Littelfuse, Inc. · NASDAQ:LFUS
Littelfuse — Q3 2024 Earnings Presentation
26 slides from Littelfuse's earnings presentation, Oct 30, 2024
Slide 1: Q3 2024 Earnings Release
Q3 2024 EARNINGS RELEASE OCTOBER 29, 2024 1
Slide 2: Disclaimers
DISCLAIMERS Important Information About Littelfuse, Inc. This presentation does not constitute or form part of, and should not be construed as, an offer or solicitation to purchase or sell securities of Littelfuse, Inc. and no investment decision should be made based upon the information provided he
Slide 3: Business Update
BUSINESS UPDATE Dave Heinzmann, President & CEO
Slide 4: Executive Summary
EXECUTIVE SUMMARY Solid Q3 execution drives results above expectations Q3 Adjusted EPS exceeded the high end of guidance Strong cash generation, continued balance sheet flexibility Meaningful new business wins across global customer base Delivering on profitability initiatives Sequential
Slide 5: 2021 – 2025 Growth Strategy
2021 – 2025 GROWTH STRATEGY EMPOWERING A SUSTAINABLE, CONNECTED, AND SAFER WORLD Our capabilities, investments & diversification deliver significant value Littelfuse, Inc. © 2024 5
Slide 6: Electronics End Markets: Product Leadership, Diverse Customer Reach
ELECTRONICS END MARKETS PRODUCT LEADERSHIP, DIVERSE CUSTOMER REACH Q3 2024 Highlights Continued solid data center & medical demand; ongoing subdued demand across consumer products, appliance & building technology applications Healthy design-in activity through cycle Momentum supports long term
Slide 7: Transportation End Markets: Balanced Capabilities, Global Partnerships
TRANSPORTATION END MARKETS BALANCED CAPABILITIES, GLOBAL PARTNERSHIPS Q3 2024 Highlights Benefiting from global scale & strong customer relationships Balanced portfolio serving extensive range of transportation applications Strong execution amid ongoing soft end market dynamics Delivering me
Slide 8: Industrial End Markets: Innovative Solutions, Broad Expertise
INDUSTRIAL END MARKETS INNOVATIVE SOLUTIONS, BROAD EXPERTISE Q3 2024 Highlights Continued end demand softness driven by industrial equipment, factory automation, motor drives & renewables More pronounced impact on power semiconductor business Ongoing signs of recovery in HVAC; continued tracti
Slide 9: Financial Update
FINANCIAL UPDATE Meenal Sethna, EVP & CFO
Slide 10: Q3 2024 Total Company Financial Performance
Q3 2024 TOTAL COMPANY FINANCIAL PERFORMANCE (in millions) Revenue Highlights Revenue (-7%) vs PY (Reported & Organic) ~2% portfolio pruning headwind GAAP op margin 15.5%; Adjusted op margin $607 $567 15.9% Lower volumes offset by operational execution 80bps benefit from FX & commodities Q3
Slide 11: Cash Generation & Capital Deployment
CASH GENERATION & CAPITAL DEPLOYMENT Well-positioned business model & execution drive robust long- term cash generation Disciplined approach to working capital management Strong balance sheet supports capital deployment strategy Net leverage ratio ~1.6x Prioritizing growth investments YT
Slide 12: Q3 2024 Electronics Segment Financial Performance
Q3 2024 ELECTRONICS SEGMENT FINANCIAL PERFORMANCE (in millions) Revenue Highlights Revenue: (-12%) vs PY (Reported & Organic) Passive products flat vs PY Semiconductor (-21%) $344 $304 Normalizing channel inventories amid continued soft demand; further industrial softness impacting semicondu
Slide 13: Q3 2024 Transportation Segment Financial Performance
Q3 2024 TRANSPORTATION SEGMENT FINANCIAL PERFORMANCE (in millions) Revenue Highlights Revenue: (-3%) vs PY (Reported & Organic) ~5% portfolio pruning headwind Passenger vehicle business (-7%) vs PY (Reported & Organic) $177 $171 Growth in China more than offset by weaker NA and Europe Comm
Slide 14: Q3 2024 Industrial Segment Financial Performance
Q3 2024 INDUSTRIAL SEGMENT FINANCIAL PERFORMANCE (in millions) Revenue Highlights Revenue: +7% vs PY (Reported & Organic) Continued HVAC recovery, industrial safety growth and data center momentum Ongoing end market softness...Renewables, $86 $92 EV infrastructure, factory automation Footpri
Slide 15: Q4 2024 Guidance
Q4 2024 GUIDANCE (in millions) Revenue Highlights Macro view…further softening in industrial & automotive end markets, muted electronics demand Passive electronics channel inventories have $540 - normalized, protection returning to normal $534 $567 $510 Ongoing cautious order patterns Sales
Slide 16: Full Year 2024 Considerations / Expectations
FULL YEAR 2024 CONSIDERATIONS / EXPECTATIONS FY Pruning impact…(-2%) Company, (-5%) Transportation Segment (heavier Comm. Vehicle) FY ’24 margin expectations driven by ongoing operational execution, offset by continued soft end demand Company adj. operating margin ~13% FY’24 by segment…Elect
Slide 17: Diversification Delivers Double-Digit Revenue & Earnings CAGR
DIVERSIFICATION OF TECHNOLOGIES, END MARKETS & GEOGRAPHIES DELIVERS DOUBLE-DIGIT REVENUE & EARNINGS CAGR Expanding leadership in 15-year* CAGR: core markets while Sales +10% prioritizing strategic EPS +18% investments to bolster diversified portfolio Flexible cost structure drives improved profi
Slide 18: Appendix
Appendix Littelfuse, Inc. © 2024 18
Slide 19: Supplemental Financial Information: Non-GAAP EPS Reconciliation
SUPPLEMENTAL FINANCIAL INFORMATION Non-GAAP EPS reconciliation Q3-24 Q3-23 YTD-24 YTD-23 GAAP diluted EPS $ 2.32 $ 2.30 $ 6.07 $ 8.63 EPS impact of Non-GAAP adjustments (below) 0.39 0.67 0.37 1.09 Adjusted diluted EPS $ 2.71 $ 2.97 $ 6.44 $ 9.72 Non-GAAP adjustments - (income) / expense ( in million
Slide 20: Adjusted Operating Margin / Adjusted EBITDA Reconciliation
SUPPLEMENTAL FINANCIAL INFORMATION CONT'D Adjusted operating margin / Adjusted EBITDA reconciliation (in millions) Q3-24 Q3-23 YTD-24 YTD-23 Net income $ 58.1 $ 57.8 $ 152.0 $ 216.6 Add: Income taxes 19.7 17.5 42.6 53.0 Interest expense 9.8 10.1 29.4 29.8 Foreign exchange loss 9.6 11.8 4.3 8.7 Other
Slide 21: Adjusted EBITDA by Segment
SUPPLEMENTAL FINANCIAL INFORMATION CONT'D Adjusted EBITDA by Segment ( in millions) Q3-24 Q3-23 Electronics Transportation Industrial Electronics Transportation Industrial GAAP operating income $ 48.9 $ 23.5 $ 17.7 $ 77.0 $ 9.7 $ 13.2 Add: Add back amortization 9.9 3.4 2.6 9.8 3.6 2.6 Add back depre
Slide 22: Net Sales Reconciliation Q3-24 vs. Q3-23
SUPPLEMENTAL FINANCIAL INFORMATION CONT'D Net sales reconciliation Q3-24 vs. Q3-23 Electronics Transportation Industrial Total Net sales (decline) growth (12)% (3)% 7% (7)% Less: FX impact —% —% —% —% Organic net sales (decline) growth (12)% (3)% 7% (7)% Electronics segment net sales reconciliation
Slide 23: Q2-24 Segment Margins and Adjusted EBITDA
SUPPLEMENTAL FINANCIAL INFORMATION CONT'D Q2-24 2024 2023 % (Decline)/Growth Operating Margin Electronics 15.1 % 22.8 % (7.7) % Transportation 9.0 % 4.5 % 4.5 % Industrial 11.4 % 16.8 % (5.4) % Adjusted EBITDA by Segment ( in millions) Q2-24 Electronics Transportation Industrial GAAP operating incom
Slide 24: Income Tax and Free Cash Flow Reconciliation
SUPPLEMENTAL FINANCIAL INFORMATION CONT'D Income tax reconciliation Q3-24 Q3-23 Income taxes $ 19.7 $ 17.5 Effective rate 25.3 % 23.3 % Non-GAAP adjustments - income taxes 2.1 1.2 Adjusted income taxes $ 21.8 $ 18.7 Adjusted effective rate 24.3 % 20.0 % Free cash flow reconciliation Q3-24 Q3-23 Net
Slide 25: Consolidated Total Debt
SUPPLEMENTAL FINANCIAL INFORMATION CONT'D Consolidated Total Debt As of September 28, 2024 Consolidated Total Debt $ 867.7 Unamortized debt issuance costs 3.0 * Our Credit Agreement and Private Placement Note with maturities ranging from 2024 to 2032, Finance lease liability 0.4 contain financial ra
Slide 26: Non-GAAP EPS Reconciliation Q4-23
SUPPLEMENTAL FINANCIAL INFORMATION CONT'D Non-GAAP EPS reconciliation Q4-23 GAAP diluted EPS $ 1.71 EPS impact of Non-GAAP adjustments (below) 0.31 Adjusted diluted EPS $ 2.02 Non-GAAP adjustments - (income) / expense ( in millions) Q4-23 Acquisition-related and integration costs (a) $ 2.7 Restructu