Key Highlights

  • Consensus EPS of 4.97 sits within management's third-quarter adjusted EPS guidance range of 4.85 to 5.05.
  • Consensus revenue of USD 792.49 million sits within third-quarter revenue guidance of USD 780 million to USD 800 million.
  • Second-quarter net sales were USD 738.8 million, up 20.4%, and adjusted diluted EPS was 4.19, up 47%.
  • Adjusted EBITDA margin was 23.6%, up 220 basis points, and free cash flow was USD 127 million.

Littelfuse (NASDAQ:LFUS) reports third-quarter results on Wednesday, Oct. 28, before the market opens. Consensus stands at EPS of 4.97 on revenue of USD 792.49 million, and the company has a market capitalization of USD 9.25 billion.

Littelfuse makes circuit protection, power control and sensing products for the electronics, transportation and industrial markets. Second-quarter net sales were USD 738.8 million against USD 613.4 million, and net income was USD 89,405 thousand against USD 57,342 thousand.

Estimates Against Third-Quarter Guidance

Management guided third-quarter revenue of USD 780 million to USD 800 million, adjusted EPS of 4.85 to 5.05 and organic growth of 21%. The revenue estimate of USD 792.49 million sits inside that range. The EPS estimate of 4.97 sits inside the adjusted EPS range, and the estimates table does not state its EPS basis.

Second-quarter diluted EPS was 3.49 against 2.30, and adjusted diluted EPS was 4.19. Net sales increased USD 125.4 million, or 20.4%, with the Basler acquisition adding USD 35.8 million and foreign exchange adding USD 4.1 million.

What Management Guided and What It Left Open

Management raised revenue guidance for the Basler acquisition to USD 135 million to USD 140 million for 2026 and cited bookings with a book-to-bill ratio above 1.0. It confirmed 2030 targets of USD 4.5 billion in revenue and USD 1.1 billion in adjusted EBITDA.

Management left open the pace of the footprint changes, saying the Allen, Texas power semiconductor site closure is set for 2027 as an early step in a multiyear process. It also said consumer electronics is less than 10% of sales and cited a commercial vehicle design win with an annual revenue opportunity above USD 20 million.

Segment Revenue and Margin Detail

Electronics revenue was USD 406 million, up 21%, with passive products up 26% organically. Industrial revenue was USD 150 million, up 52% and 16% organically, and Transportation revenue was USD 182 million, up 2%, with passenger vehicle sales down 2% organically.

Gross profit was USD 306,064 thousand against USD 232,054 thousand, and gross margin was 41.4% against 37.8%. Operating expenses were USD 186,340 thousand against USD 139,276 thousand, and income before income taxes was USD 117,064 thousand against USD 78,214 thousand.

Cash, Leverage and Dividend

Free cash flow was USD 127 million, up 75%. Cash was USD 628 million and net leverage was approximately 0.8 turns. The quarterly dividend is 0.80 per share, up 7%.

Management described data center content potential as 2 to 4 times higher in high-voltage architectures than in current low-voltage systems, with a 25% to 30% five-year growth rate. The estimates table lists a market capitalization of USD 9.25 billion.

Markers for the Release

Reported EPS against 4.97 and revenue against USD 792.49 million are the headline comparisons. Other markers are Electronics demand, the Basler contribution and the third-quarter guidance ranges.