LITTELFUSE INC /DE (LFUS)·Q4 2025 Earnings Summary

Littelfuse Beats on Electronics Surge, Data Center Momentum; Stock Rises 2%

January 28, 2026 · by Fintool AI Agent

Littelfuse delivered a strong Q4 2025, beating on both revenue and earnings while providing above-consensus guidance for Q1 2026. The electronics specialist reported revenue of $594 million (+12% YoY, +7% organic) and adjusted EPS of $2.69, up 76% from a year ago. The company also closed its strategic acquisition of Basler Electric, enhancing its industrial market exposure.

Shares rose ~2% in after-hours trading to $299.15, reflecting investor confidence in the company's execution and growth trajectory.

Did Littelfuse Beat Earnings?

Yes — on both metrics. Revenue of $594 million exceeded the high end of guidance and Street estimates by approximately 2.4%. Adjusted EPS of $2.69 beat consensus of ~$2.56 by roughly 5%, driven by strong operating leverage in the Electronics segment.

GAAP EPS: Littelfuse reported a GAAP diluted loss of ($9.72) per share, which includes a $301 million non-cash goodwill impairment related to the IXYS and Dortmund acquisitions within the Semiconductor Products business. This reflects weaker-than-expected sales and profitability in power semiconductors amid persistent soft market conditions. The impairment does not affect adjusted results or cash flows.

Power Semi Strategy Shift: Management is taking action—sharply focusing power semiconductors (roughly half of the semiconductor business) on high-value, high-growth applications where Littelfuse has differentiated technology: data center, battery energy storage, and grid/utility infrastructure. Lower-value, commoditized product families will be rationalized, and manufacturing footprint will be optimized accordingly. The protection semiconductor business (the other half) remains a "model franchise" with strong market share and profitability.

What Did Segment Performance Look Like?

The Electronics segment was the clear standout, while Transportation and Industrial showed mixed results.

Electronics: Growth Engine Firing

• Revenue: $345 million (+21% reported, +14% organic)
• Adj. EBITDA Margin: 23.7% (+370 bps YoY)

Passive Products surged +23% organic, driven by strong demand across data center, industrial, and consumer electronics applications. Protection semiconductors grew +6% organic, more than offsetting continued weakness in power semiconductors. The Dortmund Fab acquisition contributed 4% to growth.

Transportation: Margin Improvement Despite Soft Volumes

• Revenue: $164 million (+1% reported, -1% organic)
• Adj. EBITDA Margin: 16.0% (+830 bps YoY)

Passenger vehicle products grew +5% organic on strong demand for core protection products, offsetting sensor declines. Commercial vehicle declined -4% organic due to soft on-highway, off-road, and agriculture markets plus the previously announced exit of the marine business.

Industrial: Basler Adds Strategic Value

• Revenue: $85 million (+4% reported, -1% organic)
• Adj. EBITDA Margin: 16.2% (flat YoY)

Strong energy storage, utility & grid infrastructure, renewables, and data center demand was more than offset by lower HVAC volumes. The Basler acquisition contributed +5% to growth.

What Did Management Guide?

Littelfuse provided Q1 2026 guidance above Street consensus, signaling confidence in continued momentum.

Growth drivers for Q1 2026:

• Organic growth: +7% YoY (strengthening backlog and bookings momentum)
• Basler acquisition: +5% YoY contribution
• FX tailwind: +3% YoY

CEO Greg Henderson noted: "We entered Q1 with a strong backlog and bookings momentum... As our end markets continue to evolve requiring higher power and energy density solutions, we remain committed to driving technology innovations."

What Changed From Last Quarter?

Several positive inflections emerged this quarter:

1. Electronics acceleration: Passive products growth accelerated from +17% organic in FY 2025 to +23% organic in Q4, suggesting end market demand is strengthening.

2. Transportation margins normalized: After a difficult Q4 2024 (which included a $11.1M inventory valuation charge), Transportation EBITDA margins recovered to 16.0%—the highest in recent quarters.

3. Basler integration underway: The acquisition closed and is expected to contribute $130-135 million in 2026 revenue with high-teens adjusted EBITDA margins.

4. Semiconductor impairment: Management took a $301M impairment on the Semiconductor business, acknowledging persistent soft conditions. This resets expectations and removes overhang.

5. Bookings momentum: Q4 bookings were up 20%+ year-over-year with book-to-bill above 1, pointing to strong demand entering 2026.

6. Broader industrial recovery: Unlike previous quarters, management is now seeing "broader-based momentum" beyond just data center and grid/utility, extending to diversified industrial and industrial automation segments.

Key concern: Organic growth in Industrial (-1%) and Transportation (-1%) remains tepid, with growth dependent on acquisitions and FX. Residential HVAC weakness also persists.

How Did the Stock React?

Littelfuse shares rose ~2% after-hours to $299.15, extending gains from the regular session close of $296.17 (+1.95% on the day).

Year-to-date context:

• Stock is up +108% from the 52-week low of $142.10
• Trading at 96% of 52-week high of $307.99
• Market cap: ~$7.4 billion

The beat-and-raise quarter reinforces investor confidence in Littelfuse's strategic positioning in secular growth markets (data centers, EVs, renewable energy, grid infrastructure).

What's the Data Center Opportunity?

Management dedicated significant time to the data center opportunity, which is becoming a key growth driver across multiple segments. Data center now represents double digits as a percentage of revenue (inclusive of Basler).

Key points from the earnings call:

• Content expansion: As customers move to higher voltage systems (400V-800V DC architectures), Littelfuse sees at least 2x content opportunity—and in some cases significantly more.
• Design wins momentum: Data center design wins more than doubled in 2025 versus 2024.
• Static transfer switch win: Secured a significant design win for a 2-MW UPS bypass and power distribution unit with a leading data center infrastructure provider, with shipments starting H1 2026.
• Full ecosystem exposure: Littelfuse products span white space (servers, PDUs, UPS) and gray space (switchgear, generators, cooling), with Basler adding backup power generation capabilities.
• Sales realignment paying off: Data center was one of the first markets where Littelfuse deployed its new market-facing, customer-centric sales model, and the team is "already seeing traction."

CEO Greg Henderson emphasized: "The thing I'm most excited about is we're having deeper conversations with our customers, talking about more of our technology portfolio, talking about next generation architectures around the high voltage solutions."

Full Year 2025 Recap

Littelfuse achieved solid top-line growth with meaningful margin expansion, demonstrating operating leverage as volumes recovered and strategic initiatives gained traction.

Capital Allocation & Balance Sheet

• Cash position: $563 million as of December 27, 2025
• Total debt: $803 million
• Net leverage ratio: 1.2x (well below 3.5x covenant)
• Dividend: $0.75/share payable March 5, 2026 to shareholders of record February 19, 2026

The balance sheet remains healthy with significant capacity for additional M&A or share repurchases. During FY 2025, the company repurchased $28 million of stock and paid $72 million in dividends.

What Stood Out in Q&A?

On industrial recovery: CEO Greg Henderson noted "we're seeing a broader-based momentum... in our broader industrial market, especially like our diversified industrial segments and industrial automation segments." The exception remains residential HVAC, which "continues soft."

On bookings momentum: Q4 bookings were up over 20% year-over-year, similar to Q3 strength. Book-to-bill was above 1 in the quarter, with growth in point-of-sale (POS) through to end customers.

On power semiconductor strategy: Management is rationalizing the power semi portfolio to "sharpen focus on high value and high growth applications" including data center, battery energy storage, and grid/utility infrastructure—areas where Littelfuse has differentiated technology and strong market position. Lower-value, more commoditized product families will be reduced.

On commodity inflation: Primary exposure is to copper and ruthenium, with secondary impacts from silver and gold price volatility. Management targets being price-cost neutral for the full year through supply chain optimization and pricing/surcharge actions, though timing differences may cause quarterly variation.

On Basler cultural fit: Henderson described Basler as a "highly technical organization... market leaders in protection solution excitation systems" that brings established go-to-market capabilities in the utility industry—a channel Littelfuse previously lacked.

On what's changed: Asked about the more optimistic tone, Henderson cited both internal execution on strategy and external market momentum: "If you go back to 2025... the market momentum was maybe more narrow in data center and grid utility, solar, battery storage. We actually are seeing a little bit broader market momentum."

Forward Catalysts

1. Investor Day: May 14, 2026 in New York City — management will detail strategic priorities, full semiconductor roadmap, and long-term targets
2. Basler integration: Full-year contribution expected at $130-135M revenue, $0.10-$0.15 EPS accretion, high-teens EBITDA margin
3. Data center ramp: Higher power/voltage trends expanding addressable market; H1 2026 shipments beginning on static transfer switch win
4. Passive products momentum: Demand strength extending into 2026 with bookings up 20%+

Key Takeaways

The positive:

• Revenue and EPS beat with above-consensus Q1 2026 guidance
• Electronics segment firing on all cylinders (+21%, +370 bps margin expansion)
• Strong free cash flow generation ($366M for FY 2025)
• Basler acquisition adds high-growth industrial exposure
• Data center content expansion thesis gaining traction

Watch items:

• Organic growth in Transportation and Industrial remains challenged
• Semiconductor Products impairment signals ongoing pressure
• HVAC weakness could persist into 2026
• Integration risk with Basler

Bottom line: Littelfuse delivered a clean beat-and-raise quarter, demonstrating strong execution in Electronics while navigating softer end markets elsewhere. The stock's after-hours move reflects confidence in management's ability to capitalize on secular growth trends in data centers, EVs, and grid infrastructure. The May Investor Day should provide more clarity on long-term targets.

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Explore more: Littelfuse Company Profile | Q4 2025 Earnings Transcript | Q3 2025 Earnings