Belden Inc. 10-Q Summary: Period Ended June 28, 2026
Business Context and Reporting Period
This is a Quarterly Report (Form 10-Q) for Belden Inc., a global supplier of connection solutions, for the quarter and six months ended June 28, 2026. Effective January 1, 2026, the company realigned its organizational structure to a unified functional operating model, resulting in a single reportable segment. The company operates globally with facilities in the U.S., Europe, Asia, and other regions.
Key Financial Metrics
| Metric | Three Months Ended June 28, 2026 |
Six Months Ended June 28, 2026 |
|---|---|---|
| Revenues | $750.2 million | $1,446.5 million |
| Gross Profit | $293.6 million (39.1% margin) | $551.7 million (38.1% margin) |
| Operating Income | $99.3 million | $177.2 million |
| Net Income | $68.5 million | $119.6 million |
| Diluted EPS | $1.74 | $3.04 |
| Adjusted EBITDA | $145.9 million (19.5% margin) | $264.0 million (18.2% margin) |
| Operating Cash Flow | N/A | $110.6 million |
| Cash and Equivalents | $348.7 million (Ending Balance) | N/A |
| Long-Term Debt | $1,230.6 million | N/A |
Material Changes vs. Prior Period
- Revenue Growth: Revenues increased 11.6% year-over-year (YoY) for the quarter and 11.5% for the six-month period. Growth was driven by higher sales volume, favorable pricing, copper pass-through pricing, and favorable currency translation.
- Profitability: Operating income rose 25.3% YoY for the quarter and 16.7% for the six months. Gross profit margins expanded due to revenue growth and the recognition of $13.6 million in tariff refunds related to prior-year transactions.
- Debt Restructuring: In February 2026, the company repurchased €450 million of 2027 Notes and issued €450 million of new 4.250% Senior Subordinated Notes due 2033. This resulted in a $1.3 million loss on debt extinguishment.
- Tax Rate: The effective tax rate increased to 19.6% for the quarter and 19.2% for the six months, compared to 8.5% and 12.3% in the prior year periods, primarily due to the absence of a release of uncertain tax position reserves in the current period.
Outlook, Risks, and Unusual Items
- Major Acquisition (Subsequent Event): On July 1, 2026, Belden acquired Ruckus Networks for approximately $1.9 billion. The acquisition was funded by a new Term Loan Credit Facility maturing in 2033. Purchase accounting is incomplete.
- Share Repurchases: The company repurchased 0.3 million shares for $30.4 million during the six months ended June 28, 2026. $115.0 million of authorization remains.
- Risks: Management highlights exposure to foreign currency fluctuations (approx. 43% of revenue is non-U.S.), global trade volatility, inflation, and commodity price changes (specifically copper). Tariff refunds were a significant positive unusual item in the current period.
- Guidance: Long-term goals include mid-single-digit revenue growth, Adjusted EBITDA margins of 25-30%, and free cash flow margins approaching 10%.
Investor Verification Checklist
- Ruckus Integration: Verify the final purchase accounting, goodwill, and intangible asset valuations for the $1.9 billion Ruckus Networks acquisition.
- Debt Capacity: Confirm the impact of the new Term Loan on leverage ratios and covenant compliance following the Ruckus funding.
- Tariff Refund Sustainability: Assess whether the $13.6 million tariff refund recognized in Q2 is a one-time benefit or indicative of ongoing recoveries.
- Currency Hedging: Review the effectiveness of hedging strategies given the 43% exposure to non-U.S. currencies and recent volatility.
- Capital Allocation: Monitor the balance between the new debt service obligations, ongoing capital expenditures ($85.1 million in H1), and share repurchase activity.