Belden (NYSE:BDC) reported record second-quarter results as strong industrial demand, data-center activity and improving order trends lifted revenue and earnings above the company’s guidance range.
Revenue rose 12% year over year to a record $750 million, including 8% organic growth, while adjusted earnings per share increased 24% to $2.34. Both figures exceeded the high end of Belden’s outlook. The company recorded $836 million in orders, up 19% from a year earlier and 23% sequentially, producing a book-to-bill ratio of 1.11.
Adjusted gross profit increased 14% to $297 million, with a 39.6% margin. Adjusted EBITDA rose 28% to $146 million, and the adjusted EBITDA margin reached 19.5%. CFO Jeremy Parks said results included a net benefit of about $0.25 per share tied to the expected recovery of IEEPA tariffs, partly offset by new tariffs. Excluding tariff refunds and copper pass-throughs, Parks said incremental EBITDA margins exceeded 30%.
Data-center and AI infrastructure wins
Belden highlighted expanding activity in data centers and AI infrastructure, which Chand characterized as one of the company’s highest-priority growth areas. The company booked about $40 million in hyperscaler orders during the second quarter, including a roughly $20 million contract with a Tier 1 hyperscaler for high-density fiber connectivity inside an AI data center’s white space, or data hall.
The order is in production, with deliveries expected over multiple quarters. Chand said the win was based on Belden’s ability to deliver qualified products at scale and on schedule, rather than on price. The products include high-density MPO connectors and fiber connectivity with 144- and 288-fiber strand counts.
Belden’s traditional enterprise data-center business has an annual revenue run rate of about $75 million, management said. Its hyperscaler business has grown to more than a $100 million annualized business, while the combined data-center and AI infrastructure business, excluding RUCKUS Networks, has an annual revenue run rate of approximately $175 million or more.
Chand said the company aims to use entry points in either the white space or gray space—such as power, cooling, controls and building systems—to develop broader data-center infrastructure opportunities spanning both areas.
The company also announced a specification win with a global retailer to provide networking for autonomous docking-door systems across U.S. distribution centers. Initial orders have been received. Belden estimates the full fleet opportunity at approximately $20 million over four years across more than 4,500 autonomous installations.
Chand described the opportunity as an example of “physical AI,” in which autonomous machines require ruggedized, low-latency connectivity in industrial settings. He said Belden expects physical AI to become roughly 15% to 20% of revenue over the next several years, though adoption will develop in stages across manufacturing, warehousing and process industries.
RUCKUS acquisition broadens networking portfolio
Belden closed its acquisition of RUCKUS Networks on July 1, meaning the business will first be included in third-quarter results. Management said RUCKUS is immediately accretive to revenue growth, earnings per share and EBITDA.
With RUCKUS, Belden now offers passive infrastructure, switching, wireless networking and cloud-management software across industrial and enterprise environments. The combined company is estimated to have annual revenue of $3.6 billion, gross margins of about 43% and adjusted EBITDA margins of 18%, based on hypothetical full-year combined results. Management stressed those figures are estimates rather than guidance.
RUCKUS brings a gross margin profile above 60%, according to Chand, supported by its mix of Wi-Fi access points, enterprise switching, cloud network-management software and services. The acquisition also moves Belden’s solutions mix above 20% of revenue, reaching a target the company had set for 2028 three years ahead of schedule.
Management said customer discussions since the close have centered on converged IT and operational technology networks, along with wireless and wired network integration. Chand pointed to potential applications in sports and entertainment venues, warehousing, discrete manufacturing, healthcare and hospitality.
RUCKUS is positioned in high-density and high-interference environments where wireless reliability and latency are particularly important, Chand said. He described Wi-Fi 7 adoption as being in the middle stages in enterprise-oriented markets such as hospitality, healthcare and education, while industrial adoption remains at an earlier stage.
Balance sheet and third-quarter outlook
Belden ended the second quarter, on a standalone basis, with $349 million of cash, net leverage of 1.7 times and trailing 12-month free cash flow of $212 million. Following the RUCKUS acquisition, the company expects net leverage to rise to about 3.9 times net debt to adjusted EBITDA at the end of the third quarter.
The company expects the combined business to generate more than $500 million in free cash flow during the next 18 months, which it plans to use for debt reduction. Belden targets leverage of 3.6 times or less by the end of 2026, about 2.9 times by the end of 2027 and its long-term target of 1.5 times by the end of 2029.
For the third quarter, including RUCKUS for the full period, Belden projected revenue of $950 million to $970 million. It forecast GAAP EPS of $0.69 to $0.84 and adjusted EPS of $2.15 to $2.30, representing year-over-year adjusted EPS growth of 9% to 17%.
Parks said third-quarter guidance implies 6% to 8% year-over-year organic growth for Belden’s legacy business. He added that RUCKUS is expected to contribute a net $0.12 to adjusted EPS guidance after accounting for interest expense associated with acquisition financing.
Management expects automation revenue growth to remain around 10% year over year in the third quarter, while Smart Buildings and Broadband are expected to contribute more to sequential growth. Parks said third-quarter EBITDA margins are expected to be about 17.6% to 17.7%, reflecting temporary RUCKUS integration costs and a sales mix shift toward Smart Buildings and Broadband, which carry lower margins than the Automation segment.
About Belden (NYSE:BDC)
Belden, formerly Belden Inc (NYSE:BDC), was a global provider of signal transmission solutions for demanding applications. The company produced a wide range of copper and fiber optic cables, connectors, patch panels, cable assemblies, and surge protection devices. Its portfolio extended into networking and security hardware, including managed switches, industrial routers, and software tools for remote monitoring and network management.
Founded in 1902 and headquartered in St. Louis, Missouri, Belden built its reputation on delivering high‐performance, reliable products for harsh environments.
