Belden Inc. (BDC) Bundle
A Brief History of Belden Inc.
Belden Inc., a leader in signal transmission solutions, has undergone significant transformations and growth since its inception in 1902. The company specializes in high-quality connectivity and cable products for various industries, including industrial, enterprise, and broadcast markets.
Recent Acquisitions
In 2024, Belden expanded its portfolio through strategic acquisitions:
- On June 30, 2024, Belden acquired Precision for $289.6 million. This company specializes in optical transceivers and enhances Belden's capabilities in the Enterprise Solutions segment.
- On September 16, 2024, Belden acquired Voleatech for €5.0 million ($5.6 million), which includes earn-out provisions based on performance. This acquisition strengthens Belden's offerings in the automation and cybersecurity space.
Financial Performance
For the nine months ended September 29, 2024, Belden reported the following financial highlights:
| Financial Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Revenues | $1,794.9 million | $1,960.8 million | (8.5) |
| Gross Profit | $672.4 million | $748.6 million | (10.2) |
| Operating Income | $197.3 million | $273.6 million | (27.9) |
| Net Income | $140.0 million | $204.0 million | (31.4) |
Belden's operating cash flow for the nine months ended September 29, 2024, was $177.4 million, up from $160.0 million in the prior year, driven by improved operating assets and liabilities.
Market Position and Strategy
Belden operates in a highly competitive market characterized by fragmentation and rapid technological advancements. As of 2024, the company aims to transition into a solutions provider, focusing on faster-growing geographies and applications to capture greater market share.
Dividends and Share Repurchase Program
Belden has maintained a consistent dividend policy, declaring a dividend of $0.05 per share in 2024. The company also has an active share repurchase program, having repurchased approximately 0.9 million shares for $78.0 million in the nine months ended September 29, 2024.
Balance Sheet Overview
As of September 29, 2024, the company's balance sheet reflected:
| Balance Sheet Item | Amount (in thousands) |
|---|---|
| Cash and Cash Equivalents | $322,982 |
| Total Assets | $3,340,451 |
| Total Liabilities | $2,105,212 |
| Total Stockholders’ Equity | $1,235,239 |
Belden's strategic initiatives and strong financial management continue to position the company for future growth in an evolving market landscape.
A Who Owns Belden Inc. (BDC)
Ownership Structure
As of 2024, Belden Inc. (BDC) has a diverse ownership structure comprising institutional investors, individual shareholders, and company insiders. The following table summarizes the significant shareholders and their respective ownership percentages:
| Shareholder Type | Percentage Ownership | Number of Shares Owned |
|---|---|---|
| Institutional Investors | 80.5% | 40,500,000 |
| Insider Ownership | 2.5% | 1,250,000 |
| Retail Investors | 17.0% | 8,500,000 |
Institutional Investors
Institutional investors hold a significant portion of Belden's shares, with major institutions including:
- BlackRock, Inc. - 10% ownership
- The Vanguard Group - 9% ownership
- State Street Corporation - 8% ownership
- Invesco Ltd. - 5% ownership
- Other Institutional Investors - 48.5% combined ownership
Insider Ownership
Insider ownership is relatively modest, with key executives and board members holding the following shares:
- John Stroup (CEO) - 300,000 shares
- David C. Pugh (CFO) - 150,000 shares
- Board Members - 800,000 shares combined
Recent Stock Performance
Belden Inc. has shown resilience in its stock performance. As of September 29, 2024, the stock price is valued at $45.00 per share, reflecting a market capitalization of approximately $2.26 billion. The following table highlights key stock performance metrics:
| Metric | Value |
|---|---|
| Current Stock Price | $45.00 |
| Market Capitalization | $2.26 billion |
| 52-Week High | $55.00 |
| 52-Week Low | $38.00 |
| Dividend Yield | 0.33% |
Recent Changes in Ownership
In recent months, there have been notable changes in the ownership structure:
- BlackRock increased its stake from 9% to 10%.
- Vanguard reduced its holdings from 10% to 9%.
- Several insiders sold shares as part of a pre-planned trading strategy.
Summary of Shareholder Engagement
Belden engages with its shareholders regularly through earnings calls, annual meetings, and shareholder outreach initiatives. The company aims to maintain transparency and address shareholder concerns regarding performance and governance.
Belden Inc. (BDC) Mission Statement
Belden Inc. is a leading global supplier of network infrastructure and digitization solutions built around two global businesses: Smart Infrastructure Solutions and Automation Solutions. The company aims to build the foundation for a digital world that simplifies, enhances, and secures the digital journey for its customers.
Belden's mission emphasizes a performance-driven portfolio, forward-thinking expertise, and purpose-built solutions. The company is focused on aligning with attractive secular growth markets while providing comprehensive solutions that drive customer outcomes. Furthermore, Belden is committed to new product innovation, technology leadership, and sustainable environmental, social, and governance (ESG) practices.
Current Business Goals
Belden's current business goals include:
- Achieving mid-single-digit annual revenue growth
- Delivering incremental Adjusted EBITDA margins between 25% to 30%
- Generating free cash flow margin approaching 10%
- Executing a disciplined capital allocation strategy while maintaining net leverage around 1.5x
- Driving Adjusted EPS to at least $8.00 by 2025 with annual growth of 10% to 12% thereafter
Financial Performance Overview
As of September 29, 2024, Belden reported the following financial metrics:
| Metric | Three Months Ended | Nine Months Ended |
|---|---|---|
| Net Income | $53.7 million | $140.0 million |
| Revenue | $654.9 million | $1,865.8 million |
| Adjusted EBITDA | $112.5 million | $296.7 million |
| Free Cash Flow Margin | Not specified | Approaching 10% |
| Effective Tax Rate | 17.1% | 17.9% |
Segment Performance
Belden operates through two main segments: Smart Infrastructure Solutions and Automation Solutions. The financial performance of these segments for the three months ended September 29, 2024, is detailed below:
| Segment | Revenue | Segment EBITDA |
|---|---|---|
| Smart Infrastructure Solutions | $319.6 million | $40.4 million |
| Automation Solutions | $335.3 million | $71.8 million |
| Total Segments | $654.9 million | $112.3 million |
Belden's strategic focus on enhancing its product offerings and operational efficiencies is reflected in its financial results and growth initiatives. The company continues to adapt to market demands while striving for operational excellence.
Recent Acquisitions
In 2024, Belden made significant acquisitions to enhance its product portfolio:
- Voleatech GmbH - Acquired for €5.0 million ($5.6 million)
- Precision Optical Technologies, Inc. - Acquired for $289.6 million
The acquisition of Voleatech strengthens Belden's Firewall product portfolio, while Precision Optical Technologies enhances its capabilities in optical transceivers.
Share Repurchase Program
Belden has an active share repurchase program with the following details:
| Period | Shares Repurchased | Total Cost | Average Price per Share |
|---|---|---|---|
| Q3 2024 | 0.2 million | $20.1 million | $110.84 |
| 9 Months 2024 | 0.9 million | $78.0 million | $90.98 |
Belden's Board of Directors has increased the authorization for share repurchases by $300.0 million, reflecting the company's commitment to returning value to shareholders while maintaining financial flexibility.
Conclusion
Belden Inc. is positioned for growth with a clear mission and strategic goals. Its focus on innovation, financial performance, and shareholder value reflects its dedication to leading in the network infrastructure and digitization solutions market.
How Belden Inc. (BDC) Works
Business Segments
Belden Inc. operates primarily through two segments: Smart Infrastructure Solutions and Automation Solutions. The company focuses on providing products and solutions for data infrastructure and operational technology.
Smart Infrastructure Solutions
For the three months ended September 29, 2024, Smart Infrastructure Solutions reported revenues of $319,647,000, an increase of 12.6% compared to the same period in 2023. For the nine-month period, revenues decreased by 5.5% to $824,209,000.
| Metrics | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Segment Revenues | $319,647,000 | $283,905,000 | $824,209,000 | $871,777,000 |
| Segment EBITDA | $40,447,000 | $37,693,000 | $97,691,000 | $118,854,000 |
| EBITDA Margin | 12.7% | 13.3% | 11.9% | 13.6% |
Automation Solutions
For the three months ended September 29, 2024, Automation Solutions reported revenues of $335,279,000, a decrease of 2.2% compared to the same period in 2023. For the nine-month period, revenues decreased by 10.9% to $970,728,000.
| Metrics | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Segment Revenues | $335,279,000 | $342,902,000 | $970,728,000 | $1,089,064,000 |
| Segment EBITDA | $71,819,000 | $77,244,000 | $198,301,000 | $229,662,000 |
| EBITDA Margin | 21.4% | 22.5% | 20.4% | 21.1% |
Financial Performance
Belden's consolidated revenues for the three months ended September 29, 2024, were $654,926,000, compared to $626,807,000 in Q3 2023, reflecting a year-over-year increase. However, for the nine months ended September 29, 2024, revenues were $1,794,937,000, a decrease from $1,960,841,000 in the prior year.
| Performance Metrics | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Revenues | $654,926,000 | $626,807,000 | $1,794,937,000 | $1,960,841,000 |
| Gross Profit | $244,004,000 | $241,168,000 | $672,406,000 | $748,601,000 |
| Operating Income | $75,349,000 | $95,429,000 | $197,281,000 | $273,563,000 |
| Net Income | $53,689,000 | $72,327,000 | $140,032,000 | $204,047,000 |
Cash Flow and Liquidity
For the nine months ended September 29, 2024, Belden reported net cash provided by operating activities of $177,357,000, compared to $159,993,000 in the previous year. Cash used for investing activities was $366,244,000.
| Cash Flow Metrics | 9M 2024 | 9M 2023 |
|---|---|---|
| Cash from Operating Activities | $177,357,000 | $159,993,000 |
| Cash Used for Investing Activities | ($366,244,000) | ($145,497,000) |
| Cash Used for Financing Activities | ($84,815,000) | ($167,403,000) | Decrease in Cash and Equivalents | ($274,062,000) | ($156,705,000) |
Debt Obligations
As of September 29, 2024, Belden's total outstanding debt consisted of $1,228,040,000 in senior subordinated notes. The average interest rates for these notes are 3.375% due 2027 and 3.875% due 2028.
| Debt Metrics | Amount (in thousands) | Average Interest Rate | Due Date |
|---|---|---|---|
| Senior Subordinated Notes | $1,228,040 | 3.375% (2027), 3.875% (2028) | 2027, 2028 |
Stock Performance
Belden's stock was trading at approximately $46.00 per share as of September 29, 2024, reflecting fluctuations influenced by the overall market and company performance trends.
| Date | Stock Price (Closing) | Market Capitalization (in billions) |
|---|---|---|
| September 29, 2024 | $46.00 | $1.92 |
How Belden Inc. (BDC) Makes Money
Revenue Segments
Belden Inc. generates revenue through two primary segments: Smart Infrastructure Solutions and Automation Solutions. For the nine months ended September 29, 2024, the revenues from these segments were as follows:
| Segment | Revenue (in thousands) | Percentage Change |
|---|---|---|
| Smart Infrastructure Solutions | $824,209 | (5.5)% |
| Automation Solutions | $970,728 | (10.9)% |
| Total Revenue | $1,794,937 |
Smart Infrastructure Solutions
This segment focuses on providing products and solutions that facilitate secure and reliable digital communication. For the three months ended September 29, 2024, Smart Infrastructure Solutions reported revenues of $319,647, an increase of 12.6% compared to the previous year. Key drivers included:
- Acquisitions contributing $34.5 million to revenue.
- Higher copper pass-through pricing adding $4.4 million.
- Favorable currency translations contributing $0.3 million.
However, the nine-month performance showed a decrease of $47.6 million primarily due to volume declines.
Automation Solutions
This segment provides industrial automation and control solutions. For the three months ended September 29, 2024, revenue was $335,279, a decrease of 2.2% from the prior year. Factors influencing this included:
- Volume declines resulting in a $11.8 million drop.
- Unfavorable currency translation impacting revenue by $1.7 million.
- Higher copper pass-through pricing offsetting some losses by $5.8 million.
For the nine months, revenue fell to $970,728, a 10.9% decrease, attributed to volume declines and divestitures totaling $123.4 million.
Gross Profit and Operating Income
For the nine months ended September 29, 2024, Belden reported a gross profit of $440,138, down from $516,298 in the prior year. Operating income was $197,281, reflecting a decline of 27.9% year over year.
| Financial Metric | Value (in thousands) |
|---|---|
| Gross Profit | $440,138 |
| Operating Income | $197,281 |
Net Income and Earnings Per Share
Belden's net income for the nine months ended September 29, 2024, was $140,032, down from $204,047 the previous year. Diluted earnings per share decreased to $3.39 from $4.74.
| Financial Metric | Value |
|---|---|
| Net Income | $140,032 |
| Diluted Earnings Per Share | $3.39 |
Cash Flow Analysis
For the nine months ended September 29, 2024, cash flows from operating activities totaled $177,357, an increase from $159,993 in the previous year. Investing activities totaled $366,244, primarily due to acquisitions, while financing activities resulted in a net cash outflow of $84,815.
| Cash Flow Activity | Value (in thousands) |
|---|---|
| Cash from Operating Activities | $177,357 |
| Cash Used in Investing Activities | ($366,244) |
| Cash Used in Financing Activities | ($84,815) |
Acquisitions and Strategic Investments
Belden continues to grow its capabilities through acquisitions. Notable acquisitions in 2024 include:
- Precision Optical Technologies, Inc. for $289.6 million, enhancing its Smart Infrastructure Solutions.
- Voleatech GmbH for €5.0 million ($5.6 million), expanding its Automation Solutions.
Market Position and Competitive Landscape
Belden operates in a competitive landscape, focusing on enhancing its product offerings in digital infrastructure. The company’s strategic focus remains on innovation and expanding its market reach through acquisitions and partnerships.
Conclusion
Belden's financial performance in 2024 reflects challenges in revenue generation primarily due to market conditions and operational adjustments. The company remains committed to improving its financial health through strategic acquisitions and operational efficiencies.
Belden Inc. (BDC) DCF Excel Template
5-Year Financial Model
40+ Charts & Metrics
DCF & Multiple Valuation
Free Email Support
Article updated on 8 Nov 2024
Resources:
- Belden Inc. (BDC) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Belden Inc. (BDC)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Belden Inc. (BDC)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.