BELDEN INC. Q1 FY2025 earnings call

• First quarter revenue totaled $625 million, up 17% Y/Y, earnings per share $1.6, up 29% Y/Y. Gross margins 39.8%, up 140 basis points Y/Y. Adjusted EBITDA margins 16.6%, up 80 basis points Y/Y. • Organic growth 11% for the quarter, led by 14% organic growth in Americas. Orders up modestly sequentially and 18% Y/Y, book to bill 1.05. • Trailing 12-month free cash flow $220 million. Deployed $100 million to repurchase 1 million shares. • Customer success story in North American automated warehouse space, illustrating solutions driving deeper engagement and broad product portfolio strength. • Balance sheet strong, allowing continued share buybacks and potential acquisitions to support solutions transformation.

Automation Solutions segment: Revenue up 16% compared to prior year period with EBITDA margins up to 20.9%, orders up 22% Y/Y with a book to bill of 1.09. Strength in traditional industrial verticals like discrete and process manufacturing, with double-digit organic growth in Americas and APAC. Smart Infrastructure Solutions segment: Revenue grew 17% Y/Y with EBITDA margins of 11.4%, up from 11%. Orders up 13% Y/Y with a book to bill of 0.98. Strength in targeted verticals like healthcare, education, and hospitality. Broadband revenue up Y/Y, led by 9% organic growth in fiber.

• Second quarter revenue expected between $645 million and $660 million, 7%-9% increase Y/Y. Adjusted EPS expected between $1.67 and $1.77, 11%-17% increase Y/Y. • Tax rate expected 17.5% in second quarter and approximately 18% full year. • Mitigating actions taken for tariffs, including sourcing changes and pricing adjustments, with net impact roughly zero or neutral in second quarter.

• Uncertainty around trade policy and its implications on supply chains and end demand. • Some sectors postponing decisions in the near term due to short-term uncertainty around friendshoring.

Q: William Stein asked about reshoring interest and customer uncertainty.

A: Ashish Chand said there's more confidence in US manufacturing reshoring, with discussions around longer term plans, but near-term uncertainty causes some postponement.

Q: William Stein followed up on Smart Infrastructure book to bill.

A: Ashish Chand said smart buildings orders up ~8%, broadband orders up 18% Y/Y, with broadband still stronger.

Q: David Williams asked about quantifying reindustrialization activity and demand pull forward.

A: Ashish Chand said solutions funnel related to reshoring in US has gone up in high teens, but short-term uncertainty makes exact booking timing hard; no significant demand pull forward seen.

Q: Aman Gupta asked about tariff exposure.

A: Jeremy Parks said largest US exposure is Mexico with USMCA exemptions, few third-party suppliers from China, and sourcing changes/pricing adjustments to offset impact.

Q: Rob Jamieson asked about margin performance and combined sales forces.

A: Jeremy Parks said Smart Infrastructure margin impact in Q1 due to revenue leverage; Ashish Chand discussed learnings from combined sales forces about multi-step customer journeys for ITOT convergence.

Q: Steven Fox asked about low hanging fruit in reshoring and broadband tracking.

A: Ashish Chand said low hanging fruit is digitization of operations across verticals; broadband has seen channel inventory digestion but DOCSIS rollouts and BEAD funds programs continue with modifications.