Bel Fuse sales rise 23.2% to $220.5 million in third quarter
Key Facts
Bel Fuse announced preliminary third-quarter 2026 results on October 28, reporting sales of $220.5 million, up 23.2% from $179.0 million in the same period a year earlier. Gross margin rose to 40.9% from 39.7%, an increase of 120 basis points year over year. CEO Farouk Tuweiq said performance was driven by "data solutions and the industrial market, and through our distribution partners." Net income attributable to the company's shareholders was $26.290 million, compared with $22.250 million a year earlier. Total net income was $38.389 million for the quarter, a separate measure from earnings attributable to Bel shareholders.
Industrial technology and data solutions was the fastest-growing segment, with sales of $113.914 million, up 37.8% from the year-earlier period. Segment margin rose to 42.7% from 38.0% a year earlier, exceeding the company's overall gross margin of 40.9%. In aerospace, defense and rugged solutions, sales increased 10.7% to $106.596 million. But that segment's margin fell to 39.6% from 41.1%, moving in the opposite direction from the improvement in industrial technology and data solutions. Tuweiq said the quarter reflected momentum in key end markets, alongside contributions from distribution partners.
Adjusted operating earnings improved alongside sales growth: adjusted EBITDA was $52.510 million, or 23.8% of sales, compared with $39.200 million and 21.9% a year earlier. This ratio shows that adjusted earnings accounted for a larger share of each sales dollar than in the third quarter of 2025. The figures highlight the differing margin trends across the company's two businesses: industrial technology and data solutions margin improved, while aerospace, defense and rugged solutions margin declined. At the group level, gross margin improved by 120 basis points year over year. Earnings attributable to Bel shareholders remain distinct from total net income, which was $38.389 million for the quarter.
Sales came within the company's July guidance for the third quarter of $205 million to $225 million, while gross margin of 40.9% was within its range of 39% to 41%. The company had said then that bookings remained healthy and set those estimates for the quarter that later ended with sales of $220.5 million. In the second quarter, sales were $210.7 million, compared with $168.3 million a year earlier, up 25.1% year over year. Third-quarter sales therefore rose from the second-quarter level, while their annual growth rate was below the rate recorded in the prior quarter. Also in the second quarter, the company said demand for defense and data solutions, and a distribution recovery, pushed sales and gross margin toward the upper end of its ranges.
The second-quarter results followed a major equity financing: Bel Fuse then announced net proceeds of $441.6 million and repaid $197.5 million of debt. In March 2026, the company reorganized its business from three product-based units into two units focused on end markets: industrial technology and data solutions, and aerospace, defense and rugged solutions. Those were the two segments for which the company reported third-quarter results. The structure allows each market's performance to be assessed through sales and margins, which moved in different directions across the two segments during the quarter. The company said its 2026 results in the announcement were preliminary and subject to change before it files its quarterly Form 10-Q with the U.S. Securities and Exchange Commission.
Looking ahead, Bel Fuse forecast fourth-quarter sales of $220 million to $240 million and gross margin of 40.0% to 42.0%. The low end of the sales forecast puts next quarter at the same level as third-quarter sales, while the high end reaches $240 million. The company is scheduled to discuss the results on a call on October 29, 2026, at 8:30 a.m. Eastern time. Class A shares closed at $176.02 on October 27, compared with $166.51 the previous day. In the final minutes of trading on October 28, the shares were at $180.62, while the Associated Press cited a 19% gain year to date and a 30% rise over 12 months.