Executive Summary

Littelfuse delivered a clean beat: revenue $613.4M (+9.8% y/y) vs S&P Global consensus ~$572.2M, and adjusted EPS $2.85 vs ~$2.33, with broad-based strength and margin expansion across segments . Q2 beats reflect volume leverage, improved operations, and a tariff timing benefit that will reverse in Q3 .
Transportation and Industrial margins inflected sharply (Transportation operating margin 15.6% vs 9.0% y/y; Industrial 19.2% vs 11.4% y/y) on execution and mix; Electronics grew 10% with passives +14% organically and power semis still soft (-5% organic) .
Q3 guide: revenue $610–$630M and adjusted EPS $2.65–$2.85; management cited strong backlog, book-to-bill >1, and the highest bookings run-rate since 1H’22; dividend raised 7% to $0.75/qtr ($3.00 annualized) .
Strategic narrative strengthening: accelerating design wins in data center, grid storage, and high-voltage applications; new global ops team driving “best-in-class” practices; net leverage 1.1x, FCF conversion 114% YTD supports capital deployment .

What Went Well and What Went Wrong

What Went Well

Broad beat on the P&L: revenue $613.4M (+9.8% y/y) and adjusted EPS $2.85 (+45% y/y), with adjusted EBITDA margin up 280 bps to 21.4% . CFO: “Adjusted EBITDA margin finished at 21.4%, up 280 basis points... reflecting strong conversion on higher sales growth [and] improved operational performance” .
Transportation and Industrial margin step-up: Transportation operating margin 15.6% (+660 bps y/y) and Industrial 19.2% (+780 bps y/y), with data center, grid storage, industrial safety and HVAC driving Industrial; volume leverage and ops initiatives lifted Transportation .
Demand indicators improved: “book-to-bill again tracked above one,” and “bookings exited the quarter at the highest run rate since the first half of 2022” (CEO) . Dividend raised 7% to $0.75/share, reinforcing cash return discipline .

What Went Wrong

Power semiconductors remained a drag: Electronics passives +14% organically and protection improved, but power semis declined 5% organically, holding Electronics margins flat y/y (Adj. EBITDA 21.6%) .
Non-operating FX hit GAAP: $10.4M non-operating FX loss in Q2 (part of $0.55 EPS of non-GAAP adjustments), tempering GAAP profit despite strong operations .
Tariff timing: ~$0.15 EPS benefit in Q2 expected to reverse as a sequential headwind in Q3 (CFO) . Management also flagged ongoing macro/trade uncertainty despite improved near-term visibility .

Financial Results

Metric	Q2 2024	Q1 2025	Q2 2025
Revenue ($USD Millions)	$558.5	$554.3	$613.4
GAAP EPS ($)	$1.82	$1.75	$2.30
Adjusted EPS ($)	$1.97	$2.19	$2.85
Operating Margin (%)	11.7%	12.7%	15.1%
Adjusted EBITDA Margin (%)	18.6%	20.1%	21.4%

Segment net sales and profitability:

Revenue by segment ($USD Millions)

Segment	Q2 2024	Q2 2025	Y/Y
Electronics	$305.6	$335.7	+9.8%
Transportation	$169.0	$179.4	+6.2%
Industrial	$83.9	$98.3	+17.2%
Total	$558.5	$613.4	+9.8%

Operating margin by segment (%)

Segment	Q2 2024	Q2 2025	Δ bps
Electronics	15.1%	14.9%	-20
Transportation	9.0%	15.6%	+660
Industrial	11.4%	19.2%	+780

Selected KPIs and cash/leverage:

Free cash flow: Q2 $72.6M vs $50.3M prior year; YTD FCF $115.2M; YTD FCF conversion 114% .
Net leverage: Consolidated net leverage ratio 1.1x; Net debt $547.6M .
Dividend: $0.75/share payable Sep 4, 2025 (up from $0.70) .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue	Q3 2025	—	$610–$630M	New
Adjusted EPS	Q3 2025	—	$2.65–$2.85; adj tax rate ~25%	New
Dividend	Ongoing	$0.70/qtr	$0.75/qtr ($3.00 annualized)	Raised
FY items (modeling)	FY 2025	Prior framework	Dortmund +2% sales; FX/commodities +1% sales and ~$0.14 EPS; amortization ~$58M; interest ~$35M; adj tax rate 23–25%; capex $90–$95M	Maintained/updated assumptions

Notes: Littelfuse provides guidance on a non-GAAP basis .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q4’24/Q1’25)	Current Period (Q2’25)	Trend
Data center & AI/higher-voltage solutions	Highlighted design wins and content opportunity; focus on protection in higher-voltage/current architectures	New design wins (liquid cooling, on-board, power distribution); growing pipeline; data center “materially important” and increasing	Improving momentum
Power semiconductors vs protection/passives	Power semis soft; protection strong	Power semis (-5% organic) remained soft; orders stabilizing; passives +14% organic; Electronics margin flat y/y	Early stabilization
Transportation margin trajectory	Prior focus on margin expansion despite soft markets	Operating margin 15.6% (+660 bps y/y) on leverage and ops initiatives	Positive inflection
Industrial growth vectors	Q1: renewables, data center, HVAC growth	Continued strength in grid storage, renewables, data center, industrial safety, HVAC; margin +610 bps (Adj. EBITDA)	Strengthening
Tariffs & supply chain	Q1: mitigation playbook; Q2 guidance assumed immaterial tariff impact	~$0.15 EPS tariff timing benefit in Q2 to reverse in Q3; ongoing mitigation; improved visibility vs 3–6 months ago	Manageable; timing noise
Bookings/book-to-bill	Q1: positive book-to-bill across businesses	Book-to-bill >1; strongest bookings since 1H’22	Accelerating

Management Commentary

CEO: “Book-to-bill again tracked above one… bookings exited the quarter at the highest run rate since the first half of 2022” .
CEO: “We are seeing an accelerating pipeline… several new data center design wins… position us well for continued strong data center sales growth” .
CFO: “Adjusted EBITDA margin finished at 21.4%, up 280 basis points… strong conversion on higher sales growth, improved operational performance” .
CFO on tariff timing: “about a $0.15 [EPS] benefit… in Q2 that’s going to reverse… in Q3 and be a bad guy sequentially” .

Q&A Highlights

Segment margins: Analysts probed Transportation and Industrial margin upside vs history; management attributed gains to operating leverage, best-practice scaling, and focused execution; cautioned margins won’t be linear but see further upside in Transportation .
Tariff timing & guide: ~$0.15 EPS benefit in Q2 reverses in Q3; Q3 guide flow-through ~38% with stock/variable comp and tax headwinds year-over-year .
Data center exposure: Data center becoming more important; design wins span liquid cooling, on-board protection, power distribution; focus on higher energy density across the chain .
Power semis outlook: Orders stabilizing; sequentially positive momentum expected; differentiation increases at higher power/energy density .
Demand cadence: Q3 outlook assumes Electronics and Industrial up sequentially; Transportation seasonally down 2–3% due to shutdowns; organic growth ~6% y/y in Q3 .

Estimates Context

Q2 2025 vs S&P Global consensus:
- Revenue: Actual $613.4M vs ~$572.2M consensus* → beat .
- Adjusted/Normalized EPS: Actual $2.85 vs ~$2.33 consensus* → beat .
- Adjusted EBITDA: Actual ~$131.1M vs ~$111.0M consensus* → beat .
Forward look: Q3 2025 guidance ($610–$630M; $2.65–$2.85 adjusted EPS) aligns with continued y/y growth; management highlighted an EPS headwind from stock/variable comp and FX/commodities (~$0.08) offset by operational performance .

Values marked with an asterisk (*) are retrieved from S&P Global.

Metric	Consensus (Q2 2025)*	Actual (Q2 2025)
Revenue ($USD Millions)	~$572.2	$613.4
Primary/Normalized EPS ($)	~2.33	$2.85
EBITDA ($USD Millions)	~111.0	$131.1

Key Takeaways for Investors

Clear beat-and-raise cadence: Broad-based top-line/margin upside with Q3 guide implying continued growth; near-term EPS optics tempered by known tariff timing and comp/tax effects rather than core fundamentals .
Structural margin improvement underway: Transportation and Industrial margins re-rating on volume and operational excellence; Electronics mix improves as power semis stabilize and passives/protection lead .
Secular growth positioning firming: Accelerating design wins in data center, grid storage, and high-voltage applications reinforce multi-technology value proposition and cross-segment go-to-market strategy .
Cash returns + balance sheet optionality: Dividend up 7%; net leverage ~1.1x and >100% FCF conversion support continued M&A, capex, and buybacks .
Watch items: Non-operating FX can add GAAP noise; tariff timing swings create quarterly EPS volatility; power semis recovery pace key for Electronics margin trajectory .
Trading implication: Positive estimate revisions likely on revenue/EBITDA; shares may respond to data center narrative, segment margin momentum, and sustained bookings strength; monitor Q3 execution vs comp/tax headwinds.

Citations

Q2 press release and financial schedules:
Form 8-K and exhibits (press release, slides, reconciliations):
Q2 2025 earnings call transcript:
Q1 2025 press release and transcript for sequential context:

S&P Global disclaimer: Consensus estimates (marked with *) were retrieved from S&P Global.

LITTELFUSE INC /DE (LFUS)·Q2 2025 Earnings Summary