncontrolling interest
(2
)
42
(19
)
(203
)
Net income attributable to Belden
stockholders
$
58,384
$
38,467
$
198,433
$
242,759
Weighted average number of common shares
and equivalents:
Basic
40,312
41,565
40,694
42,237
Diluted
41,087
42,046
41,299
42,859
Basic income per share attributable to
Belden stockholders:
$
1.45
$
0.93
$
4.88
$
5.75
Diluted income per share attributable to
Belden stockholders:
$
1.42
$
0.91
$
4.80
$
5.66
Common stock dividends declared per
share
$
0.05
$
0.05
$
0.20
$
0.20
BELDEN INC.
OPERATING SEGMENT INFORMATION
(Unaudited)
Smart
Infrastructure
Solutions
Automation Solutions
(In thousands, except
percentages)
For the three
months ended December 31, 2024
Segment Revenues
$
319,581
$
346,461
Segment EBITDA
42,401
71,465
Segment EBITDA margin
13.3
%
20.6
%
Depreciation expense
6,954
7,732
Amortization of intangibles
9,163
5,144
Amortization of software development
intangible assets
12
2,697
Severance, restructuring, and acquisition
integration costs
6,647
2,699
Adjustments related to acquisitions and
divestitures
3,309
298
For the three
months ended December 31, 2023
Segment Revenues
$
251,054
$
300,189
Segment EBITDA
30,253
57,666
Segment EBITDA margin
12.1
%
19.2
%
Depreciation expense
6,164
6,737
Amortization of intangibles
4,914
5,199
Amortization of software development
intangible assets
—
2,457
Severance, restructuring, and acquisition
integration costs
6,074
7,232
Adjustments related to acquisitions and
divestitures
4,837
298
For the twelve
months ended December 31, 2024
Segment Revenues
$
1,143,790
$
1,317,189
Segment EBITDA
140,092
269,766
Segment EBITDA margin
12.2
%
20.5
%
Depreciation expense
26,231
30,152
Amortization of intangibles
28,642
20,152
Amortization of software development
intangible assets
12
10,552
Severance, restructuring, and acquisition
integration costs
15,165
7,649
Adjustments related to acquisitions and
divestitures
3,572
1,192
For the twelve
months ended December 31, 2023
Segment Revenues
$
1,122,831
$
1,389,253
Segment EBITDA
149,107
287,328
Segment EBITDA margin
13.3
%
20.7
%
Depreciation expense
24,943
26,436
Amortization of intangibles
20,085
20,290
Amortization of software development
intangible assets
—
7,692
Severance, restructuring, and acquisition
integration costs
11,221
13,931
Adjustments related to acquisitions and
divestitures
5,359
818
BELDEN INC.
CONDENSED CONSOLIDATED BALANCE
SHEETS
December 31, 2024
December 31, 2023
(Unaudited)
(In thousands)
ASSETS
Current assets:
Cash and cash equivalents
$
370,302
$
597,044
Receivables, net
409,711
413,806
Inventories, net
343,099
366,987
Other current assets
73,117
79,142
Total current assets
1,196,229
1,456,979
Property, plant and equipment, less
accumulated depreciation
495,625
451,069
Operating lease right-of-use assets
118,551
89,686
Goodwill
1,018,677
907,331
Intangible assets, less accumulated
amortization
419,074
269,144
Deferred income taxes
16,353
15,739
Other long-lived assets
63,429
50,243
$
3,327,938
$
3,240,191
LIABILITIES AND STOCKHOLDERS’
EQUITY
Current liabilities:
Accounts payable
$
315,724
$
343,215
Accrued liabilities
306,980
290,289
Total current liabilities
622,704
633,504
Long-term debt
1,130,101
1,204,211
Postretirement benefits
63,260
74,573
Deferred income taxes
77,333
49,472
Long-term operating lease liabilities
100,049
74,941
Other long-term liabilities
39,755
37,188
Stockholders’ equity:
Common stock
503
503
Additional paid-in capital
839,755
818,663
Retained earnings
1,176,036
985,807
Accumulated other comprehensive loss
(3,532
)
(41,279
)
Treasury stock
(718,026
)
(597,437
)
Total Belden stockholders’ equity
1,294,736
1,166,257
Noncontrolling interests
—
45
Total stockholders’ equity
1,294,736
1,166,302
$
3,327,938
$
3,240,191
BELDEN INC.
CONDENSED CONSOLIDATED CASH FLOW
STATEMENTS
(Unaudited)
Twelve Months Ended
December 31, 2024
December 31, 2023
(In thousands)
Cash flows from operating activities:
Net income
$
198,414
$
242,556
Adjustments to reconcile net income to net
cash from operating activities:
Depreciation and amortization
115,741
99,446
Share-based compensation
27,532
21,024
Deferred income tax benefit
(15,954
)
(12,957
)
Gain on sale of assets
—
(12,056
)
Changes in operating assets and
liabilities, net of the effects of currency exchange rate changes,
acquired businesses and disposals:
Receivables
18,861
24,527
Inventories
24,318
(15,331
)
Accounts payable
(29,001
)
(8,175
)
Accrued liabilities
11,354
(16,292
)
Income taxes
6,639
(3,668
)
Other assets
(6,689
)
(9,314
)
Other liabilities
(6,416
)
9,878
Net cash provided by operating
activities
344,799
319,638
Cash flows from investing activities:
Cash used for business acquisitions, net
of cash acquired
(296,452
)
(106,712
)
Capital expenditures
(121,823
)
(116,731
)
Cash from (used for) disposal of
businesses, net of cash sold
(1,316
)
9,300
Proceeds from disposal of tangible
assets
113
13,785
Net cash used for investing activities
(419,478
)
(200,358
)
Cash flows from financing activities:
Payments under share repurchase program
including excise tax
(134,308
)
(192,135
)
Withholding tax payments for share-based
payment awards
(9,659
)
(17,444
)
Cash dividends paid
(8,195
)
(8,498
)
Payments under financing lease
obligations
(1,134
)
(423
)
Payments to noncontrolling interest
holders
(67
)
—
Other
728
—
Proceeds from issuance of common stock
8,917
6,568
Net cash used for financing activities
(143,718
)
(211,932
)
Effect of foreign currency exchange rate
changes on cash and cash equivalents
(8,345
)
2,020
Net decrease in cash and cash
equivalents
(226,742
)
(90,632
)
Cash and cash equivalents, beginning of
period
597,044
687,676
Cash and cash equivalents, end of
period
$
370,302
$
597,044
BELDEN INC. RECONCILIATION OF NON-GAAP MEASURES
(Unaudited)
In addition to reporting financial results in accordance with
accounting principles generally accepted in the United States, we
provide non-GAAP operating results adjusted for certain items,
including: asset impairments; accelerated depreciation expense due
to plant consolidation activities; purchase accounting effects
related to acquisitions, such as the adjustment of acquired
inventory to fair value, and transaction costs; severance,
restructuring, and acquisition integration costs; gains (losses)
recognized on the disposal of businesses and assets; amortization
of intangible assets; gains (losses) on debt extinguishment;
certain gains (losses) from patent settlements; discontinued
operations; and other costs. We adjust for the items listed above
in all periods presented, unless the impact is clearly immaterial
to our financial statements. When we calculate the tax effect of
the adjustments, we include all current and deferred income tax
expense commensurate with the adjusted measure of pre-tax
profitability.
We utilize the adjusted results to review our ongoing operations
without the effect of these adjustments and for comparison to
budgeted operating results. We believe the adjusted results are
useful to investors because they help them compare our results to
previous periods and provide important insights into underlying
trends in the business and how management oversees our business
operations on a day-to-day basis. As an example, we adjust for
acquisition-related expenses, such as amortization of intangibles
and impacts of fair value adjustments because they generally are
not related to the acquired business' core business performance. As
an additional example, we exclude the costs of restructuring
programs, which can occur from time to time for our current
businesses and/or recently acquired businesses. We exclude the
costs in calculating adjusted results to allow us and investors to
evaluate the performance of the business based upon its expected
ongoing operating structure. We believe the adjusted measures,
accompanied by the disclosure of the costs of these programs,
provides valuable insight.
Adjusted results should be considered only in conjunction with
results reported according to accounting principles generally
accepted in the United States.
Three Months Ended
Twelve Months Ended
December 31, 2024
December 31, 2023
December 31, 2024
December 31, 2023
(In thousands, except
percentages and per share amounts)
Revenues
$
666,042
$
551,243
$
2,460,979
$
2,512,084
GAAP gross profit
$
249,816
$
206,365
$
922,222
$
954,966
Amortization of software development
intangible assets
2,709
2,457
10,564
7,692
Severance, restructuring, and acquisition
integration costs
1,196
2,088
4,395
3,488
Adjustments related to acquisitions and
divestitures
—
(270
)
263
252
Adjusted gross profit
$
253,721
$
210,640
$
937,444
$
966,398
GAAP gross profit margin
37.5
%
37.4
%
37.5
%
38.0
%
Adjusted gross profit margin
38.1
%
38.2
%
38.1
%
38.5
%
GAAP selling, general and administrative
expenses
$
(137,362
)
$
(126,414
)
(494,603
)
(492,702
)
Severance, restructuring, and acquisition
integration costs
8,270
9,637
18,257
20,039
Adjustments related to acquisitions and
divestitures
3,607
5,405
4,501
5,925
Adjusted selling, general and
administrative expenses
$
(125,485
)
$
(111,372
)
$
(471,845
)
$
(466,738
)
GAAP research and development expenses
$
(28,968
)
$
(25,883
)
$
(112,365
)
$
(116,427
)
Severance, restructuring, and acquisition
integration costs
(120
)
1,581
162
1,625
Adjusted research and development
expenses
$
(29,088
)
$
(24,302
)
$
(112,203
)
$
(114,802
)
GAAP net income
$
58,382
$
38,509
$
198,414
$
242,556
Income tax expense (benefit)
(1,014
)
(2,185
)
29,528
43,200
Interest expense, net
10,849
8,032
38,303
33,625
Non-operating pension settlement loss
1,208
—
1,208
—
Total non-operating adjustments
11,043
5,847
69,039
76,825
Amortization of intangible assets
14,307
10,113
48,794
40,375
Severance, restructuring, and acquisition
integration costs
9,346
13,306
22,814
25,152
Amortization of software development
intangible assets
2,709
2,457
10,564
7,692
Adjustments related to acquisitions and
divestitures
3,607
5,135
4,764
6,177
Gain on sale of assets
—
—
—
(12,056
)
Total operating income adjustments
29,969
31,011
86,936
67,340
Depreciation expense
14,686
12,901
56,383
51,379
Adjusted EBITDA
$
114,080
$
88,268
$
410,772
$
438,100
GAAP income margin
8.8
%
7.0
%
8.1
%
9.7
%
Adjusted EBITDA margin
17.1
%
16.0
%
16.7
%
17.4
%
GAAP net income
$
58,382
$
38,509
$
198,414
$
242,556
Less: Net income (loss) attributable to
noncontrolling interest
(2
)
42
(19
)
(203
)
GAAP net income attributable to Belden
stockholders
$
58,384
$
38,467
$
198,433
$
242,759
GAAP net income
$
58,382
$
38,509
$
198,414
$
242,556
Plus: Operating income adjustments from
above
29,969
31,011
86,936
67,340
Plus: Non-operating pension settlement
loss
1,208
—
1,208
—
Less: Net income (loss) attributable to
noncontrolling interest
(2
)
42
(19
)
(203
)
Less: Tax effect of adjustments above
10,859
8,108
23,834
17,310
Adjusted net income attributable to Belden
stockholders
$
78,702
$
61,370
$
262,743
$
292,789
GAAP net income per diluted share
attributable to Belden stockholders (EPS)
$
1.42
$
0.91
$
4.80
$
5.66
Adjusted net income per diluted share
attributable to Belden stockholders (Adjusted EPS)
$
1.92
$
1.46
$
6.36
$
6.83
GAAP and adjusted diluted weighted average
shares
41,087
42,046
41,299
42,859
BELDEN INC. RECONCILIATION OF NON-GAAP MEASURES
(Unaudited)
We define free cash flow, which is a non-GAAP financial measure,
as net cash from operating activities adjusted for capital
expenditures net of the proceeds from the disposal of tangible
assets. We believe free cash flow provides useful information to
investors regarding our ability to generate cash from business
operations that is available for acquisitions and other
investments, service of debt principal, dividends and share
repurchases. We use free cash flow, as defined, as one financial
measure to monitor and evaluate performance and liquidity. Non-GAAP
financial measures should be considered only in conjunction with
financial measures reported according to accounting principles
generally accepted in the United States. Our definition of free
cash flow may differ from definitions used by other companies.
Three Months Ended
Twelve Months Ended
December 31, 2024
December 31, 2023
December 31, 2024
December 31, 2023
(In thousands)
GAAP net cash provided by operating
activities
$
167,442
$
159,645
$
344,799
$
319,638
Capital expenditures
(51,064
)
(54,861
)
(121,823
)
(116,731
)
Proceeds from disposal of assets
7
—
113
13,785
Non-GAAP free cash flow
$
116,385
$
104,784
$
223,089
$
216,692
BELDEN INC. RECONCILIATION OF NON-GAAP MEASURES
2025 Guidance
Three Months Ended
March 30, 2025
GAAP income from continuing operations per
diluted share attributable to Belden common stockholders
$1.03 - $1.13
Amortization of intangible assets
0.30
Severance, restructuring, and acquisition
integration costs
0.09
Adjustments related to acquisitions and
divestitures
0.01
Adjusted income from continuing operations
per diluted share attributable to Belden common stockholders
$1.43 - $1.53
Our guidance is based upon information currently available
regarding events and conditions that will impact our future
operating results. In particular, our results are subject to the
factors listed under "Forward-Looking Statements" in this release.
In addition, our actual results are likely to be impacted by other
additional events for which information is not available, such as
asset impairments, adjustments related to acquisitions and
divestitures, severance, restructuring, and acquisition integration
costs, gains (losses) recognized on the disposal of assets, gains
(losses) on debt extinguishment, discontinued operations, and other
gains (losses) related to events or conditions that are not yet
known.
Forward-Looking Statements
This release contains, and any statements made by us concerning
the subject matter of this release may contain, forward-looking
statements, including our outlook for the first quarter of 2025 and
beyond. Forward-looking statements also include any statements
regarding future financial performance (including revenues, growth,
expenses, earnings, margins, cash flows, dividends, capital
expenditures and financial condition), plans and objectives, and
related assumptions. In some cases these statements are
identifiable through the use of words such as “anticipate,”
“believe,” “estimate,” “forecast,” “guide,” “expect,” “intend,”
“plan,” “project,” “target,” “can,” “could,” “may,” “should,”
“will,” “would” and similar expressions. Forward-looking statements
reflect management’s current beliefs and expectations and are not
guarantees of future performance. Actual results may differ
materially from those suggested by any forward-looking statements
for a number of reasons, including, without limitation: the impact
of a challenging global economy, including the impact of inflation,
or a downturn in served markets; volatility in credit and foreign
exchange markets; the competitiveness of the global markets in
which we operate; the inability of the Company to develop and
introduce new products; competitive responses to our products; the
inability to execute and realize the expected benefits from
strategic initiatives (including revenue growth, cost control, and
productivity improvement programs); difficulty in forecasting
revenues due to the unpredictable timing of orders related to
customer projects as well as the impacts of channel inventory;
foreign and domestic political, economic and other uncertainties,
including changes in currency exchange rates; the impact of
disruptions in the global supply chain, including the inability to
timely obtain raw materials and components in sufficient quantities
on commercially reasonable terms; the inability to achieve our
strategic priorities in emerging markets; the impact of changes in
global tariffs and trade agreements; the presence of substitute
products in the marketplace; disruptions in the Company’s
information systems including due to cyber-attacks; inflation and
changes in the price and availability of raw materials leading to
higher input and labor costs; the possibility of future epidemics
or pandemics; changes in tax laws and variability in the Company’s
quarterly and annual effective tax rates; the increased prevalence
of cloud computing; the inability to successfully complete and
integrate acquisitions, in furtherance of the Company’s strategic
plan, as well as the inability to accurately forecast the financial
impacts of acquisitions; the inability to retain key employees;
disruption of, or changes in, the Company’s key distribution
channels; the presence of activists proposing certain actions by
the Company; perceived or actual product failures; the impact of
regulatory requirements and other legal compliance issues;
inability to satisfy the increasing expectations with respect to
environmental, social and governance matters; assertions that the
Company violates the intellectual property of others and the
ownership of intellectual property by competitors and others that
prevents the use of that intellectual property by the Company;
risks related to the use of open source software; the impairment of
goodwill and other intangible assets and the resulting impact on
financial performance; disruptions and increased costs attendant to
collective bargaining groups and other labor matters; and other
factors.
For a more complete discussion of risk factors, please see our
Annual Report on Form 10-K for the period ended December 31, 2023,
filed with the SEC on February 13, 2024. Although the content of
this release represents our best judgment as of the date of this
report based on information currently available and reasonable
assumptions, we give no assurances that the expectations will prove
to be accurate. Deviations from the expectations may be material.
For these reasons, Belden cautions readers to not place undue
reliance on these forward-looking statements, which speak only as
of the date made. Belden disclaims any duty to update any
forward-looking statements as a result of new information, future
developments, or otherwise, except as required by law.
About Belden
Belden Inc. delivers complete connection solutions that unlock
untold possibilities for our customers, their customers and the
world. We advance ideas and technologies that enable a safer,
smarter and more prosperous future. Throughout our 120+ year
history we have evolved as a company, but our purpose remains –
making connections. By connecting people, information and ideas, we
make it possible. We are headquartered in St. Louis and have
manufacturing capabilities in North America, Europe, Asia and
Africa. For more information, visit us at www.belden.com; follow us
on Facebook, LinkedIn and X/Twitter.
BDC-Financial
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version on businesswire.com: https://www.businesswire.com/news/home/20250206350956/en/
Belden Investor Relations Aaron Reddington, CFA
(317) 219-9359 Investor.Relations@Belden.com
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