Littelfuse — Third Quarter 2026 Earnings Summary

Financial Performance:

• Reported net sales of $767 million, including a $28.5 million reduction related to a one-time Dortmund contract amendment fee; organic growth was +22% year-over-year.
• GAAP diluted earnings per share (EPS) reached $4.49, a 62% increase year-over-year; adjusted diluted EPS was $5.79, a 96% increase year-over-year.
• GAAP operating margin was 20.0% (up 440 basis points); adjusted EBITDA margin was 28.4% (up 690 basis points).
• Cash flow from operations for the quarter was $230 million (+57% YoY); free cash flow was $216 million (+64% YoY).
• Year-to-date cash flow from operations was $457 million (+55% YoY); year-to-date free cash flow was $409 million (+66% YoY).
• Consolidated total debt was $629.9 million as of September 26, 2026, with a net debt of $437.3 million and a consolidated net leverage ratio of 0.7x.

Guidance and Future Outlook:

• For the fourth quarter of 2026, the company expects net sales between $750 million and $770 million.
• Fourth quarter adjusted diluted EPS is projected to be between $5.05 and $5.25.
• The company expects an adjusted effective tax rate of approximately 24% for the fourth quarter.
• Management anticipates approximately +28% year-over-year revenue growth for the fourth quarter, driven by strong demand across diverse market exposures.

Business Segments and Product Lines:

• Electronics Segment: Net sales increased to $426 million; organic sales grew +27% driven by improved passive products (+30%) and semiconductor products (+24%). Adjusted EBITDA margin increased to 33.1% (+910 bps).
• Transportation Segment: Net sales increased +7% to $183 million, with organic growth of +7%. Commercial vehicle sales grew +20% (offsetting a -5% decline in passenger vehicle sales). Adjusted EBITDA margin rose to 19.6% (+280 bps).
• Industrial Segment: Net sales surged +65% to $158 million, with organic sales up +27%. The Basler Electric Company acquisition contributed +38% to growth. Adjusted EBITDA margin improved to 25.2% (+450 bps).

Market and Competitive Landscape:

• Demand strength was broad-based across the portfolio, with specific growth drivers including data center, grid & utility infrastructure, HVAC, industrial automation, and construction demand in the Industrial segment.
• Commercial vehicle demand was supported by truck, data center, material handling, construction, and agricultural equipment sectors.
• Passenger vehicle sales were impacted by lower global passenger car builds and declines in auto sensor products.

Risks and Challenges:

• Forward-looking statements are subject to risks including general economic conditions, product demand fluctuations, competitive pricing, product quality issues, supply constraints, and cybersecurity matters.
• Specific risks include coal mining exposures, environmental liability indemnification failures, import/export duty changes, exchange rate fluctuations, commodity price volatility, labor disputes, and potential delays in realizing acquisition synergies.

Management Commentary and Tone:

• Greg Henderson, President and CEO, stated the company delivered "strong third quarter results reflecting broad-based demand strength, disciplined execution, and continued momentum across the portfolio."
• Management highlighted that teams drove significant growth across segments while delivering meaningful margin expansion and robust cash generation.
• The tone emphasized a focus on scaling high-growth opportunities, partnering with market-leading customers, enhancing operational excellence, and deploying capital with discipline.

Other Key Points:

• The Board of Directors announced a quarterly cash dividend of $0.80 per share, payable on December 3, 2026, to shareholders of record as of November 19, 2026.
• A one-time customer contract amendment fee of $28.5 million was recorded as a reduction of semiconductor net sales to enhance strategic flexibility and optimize the Dortmund Semiconductor GmbH asset.
• The Basler Electric Company acquisition contributed significantly to the Industrial segment's growth.
• The company's Credit Agreement was amended in Q1 2026 to allow the addition of restructuring charges and business optimization expenses to the calculation of the Consolidated Net Leverage Ratio.
• Year-to-date net sales were $2.16 billion, up 20.6% year-over-year.