Executive Summary

Q4 2024 was in line with company guidance: net sales $529.5M (down 0.8% YoY), adjusted EPS $2.04, while GAAP EPS was a loss of $1.57 due to $93M of non‑cash goodwill and intangible impairments; free cash flow was a strong $134.8M .
Management signaled the electronics destocking cycle is behind them; Electronics book‑to‑bill reached its highest level since Q2’22, with Passives firmly above 1 and power semis still below 1 but improving .
Q1 2025 guidance: sales $520–$550M, adjusted EPS $1.70–$1.90, and ~26% adjusted tax rate; for FY 2025, FX/commodities a ~1% sales headwind but ~$0.22 EPS tailwind, capex $90–$95M, and Elmos/Dortmund fab volumes contributing ~2% sales growth with neutral EPS .
Catalysts/risks: improving order trends in Electronics and HVAC/industrial safety strength vs. continued softness in power semis and European industrial demand; non‑cash impairment centered on EV charging exposure highlights near‑term industrial headwinds .

What Went Well and What Went Wrong

What Went Well
- Electronics destocking largely complete; “book‑to‑bill is at its highest level since the second quarter of 2022… Passives… above 1” (power semi below 1 but improving) .
- Strong cash generation and balance sheet: Q4 cash from operations $160.6M, FCF $134.8M; year‑end cash $724.9M and net leverage 1.2x .
- Transportation and Industrial margin progress: Transportation operating margin 9.0% in Q4 (full‑year expansion of 530 bps); Industrial Q4 operating margin 17.1% (+440 bps YoY) with HVAC and safety strength .
What Went Wrong
- Non‑cash impairments ($93M) led to GAAP EPS loss; primarily related to Industrial controls & sensors and Automotive sensors (weak EV charging infrastructure trends) .
- Electronics profit mix: Q4 Electronics operating margin 12.3% (below historical peaks) amid elongated cycle and power semiconductor softness, especially tied to Europe/industrial end markets .
- Macro/segment headwinds persist: continued soft power semi demand and European industrial weakness; management expects a gradual industrial recovery and mixed transportation backdrop entering 2025 .

Financial Results

Quarterly trend (oldest → newest)

Metric	Q2 2024	Q3 2024	Q4 2024
Net Sales ($M)	$558.5	$567.4	$529.5
GAAP Diluted EPS ($)	$1.82	$2.32	$(1.57)
Adjusted Diluted EPS ($)	$1.97	$2.71	$2.04
GAAP Operating Margin (%)	11.7%	15.5%	(6.9%)
Adjusted Operating Margin (%)	12.7%	15.9%	12.0%
Adjusted EBITDA Margin (%)	18.6%	21.7%	18.1%
Cash from Operations ($M)	$69.4	$80.4	$160.6
Free Cash Flow ($M)	$50.3	$65.0	$134.8

Q4 year-over-year comparison

Metric	Q4 2023	Q4 2024
Net Sales ($M)	$533.8	$529.5
GAAP Diluted EPS ($)	$1.71	$(1.57)
Adjusted Diluted EPS ($)	$2.02	$2.04
GAAP Operating Margin (%)	12.1%	(6.9%)
Adjusted Operating Margin (%)	13.2%	12.0%
Adjusted EBITDA Margin (%)	19.6%	18.1%

Segment breakdown – Q4 2024 vs Q4 2023

Segment	Net Sales Q4’23 ($M)	Net Sales Q4’24 ($M)	YoY %	Operating Income Q4’23 ($M)	Operating Income Q4’24 ($M)	Operating Margin Q4’23	Operating Margin Q4’24
Electronics	297.8	285.8	(4.0%)	53.6	35.2	18.0%	12.3%
Transportation	162.6	161.7	(0.5%)	7.6	14.6	4.7%	9.0%
Industrial	73.5	81.9	11.5%	9.4	14.0	12.7%	17.1%
Total	533.8	529.5	(0.8%)	64.5	(36.7)	12.1%	(6.9%)

KPIs and balance sheet

KPI	Q2 2024	Q3 2024	Q4 2024
Cash & Equivalents ($M)	$561.7	$629.7	$724.9
Net Debt ($M)	$765.1	$735.6	$557.0
Consolidated Net Leverage (x)	1.6x	1.6x	1.2x
Dividend/Share	$0.70 (Sep 5)	$0.70 (Dec 5)	$0.70 (Mar 6)

Notes: Q4 GAAP loss driven by non‑cash impairments of ~$93M; adjusted margins/EBITDA exclude non‑GAAP items per reconciliations .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Net Sales ($M)	Q1 2025	—	$520–$550	n/a
Adjusted Diluted EPS ($)	Q1 2025	—	$1.70–$1.90	n/a
Adjusted Effective Tax Rate	Q1 2025	—	~26%	n/a
FX/Commodities Impact	FY 2025	—	~1% sales headwind; ~$0.22 EPS tailwind	n/a
Amortization Expense ($M)	FY 2025	—	~$59	n/a
Interest Expense ($M)	FY 2025	—	~$35 (≈⅔ offset by interest income)	n/a
Capex ($M)	FY 2025	—	$90–$95	n/a
Elmos/Dortmund Fab Contribution	FY 2025	—	~2% sales growth; neutral EPS	n/a
Dividend	Q1 2025	—	$0.70/sh payable Mar 6, 2025	n/a

Company met Q4 2024 guidance ranges provided on Oct 29 (sales $510–$540M; adj EPS $1.90–$2.10) with actual $529.5M and $2.04, respectively .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q2 & Q3)	Current Period (Q4)	Trend
Electronics cycle / inventory	Q3: channel inventories mostly healthy; cautious orders; book‑to‑bill softened near parity; power semi demand weak, esp. Europe/industrial . Q2 release: return to growth likely in Q4; mixed demand, cautious customers .	Destocking behind; Electronics book‑to‑bill highest since Q2’22; Passives >1, power semi <1 but improving .	Improving in Passives; early recovery signs; power semis still soft
Data center / AI	Q3: robust AI/data center demand .	Data center remained a strong Electronics growth driver; several wins across cooling, datacom/server/compute .	Positive momentum sustained
Industrial end markets	Q3: softness across equipment, automation, charging, motor drives; industrial safety and HVAC improving .	Mixed demand; HVAC and industrial safety strong; power semi still weak; gradual recovery expected .	Gradual improvement ex‑power semi
Transportation	Q3: content growth despite lower builds; pruning actions; China strength; CV weak but pricing/mix helping .	Passenger car builds soft; pruning continues; CV early signs of improvement later in 2025; Transportation margins to expand further in 2025 .	Margin trajectory positive; volumes mixed
Tariffs / geopolitics	—	Company prepared to mitigate tariffs via footprint alignment, customer collaboration, or pass‑through pricing if needed .	Managed risk; watch policy
Tax / Pillar 2	—	Pillar 2 a headwind; FY25 tax rate 23–25% .	Structural headwind
M&A / Dortmund fab	—	Dortmund 200mm fab acquisition closed at year‑end 2024; FY25 ~2% sales from Elmos capacity, neutral EPS .	Strategic capacity add

Management Commentary

“Our performance and results came in as we expected, as both sales and earnings were within our prior guided range… we exited the year with the electronics destocking cycle behind us and signs of distribution inventory replenishment emerging.” — CEO Dave Heinzmann .
“Adjusted operating margin finished at 12% and adjusted EBITDA margins were 18.1%… Q4 GAAP diluted loss per share was $1.57 and adjusted diluted earnings was $2.04.” — CFO Meenal Sethna .
“We expect first quarter sales in the range of $520 million to $550 million… EPS $1.70 to $1.90… tax rate of 26%.” — CFO .
“We completed our acquisition of the Dortmund semiconductor fab… For 2025, we expect about a 2% total sales growth from volumes sold to Elmos and a neutral EPS impact.” — CFO .
“Electronics book‑to‑bill is at its highest level since the second quarter of 2022… Passives… above 1… power semiconductor remains below 1, [but] improved order rates in the quarter.” — CEO .

Q&A Highlights

Electronics book‑to‑bill and channel view: inventory correction “largely behind” with Passives/protection above 1; power semi below 1 but improving; North America/Asia momentum, Europe sluggish .
Transportation margin framework: continued expansion expected in 2025 driven by pricing, footprint, and cost reductions, offsetting declining car builds and FX/commodity volatility .
HVAC demand risk: management does not expect a Q1 “air pocket”; pivoting to industrial HVAC to backfill any residential softness .
Impairment details: ~$93M primarily within Industrial controls & sensors (intangible) and goodwill in Industrial and Automotive sensors; tied to weak EV charging infrastructure outlook .
Tariffs: footprint aligned to end markets; history of collaborating with customers; willing to pass on costs if necessary .

Estimates Context

We attempted to retrieve S&P Global (Capital IQ) Wall Street consensus for Q4 2024 and Q1 2025 but the request was blocked due to a daily limit; consensus estimates were unavailable at time of writing. Results were within company guidance: Q4 sales $529.5M (guide $510–$540M) and adjusted EPS $2.04 (guide $1.90–$2.10) .
Implication: Street models will likely adjust for (1) non‑cash impairment below the line, (2) improved Electronics order trends vs lingering power semi weakness, and (3) FY25 modeling items (tax 23–25%, capex $90–$95M, Elmos contribution, FX/commodity impacts) .

Key Takeaways for Investors

Mix normalization: Electronics destocking appears over, with Passives book‑to‑bill >1; watch for order conversion to revenue through 2025, especially outside Europe .
Power semi lag: industrial/power semi remains the soft spot (Europe‑centric); expect a gradual recovery rather than a sharp rebound .
Margin execution: Transportation and Industrial have durable cost/pricing/footprint levers; 2025 margin expansion looks achievable even on mixed volumes .
Cash and balance sheet strength: robust FCF and 1.2x leverage give dry powder for “thoughtful” M&A and buybacks/dividend maintenance .
Dortmund fab adds strategic capacity: ~2% FY25 sales contribution via Elmos volumes (neutral EPS) while expanding long‑term power semi capabilities .
Near‑term setup: Q1 guide embeds higher tax and FX/commodity dynamics; sentiment likely hinges on sustained bookings improvement in Electronics and stabilization in power semis .
Risk watchlist: tariffs/geopolitics, European industrial softness, EV charging demand normalization, and Pillar 2 tax headwind .

References: Littelfuse Q4 2024 press release and financial tables ; Q4 2024 earnings call transcript (prepared remarks and Q&A) –; Q3 2024 press release and tables –; Q2 2024 press release and tables –; Dortmund fab acquisition press release .

LITTELFUSE INC /DE (LFUS)·Q4 2024 Earnings Summary