Bel Fuse Inc. (BELFB): A Bull Case Theory 

We came across a bullish thesis on Bel Fuse Inc. on X.com by longonlybets. In this article, we will summarize the bulls’ thesis on BELFB. Bel Fuse Inc.’s share was trading at $143.15 as of September 9th. BELFB’s trailing and forward P/E were 36.52 and 22.52 respectively according to Yahoo Finance.

Bel Fuse ($BELFB) delivered a strong Q2 2025 result, reinforcing the investment thesis built around the Enercon acquisition, operational improvements under CEO Farouq, and a near-end to the two-year inventory destock cycle. Q2 revenue was slightly softer by 1.3%, but gross margins improved by 77bps, with adjusted EBITDA of $35.2 million, a 27.4% year-on-year increase and a slight beat versus expectations. Adj. EPS also modestly exceeded estimates.

End-market trends across commercial aerospace, defense, and networking, along with distributor data for Power and Magnetic segments, suggest recovery after prolonged destocking, with inventory levels still low but healthier point-of-sale activity supporting optimism for 2H 2025. Strong bookings and guidance of $165–180 million revenue with 37–39% gross margin indicate sequential growth in Connectivity and Power Solutions, while Magnetic Solutions maintained >30% growth. The base business, excluding Enercon, shows signs of trend improvement, setting up a return above pre-destocking revenue levels and laying the foundation for sustainable growth.

Enercon, now 33% of Power Solutions revenue, contributes higher quality, high-margin, long-cycle products to prime U.S. and Israeli defense contractors, supporting margin expansion and future growth, although material revenue synergies are expected only in 2H 2026. Headwinds from prior trade restrictions and tariffs are easing, further supporting the growth outlook. Despite recent share appreciation, valuation remains attractive at 11.2x NTM EV/EBITDA with potential upside via a DCF and IRR framework, and post-tax ROIC trending toward 20% by FY29. Bel Fuse continues to offer a compelling investment case, combining quality acquisitions, operational improvement, recovering end markets, and a favorable risk/reward profile.

Previously we covered a bullish thesis on Bel Fuse Inc. (BELFB) by Pound the Rock Investing in March 2025, which highlighted the Enercon acquisition, operational improvements under new leadership, and recovery in Magnetics and Power Solutions. The company’s stock price has appreciated approximately by 85% since our coverage as the thesis played out. longonlybets shares a similar perspective but emphasizes Q2 2025 results, updated guidance, and improving base business trends.

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