Belden Inc. Q1 FY2026 earnings call

Ashish mentioned it's a significant day for Belden, announced acquisition of Ruckus Networks to accelerate evolution into full-stack IPoT networking solutions provider. Ruckus brings industry-leading wireless and switching technology. First quarter results had strong start, revenue and adjusted EPS exceeded guidance range. Team executed well with healthy organic growth in key verticals. Profitability strengthened with adjusted EBITDA growth and margin expansion. Investing in business foundation. Ruckus acquisition fills gap in wireless and enterprise switching capabilities, expands addressable market, accelerates delivery of end-to-end IT solutions. Four pillars of strategy: growing product portfolio, advancing solutions capabilities, selective M&A, delivering long-term earnings and free cash flow growth. Ruckus acquisition is expression of selective M&A commitment. Ruckus is market leader in enterprise Wi-Fi and switching, with 48,000 customers globally, strong technology portfolio, vertical presence, financial profile, and experienced team. Combination positions for ITOD convergence, expands addressable market, extends platform into industrial base, creates immediately compelling financial profile. Transaction is disciplined and financially compelling, acquiring Ruckus for ~$1.85 billion in cash, 13 times projected 2026 adjusted EBITDA. Debt financing committed, plan to close in second half of 2026, top priority post-close is de-levering

For the first quarter, revenue totaled $696 million, up 11% compared to the prior, and adjusted EPS came in at $1.77, also up 11% compared to the prior. Revenue for the quarter increased 7% organically, year-over-year, with growth across all markets in major regions. Americas were particularly strong, U.S. up high single digits year-over-year. Automation delivered solid mid-single-digit organic growth. Smart buildings grew double digits organically. Broadband had mid-single-digit organic growth. Adjusted EBITDA was $118 million, up 14% year-over-year, and adjusted EBITDA margins expanded 40 basis points to 17%. Excluding copper and tariff-related costs, adjusted gross margins were flat, adjusted EBITDA margins expanded approximately 100 basis points. Incremental EBITDA margins aligned with target range. Ruckus Networks had $687 million in revenue last year, with gross margins above 60%. On a 2025 pro forma basis, Ruckus represents approximately 20% of combined revenue, taking solutions mix from 15% to over 20%

Assuming continuation of current market conditions, expect second quarter revenue of $735 million to $750 million, GAAP EPS of $1.53 to $1.63, and adjusted EPS of $1.95 to $2.05. Outlook reflects balanced, measured view consistent with typical seasonal patterns. Guidance provided on standalone basis and excludes contribution from proposed Ruckus acquisition

First question from Rob Jamieson on Ruckus alignment with solution strategy and secular growth opportunities. Ashish responded on how it accelerates enterprise and industrial solutions, vision of comprehensive network solutions, simplification for customers. Follow-up from Rob on solutions mix trending to 30% and Ruckus software alignment with Horizon platform. Ashish said solutions mix to be 30-ish percent, Ruckus advanced in AI-driven wireless, has unified software platform, and network as a service offering. Next question from William Stein on origin of transaction. Ashish said mutual understanding of benefits, not bank-led. Follow-up on Ruckus competitors as Belden customers. Ashish said no conflict, Ruckus core offerings not from Belden, competitors don't trade with Belden. Next question from Mark Delaney on synergies with Comscope. Ashish said more market-driven, maturation of market, Belden's solutions selling approach. Follow-up on demand signals in existing business. Jeremy said trends positive, industrial healthy, smart buildings growing, broadband to improve. Follow-up from William Stein on AI infrastructure demand. Ashish said AI data center business grew, approaching with converged offering, physical AI pilots underway. Follow-up from Mark Delaney on Ruckus end market exposure. Ashish said Ruckus mostly enterprise, opportunity to expand into discrete manufacturing. Follow-up on Belden's Middle East revenue exposure. Ashish said less than 5% of total revenue, not significant in guidance. Follow-up on supply chain. Ashish said continue to pass on inflation, successful in passing on costs