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Bel Announces Expected Impairment Charge Related to Innolectric Investment
WEST ORANGE, N.J., Dec. 03, 2025 (GLOBE NEWSWIRE) -- Bel Fuse Inc. (Nasdaq: BELFA and BELFB) (“Bel” or “the Company”), a leading global manufacturer of
About this update from Bel Fuse Inc.
[{"type":"text","content":"WEST ORANGE, N.J., Dec. 03, 2025 (GLOBE NEWSWIRE) -- Bel Fuse Inc. (Nasdaq: BELFA and BELFB) (“Bel” or “the Company”), a leading global manufacturer of products that power, protect and connect electronic circuits, today announced an anticipated impairment charge related to its noncontrolling minority investment in innolectric AG (“Innolectric”), a Germany-based e-Mobility technology company.As previously disclosed, Bel acquired a noncontrolling one-third (1/3) minority stake in Innolectric in February 2023, as a rising leader in the eMobility market driven by its innovative power products, strong intellectual property portfolio, and talented engineering team. Despite these strengths, factors including the exit of certain companies from the market, the softening of government incentives, and persistent weakness in the global electric vehicle (EV) sector have delayed high-volume sales and resulted in continued operating losses for Innolectric over the past two years. With challenges expected to persist heading into 2026 for Innolectric, Bel was informed by Innolectric’s controlling majority owner that it would be unable to provide its pro-rata share of future funding. Bel also lacked interest in acquiring the remaining stake in Innolectric from the controlling majority owner. Subsequently, Bel was advised that on November 26, 2025, insolvency proceedings were initiated pursuant to an application submitted within the German legal system with respect to Innolectric. As Innolectric’s insolvency process unfolds, Bel expects to record a pre-tax impairment charge of up to approximately $14 million in the fourth quarter of 2025, based on currently available information and estimates and reflecting the full potential loss associated with the investment, including the outstanding balance of notes receivable representing incremental loans previously extended by Bel to Innolectric to fund working capital needs and business development. The final amount of the impairment charge will be determined as Innolectric’s insolvency process progresses and Bel’s analysis is completed. Bel recorded losses related to its noncontrolling minority interest in Innolectric of $0.4 million during the nine months ended September 30, 2025, and $0.6 million during the year ended December 31, 2024. Following the anticipated write-down, the Company expects Innolect...