Bel Fuse Inc.

Good morning and welcome to the Bell Fuse second quarter 2026 earnings call. At this time, all participants are in a listen only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this call is being recorded. I would now like to turn the call over to Jean Marie Young with three part advisors. Please go ahead.

Thank you, Dylan, and good morning, everyone. Before we begin, I'd like to remind everyone that during today's conference call, we will make statements relating to our business that will be considered forward-looking statements under federal securities laws, such as statements regarding our company's expected operating and financial performance for future periods, including guidance for future periods in 2026. These statements are based on the company's current expectation and reflect the company's views only as of today and should not be considered representative of the company's views as of any subsequent date. The company disclaims any obligation to update any forward-looking statements or outlook. Actual results for future periods may differ materially from those projected by these forward-looking statements due to a number of risks, uncertainties and other factors. These material risks are summarized in the press release that we issued after market closed yesterday. additional information about the material risks and other important factors that can potentially impact our financial performance and cause actual results to differ materially from our expectations is discussed in our filings with the Securities and Exchange Commission, including our most recent annual report on Form 10-K and our quarterly reports and other documents that we have filed or may file with the SEC from time to time. We may also discuss Non-GAAP results during this call and reconciliation of our GAAP results to our non-GAAP results have been included in our press release. Our press release and our SEC filings are all available in the IR section of the website. Joining me on the call today is Farouq Tuweiq, President and CEO, and Lynn Hutkin, CFO. With that, I'd like to turn the call over to Farouq. Farouq?

Thank you, Jean, and good morning, everyone. We appreciate you joining our call today. We are excited to have delivered another strong quarter in Q2 led by robustness across the majority of our end markets and in particular within data solutions and defense sectors. Our distribution partners have also seen a significant uptick in demand. This trend started earlier in the year and has become more pronounced in Q2 with channel sales at its highest level since mid-2022. Bell completed an equity raise in May, selling approximately 1.7 million shares into the market, generating net proceeds of approximately 440 million. The proceeds were utilized to fully pay off our debts with the balance of the cash earmark to fund the closure of the Enercon transaction in Q1, 2027, and to invest in other initiatives to support Bell's growth. As announced last quarter, Bell is now organized under two in-market based segments, Aerospace Defense and Rugged Solutions or ADRS and Industrial Technology and Data Solutions or ITDS. Q2 was the first full quarter for us under the new structure and the team has made nice progress in our segment strategic initiatives. During the quarter, we achieved a notable milestone with Bell's facility in Slovakia gaining their required certification as a defense manufacturer in Europe. We noted on last quarter's call a European defense project win for the Slovakia site, and we're excited to report that Q2 marked an additional eight project wins from the European defense customers for the site. We anticipate these translating to sales beginning in the latter part of 2027, which is the normal monetization cycle of defense wins. From a people perspective, much of the year has been focused on building the team structure to support our growth. This initiative is across the board from operations and sales to IT, finance, legal, and HR. In this area, we made notable progress in Q2 and anticipate having all of the key roles filled by the end of 2026. We have also been doubling down on building out the AMD sales team in Europe and have filled some key positions there as well. We are very excited about these additions. Shifting to what's ahead, it was another strong quarter of bookings across the business, exceeding our level of sales for the sixth consecutive quarter. Based on the information available today, we are projecting that sales for Q3 to be in the range of 205 to 225 million with gross margin in the range of 39 to 41%. Anticipated drivers of the sequential growth from Q2 is a continuation of the same trends, defense, data solutions, and an increase in demand from components through our distribution partners. As a point of note, the recent project wins, robust bookings, and overall favorable market conditions will enable us to take a fresh look at our product portfolio. In this regard, we anticipate there will be some revenue rotation in the coming quarters whereby higher growth, better margin business will emphasize ahead of our lower margin business and products. We continuously evaluate our business and now have the luxury of focusing on better ROI business. Overall, we are in exciting times and there continues to be great momentum across the business. I'm proud and thankful of our global team for their collective efforts and pulling together, pushing forward and achieving another remarkable quarter for our shareholders. And with that, I'll turn the call over to Lynn for the financial review.