Key Highlights

  • Revenue of USD 965.95 million rose 38% year over year and edged above the consensus estimate of USD 961.91 million.
  • Adjusted EPS of USD 2.26 matched the consensus estimate, while the GAAP diluted result was a loss of USD 0.29.
  • Orders exceeded USD 1 billion for the first time, up 46%, and the book to bill ratio was 1.05.
  • A signed USD 100 million fiber supply contract for 2027 lifts the data center business to roughly USD 275 million.

Belden Inc. (NYSE:BDC) reported record third quarter 2026 revenue of USD 965.95 million, up 38% from USD 698.2 million and above a consensus estimate of USD 961.91 million, with organic growth of 11%. Adjusted EPS of USD 2.26 equaled the consensus estimate and rose 15% from USD 1.97. On a GAAP basis the company posted a net loss of USD 11.4 million, or USD 0.29 per diluted share, versus income of USD 1.41 a year earlier, as the July 1 purchase of RUCKUS Networks added intangible amortization, inventory step up charges and interest cost.

RUCKUS Effects on Margins and the GAAP Result

Acquisitions contributed USD 167.8 million of revenue, higher volume and pricing added USD 74.0 million, and copper pass-through pricing added USD 27.2 million. Adjusted gross profit was USD 401 million with a margin of 41.5%, up 330 basis points, and adjusted EBITDA rose 44% to USD 171 million at a 17.7% margin. On a GAAP basis, operating income fell to USD 16.8 million from USD 76.3 million. Amortization of intangibles climbed to USD 54.8 million, a USD 56.3 million non-cash inventory fair value adjustment hit cost of sales, and net interest expense reached USD 41.8 million versus USD 11.6 million. RUCKUS was bought for USD 1,869.6 million, net of cash acquired, funded by a USD 1,850.0 million term loan.

RUCKUS revenue was USD 168 million, down 6%, because component shortages delayed shipments, even though its orders rose 10% with a book to bill ratio of 1.09. Its adjusted EBITDA margin was about 20%. Chief Executive Officer Ashish Chand described the shortfall as a near term supply problem rather than a change in long term demand, with management securing alternate sources and substituting products.

Fourth Quarter Guidance and Deleveraging Path

For the fourth quarter the company guided to revenue of USD 960 to 980 million, GAAP EPS of USD 0.24 to 0.39 and adjusted EPS of USD 2.20 to 2.35. The guidance assumes interest expense of about USD 44.3 million and a tax rate of 17.2%. The chief financial officer said the full year adjusted EPS range implied by that guidance represents growth of 14% to 16%.

Net leverage ended the quarter at 3.9 times. Management targets about 3.6 times by year end, 2.9 times or lower by the end of 2027 and 1.5 times by the end of 2029, driven by free cash flow. Third quarter free cash flow was USD 82 million, trailing twelve month free cash flow was USD 229 million, and the company held USD 381 million in cash. The CFO said roughly USD 500 million of free cash flow is targeted over the first 18 months of owning RUCKUS.

Data Points to Follow Into 2027

The market categories offer several markers. Automation and Smart Buildings orders each rose about 30%, and both delivered double digit organic revenue growth. The new fiber contract supplies USD 100 million in 2027 and is not included in the record orders figure. Data center revenue is targeted at about USD 275 million in 2027 versus the USD 175 million run rate announced earlier, with roughly two thirds in white space. Other items to follow are the net leverage path from 3.9 times, RUCKUS component supply through the fourth quarter, and the quarterly dividend of USD 0.05 per share.