Bel Fuse Inc.: 2Q Results: Debt-Free and Dual-Engined: Defense and Data Solutions Deliver, PT Raised to $380

Research evidence excerpt

Bel Fuse Inc.: 2Q Results: Debt-Free and Dual-Engined: Defense and Data Solutions Deliver, PT Raised to $380

2027 visibility. Quarterly Forecasts (FYE Dec)

• Higher Forecasts, PT to $380 on Mix + Leverage + De-Risking: We raise Adj. EPS ($)

FY26E revenue to $811M (from $792M) and FY27E to $897M (from $857M), 2025A 2026E 2027E

Q1 1.34 1.80A 2.47

with FY26E/FY27E adjusted EBITDA of $183M/$214M (from $175M/ Q2 1.66 2.88A 3.16

$200M). Our increased forecasts are supported by Defense and Data Solutions Q3 2.08 2.81 3.41

momentum, distribution recovery, and price realization in 2H. Our $380 price Q4 1.96 2.65 3.28

FY 7.04 10.19 12.32

target is based on ~22x EV/EBITDA applied to our FY27E EBITDA forecast

of ~$214M, up from our prior $370 PT. The revision reflects the mix shift Style Exposure

toward higher-margin businesses, operating leverage, and a debt-free balance

sheet that lowers financial risk and provides incremental capital optionality.

• $306M Cash + Slovakia Wins Extend the European Option: Bel Fuse

completed a $442M net equity raise in May, funding full repayment of ~$200M

of debt and leaving $306M of cash with no debt at quarter-end. Management

highlighted eight European defense project wins at the newly certified

Slovakia site, ahead of the initially expected end-2026 timeline, with

monetization typically beginning in late 2027. The cash position will be used

to fund the remaining 20% of Enercon in 1Q27, plus future M&A and

incremental organic growth. Management signaled a disciplined approach

amid what it views as aggressive peer deal pricing.

• Costs, Mix, and Funding Timing the Swing Factors: Despite the top-line

strength, ADRS gross margin slipped -30bps YoY to 41.1% as material costs

and FX offset volume leverage.