10/29/2026

speaker
Conference Operator
Operator

Good morning and welcome to the Bell Fuse Inc. Third Quarter 2026 Earnings Call. As a reminder, this call is being recorded. If you'd like to ask a question, please press star one on your telephone keypad. I would like to now turn the call over to Jean Marie Young with Three-Part Advisors. Please go ahead, Jean.

speaker
Jean Marie Young
Three Part Advisors

Thank you 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 the 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 expectations 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 could 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 FCC from time to time. We may also discuss non-GAAP results during this call and reconciliations of our GAAP results to non-GAAP results have been included in our press release. Our press release and our FCC filings are available in the IRF section of our 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?

speaker
Farouq Tuweiq
President and CEO

Thank you, Jean. Good morning, everyone. We appreciate you joining our call today. We are pleased to have delivered another strong quarter, led by continued momentum in our data solutions and industrial end markets. We also saw increased demand through our distribution partners, which contributed positively to our performance during the quarter. It was a nice quarter to see the team deliver these results with lost productivity in certain operations due to summer vacations and holidays in places like Israel. We're very proud of the performance of our global team and the quality of its execution in a heightened demand environment. Our factories did an outstanding job securing materials, increasing manufacturing capacity, and strengthening business resiliency. The operational discipline enabled us to deliver growth despite continued variability and uncertainty in global markets. We're also moving faster and operating with a more entrepreneurial mindset. were making decisions closer to the customers, responding more quickly to changing market conditions, and acting decisively on opportunities. Growth was led by our data solutions business, including the broadening AI ecosystem, as well as our industrial applications. This performance demonstrates the strength of our global operating platform, the resilience of our business, and the ability of our people to execute at a high level. As previously discussed, and as some of you know, Bell is now organized under two in-market-based segments, and we are entering an important period as we plan under the new organizational structure. We will be holding our second Global Leadership Offsite in November, bringing together our global leadership teams for the first time since establishing the two new segments. The session will focus on further defining our operating model and strategic priorities, as well as continuing to identify segment initiatives that unlock the full value of our structure. I'm excited about this one as we have had some new teammates at the executive level and among our key leaders at the VP level. On another note, we continue to see strong bookings across the business with record all-time high bookings, again, exceeding our level of sales during the quarter. This provides us with continued confidence in the momentum across the markets we serve. Based on information available today, we expect fourth quarter net sales to be in the range of $220 million to $240 million, with gross margin between 40% and 42%. This outlook reflects continued momentum across our key markets, including data solutions, industrials, and defense, as well as ongoing demand through our distribution partners. Overall, we're excited about our performance this year and how the year is shaping up. I am proud of our global team's focus on execution, their commitment to advancing the organization, and their continued efforts to deliver another remarkable quarter for our shareholders. And with that, I'll turn the call over to Lynn for the financial review. Lynn?

Disclaimer

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