Bel Fuse Inc

• Return on equity is about 14.0%.
• Debt to equity is about 0.47x.
• [TRIGGER] 8-K: 8-K (sec_8k_material) on BELFA — filing_type=8-K; max_severity=high; ignored_items=['9.01']; material_items=['5.02']; all_items_found=['5.02', '9.01']; severity_per_code={'5.02': 'high'}; contributing_watchers=sec_8k_material (source=sec_8k_material; url=0001437749-26-022539)
• Some of the risks, uncertainties and assumptions that could cause actual results to differ materially from estimates or projections contained in the Forward-Looking Statements include but are not limited to: ● the market concerns facing our customers, and risks for our business in the event of the loss of certain substantial customers; ● the continuing viability of sectors that rely on our products; ● the effects of business and economic conditions, and challenges impacting the macroeconomic environment generally and/or our industry in particular; ● the effects of rising input costs, and cost changes generally, including the potential impact and effects of inflationary pressures; ● difficulties associated with integrating previously acquired companies, including any unanticipated difficulties, or unexpected or higher than anticipated expenditures; ● the possibility that our intended acquisition of the remaining 20% stake in Enercon is not completed in accordance with the shareholders' agreement as contemplated for any reason, and any resulting disruptions to our business and our currently 80% owned Enercon subsidiary as a result thereof; ● trends in demand which can affect our products and results, and market and economic factors impacting Enercon’s business, including trends in demand in Enercon’s aerospace and defense end markets which can be cyclical, as well as the impact of any reductions in defense spending, any of which factors could materially adversely affect the demand for and corresponding sales of such products; ● capacity and supply constraints or difficulties, including supply chain constraints or other challenges; ● the impact of public health crises including potential future outbreaks, epidemics or pandemics; ● difficulties associated with the availability of labor, and the risks of any labor unrest or labor shortages; ● risks associated with our international operations, including our substantial manufacturing operations in the People’s Republic of China (the “PRC”), and risks associated with operations in Israel, which may be adversely affected by political or economic instability, major hostilities or acts of terrorism in the region; ● risks associated with restructuring programs or other strategic initiatives, including any difficulties in implementation or realization of the expected benefits or cost savings; ● product development, commercialization or technological difficulties; ● the regulatory and trade environment including the potential effects of the imposition or modification of new or increased tariffs either by the U.S.
• AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) (unaudited) Three Months Ended March 31, 2026 2025 Cash flows from operating activities: Net earnings $ 14,984 $ 18,322 Adjustments to reconcile net earnings to net cash provided by operating activities: Depreciation and amortization 6,624 6,684 Stock-based compensation 2,077 1,179 Amortization of deferred financing costs 328 295 Deferred tax benefit ( 2,748 ) ( 1,412 ) Unrealized losses (gains) on foreign currency revaluation 3,145 ( 3,663 ) Inventory impairment 1,186 - Other, net 26 ( 518 ) Changes in operating assets and liabilities: Decrease in accounts receivable 3,817 8,220 Decrease (increase) unbilled receivables 1,021 ( 601 ) Increase in inventories ( 13,434 ) ( 2,462 ) Increase in other current assets ( 546 ) ( 3,266 ) Decrease in other assets 1,019 2,925 Increase (decrease) in accounts payable 9,731 ( 3,374 ) Decrease in accrued expenses ( 6,598 ) ( 11,058 ) Decrease in accrued restructuring costs ( 320 ) ( 4,508 ) (Decrease) increase in income taxes payable ( 350 ) 4,107 Decrease in other liabilities ( 6,134 ) ( 2,723 ) Net cash provided by operating activities 13,828 8,147 Cash flows from investing activities: Purchase of property, plant and equipment ( 2,643 ) ( 2,790 ) Investment in related party notes receivable - ( 333 ) Proceeds from disposal/sale of property, plant and equipment - 58 Acquisition of business, net of cash acquired ( 15,224 ) - Net cash used in investing activities ( 17,867 ) ( 3,065 ) Cash flows from financing activities: Dividends paid to common shareholders ( 840 ) ( 829 ) Repayments under revolving line of credit ( 13,000 ) ( 12,500 ) Borrowings under revolving line of credit 20,000 5,000 Net cash provided by (used in) financing activities 6,160 ( 8,329 ) Effect of exchange rate changes on cash and cash equivalents ( 475 ) 921 Net increase (decrease) in cash and cash equivalents 1,646 ( 2,326 ) Cash and cash equivalents - beginning of period 57,800 68,253 Cash and cash equivalents - end of period $ 59,446 $ 65,927 Supplementary information: Cash paid during the period for: Income taxes, net of refunds received $ 5,692 $ 2,277 Interest payments $ 2,550 $ 4,207 ROU assets obtained in exchange for lease obligations $ 106 $ 637 See accompanying notes to unaudited condensed consolidated financial statements.

Bull / Bear case

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