Littelfuse Reports Second Quarter Results for 2025

About this update from Littelfuse, Inc.

Second Quarter 2025 Highlights: (Year-over-year comparisons unless otherwise noted) Net sales of $613 million , +9.8%; organic growth contributed +6.2% GAAP diluted earnings per share of $2.30 , +26% Adjusted diluted earnings per share of $2.85 , +45% GAAP Operating margin of 15.1%, +340 bps; Adjusted EBITDA margin of 21.4%, +280 bps YTD Cash flow from operations of $148 million and free cash flow of $115 million ; YTD cash conversion of 114% The Company’s Board of Directors approved a 7% increase in the quarterly cash dividend from $0.70 to $0.75 ; this equates to an annualized dividend of $3.00 per share CHICAGO --(BUSINESS WIRE)-- Littelfuse, Inc. (NASDAQ: LFUS), a leader in developing smart solutions that enable safe and efficient electrical energy transfer, today reported financial results for the second quarter ended June 28, 2025 : “Our Q2 results exceeded our expectations, driven by solid growth and operational execution across our businesses,” said Greg Henderson , Littelfuse President and Chief Executive Officer. “We are leveraging our market leadership position and unique product portfolio as we help our customers solve their challenges around the safe and efficient transfer of electrical energy. We exited the quarter with strong bookings, and, into the third quarter, we are well positioned to drive continued growth while enhancing operational performance. We will remain focused on executing through a dynamic environment, and our strong balance sheet and cash generation will continue to support our thoughtful capital allocation strategy.” “We are executing on our strategic priorities outlined last quarter, with a goal of driving leading long-term shareholder returns. Our focus on better capitalizing on future growth opportunities, providing more complete solutions to a broader set of customers, and driving operational excellence is delivering stronger growth and improved profitability.” Third Quarter of 2025* Based on current market conditions, for the third quarter the company expects, Net sales in the range of $610 - $630 million , adjusted diluted EPS in the range of $2.65 – $2.85 and an adjusted effective tax rate of 25% * Littelfuse provides guidance on a non-GAAP (adjusted) basis. GAAP items excluded from guidance may include the after-tax impact of items including acquisition and integration costs, restructuring, impairment and other charges, certain purchase accounting adjustments, non-operating foreign exchange adjustments and significant and unusual items. These items are uncertain, depend on various factors, and could be material to results computed in accordance with GAAP. Littelfuse is not able to forecast the excluded items in order to provide the most directly comparable GAAP financial measure without unreasonable efforts. Dividend The company will pay a cash dividend on its common stock of $0.75 per share on September 4, 2025 , to shareholders of record as of August 21, 2025 Conference Call and Webcast Information Littelfuse will host a conference call on Wednesday, July 30, 2025 , at 8:00 a.m. Central Time to discuss the results. The call will be broadcast and available for replay at Littelfuse.com . A slide presentation is available in the Investor Relations section of the company’s website at Littelfuse.com . About Littelfuse Littelfuse, Inc. (NASDAQ: LFUS) is a diversified, industrial technology manufacturing company empowering a sustainable, connected, and safer world. Across more than 20 countries, and with approximately 16,000 global associates, we partner with customers to design and deliver innovative, reliable solutions. Serving over 100,000 end customers, our products are found in a variety of industrial, transportation and electronics end markets – everywhere, every day. Learn more at Littelfuse.com . “Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995 The statements in this press release that are not historical facts are intended to constitute "forward-looking statements" entitled to the safe-harbor provisions of the Private Securities Litigation Reform Act. Such statements are based on Littelfuse , Inc.’s (“Littelfuse” or the “Company”) current expectations and are subject to a number of factors and uncertainties, which could cause actual results to differ materially from those described in the forward-looking statements. These risks, uncertainties and other factors include, but are not limited to, risks and uncertainties relating to general economic conditions; product demand and market acceptance; economic conditions; the impact of competitive products and pricing; product quality problems or product recalls; capacity and supply difficulties or constraints; coal mining exposures reserves; cybersecurity matters; failure of an indemnification for environmental liability; changes in import and export duty and tariff rates; exchange rate fluctuations; commodity price fluctuations; the effect of the Company's accounting policies; labor disputes and shortages; restructuring costs in excess of expectations; pension plan asset returns less than assumed; uncertainties related to political or regulatory changes; integration of acquisitions may not be achieved in a timely manner, or at all; limited realization of the expected benefits from investment and strategic plans; and other risks which may be detailed in the company's Securities and Exchange Commission filings. Should one or more of these risks or uncertainties materialize or should the underlying assumptions prove incorrect, actual results and outcomes may differ materially from those indicated or implied in the forward-looking statements. This release should be read in conjunction with information provided in the financial statements appearing in the company's Annual Report on Form 10-K for the year ended December 28, 2024 . Further discussion of the risk factors of the company can be found under the caption "Risk Factors" in the company's Annual Report on Form 10-K for the year ended December 28, 2024 , and in other filings and submissions with the SEC , each of which are available free of charge on the company’s investor relations website at investor.littelfuse.com and on the SEC’s website at www.sec.gov . These forward-looking statements are made as of the date hereof. The company does not undertake any obligation to update, amend or clarify these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the availability of new information. Non-GAAP Financial Measures The information included in this press release and other materials filed with the SEC may include the non-GAAP financial measures including organic net sales (decline) growth, adjusted operating income, adjusted operating margin, adjusted EBITDA, adjusted EBITDA margin, adjusted diluted earnings per share, adjusted income taxes, adjusted effective tax rate, free cash flow, net debt, consolidated EBITDA, and consolidated net leverage ratio (as defined in the credit agreement). Many of these non-GAAP financial measures exclude the effect of certain expenses and income not related directly to the underlying performance of our fundamental business operations. A reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measures is set forth in the attached schedules. The company believes that organic net sales (decline) growth, adjusted operating income, adjusted operating margin, adjusted EBITDA, adjusted EBITDA margin, adjusted diluted earnings per share, adjusted income taxes, and adjusted effective tax rate provide useful information to investors regarding its operational performance because they enhance an investor’s overall understanding of our core financial performance and facilitate comparisons to historical results of operations, by excluding items that are not related directly to the underlying performance of our fundamental business operations or were not part of our business operations during a comparable period. The company believes that free cash flow is a useful measure of its ability to generate cash. The company believes that net debt, consolidated EBITDA, and consolidated net leverage ratio are useful measures of its credit position. The company believes that all of these non-GAAP financial measures are commonly used by financial analysts and others in the industries in which we operate, and thus further provide useful information to investors. Management additionally uses these measures when assessing the performance of the business and for business planning purposes. Note that our definitions of these non-GAAP financial measures may differ from those terms as defined or used by other companies. LFUS-F LITTELFUSE, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (in thousands, except share and per share data) June 28 , 2025 December 28 , 2024 ASSETS Current assets: Cash and cash equivalents $ 685,184 $ 724,924 Short-term investments 298 976 Trade receivables, less allowances of $73,121 and $69,990 at June 28, 2025 and December 28, 2024 , respectively 363,574 294,371 Inventories 412,164 416,273 Prepaid income taxes and income taxes receivable 9,018 11,749 Prepaid expenses and other current assets 71,812 103,716 Total current assets 1,542,050 1,552,009 Net property, plant, and equipment 516,517 477,068 Intangible assets, net of amortization 474,177 482,118 Goodwill 1,359,422 1,228,502 Investments 21,602 23,245 Deferred income taxes 6,304 4,899 Right of use lease assets 89,161 72,211 Other long-term assets 56,648 51,727 Total assets $ 4,065,881 $ 3,891,779 LIABILITIES AND EQUITY Current liabilities: Accounts payable $ 181,902 $ 188,359 Accrued liabilities 154,531 148,276 Accrued income taxes 25,617 29,658 Current portion of long-term debt 17,692 67,612 Total current liabilities 379,742 433,905 Long-term debt, less current portion 792,524 788,502 Deferred income taxes 103,285 95,532 Accrued post-retirement benefits 33,179 29,836 Non-current lease liabilities 75,543 60,559 Other long-term liabilities 82,643 69,833 Total equity 2,598,965 2,413,612 Total liabilities and equity $ 4,065,881 $ 3,891,779 LITTELFUSE, INC. CONDENSED CONSOLIDATED STATEMENTS OF NET INCOME (Unaudited) Three Months Ended Six Months Ended (in thousands, except per share data) June 28 , 2025 June 29 , 2024 June 28 , 2025 June 29 , 2024 Net sales $ 613,413 $ 558,489 $ 1,167,720 $ 1,093,874 Cost of sales 381,359 351,485 728,410 699,062 Gross profit 232,054 207,004 439,310 394,812 Selling, general, and administrative expenses 95,517 93,371 183,225 179,498 Research and development expenses 26,401 27,146 52,449 54,813 Amortization of intangibles 14,852 15,729 29,183 31,554 Restructuring, impairment, and other charges 2,506 5,252 11,525 8,489 Total operating expenses 139,276 141,498 276,382 274,354 Operating income 92,778 65,506 162,928 120,458 Interest expense 8,568 9,975 17,443 19,586 Foreign exchange loss (gain) 10,448 (315 ) 15,291 (5,357 ) Other income, net (4,452 ) (5,298 ) (7,967 ) (10,619 ) Income before income taxes 78,214 61,144 138,161 116,848 Income taxes 20,872 15,678 37,248 22,930 Net income $ 57,342 $ 45,466 $ 100,913 $ 93,918 Earnings per share: Basic $ 2.32 $ 1.83 $ 4.08 $ 3.78 Diluted $ 2.30 $ 1.82 $ 4.05 $ 3.75 Weighted-average shares and equivalent shares outstanding: Basic 24,755 24,822 24,760 24,867 Diluted 24,905 25,030 24,938 25,075 Comprehensive income $ 155,255 $ 24,399 $ 236,423 $ 42,560 LITTELFUSE, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) Six Months Ended (in thousands) June 28, 2025 June 29, 2024 OPERATING ACTIVITIES Net income $ 100,913 $ 93,918 Adjustments to reconcile net income to net cash provided by operating activities: 86,758 73,161 Changes in operating assets and liabilities: Trade receivables (52,635 ) (36,474 ) Inventories 23,316 16,241 Accounts payable (7,001 ) 6,819 Accrued liabilities and income taxes (14,425 ) (28,829 ) Prepaid expenses and other assets 11,299 1,738 Net cash provided by operating activities 148,225 126,574 INVESTING ACTIVITIES Acquisitions of businesses, net of cash acquired (57,417 ) — Purchases of property, plant, and equipment (32,999 ) (34,674 ) Net proceeds from sale of property, plant and equipment, and other 712 7,997 Net cash used in investing activities (89,704 ) (26,677 ) FINANCING ACTIVITIES Net payments of credit facility (57,500 ) (3,750 ) Repurchases of common stock (27,553 ) (40,862 ) Cash dividends paid (34,677 ) (32,330 ) All other cash provided by financing activities (813 ) (2,348 ) Net cash used in financing activities (120,543 ) (79,290 ) Effect of exchange rate changes on cash, cash equivalents, and restricted cash 22,468 (14,434 ) (Decrease) increase in cash, cash equivalents, and restricted cash (39,554 ) 6,173 Cash, cash equivalents, and restricted cash at beginning of period 726,437 557,123 Cash, cash equivalents, and restricted cash at end of period $ 686,883 $ 563,296 LITTELFUSE, INC. NET SALES AND OPERATING INCOME BY SEGMENT (Unaudited) Second Quarter Year-to-Date (in thousands) 2025 2024 % Growth 2025 2024 % Growth Net sales Electronics $ 335,666 $ 305,639 9.8 % $ 642,915 $ 596,744 7.7 % Transportation 179,400 168,964 6.2 % 341,262 339,331 0.6 % Industrial 98,347 83,886 17.2 % 183,543 157,799 16.3 % Total net sales $ 613,413 $ 558,489 9.8 % $ 1,167,720 $ 1,093,874 6.8 % Operating income Electronics $ 49,861 $ 46,165 8.0 % $ 96,627 $ 83,968 15.1 % Transportation 28,074 15,234 84.3 % 46,991 31,440 49.5 % Industrial 18,863 9,547 97.6 % 31,937 14,343 122.7 % Other(a) (4,020 ) (5,440 ) N.M. (12,627 ) (9,293 ) N.M. Total operating income $ 92,778 $ 65,506 41.6 % $ 162,928 $ 120,458 35.3 % Operating Margin 15.1 % 11.7 % 14.0 % 11.0 % Interest expense 8,568 9,975 17,443 19,586 Foreign exchange loss (gain) 10,448 (315 ) 15,291 (5,357 ) Other income, net (4,452 ) (5,298 ) (7,967 ) (10,619 ) Income before income taxes $ 78,214 $ 61,144 27.9 % $ 138,161 $ 116,848 18.2 % (a) "other" typically includes non-GAAP adjustments such as acquisition-related and integration costs, purchase accounting inventory adjustments and restructuring and impairment charges. (See Supplemental Financial Information for details.) N.M. - Not meaningful Second Quarter Year-to-Date (in thousands) 2025 2024 % (Decline)/ Growth 2025 2024 % Growth Operating Margin Electronics 14.9 % 15.1 % (0.2 )% 15.0 % 14.1 % 0.9 % Transportation 15.6 % 9.0 % 6.6 % 13.8 % 9.3 % 4.5 % Industrial 19.2 % 11.4 % 7.8 % 17.4 % 9.1 % 8.3 % LITTELFUSE, INC. SUPPLEMENTAL FINANCIAL INFORMATION (In millions of USD except per share amounts - unaudited) Non-GAAP EPS reconciliation Q2-25 Q2-24 YTD-25 YTD-24 GAAP diluted EPS $ 2.30 $ 1.82 $ 4.05 $ 3.75 EPS impact of Non-GAAP adjustments (below) 0.55 0.15 0.99 (0.02 ) Adjusted diluted EPS $ 2.85 $ 1.97 $ 5.04 $ 3.73 Non-GAAP adjustments - (income) / expense Q2-25 Q2-24 YTD-25 YTD-24 Acquisition-related and integration costs (a) $ 1.5 $ 0.8 $ 1.6 $ 1.8 Purchase accounting inventory adjustments (b) — — (0.5 ) — Restructuring, impairment and other charges (c) 2.5 5.3 11.5 8.5 Gain on sale of fixed assets (d) — (0.7 ) — (1.0 ) Non-GAAP adjustments to operating income 4.0 5.4 12.6 9.3 Other income, net (e) — (0.5 ) — (0.3 ) Non-operating foreign exchange loss (gain) 10.4 (0.3 ) 15.3 (5.4 ) Non-GAAP adjustments to income before income taxes 14.4 4.6 27.9 3.6 Income taxes (f) 0.8 0.7 3.2 4.1 Non-GAAP adjustments to net income $ 13.6 $ 3.9 $ 24.7 $ (0.5 ) Total EPS impact $ 0.55 $ 0.15 $ 0.99 $ (0.02 ) Adjusted operating margin / Adjusted EBITDA reconciliation Q2-25 Q2-24 YTD-25 YTD-24 Net income $ 57.3 $ 45.5 $ 100.9 $ 93.9 Add: Income taxes 20.9 15.7 37.2 22.9 Interest expense 8.6 10.0 17.4 19.6 Foreign exchange loss (gain) 10.4 (0.3 ) 15.3 (5.4 ) Other income, net (4.5 ) (5.3 ) (8.0 ) (10.6 ) GAAP operating income $ 92.8 $ 65.5 $ 162.9 $ 120.5 Non-GAAP adjustments to operating income 4.0 5.4 12.6 9.3 Adjusted operating income $ 96.8 $ 70.9 $ 175.5 $ 129.8 Amortization of intangibles 14.9 15.7 29.2 31.6 Depreciation expense 19.4 17.1 37.8 33.7 Adjusted EBITDA $ 131.1 $ 103.7 $ 242.5 $ 195.0 Net sales $ 613.4 $ 558.5 $ 1,167.7 $ 1,093.9 Net income as a percentage of net sales 9.3 % 8.1 % 8.6 % 8.6 % Operating margin 15.1 % 11.7 % 14.0 % 11.0 % Adjusted operating margin 15.8 % 12.7 % 15.0 % 11.9 % Adjusted EBITDA margin 21.4 % 18.6 % 20.8 % 17.8 % Adjusted EBITDA by Segment Q2-25 Q2-24 Electronics Transportation Industrial Electronics Transportation Industrial GAAP operating income $ 49.9 $ 28.1 $ 18.8 $ 46.2 $ 15.2 $ 9.5 Add: Add back amortization 10.1 3.4 1.4 9.8 3.3 2.6 Add back depreciation 12.6 5.3 1.5 10.0 5.8 1.3 Adjusted EBITDA $ 72.6 $ 36.8 $ 21.7 $ 66.0 $ 24.3 $ 13.4 Adjusted EBITDA Margin 21.6 % 20.5 % 22.1 % 21.6 % 14.4 % 16.0 % Adjusted EBITDA by Segment YTD-25 YTD-24 Electronics Transportation Industrial Electronics Transportation Industrial GAAP operating income $ 96.6 $ 47.0 $ 31.9 $ 84.0 $ 31.4 $ 14.3 Add: Add back amortization 19.9 6.8 2.5 19.7 6.8 5.1 Add back depreciation 24.0 10.8 3.0 19.9 11.0 2.8 Adjusted EBITDA $ 140.5 $ 64.6 $ 37.4 $ 123.6 $ 49.2 $ 22.2 Adjusted EBITDA Margin 21.8 % 18.9 % 20.4 % 20.7 % 14.5 % 14.1 % Net sales reconciliation Q2-25 vs. Q2-24 Electronics Transportation Industrial Total Net sales growth 10 % 6 % 17 % 10 % Less: Acquisitions 4 % — % — % 2 % FX impact 1 % 2 % — % 1 % Organic net sales growth 4 % 4 % 17 % 6 % Net sales reconciliation YTD-25 vs. YTD-24 Electronics Transportation Industrial Total Net sales growth 8 % 1 % 16 % 7 % Less: Acquisitions 4 % — % — % 2 % FX impact — % 1 % (1 )% — % Organic net sales growth 4 % — % 17 % 5 % Income tax reconciliation Q2-25 Q2-24 YTD-25 YTD-24 Income taxes $ 20.9 $ 15.7 $ 37.2 $ 22.9 Effective rate 26.7 % 25.6 % 27.0 % 19.6 % Non-GAAP adjustments - income taxes 0.8 0.7 3.2 4.1 Adjusted income taxes $ 21.7 $ 16.4 $ 40.4 $ 27.0 Adjusted effective rate 23.4 % 25.0 % 24.4 % 22.4 % Free cash flow reconciliation Q2-25 Q2-24 YTD-25 YTD-24 Net cash provided by operating activities $ 82.5 $ 69.4 $ 148.2 $ 126.6 Less: Purchases of property, plant and equipment (9.9 ) (19.1 ) (33.0 ) (34.7 ) Free cash flow $ 72.6 $ 50.3 $ 115.2 $ 91.9 Consolidated Total Debt As of June 28, 2025 Consolidated Total Debt $ 810.2 Unamortized debt issuance costs 2.3 Finance lease liability 0.2 Consolidated funded indebtedness 812.7 Cash held in U.S. (up to $400 million ) 265.1 Net debt $ 547.6 Consolidated EBITDA Twelve Months Ended June 28, 2025 Net Income $ 106.9 Interest expense 36.6 Income taxes 66.0 Depreciation 72.4 Amortization 59.8 Non-cash additions: Stock-based compensation expense 22.6 Unrealized loss on investments 0.7 Impairment charges 92.7 Other 25.3 Consolidated EBITDA (1) $ 483.0 Consolidated Net Leverage Ratio (as defined in the Credit Agreement) * 1.1x * Our Credit Agreement and Private Placement Note with maturities ranging from 2025 to 2032, contain financial ratio covenants providing that if, as of the last day of each fiscal quarter, the Consolidated Net Leverage ratio at such time for the then most recently concluded period of four consecutive fiscal quarters of the Company exceeds 3.50:1.00, an Event of Default (as defined in the Credit Agreement and Private Placement Senior Notes) is triggered. The Credit Agreement and Private Placement Senior Notes were amended in Q2 2022 and now allow for the addition of acquisition and integration costs up to 15% of Consolidated EBITDA and the netting of up to $400M of Available Cash (Cash held by US Subsidiaries). (1) Represents Consolidated EBITDA as defined in our Credit Agreement and Private Placement Senior Notes and is calculated using the most recently concluded period of four consecutive quarters. Note: Total will not always foot due to rounding. (a) reflected in selling, general and administrative expenses ("SG&A"). (b) reflected in cost of sales. (c) reflected in restructuring, impairment and other charges. (d) 2024 amount reflected a gain of $0.7 million ( $1.0 million year-to-date) recorded for the sale of two buildings within the Transportation segment. (e) Q2 2024 included a reversal of $0.5 million for an asset retirement obligation charge related the disposal of a business in 2019. 2024 year-to-date amount reflected $0.2 million increase in coal mining reserves. (f) reflected the tax impact associated with the non-GAAP adjustments. View source version on businesswire.com : https://www.businesswire.com/news/home/20250730297498/en/ David Kelley 224-727-2535 [email protected] Source: Littelfuse, Inc.

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