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    LITTELFUSE INC /DE (LFUS)

    LFUS Q2 2025: 10% Revenue Growth, Warns $0.15 Tariff Drag in Q3

    Reported on Jul 30, 2025 (Before Market Open)
    Pre-Earnings Price$235.79Last close (Jul 29, 2025)
    Post-Earnings Price$254.92Open (Jul 30, 2025)
    Price Change
    $19.13(+8.11%)
    • Strong Revenue and Margin Growth: In Q2 2025, Littelfuse delivered 10% revenue growth, with margins exceeding expectations, reflecting solid operational execution and effective cost leverage.
    • Robust Industrial and Data Center Opportunities: The Industrial segment recorded 17% organic sales growth driven by high-value markets like grid storage, renewables, and data centers, and the call highlighted new design wins in data center applications, positioning the company favorably within evolving high power solutions.
    • Execution of Strategic Priorities: The company is advancing its focus on capitalizing on future growth, evidenced by a double-digit growth opportunity pipeline, operational enhancements, and investments in technology capabilities to serve higher voltage and energy density markets, setting up the bull case for long-term top and bottom line growth.
    • Tariff Timing Reversal Risk: CFO Abhi Khandelwal noted a $0.15 benefit in Q2 from favorable tariff timing that is expected to reverse into a headwind in Q3, potentially pressuring margins in subsequent quarters.
    • Power Semiconductor Execution Challenges: Management highlighted that the power semiconductor segment has experienced a soft market and some execution challenges, raising concerns about the pace and sustainability of improvements in that business.
    • Margin Pressure in Electronics Segment: The sequential decline in electronics margins, impacted by stock-based compensation adjustments and bonus accrual timing, suggests that underlying margin pressures could persist despite sales growth.
    MetricPeriodPrevious GuidanceCurrent GuidanceChange

    Sales

    Q2 2025

    $565 million to $595 million

    no guidance

    no current guidance

    EPS

    Q2 2025

    $2.10 to $2.40

    no guidance

    no current guidance

    Tax Rate

    Q2 2025

    23%-25%

    no guidance

    no current guidance

    Foreign Exchange & Commodity Impact

    Q2 2025

    $0.15 EPS benefit

    no guidance

    no current guidance

    Stock Compensation Expense

    Q2 2025

    unfavorable $0.10 EPS impact

    no guidance

    no current guidance

    Sales

    Q3 2025

    no prior guidance

    $610 million to $630 million

    no prior guidance

    EPS

    Q3 2025

    no prior guidance

    $2.65 to $2.85

    no prior guidance

    Stock & Variable Compensation Impact

    Q3 2025

    no prior guidance

    $0.31 unfavorable

    no prior guidance

    Mark-to-Market Headwind

    Q3 2025

    no prior guidance

    $0.02 headwind

    no prior guidance

    FX & Commodity Headwind

    Q3 2025

    no prior guidance

    $0.08 headwind

    no prior guidance

    Sales Growth

    FY 2025

    2% total sales growth

    2% total sales growth

    no change

    Foreign Exchange & Commodities

    FY 2025

    1% tailwind to sales and $0.40 EPS benefit

    1% tailwind to sales and $0.04 EPS benefit

    lowered

    Amortization Expense

    FY 2025

    $58 million

    $58 million

    no change

    Interest Expense

    FY 2025

    $35 million

    $35 million

    no change

    Tax Rate

    FY 2025

    23%-25%

    23-25%

    no change

    Capital Expenditures

    FY 2025

    $90 million to $95 million

    $90 million to $95 million

    no change

    EPS Impact from Capacity Sharing Arrangement

    FY 2025

    neutral impact

    no guidance

    no current guidance

    TopicPrevious MentionsCurrent PeriodTrend

    Revenue Growth

    Q1 2025 showcased moderate growth (4% increase, with challenges in some segments ), while Q4 2024 and Q3 2024 reported declines and softer organic performance ( )

    Q2 2025 delivered robust 10% revenue growth driven by broad-based strength across segments ( )

    Improved momentum and stronger growth compared to prior periods

    Margin Dynamics

    Q1 2025 and Q3 2024 noted sequential margin expansions and operational improvements ( ); Q4 2024 showed meaningful margin expansion across segments ( )

    Q2 2025 reported improved adjusted EBITDA margins and segment-specific margin gains, notably in Transportation and Industrial ( )

    Sentiment shifted positively with enhanced margin performance

    Tariff and Geopolitical Risks

    Q1 2025 and Q4 2024 contained extensive discussions on mitigation strategies and geopolitical risk planning ( )

    Q2 2025 focused only on tariff timing impacts with a noted $0.15 benefit turning into a headwind subsequently ( )

    Reduced emphasis on broad geopolitical risks with a narrower focus on tariff timing issues

    Industrial Demand Trends

    Q1 2025 and Q4 2024 highlighted mixed industrial trends with robust demand in some areas but softness in others ( ); Q3 2024 indicated continued softness in certain regions ( )

    Q2 2025 saw strong organic growth of 17% in Industrial Products driven by high-value markets such as grid storage and renewables ( )

    Marked improvement with more robust and positive industrial demand signals

    Power Semiconductor Challenges

    Q1 2025 and Q3 2024 discussed continued softness and execution challenges in the power semiconductor business ( ); Q4 2024 noted weak book-to-bill ratios and margin pressures ( )

    Q2 2025 indicated improved orders and signs of stabilization and positive sequential momentum in the power semiconductor segment ( )

    Signal of stabilization with improved order flow despite earlier challenges

    Supply Chain Diversification and Tariff Mitigation

    Q1 2025 and Q4 2024 featured detailed strategies for moving manufacturing closer to customers and mitigating tariffs through pricing and supply chain adjustments ( )

    Q2 2025 did not specifically address supply chain diversification beyond a brief mention of tariff timing effects ( )

    Reduced discussion emphasis compared to previous periods

    Strategic Growth and M&A Activity

    Q1 2025 and Q3 2024 emphasized strategic growth through integrated solutions, disciplined M&A, and a robust acquisition pipeline ( ); Q4 2024 highlighted the Dortmund acquisition and growth positioning ( )

    Q2 2025 reiterated strategic focus with new design wins and reference to the Dortmund acquisition driving sales growth ( )

    Continued and consistent focus on strategic growth with reinforcing M&A activity and design wins

    Data Center Opportunities

    Q1 2025 showed early design wins and emphasis on higher voltage trends ( ); Q3 2024 and Q4 2024 reported robust design wins and momentum in data center applications ( )

    Q2 2025 presented several new design wins and an accelerating pipeline for data center opportunities ( )

    Consistent positive momentum with increasing significance of data center business

    Vehicle Electrification and EV Trends

    Q1 2025 discussed strong EV content growth and automotive electrification architectures ( ); Q3 2024 offered mixed signals and Q4 2024 took a more conservative view ( )

    Q2 2025 highlighted strong global exposure in both EV and traditional vehicles and a diversified approach in markets like passenger, commercial, and agriculture ( )

    Strengthened focus and diversified market positioning in vehicle electrification and EV trends

    Order Backlog and Book-to-Bill Momentum

    Q1 2025 reported strong order backlog and positive book-to-bill ratios across segments ( ); Q3 2024 indicated some softness while Q4 2024 showed improving trends in electronics ( )

    Q2 2025 reported a book-to-bill ratio above one and bookings exiting at the highest run rate since 2022 ( )

    Improved order momentum with record-high backlog indicators

    Operational Execution and Cost Management

    Q1 2025 and Q3/Q4 2024 emphasized robust operational execution, cost pruning, and margin expansion through disciplined cost management and restructuring ( )

    Q2 2025 underscored operational excellence with the launch of a global operations team and continued margin improvement while managing tariff timing impacts ( )

    Consistent execution focus with continued cost efficiencies and operational improvements

    Foreign Exchange and Commodity Cost Pressures

    Q1 2025, Q3 2024, and Q4 2024 discussed mixed impacts with FX tailwinds offset by commodity pressures and varying EPS effects ( )

    Q2 2025 reported a 1% FX tailwind on sales with outlooks for modest EPS headwinds in upcoming quarters due to these factors ( )

    A cyclical pattern continues with similar FX benefits and commodity challenges as previous periods

    Impairment Charges and Asset Write-downs

    Q4 2024 saw a significant $93 million impairment charge related to goodwill and intangibles amid EV infrastructure softness ( ); there was no discussion in Q1 or Q3 2024 ([N/A])

    Q2 2025 did not mention any impairment charges or asset write-downs ([N/A])

    Absence of recent impairment charges suggests potential recovery or stabilization compared to prior concerns

    1. Margin & Tariff
      Q: How are margins and tariffs affecting results?
      A: Management highlighted strong operational leverage boosting Transportation and Industrial margins, while a $0.15 tariff timing effect provided a tailwind in Q2 that will reverse in Q3.

    2. Top-Line Growth
      Q: What impact will growth opportunities have?
      A: They expect double-digit pipeline growth to drive both top-line and bottom-line expansion, even with necessary investments.

    3. Electronics Guidance
      Q: How are Electronics margins and Q3 outlook?
      A: Despite 9% sequential sales growth causing pressure from comp and bonus timing, underlying operational performance remains strong with a targeted 38% EBITDA conversion.

    4. Data Center Focus
      Q: What is the role of data center exposure?
      A: Data center business is growing in importance, with design wins in liquid cooling and onboard solutions further enhancing the company’s differentiated position.

    5. Power Semi Orders
      Q: Can power semi orders drive future margins?
      A: Management noted that order improvements in power semiconductors are beginning to stabilize a previously soft market, paving the way for margin recovery.

    6. Demand Visibility
      Q: Is current demand a sustainable inflection point?
      A: They see improved visibility compared to three to six months ago, projecting 6% organic growth in Q3 despite some seasonal declines.

    7. Vehicle Share Gains
      Q: How are passenger vehicle shares trending?
      A: Passenger vehicle sales have shown steady share gains globally, although the business is diversifying into additional segments like agriculture.

    Research analysts covering LITTELFUSE INC /DE.