Littelfuse, Inc.

What they do

Littelfuse designs, manufactures and markets fuses, PTC resettable fuses, varistors, TVS diodes, thyristors, silicon and silicon carbide MOSFETs, IGBTs, switches and sensing products. It operates through three reportable segments: Electronics, Transportation, and Industrial, serving OEMs, Tier-one suppliers, distributors and industrial customers. The company employs approximately 17,000 associates across more than 20 countries.

Revenue drivers

• Electronics segment — Broadest product line, spanning passive protection components (fuses, varistors, PTC, ESD suppressors, gas discharge tubes, magnetic sensing) and semiconductors (TVS diodes, thyristors, MOSFETs, IGBTs). In Q2 2026, segment sales rose 21%, with passive products up 26% organic and semiconductors up 15% organic.
• Transportation segment — Circuit protection, power control and sensing for passenger vehicles, heavy-duty truck and bus, off-road and recreational vehicles, sold to OEMs, Tier-one suppliers and aftermarket distributors. In Q2 2026, sales rose 2%, with commercial vehicle up 4% organic offsetting a 2% organic decline in passenger vehicle.
• Industrial segment — Products for grid and utility infrastructure, power generation, data center, HVAC, industrial automation and construction, including the Basler acquisition completed December 2025. In Q2 2026, segment sales rose 52%, with 16% organic growth and 36% from Basler.

Recent performance

Second quarter 2026 net sales were $739 million, up 20% year over year including 14% organic growth. GAAP diluted EPS was $3.49 and adjusted diluted EPS was $4.19, with GAAP operating margin of 16.2% and adjusted EBITDA margin of 23.6%. Cash flow from operations was $146 million and free cash flow was $127 million, up 75%. For fiscal 2025, net sales were $2,386.3 million, up 8.9%, but the company reported a net loss of $71.7 million, or $2.89 per diluted share, primarily due to a $301.2 million non-cash goodwill impairment in the Electronics-Semiconductor reporting unit.

Strategy

Littelfuse is prioritizing high-growth end markets: data centers and data center infrastructure, aerospace and defense, battery energy storage, and grid and utility infrastructure. The company supplements organic growth with acquisitions, including the Dortmund Fab (200mm wafer fab acquired from Elmos Semiconductor, closed December 2024) and Basler Electric (closed December 2025) for grid, power generation and data center applications. Management emphasizes design-in collaboration with customer R&D, in-region manufacturing, and capital deployment discipline. It also raised the quarterly dividend 7% to $0.80 per share.

Risks

• Goodwill impairment — The Electronics-Semiconductor reporting unit recorded a $301.2 million non-cash goodwill impairment in Q4 2025, driving a full-year net loss.
• Tariffs and trade policy — U.S. tariffs on goods from China, Mexico and Canada, plus reciprocal tariffs, could raise input costs, reduce demand, or compress gross margins if price increases cannot be passed through.
• Commodity price volatility — Littelfuse uses copper, zinc, tin, gold, silver and ruthenium, and precious metal prices have risen significantly in late 2025 and into 2026, which could reduce margins.
• Acquisition integration and competition — The company relies on acquisitions for growth and may not realize expected benefits from integrating Basler, the Dortmund Fab, or future deals, while competing against larger, lower-cost rivals.

Outlook

For third quarter 2026, management guides net sales of $780-$800 million, approximately 26% total revenue growth year over year, adjusted diluted EPS of $4.85-$5.05, and an adjusted effective tax rate of about 23%-24%. The guidance reflects record bookings, continued customer momentum, and contributions from the Basler acquisition. Littelfuse provides guidance on a non-GAAP basis and does not forecast excluded items.