Bel Fuse expects $14 million impairment charge on Innolectric stake

Bel Fuse Inc. (NASDAQ: BELFA, BELFB) announced it expects to record a pre-tax impairment charge of up to $14 million in the fourth quarter of 2025 related to its investment in Innolectric AG, a German e-mobility technology company.

The charge follows insolvency proceedings initiated for Innolectric on November 26, 2025, within the German legal system. Bel acquired a one-third minority stake in Innolectric in February 2023.

According to the company's statement, factors including companies exiting the electric vehicle market, reduced government incentives, and persistent weakness in the global EV sector have delayed high-volume sales for Innolectric and resulted in continued operating losses over the past two years.

Bel was informed by Innolectric's controlling majority owner that it would be unable to provide its proportional share of future funding. The company also declined to acquire the remaining stake in Innolectric from the majority owner.

The impairment charge reflects the potential full loss of Bel's investment, including outstanding notes receivable representing loans previously extended to Innolectric for working capital and business development needs. The final amount will be determined as the insolvency process progresses.

Bel previously recorded losses related to its Innolectric investment of $0.4 million during the nine months ended September 30, 2025, and $0.6 million for the year ended December 31, 2024.

The company stated that following the anticipated write-down, Innolectric's insolvency process may reduce future cash outlays previously used to fund the German company's operations.

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