BELDEN INC. 10-Q

Item 1. Financial Statements BELDEN INC. CONDENSED CONSOLIDATED BALANCE SHEETS June 28, 2026 December 31, 2025 (Unaudited) (In thousands) ASSETS Current assets: Cash and cash equivalents $ 348,655 $ 389,887 Receivables, net 534,159 462,845 Inventories, net 420,591 402,345 Other current assets 90,436 94,303 Total current assets 1,393,841 1,349,380 Property, plant and equipment, less accumulated depreciation 583,710 566,020 Operating lease right-of-use assets 102,580 113,033 Goodwill 1,030,000 1,036,821 Intangible assets, less accumulated amortization 380,942 399,799 Deferred income taxes 13,380 14,512 Other long-lived assets 62,903 64,056 $ 3,567,356 $ 3,543,621 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Accounts payable $ 359,189 $ 361,432 Accrued liabilities 293,597 336,067 Total current liabilities 652,786 697,499 Long-term debt 1,230,566 1,285,666 Postretirement benefits 61,938 63,598 Deferred income taxes 115,160 98,060 Long-term operating lease liabilities 88,662 94,372 Other long-term liabilities 33,690 40,002 Stockholders’ equity: Common stock 503 503 Additional paid-in capital 871,183 867,457 Retained earnings 1,521,208 1,405,572 Accumulated other comprehensive loss ( 71,184 ) ( 97,204 ) Treasury stock ( 937,156 ) ( 911,904 ) Total stockholders’ equity 1,384,554 1,264,424 $ 3,567,356 $ 3,543,621 The accompanying notes are an integral part of these Condensed Consolidated Financial Statements. -1- BELDEN INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (Unaudited) Three Months Ended Six Months Ended June 28, 2026 June 29, 2025 June 28, 2026 June 29, 2025 (In thousands, except per share data) Revenues $ 750,157 $ 671,992 $ 1,446,532 $ 1,296,853 Cost of sales ( 456,533 ) ( 413,424 ) ( 894,820 ) ( 792,445 ) Gross profit 293,624 258,568 551,712 504,408 Selling, general and administrative expenses ( 147,827 ) ( 131,922 ) ( 286,479 ) ( 263,444 ) Research and development expenses ( 31,714 ) ( 33,940 ) ( 61,803 ) ( 62,357 ) Amortization of intangibles ( 14,823 ) ( 13,470 ) ( 26,211 ) ( 26,745 ) Operating income 99,260 79,236 177,219 151,862 Interest expense, net ( 13,599 ) ( 12,200 ) ( 27,058 ) ( 22,304 ) Non-operating pension cost ( 456 ) ( 364 ) ( 912 ) ( 805 ) Loss on debt extinguishment — — ( 1,273 ) — Income before taxes 85,205 66,672 147,976 128,753 Income tax expense ( 16,669 ) ( 5,666 ) ( 28,413 ) ( 15,810 ) Net income $ 68,536 $ 61,006 $ 119,563 $ 112,943 Weighted average number of common shares and equivalents: Basic 38,957 39,511 38,887 39,835 Diluted 39,283 40,002 39,338 40,418 Basic income per share $ 1.76 $ 1.54 $ 3.07 $ 2.84 Diluted income per share $ 1.74 $ 1.53 $ 3.04 $ 2.79 Comprehensive income $ 93,067 $ 21,110 $ 145,583 $ 35,897 Common stock dividends declared per share $ 0.05 $ 0.05 $ 0.10 $ 0.10 The accompanying notes are an integral part of these Condensed Consolidated Financial Statements. -2- BELDEN INC. CONDENSED CONSOLIDATED CASH FLOW STATEMENTS (Unaudited) Six Months Ended June 28, 2026 June 29, 2025 (In thousands) Cash flows from operating activities: Net income $ 119,563 $ 112,943 Adjustments to reconcile net income to net cash from operating activities: Depreciation and amortization 68,551 61,851 Share-based compensation 18,203 14,603 Loss on debt extinguishment 1,273 — Changes in operating assets and liabilities, net of the effects of currency exchange rate changes, acquired businesses and disposals: Receivables ( 76,348 ) ( 31,773 ) Inventories ( 21,327 ) ( 35,758 ) Accounts payable 11,193 ( 23,462 ) Accrued liabilities ( 22,948 ) ( 14,314 ) Income taxes 4,627 ( 4,355 ) Other assets ( 3,283 ) ( 3,674 ) Other liabilities 11,054 13,409 Net cash provided by operating activities 110,558 89,470 Cash flows from investing activities: Capital expenditures ( 85,054 ) ( 57,353 ) Proceeds from disposal of tangible assets 8 115 Cash from business acquisitions — 7,918 Net cash used for investing activities ( 85,046 ) ( 49,320 ) Cash flows from financing activities: Payments under borrowing arrangements ( 535,860 ) ( 50,000 ) Payments under share repurchase program, including excise tax ( 31,806 ) ( 100,967 ) Withholding tax payments for share-based payment awards ( 18,532 ) ( 14,157 ) Debt issuance costs paid ( 14,550 ) — Cash dividends paid ( 3,921 ) ( 4,024 ) Payments under financing lease obligations ( 990 ) ( 878 ) Proceeds from issuance of common stock 4,696 3,818 Borrowings under credit arrangements 537,255 50,000 Net cash used for financing activities ( 63,708 ) ( 116,208 ) Effect of foreign currency exchange rate changes on cash and cash equivalents ( 3,036 ) 7,242 Decrease in cash and cash equivalents ( 41,232 ) ( 68,816 ) Cash and cash equivalents, beginning of period 389,887 370,302 Cash and cash equivalents, end of period $ 348,655 $ 301,486 The accompanying notes are an integral part of these Condensed Consolidated Financial Statements. -3- BELDEN INC. CONDENSED CONSOLIDATED STOCKHOLDERS’ EQUITY STATEMENTS (Unaudited) Additional Accumulated Other Common Stock Paid-In Retained Treasury Stock Comprehensive Shares Amount Capital Earnings Shares Amount Income (Loss) Total (In thousands) Balance at December 31, 2025 50,335 $ 503 $ 867,457 $ 1,405,572 ( 11,388 ) $ ( 911,904 ) $ ( 97,204 ) $ 1,264,424 Net income — — — 51,027 — — — 51,027 Other comprehensive income, net of tax — — — — — — 1,489 1,489 Common stock issuance — — 2,999 — 47 1,697 — 4,696 Retirement Savings Plan stock contributions — — 1,235 — 18 1,010 — 2,245 Exercise of stock options, net of tax withholding forfeitures — — ( 414 ) — 5 91 — ( 323 ) Conversion of restricted stock units into common stock, net of tax withholding forfeitures — — ( 17,718 ) — 179 341 — ( 17,377 ) Share repurchase including excise tax — — — — ( 260 ) ( 30,381 ) — ( 30,381 ) Share-based compensation — — 9,161 — — — — 9,161 Common stock dividends ($ 0.05 per share) — — — ( 1,960 ) — — — ( 1,960 ) Balance at March 29, 2026 50,335 $ 503 $ 862,720 $ 1,454,639 ( 11,399 ) $ ( 939,146 ) $ ( 95,715 ) $ 1,283,001 Net income — — — 68,536 — — — 68,536 Other comprehensive income, net of tax — — — — — — 24,531 24,531 Retirement Savings Plan stock contributions — — 1,098 — 19 1,145 — 2,243 Exercise of stock options, net of tax withholding forfeitures — — ( 28 ) — — 9 — ( 19 ) Conversion of restricted stock units into common stock, net of tax withholding forfeitures — — ( 1,649 ) — 21 836 — ( 813 ) Share-based compensation — — 9,042 — — — — 9,042 Common stock dividends ($ 0.05 per share) — — — ( 1,967 ) — — — ( 1,967 ) Balance at June 28, 2026 50,335 $ 503 $ 871,183 $ 1,521,208 ( 11,359 ) $ ( 937,156 ) $ ( 71,184 ) $ 1,384,554 -4- Additional Accumulated Other Common Stock Paid-In Retained Treasury Stock Comprehensive Shares Amount Capital Earnings Shares Amount Loss Total (In thousands) Balance at December 31, 2024 50,335 $ 503 $ 839,755 $ 1,176,036 ( 10,124 ) $ ( 718,026 ) $ ( 3,532 ) $ 1,294,736 Net income — — — 51,937 — — — 51,937 Other comprehensive loss, net of tax — — — — — — ( 37,150 ) ( 37,150 ) Common stock issuance — — 2,083 — 48 1,735 — 3,818 Retirement Savings Plan stock contributions — — 1,454 — 20 705 — 2,159 Exercise of stock options, net of tax withholding forfeitures — — ( 445 ) — 6 ( 198 ) — ( 643 ) Conversion of restricted stock units into common stock, net of tax withholding forfeitures — — ( 10,058 ) — 162 ( 2,970 ) — ( 13,028 ) Share repurchase including excise tax — — — — ( 810 ) ( 85,074 ) — ( 85,074 ) Share-based compensation — — 7,776 — — — — 7,776 Common stock dividends ($ 0.05 per share) — — — ( 2,024 ) — — — ( 2,024 ) Balance at March 30, 2025 50,335 $ 503 $ 840,565 $ 1,225,949 ( 10,698 ) $ ( 803,828 ) $ ( 40,682 ) $ 1,222,507 Net income — — — 61,006 — — — 61,006 Other comprehensive loss, net of tax — — — — — — ( 39,896 ) ( 39,896 ) Retirement Savings Plan stock contributions — — 1,391 — 21 737 — 2,128 Exercise of stock options, net of tax withholding forfeitures — — ( 272 ) — 5 ( 1 ) — ( 273 ) Conversion of restricted stock units into common stock, net of tax withholding forfeitures — — ( 779 ) — 20 566 — ( 213 ) Share repurchase including excise tax — — — — ( 153 ) ( 15,616 ) — ( 15,616 ) Share-based compensation — — 6,827 — — — — 6,827 Common stock dividends ($ 0.05 per share) — — — ( 1,995 ) — — — ( 1,995 ) Balance at June 29, 2025 50,335 $ 503 $ 847,732 $ 1,284,960 ( 10,805 ) $ ( 818,142 ) $ ( 80,578 ) $ 1,234,475 The accompanying notes are an integral part of these Condensed Consolidated Financial Statements. -5- BELDEN INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) Note 1: Summary of Significant Accounting Policies Basis of Presentation The accompanying Condensed Consolidated Financial Statements include Belden Inc. and all of its subsidiaries (the Company, us, we, or our). We eliminate all significant affiliate accounts and transactions in consolidation. The accompanying Condensed Consolidated Financial Statements presented as of any date other than December 31, 2025: • Are prepared from the books and records without audit, and • Are prepared in accordance with the instructions for Form 10-Q and do not include all of the information required by accounting principles generally accepted in the United States for complete statements, but • Include all adjustments, consisting only of normal recurring adjustments, necessary for a fair presentation of the financial statements. These Condensed Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements and Supplementary Data contained in our 2025 Annual Report on Form 10-K. Business Description Belden is a leading global supplier of complete connection solutions that unlock untold possibilities for our customers, their customers and the world. We advance ideas and technologies that enable a safer, smarter and more prosperous future. Throughout our 120-plus year history we have evolved as a company, but making connections remains our purpose. We sell our products to distributors, end-users, installers, and directly to original equipment manufacturers (OEMs). We have manufacturing and other operating facilities in the U.S., Canada, China, India, Mexico, Tunisia, and various countries in Europe. Effective January 1, 2026, we realigned our organizational structure, moving to a unified functional operating model designed to accelerate our solutions-first strategy, enhance operational agility, and capitalize on the increasing convergence of IT and OT. As a result of this organizational structure realignment, we are now a single reportable segment entity that is managed on a consolidated basis. Our chief operating decision maker is our President and Chief Executive Officer. He regularly reviews operating results and allocates resources on a consolidated basis. This new organizational structure enables us to drive our solutions transformation within key verticals, leveraging our combined offerings to solve customers' most pressing problems. Reporting Periods Our fiscal year and fiscal fourth quarter both end on December 31. Our fiscal first quarter ends on the Sunday falling closest to 91 days after December 31, which was March 29, 2026, the 88th day of our fiscal year 2026. Our fiscal second and third quarters each have 91 days. The six months ended June 28, 2026 and June 29, 2025 included 179 and 180 days, respectively. Fair Value Measurement Accounting guidance for fair value measurements specifies a hierarchy of valuation techniques based upon whether the inputs to those valuation techniques reflect assumptions other market participants would use based upon market data obtained from independent sources or reflect our own assumptions of market participant valuation. The hierarchy is broken down into three levels based on the reliability of the inputs as follows: • Level 1 – Quoted prices in active markets that are unadjusted and accessible at the measurement date for identical, unrestricted assets or liabilities; • Level 2 – Quoted prices for identical assets and liabilities in markets that are not active, quoted prices for similar assets and liabilities in active markets, or financial instruments for which significant inputs are observable, either directly or indirectly; and • Level 3 – Prices or valuations that require inputs that are both significant to the fair value measurement and unobservable. As of and during the three and six months ended June 28, 2026 and June 29, 2025, we utilized Level 1 inputs to determine the fair value of cash equivalents. We did not have any transfers between Level 1 and Level 2 fair value measurements during the three or six months ended June 28, 2026 and June 29, 2025. -6- Cash and Cash Equivalents We classify cash on hand and deposits in banks, including commercial paper, money market accounts, and other investments with an original maturity of three months or less, that we hold from time to time, as cash and cash equivalents. We periodically have cash equivalents consisting of short-term money market funds and other investments. As of June 28, 2026, we did not have any such cash equivalents on hand. The primary objective of our investment activities is to preserve our capital for the purpose of funding operations. We do not enter into investments for trading or speculative purposes. Contingent Liabilities We have established liabilities for environmental and legal contingencies that are probable of occurrence and reasonably estimable, the amounts of which are currently not material. We accrue environmental remediation costs based on estimates of known environmental remediation exposures developed in consultation with our environmental consultants and legal counsel. We are, from time to time, subject to routine litigation incidental to our business. Historically, these lawsuits have primarily involved claims for damages arising out of the use of our products, allegations of patent or trademark infringement, and litigation and administrative proceedings involving employment matters and commercial disputes. Based on facts currently available, we believe the disposition of the claims that are pending or asserted will not have a material adverse effect on our financial position, results of operations, or cash flow. As of June 28, 2026, we were party to standby letters of credit, surety bonds, and bank guaranties totaling $ 17.5 million, $ 15.3 million, and $ 4.7 million, respectively. Revenue Recognition We recognize revenue consistent with the principles as outlined in the following five step model: (1) identify the contract with the customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract, and (5) recognize revenue when (or as) each performance obligation is satisfied. See Note 2. Subsequent Events We evaluated subsequent events after the balance sheet date through the financial statement issuance date for appropriate accounting and disclosure. See Note 14. Current Year Adoption of Accounting Pronouncements None of the accounting pronouncements that became effective during 2026 had a material impact to our condensed consolidated financial statements or disclosures. Pending Adoption of Recent Accounting Pronouncements In November 2024, the FASB issued guidance to improve the disclosure of expenses in commonly presented expense captions. The new guidance requires a public entity to provide tabular disclosure, on an annual and interim basis, of amounts for the following expense categories: (1) purchases of inventory, (2) employee compensation, (3) depreciation and (4) intangible asset amortization, as included in each relevant expense caption. A relevant expense caption is an expense caption presented on the face of the income statement that contains any of the expense categories noted. Additionally, on an annual and interim basis, a qualitative description is required for amounts remaining in relevant expense captions that are not separately disaggregated quantitatively. The guidance also requires certain amounts that are currently required to be disclosed to be included in the same tabular disclosure as these disaggregation requirements. Furthermore, on an annual and interim basis, a public entity is required to separately disclose selling expenses and annually, disclose a description of the selling expenses. The guidance is effective for 2027 annual reporting, and in the first quarter of 2028 for interim reporting, with early adoption permitted, to be applied on a prospective basis, with retrospective application permitted. We will adopt the guidance when it becomes effective, in our 2027 annual reporting and each quarter thereafter, on a prospective basis. In September 2025, the FASB issued ASU 2025-06, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software, which modernizes the accounting for internal-use software. ASU 2025-06 removes all references to software development stages and requires capitalization of software costs when management has committed to the software project and it is probable the software will be completed and perform its intended use. ASU 2025-06 is effective for annual periods beginning after December 15, 2027, with early adoption permitted. We are currently evaluating the timing and method of adoption of ASU 2025-06. -7- Note 2: Revenues Revenues are recognized when control of the promised goods or services is transferred to our customers and in an amount that reflects the consideration we expect to be entitled to in exchange for those goods or services. Taxes collected from customers and remitted to governmental authorities are not included in our revenues. The following tables present our revenues disaggregated by market. Three Months Ended Six Months Ended June 28, 2026 June 29, 2025 June 28, 2026 June 29, 2025 (In thousands) Automation $ 436,766 $ 365,973 $ 823,775 $ 716,784 Broadband 157,034 155,385 312,317 302,032 Smart Buildings 156,357 150,634 310,440 278,037 Total Revenues $ 750,157 $ 671,992 $ 1,446,532 $ 1,296,853 The following tables present our revenues disaggregated by geography, based on the location of the customer purchasing the product. Three Months Ended Six Months Ended June 28, 2026 June 29, 2025 June 28, 2026 June 29, 2025 (In thousands) Americas $ 490,650 $ 448,611 $ 963,383 $ 876,842 EMEA 154,815 135,907 297,767 261,009 APAC 104,692 87,474 185,382 159,002 Total Revenues $ 750,157 $ 671,992 $ 1,446,532 $ 1,296,853 We generate revenues primarily by selling products and delivering solutions that make the digital journey simpler, smarter, and secure. Most of our performance obligations related to the sale of products are satisfied at a point in time when control of the product is transferred to the customer, which generally occurs when the product has been shipped or delivered from our facility to our customers, the customer has legal title to the product, and we have a present right to payment for the product. We also consider any customer acceptance clauses in determining when control has transferred to the customer and typically, these clauses are not substantive. We also generate revenues from providing support and professional services. We sell our products to distributors, end-users, installers, and directly to OEMs. At times, we enter into arrangements that involve the delivery of multiple performance obligations. For these arrangements, revenue is allocated to each performance obligation based on its relative standalone selling price and recognized when or as each performance obligation is satisfied. Generally, we determine relative standalone selling price using the prices charged separately to customers on a standalone basis. Typically, payments are due after control transfers. The amount of consideration we receive and revenue we recognize varies due to rebates, returns, and price adjustments. We estimate the expected rebates, returns, and price adjustments based on an analysis of historical experience, anticipated sales demand, and trends in product pricing. For example, our estimate of price adjustments is based on our historical price adjustments as a percentage of revenues and the average time between the original sale and the issuance of the price adjustment. We adjust our estimate of revenue for variable consideration at the earlier of when the most likely amount of consideration we expect to receive changes or when the consideration becomes fixed. We adjust other current assets and cost of sales for the estimated level of returns. Adjustments to revenue for performance obligations satisfied in prior periods were not significant during the three and six months ended June 28, 2026 and June 29, 2025 . -8- The following table presents estimated and accrued variable consideration: June 28, 2026 December 31, 2025 (in thousands) Accrued rebates included in accrued liabilities $ 52,580 $ 76,789 Accrued returns included in accrued liabilities 15,771 11,892 Price adjustments recognized against gross accounts receivable 35,627 33,258 Depending on the terms of an arrangement, we may defer the recognition of a portion of the consideration received because we have to satisfy a future performance obligation. Consideration allocated to support services under a support and maintenance contract is typically paid in advance and recognized ratably over the term of the service. Consideration allocated to professional services is recognized wh en or as the services are performed depending on the terms of the arrangement. Our contract terms for support, maintenance, and professional services typically require payment within one year or less of when the services will be provided. As of June 28, 2026, total deferred revenue was $ 42.6 million, and of this amount, $ 34.9 million is expected to be recognized within the next twelve months, and the remaining $ 7.7 million is long- term and is expected to be recognized over a period greater than twelve months. The following table presents deferred revenue activity during the three and six months ended June 28, 2026 and June 29, 2025, respectively: 2026 2025 (In thousands) Beginning balance at January 1 $ 49,728 $ 40,128 New deferrals 19,030 13,735 Revenue recognized ( 27,267 ) ( 10,420 ) Balance at the end of Q1 $ 41,491 $ 43,443 New deferrals 16,889 16,225 Revenue recognized ( 15,787 ) ( 14,062 ) Balance at the end of Q2 $ 42,593 $ 45,606 Service-type wa rranties represent $ 16.3 million of the deferred revenue balance at June 28, 2026, and of this amount $ 11.1 million is expected to be recognized in the next twelve months, and the remaining $ 5.2 million is long-term and will be recognized over a period greater than twelve months. As of June 28, 2026 and December 31, 2025, we did not have any material contract assets recorded in the Condensed Consolidated Balance Sheets. We expense sales commissions as incurred when the duration of the related revenue arrangement is one year or less. We capitalize sales commissions when the original duration of the related revenue arrangement is longer than one year, and we amortize it over the related revenue arrangement period. Capitalized sales commissions as of June 28, 2026 and December 31, 2025 were not material. The following table presents sales commissions that are recorded within selling, general and administrative expenses: Three Months Ended Six Months Ended June 28, 2026 June 29, 2025 June 28, 2026 June 29, 2025 (In thousands) Sales commissions $ 8,156 $ 7,367 $ 13,906 $ 13,353 -9- Note 3: Income per Share The following table presents the basis for the income per share computations: Three Months Ended Six Months Ended June 28, 2026 June 29, 2025 June 28, 2026 June 29, 2025 (In thousands) Numerator: Net income $ 68,536 $ 61,006 $ 119,563 $ 112,943 Denominator: Weighted average shares outstanding, basic 38,957 39,511 38,887 39,835 Effect of dilutive common stock equivalents 326 491 451 583 Weighted average shares outstanding, diluted 39,283 40,002 39,338 40,418 For each of the three and six months ended June 28, 2026 and June 29, 2025, diluted weighted average shares outstanding did not include outstanding equity awards of 0.1 million because they were anti-dilutive. In addition, for the three months ended June 28, 2026 and June 29, 2025, diluted weighted average shares outstanding do not include outstanding equity awards of 0.3 million and 0.2 million because the related performance conditions have not been satisfied. F or both the six months ended June 28, 2026 and June 29, 2025 , diluted weighted average shares outstanding do not include outstanding equity awards of 0.3 million because the related performance conditions have not been satisfied. For purposes of calculating basic earnings per share, unvested restricted stock units are not included in the calculation of basic weighted average shares outstanding until all necessary conditions have been satisfied and issuance of the shares underlying the restricted stock units is no longer contingent. Necessary conditions are not satisfied until the vesting date, at which time holders of our restricted stock units receive shares of our common stock. For purposes of calculating diluted earnings per share, unvested restricted stock units are included to the extent that they are dilutive. In determining whether unvested restricted stock units are dilutive, each issuance of restricted stock units is considered separately. Once a restricted stock unit has vested, it is included in the calculation of both basic and diluted weighted average shares outstanding. Note 4: Credit Losses We are exposed to credit losses primarily through sales of products and services. Our expected loss allowance methodology for accounts receivable is developed using historical collection experience, current economic and market conditions and a review of the current status of customers' trade accounts receivables. Due to the short-term nature of such receivables, the estimated amount of accounts receivable that may not be collected is based on aging of the accounts receivable balances and the financial condition of customers. Additionally, specific allowance amounts are established to record the appropriate provision for customers that have a higher probability of default. Our monitoring activities include timely account reconciliation, dispute resolution, payment confirmation, consideration of customers' financial condition and macroeconomic conditions. Balances are written off when determined to be uncollectible. Provisions and recoveries are included in selling, general and administrative expenses. -10- The following table presents the activity in the trade receivables allowance for doubtful accounts for the three and six months ended June 28, 2026 and June 29, 2025, respectively: 2026 2025 (In thousands) Beginning balance at January 1 $ 24,500 $ 25,257 Current period provision 838 72 Fx impact 91 143 Recoveries collected ( 40 ) ( 146 ) Write-offs ( 8,416 ) ( 674 ) Q1 ending balance $ 16,973 $ 24,652 Current period provision 1,018 373 Fx impact ( 87 ) 219 Recoveries collected ( 58 ) ( 19 ) Write-offs — ( 106 ) Q2 ending balance $ 17,846 $ 25,119 Write-offs were primarily due to deterioration of certain customers' financial condition such that we determined the previously reserved balances to be uncollectible. Note 5: Inventories The following table presents the major classes of inventories as of June 28, 2026 and December 31, 2025 , respectively: June 28, 2026 December 31, 2025 (In thousands) Raw materials $ 235,552 $ 238,417 Work-in-process 53,682 46,721 Finished goods 203,665 191,302 Gross inventories 492,899 476,440 Excess and obsolete reserves ( 72,308 ) ( 74,095 ) Net inventories $ 420,591 $ 402,345 Note 6: Leases We have operating and finance leases for properties, including manufacturing facilities, warehouses, and office space; as well as vehicles and equipment. We make certain judgments in determining whether a contract contains a lease in accordance with ASU 2016-02. Our leases have remaining lease terms within 1 to 19 years; some of which include extension and termination options. We do not assume renewals in our determination of the lease term unless the renewals are deemed to be reasonably certain as of the commencement date of the lease. We have a few short-term operating leases with terms less than twelve months - these leases are not recorded on our balance sheet and the overall rent expense is not material. We also have certain lease contracts that contain both lease and non-lease components. We have elected the practical expedient to account for these components together as a single, combined lease component. T he rate implicit in most of our leases is not readily determinable. As a result, we utilize the incremental borrowing rate to determine the present value of the lease payments, which is unique to each leased asset, and is based upon the term of the lease, commencement date of the lease, local currency of the leased asset, and the credit rating of the legal entity leasing the asset. Our lease agreements do not contain material residual value guarantees. Our variable lease expense was approximately $ 0.6 million and $ 0.8 million for the three months ended June 28, 2026 and June 29, 2025, respectively, and $ 1.4 million and $ 1.6 million for the six months ended June 28, 2026 and June 29, 2025, respectively. -11- The components of lease expense were as follows: Three Months Ended Six Months Ended June 28, 2026 June 29, 2025 June 28, 2026 June 29, 2025 (In thousands) Operating lease cost $ 7,183 $ 7,288 $ 14,363 $ 14,170 Finance lease cost Amortization of right-of-use asset $ 423 $ 436 $ 848 $ 903 Interest on lease liabilities 111 191 239 204 Total finance lease cost $ 534 $ 627 $ 1,087 $ 1,107 Supplemental cash flow information related to leases was as follows: Three Months Ended Six Months Ended June 28, 2026 June 29, 2025 June 28, 2026 June 29, 2025 (In thousands) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 5,553 $ 5,400 $ 10,996 $ 10,430 Operating cash flows from finance leases were not material during the three and six months ended June 28, 2026 and June 29, 2025 . Supplemental balance sheet information related to leases was as follows: June 28, 2026 December 31, 2025 (In thousands) Operating leases: Total operating lease right-of-use assets $ 102,580 $ 113,033 Accrued liabilities $ 15,852 $ 20,159 Long-term operating lease liabilities 88,662 94,372 Total operating lease liabilities $ 104,514 $ 114,531 Finance leases: Other long-lived assets, at cost $ 13,548 $ 13,565 Accumulated depreciation ( 4,842 ) ( 4,014 ) Other long-lived assets, net $ 8,706 $ 9,551 Accrued liabilities $ 1,983 $ 1,987 Other long-term liabilities 6,909 7,914 Total finance lease liabilities $ 8,892 $ 9,901 -12- June 28, 2026 December 31, 2025 Weighted Average Remaining Lease Term Operating leases 10 years 10 years Finance leases 5 years 5 years Weighted Average Discount Rate Operating leases 6.1 % 6.1 % Finance leases 4.8 % 4.9 % In addition, we guaranteed the lease payments for certain property leases of a former subsidiary that were retained by Belden and not transferred to the buyer of the former subsidiary. During the three months ended June 28, 2026, we signed an agreement to terminate one of our guarantees for GBP 7.2 million ($ 9.7 million) paid over three separate installments, the first of which for GBP 2.4 million ($ 3.2 million) was paid during the quarter. As of June 28, 2026 and December 31, 2025, we had a liability for all lease guarantees of $ 9.6 million and $ 10.7 million, respectively. The liability is based on certain assumptions that we continually reassess on an ongoing basis. We will update the estimated liability balance for changes in assumptions as needed. Note 7: Long-Lived Assets Depreciation and Amortization Expense We recognized depreciation expense of $ 17.8 million and $ 15.7 million in the three months ended June 28, 2026 and June 29, 2025, respectively. We recognized depreciation expense of $ 35.5 million and $ 29.6 million in the six months ended June 28, 2026 and June 29, 2025, respectively. We recognized amortization expense of $ 18.3 million and $ 16.4 million in the three months ended June 28, 2026 and June 29, 2025, respectively. We recognized amortization expense of $ 33.1 million and $ 32.3 million in the six months ended June 28, 2026 and June 29, 2025, respectively. Note 8: Long-Term Debt and Other Borrowing Arrangements The carrying values of our long-term debt were as follows: June 28, 2026 December 31, 2025 (In thousands) Revolving credit agreement due 2030 $ — $ — Senior subordinated notes: 3.375 % Senior subordinated notes due 2027 — 528,525 3.875 % Senior subordinated notes due 2028 397,250 411,075 3.375 % Senior subordinated notes due 2031 340,500 352,350 4.250 % Senior subordinated notes due 2033 510,750 — Total senior subordinated notes 1,248,500 1,291,950 Less unamortized debt issuance costs ( 17,934 ) ( 6,284 ) Long-term debt $ 1,230,566 $ 1,285,666 Revolving Credit Agreement due 2030 On July 18, 2025, we refinanced our revolving credit facility (the Revolver) extending the maturity date to July 18, 2030 and increasing the borrowing capacity from $ 300.0 million to $ 400.0 million. The borrowing base under the Revolver includes eligible accounts receivable; inventory; and property, plant and equipment of certain of our subsidiaries in the United States, Belgium, Canada, Germany, the Netherlands, and United Kingdom. Interest on outstanding borrowings is variable, based upon SOFR or other similar indices in foreign jurisdictions, plus a spread that ranges from 1.25 % - 1.75 %, depending upon our leverage position. Outstanding borrowings in the U.S. and Canada may also, at our election, be priced on a base rate plus a spread that ranges from 0.25 % - 0.75 %, depending on our leverage position. We pay a commitment fee on the total commitments of 0.25 %. In the event that we borrow more than 90 % of our combined borrowing base or our borrowing base availability is less than $ 27.0 million, we are subject to a fixed charge coverage ratio covenant. As of June 28, 2026, we had no borrowings outstanding on the Revolver, and our available borrowing capacity was $ 369.6 million. On June 29, 2026, we borrowed $ 50.0 million on our Revolver at a current rate of 4.9 %. See Note 14. -13- Senior Subordinated Notes We had outstanding € 450.0 million aggregate principal amount of 3.375 % senior subordinated notes due 2027 (the 2027 Notes). In February 2026, we repurchased the 2027 Notes for cash consideration of € 450.0 million ($ 535.9 million), and recognized a $ 1.3 million loss on debt extinguishment for the write-off of unamortized debt issuance costs. We have outstanding € 350.0 million aggregate principal amount of 3.875 % senior subordinated notes due 2028 (the 2028 Notes). The carrying value of the 2028 Notes as of June 28, 2026 is $ 397.3 million. The 2028 Notes are guaranteed on a senior subordinated basis by our current and future domestic subsidiaries. The 2028 Notes rank equal in right of payment with our senior subordinated notes due 2031 and 2033 and with any future subordinated debt, and they are subordinated to all of our senior debt and the senior debt of our subsidiary guarantors, including our Revolver. Interest is payable semiannually on March 15 and September 15 of each year. We have outstanding € 300.0 million aggregate principal amount of 3.375 % senior subordinated notes due 2031 (the 2031 Notes). The carrying value of the 2031 Notes as of June 28, 2026 is $ 340.5 million. The 2031 Notes are guaranteed on a senior subordinated basis by our current and future domestic subsidiaries. The 2031 Notes rank equal in right of payment with our senior subordinated notes due 2028 and 2033 and with any future subordinated debt, and they are subordinated to all of our senior debt and the senior debt of our subsidiary guarantor s, including our Revolver. Interest is payable semiannually on January 15 and July 15 of each year. In January 2026, we completed an offering for € 450.0 million ($ 537.3 million at issuance) aggregate principal amount of 4.250 % senior subordinated notes due 2033 (the 2033 Notes). The carrying value of the 2033 Notes as of June 28, 2026 is $ 510.8 million. The 2033 Notes are guaranteed on a senior subordinated basis by our current and future domestic subsidiaries. The 2033 Notes rank equal in right of payment with our senior subordinated notes due 2028 and 2031 and with any future subordinated debt, and they are subordinated to all of our senior debt and the senior debt of our subsidiary guarantor s, including our Revolver. Interest is payable semiannually on February 1 and August 1 of each year, commencing August 1, 2026. We paid approximately $ 8.6 million of fees associated with the issuance of the 2033 Notes, which will be amortized over the life of the 2033 Notes using the effective interest method. We used the net proceeds from this offering, along with cash on hand, to fund the full redemption of the 2027 Notes - see further discussion above. Fair Value of Long-Term Debt The fair value of our senior subordinated notes as of June 28, 2026 was approximately $ 1,224.3 million based on quoted prices of the debt instruments in inactive markets (Level 2 valuation). This amount represents the fair value of our senior subordinated notes with a carrying value of $ 1,248.5 million as of June 28, 2026. Note 9: Net Investment Hedge All of our euro denominated notes were issued by Belden Inc., a USD functional currency entity. As of June 28, 2026, € 567.8 million o f our outstanding foreign denominated debt is designated as a net investment hedge on the foreign currency risk of our net investment in our euro foreign operations. The objective of the hedge is to protect the net investment in the foreign operation against adverse changes in the euro exchange rate. The transaction gain or loss is reported in the translation adjustment section of other comprehensive income. For the three and six months ended June 28, 2026, the transaction gain, net of tax, associated with the net investment hedge reported in other comprehensive income w as $ 10.0 million and $ 17.4 million , respectively. For the three and six months ended June 29, 2025, the transaction loss, net of tax, associated with the net investment hedge reported in other comprehensive income was $ 48.1 million and $ 73.0 million, respectively. Note 10: Income Taxes For the three and six months ended June 28, 2026, we recognized income tax expense of $ 16.7 million and $ 28.4 million representing effective tax rates of 19.6 % and 19.2 %, respectively . The effective tax rates were primarily impacted by the effect of our foreign operations, including statutory tax rate differences and foreign tax credits. On July 4, 2025, the One Big Beautiful Bill Act (OBBBA) was enacted, which includes international tax changes, permanent extensions of most expiring Tax Cuts and Jobs Act provisions, and changes in the treatment of research and development and amortization expense deductions. We have included the impact of international tax changes effective from January 1, 2026 and continue to evaluate the impact of the act on our consolidated financial statements and disclosures. -14- For the three and six months ended June 29, 2025, we recognized income tax expense of $ 5.7 million and $ 15.8 million, respectively, representing effective tax rates of 8.5 % and 12.3 %, respectively. The effective tax rates were primarily impacted by the release of an uncertain tax position reserve related to certain foreign tax credits and by the effect of our foreign operations, including statutory tax rate differences and foreign tax credits. Note 11: Pension and Other Postretirement Obligations The following table provides the components of net periodic benefit costs for our pension and other postretirement benefit plans: Pension Obligations Other Postretirement Obligations June 28, 2026 June 29, 2025 June 28, 2026 June 29, 2025 (In thousands) Three Months Ended Service cost $ 804 $ 882 $ 7 $ 8 Interest cost 3,899 3,832 227 230 Expected return on plan assets ( 4,022 ) ( 3,974 ) — — Amortization of prior service cost 80 39 — — Actuarial losses (gains) 355 321 ( 83 ) ( 84 ) Net periodic benefit cost $ 1,116 $ 1,100 $ 151 $ 154 Six Months Ended Service cost $ 1,612 $ 1,644 $ 15 $ 15 Interest cost 7,808 7,600 455 453 Expected return on plan assets ( 8,053 ) ( 7,798 ) — — Amortization of prior service cost 159 76 — — Actuarial losses (gains) 710 640 ( 167 ) ( 166 ) Net periodic benefit cost $ 2,236 $ 2,162 $ 303 $ 302 Note 12: Comprehensive Income and Accumulated Other Comprehensive Income (Loss) The following table summarizes total comprehensive income: Three Months Ended Six Months Ended June 28, 2026 June 29, 2025 June 28, 2026 June 29, 2025 (In thousands) Net income $ 68,536 $ 61,006 $ 119,563 $ 112,943 Foreign currency translation adjustments, net of tax 24,260 ( 40,107 ) 25,479 ( 77,467 ) Adjustments to pension and postretirement liability, net of tax 271 211 541 421 Total comprehensive income $ 93,067 $ 21,110 $ 145,583 $ 35,897 The accumulated balances related to each component of other comprehensive loss, net of tax, are as follows: Foreign Currency Translation Component Pension and Other Postretirement Benefit Plans Accumulated Other Comprehensive Loss (In thousands) Balance at December 31, 2025 $ ( 91,808 ) $ ( 5,396 ) $ ( 97,204 ) Other comprehensive income 25,479 — 25,479 Amounts reclassified from accumulated other comprehensive loss — 541 541 Net current period other comprehensive income 25,479 541 26,020 Balance at June 28, 2026 $ ( 66,329 ) $ ( 4,855 ) $ ( 71,184 ) -15- As of June 28, 2026 and December 31, 2025, there was tax of $ 19.4 million and $ 14.1 million, respectively, included in accumulated other comprehensive loss in the table above. The following table summarizes the effects of reclassifications from accumulated other comprehensive loss for the six months ended June 28, 2026: Amounts Reclassified from Accumulated Other Comprehensive Loss Affected Line Item in the Consolidated Statements of Operations and Comprehensive Income (In thousands) Amortization of pension and other postretirement benefit plan items: Actuarial losses $ 543 (1) Prior service cost 159 (1) Total before tax 702 Tax benefit ( 161 ) Total net of tax $ 541 (1) The amortization of these accumulated other comprehensive loss components are included in the computation of net periodic benefit costs (see Note 11). Note 13: Share Repurchase We have a share repurchase program which allows us to purchase our common stock through open market repurchases, negotiated transactions, or other means, in accordance with applicable securities laws and other restrictions. This program is funded with cash on hand and cash flows from operating activities. During the three months ended June 28, 2026, we did no t repurchase shares of our common stock. During the six months ended June 28, 2026, we repurchased 0.3 million shares of our common stock for an aggregate cost of $ 30.4 million at an average price per share of $ 117.05 . During the three months ended June 29, 2025, we repurchased 0.2 million shares of our common stock for an aggregate cost of $ 15.5 million at an average price per share of $ 101.06 . During the six months ended June 29, 2025, we repurchased 1.0 million shares of our common stock for an aggregate cost of $ 100.0 million at an average price per share of $ 103.76 . As of June 28, 2026, we had $ 115.0 million of authorizations remaining under the program. This share repurchase authorization does not have an expiration date. Note 14: Subsequent Events On July 1, 2026, we acquired certain entities that comprise Ruckus Networks (“RUCKUS”) for approximately $ 1.9 billion. To fund the purchase of RUCKUS, we entered into a Term Loan Credit Facility on July 1, 2026. The Term Loan Credit Facility bears interest either, at the Company’s election, at term SOFR plus 2.25 % or a base rate plus 1.25 % per annum. The Term Loan Credit Facility amortizes 0.25 % per quarter and matures on July 1, 2033. RUCKUS, based in California, provides wireless networks for enterprises and service providers. Product offerings include indoor cellular solutions such as indoor and outdoor Wi-Fi and long-term evolution access points, access and aggregation switches; an Internet of Things suite, on-premises and cloud-based control and management systems; and software and software-as-a-service applications addressing security, location, reporting and analytics. We are in the preliminary phase of the purchase accounting process, including obtaining third party valuations of certain tangible and intangible assets acquired. As such, the purchase accounting process is incomplete and we cannot provide the estimated fair value of the assets and liabilities acquired for this business combination. We expect; however, to record a significant amount of definite-lived intangible assets and goodwill related to this acquisition. Also on June 29, 2026, we borrowed $ 50.0 million on our Revolver at a current rate of 4.9 %. See Note 8. -16-