Question · Q3 2025
Christopher Gleen from Oppenheimer & Co. Inc. inquired about the specifics of data center design win growth, clarifying if it was an instance count or dollar value, the lead time to revenue, and the current scope of the data center business for Littelfuse. He also asked about the overall new business funnel beyond data center, particularly for the industrial segment, and its scalability given mixed market conditions like HVAC and construction.
Answer
President and CEO Greg Henderson clarified that data center design wins were up 2x year-on-year, noting data center as a relatively faster market for revenue conversion compared to automotive or industrial. EVP and CFO Abhi Khandelwal indicated that the electronics segment's strong performance reflects data center exposure, which contributes high single digits to total company revenue. Greg Henderson acknowledged solid industrial growth driven by energy storage, renewables, and data center infrastructure, but noted softer residential HVAC and construction MRO. Abhi Khandelwal added that the industrial segment was up 12% year-to-date. Christopher Gleen later asked about the transportation segment's performance, specifically the difference between passenger vehicle fuses (up 4%) and sensors (down 18% organically), and the ongoing sensor attrition. Greg Henderson confirmed core passenger products had a reasonable quarter, while sensor products, not a strategic focus, continue to see lower revenue and profitability due to realignment. Finally, Christopher Gleen asked about the power semiconductor strategy under Dr. Karim Hamed, its focus markets, and the scope for improvement. Greg Henderson explained that power semiconductors underperformed (5% growth vs. 19% for passive products in the electronics segment) and is a microcosm of Littelfuse's broader strategy: sharpening focus on high-growth markets (data center, grid, utility, medical), improving sales alignment to sell the full portfolio, and optimizing operational performance.