LFUS

Wrapping up Q2 earnings, we look at the numbers and key takeaways for the electronic components stocks, including Littelfuse (NASDAQ:LFUS) and its peers. Like many equipment and component manufacturers, electronic components companies are buoyed by secular trends such as connectivity and industrial automation. More specific pockets of strong demand include data centers and telecommunications, which can benefit companies whose optical and transceiver offerings fit those markets. But like the broader industrials sector, these companies are also at the whim of economic cycles. Consumer spending, for example, can greatly impact these companies’ volumes. The 8 electronic components stocks we track reported an exceptional Q2. As a group, revenues beat analysts’ consensus estimates by 3.3% while next quarter’s revenue guidance was 6.9% above. Luckily, electronic components stocks have performed well with share prices up 15.1% on average since the latest earnings results. The developer of the first blade-type automotive fuse, Littelfuse (NASDAQ:LFUS) provides electrical protection and control components for the automotive, industrial, electronics, and telecommunications industries. Littelfuse reported revenues of $738.8 million, up 20.4% year on year. This print exceeded analysts’ expectations by 5.4%. Overall, it was a stunning quarter for the company with an impressive beat of analysts’ EBITDA and EPS estimates. “We delivered strong second quarter results, with performance exceeding our expectations reflecting broad-based demand strength and disciplined execution across the portfolio,” said Greg Henderson, Littelfuse President and Chief Executive Officer. Interestingly, the stock is up 20.5% since reporting and currently trades at $472.33. Is now the time to buy Littelfuse? Access our full analysis of the earnings results here, it’s free. Founded in 1962, Allient (NASDAQ:ALNT) develops and manufactures precision and specialty-controlled motion components and systems. Allient reported revenues of $153.8 million, up 10.2% year on year, outperforming analysts’ expectations by 5.5%. The business had an incredible quarter with a beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates. The market seems happy with the results as the stock is up 21.2% since reporting. It currently trades at $113.02. Is now the time to buy Allient? Access our full analysis of the earnings results here, it’s free. Founded by a former CEO and Harvard-educated entrepreneur Scott Keeneyn, nLIGHT (NASDAQ:LASR) offers semiconductor and fiber lasers to the industrial, aerospace & defense, and medical sectors. nLIGHT reported revenues of $82.59 million, up 33.8% year on year, exceeding analysts’ expectations by 4.6%. It was a satisfactory quarter as it also posted EPS in line with analysts’ estimates but EBITDA guidance for next quarter missing analysts’ expectations significantly. As expected, the stock is down 28.1% since the results and currently trades at $54.23. Read our full analysis of nLIGHT’s results here. Supplying windows for some of the United States’s earliest spacecraft, Corning (NYSE:GLW) provides glass and other electronic components for the consumer electronics, telecommunications, automotive, and healthcare industries. Corning reported revenues of $4.74 billion, up 17.1% year on year. This print beat analysts’ expectations by 2%. Taking a step back, it was a satisfactory quarter as it also logged EPS guidance for next quarter topping analysts’ expectations but revenue guidance for next quarter missing analysts’ expectations. Corning had the weakest guidance update among its peers. The stock is up 21% since reporting and currently trades at $173.48. Read our full, actionable report on Corning here, it’s free. Founded by 26-year-old Elliot Bernstein during the electronics boom after WW2, Bel Fuse (NASDAQ:BELF.A) provides electronic systems and devices to the telecommunications, networking, transportation, and industrial sectors. Bel Fuse reported revenues of $210.7 million, up 25.2% year on year. This number topped analysts’ expectations by 1.6%. It was a very strong quarter as it also logged a beat of analysts’ EPS estimates and revenue guidance for next quarter beating analysts’ expectations. The stock is up 23.3% since reporting and currently trades at $249.52. Read our full, actionable report on Bel Fuse here, it’s free. Over the past year, investors have been forced to repeatedly answer the same question: what is the market’s biggest risk? The answer has changed several times, and each shift has reshaped market leadership. Late in 2025 and early 2026, artificial intelligence became the market’s primary uncertainty. Investors questioned whether AI would erode software pricing power and weaken competitive moats as AI made it easier to replicate once-differentiated products. By the spring, technology took a back seat to geopolitics. The U.S. conflict with Iran briefly became the market’s dominant narrative, raising concerns about oil prices, inflation, and global growth. But as energy markets remained orderly and fears of a prolonged supply disruption faded, investors quickly turned their focus back to fundamentals. Want to invest in winners with rock-solid fundamentals? Check out our Top 6 Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

Image source: The Motley Fool. Wednesday, July 29, 2026 at 9:00 a.m. ET Vice President of Investor Relations - David Kelley President and Chief Executive Officer - Gregory Henderson Executive Vice President and Chief Financial Officer - Abhishek Khandelwal Need a quote from a Motley Fool analyst? Email [email protected] Operator: Good day, everyone, and welcome to the Littelfuse Second Quarter 2026 Earnings Conference Call. Today's call is being recorded. At this time, I will turn the call over to the Vice President of Investor Relations, David Kelley. Please proceed. David Kelley: Good morning, and welcome to the Littelfuse Second Quarter 2026 Earnings Conference Call. With me today are Greg Henderson, President and CEO; and Abhi Khandelwal, Executive Vice President and CFO. This morning, we reported results for our second quarter, and a copy of our earnings release and slide presentation is available in the Investor Relations section of our website. A webcast of today's conference call will also be available on our website. Please advance to Slide 2 for our disclaimers. Our discussions today will include forward-looking statements. These forward-looking statements may involve significant risks and uncertainties. Please review today's press release and our Forms 10-K and 10-Q for more detail about important risks that could cause actual results to differ materially from our expectations. We assume no obligation to update any of this forward-looking information. Also, our remarks today refer to non-GAAP financial measures. A reconciliation of these non-GAAP financial measures to the most comparable GAAP measure is provided in our earnings release available in the Investor Relations section of our website. I will now turn the call over to Greg. Gregory Henderson: Thank you, David, and thank you to everyone for joining us today. This morning, I will provide details on our second quarter results, including an update on performance across our end markets. I'll then discuss progress against our strategic priorities before turning it over to Abhi to review our financial results by segment. But before discussing the quarter in greater detail, I think it's important to step back and view our performance through the lens of the growth strategy we outlined at Investor Day in May. Our results reflect continued progress against the priorities we shared with investors. Across our markets, we are partnering with our customers to enable the adoption of higher power and more advanced electrical architectures. Our second quarter performance and the momentum we see into the second half of 2026 reinforce our confidence in our long-term growth and profitability framework. Now turning to the quarter. We delivered sales and adjusted earnings above our expectations with net sales of $739 million, up 20% year-over-year and 14% organically. We also delivered meaningful earnings growth as our teams executed well while leveraging continued demand momentum across several of our key growth markets. Looking at our end market exposures across the Littelfuse portfolio, we delivered strong second quarter growth across computing, communications and diversified industrial markets or CCDI. Within the market, data center remained a leading contributor to growth as we continue to leverage our unparalleled grid-to-chip capabilities across our businesses. Diversified industrial channels were also a key contributor to CCDI growth, while we benefited from improving demand across medical and aerospace and defense applications. Finally, within CCDI, consumer electronics sales declined in the quarter. Consumer electronics represents less than 10% of company sales and has a limited impact on our long-term growth trajectory as we prioritize strategic industrial and data center opportunities. Turning to energy and industrial infrastructure end markets, or EII. We benefited from both broad-based demand strength and the contribution from Basler in the second quarter. Across our industrial infrastructure verticals, growth was led by industrial automation and construction, while we benefited from faster-than-expected HVAC recovery. In energy infrastructure, we continue to benefit from demand tied to grid modernization, utility investment and renewable energy deployment. Notably, Basler continues to drive significant momentum in grid and utility infrastructure, a key strategic growth market for Littelfuse. Finally, revenue across transportation and logistics end markets increased moderately year-over-year. In passenger vehicles, we delivered growth despite lower global production volumes, driven by content expansion and share gains. In commercial vehicles, revenue growth benefited from improving demand in truck, construction and agricultural equipment markets. We are seeing continued traction from our more focused and proactive go-to-market approach, particularly with leading OEM customers where we can bring system-level solutions and multi-technology capabilities to support more complex platform requirements. In the quarter, we partnered with a leading transportation customer for a light truck and commercial vehicle platform. Our integrated solution utilizes our current sensor and MEGA Fuse technologies, providing up to a 700 amp protection rating while monitoring and sensing high-impact loads. Importantly, our solution reduces risk of battery degradation typically associated with the stress of high current loads. This design win represents more than $20 million in annual revenue opportunity with potential to scale across additional vehicles in the future. Overall, our second quarter performance reinforces the strength of our end market diversity and technology portfolio as well as the benefits of our sharpened focus on high-growth opportunities and operational excellence. Heading into the third quarter, we are well positioned to build on our growth momentum. We entered the quarter with record bookings and our book-to-bill is well north of 1.0. We continue to partner more closely with customers on their next-generation architectures with a focus on providing multi-technology solutions. Supporting this through the first half of the year, design wins were up double digits across each of our markets, reflecting improved conversion of our expanding new business opportunity pipeline. Let me provide you with an example of our progress. In the quarter, we were awarded a significant program with a leader in battery energy storage and power supply applications. Our solution, which utilizes our fast-acting TLS fuses, optimizes performance of battery backup units for data center markets. This design win and our strategic partnership with this customer is positioning us well for the expansion of high-voltage battery storage solutions for both data center and grid-scale markets. Finally, I want to update you on our portfolio optimization and rationalization in power semiconductor products. As mentioned at Investor Day, we are sharpening our power semiconductor focus on high-power and high-value applications where we have a differentiated right to win. As an example of where we are applying this strategy, we have a design win this quarter with a leading player in fusion power. Our solution leverages our high-voltage IGBT and diodes to actively manage the stored energy that is used to drive the fusion reaction. This solution offers an unparalleled 4.5 kV operation in an extremely compact footprint. We will begin shipping for this customer in the third quarter as they build their first prototype reactor. Notably, our power semiconductor demand strengthened in the quarter, and our teams executed well, contributing to improved growth and profitability. We see continued power semiconductor demand momentum into the third quarter, and we are balancing these growth opportunities with ongoing portfolio rationalization and footprint optimization. Abhi will update you on the process shortly, but we believe the actions we are taking will better position our semiconductor products business for enhanced long-term profitable growth. Overall, we are encouraged by the progress we are making across our high-growth opportunities, customer partnerships and operational execution as we position the company for continued long-term value creation. I want to thank our global team for their hard work and for positioning Littelfuse well for the second half of the year. With that, I'll turn the call over to Abhi. Abhishek Khandelwal: Thank you, Greg, and good morning, everyone. Today, I will walk you through our second quarter results. Please turn to Slide 6 for details on our second quarter performance. All comparisons are versus the prior year unless noted otherwise. Net sales in the second quarter were $739 million, up 20% and 14% organically. The Basler acquisition contributed approximately 6% to sales growth, while foreign exchange was a 1% tailwind. Adjusted EBITDA margin finished at 23.6%, up 220 basis points, reflecting strong volume leverage, favorable mix and operational execution. Adjusted diluted earnings per share were $4.19, up 47% versus the prior year. In the quarter, operating cash flow was $146 million, while free cash flow grew to $127 million, up 75% year-over-year. We ended the quarter with $628 million of cash, a consolidated net leverage ratio of approximately 0.8 turns and returned $90 million to shareholders through our dividends. We increased our quarterly dividend by 7% to $0.80 per share, reflecting our continued commitment to returning capital to shareholders. Please turn to Slide 8 for our segment highlights, starting with the Electronics Products segment. Sales for the quarter increased 21% year-over-year with 20% organic growth. Passive products again delivered strong growth, while semiconductor products benefited from continued protection strength and improved power semiconductor demand. Across the Electronics Products segment, we benefited from increased demand in data center, diversified industrials and transportation end markets. Adjusted EBITDA margin for the Electronics segment was 26.3%, up 470 basis points versus the prior year, reflecting strong volume leverage, mix and execution. Looking ahead, we are pivoting our power semiconductor focus to high-value applications with the goal of driving long-term profitability enhancements. Supporting this, earlier this year, we announced the closure of our Allen, Texas power semiconductor manufacturing facility. This location is slated to close in 2027 and marks an important early step in our ongoing portfolio optimization and footprint rationalization process. Looking forward, we expect the site closure will enhance our 2027 Electronics segment profitability, and we will continue to share more as we make progress. Moving to our Transportation Products segment on Slide 9. Sales increased 2% year-over-year. Organic growth was 1%, driven by stronger commercial vehicle volumes across truck, construction and agricultural equipment markets. Passenger vehicle organic sales declined 2%, reflecting lower global production and continued sensor product sales declines. Adjusted EBITDA margin was 18.6%. While lower in the quarter, our focused execution has driven improved profitability year-to-date amid mixed market conditions. Our teams remain focused on driving operational excellence and continued profitability improvements across the transportation portfolio. Turning to Slide 10. Industrial segment sales increased 52% year-over-year. Organic growth was 16%, supported by strong data center, industrial automation and construction demand. In the second quarter, we also benefited from faster-than-expected HVAC sales recovery. I would also like to highlight Basler, which contributed approximately 36% of growth in the quarter for the Industrial segment. Integration efforts are progressing well, and the business is performing ahead of our expectations, both operationally and commercially. Demand across key end markets remains healthy, and the Basler team has executed well since joining Littelfuse. As a result, we now expect Basler to contribute approximately $135 million to $140 million of revenue in 2026, above our prior outlook. We're also increasing our expected earnings contribution to $0.25 to $0.30 for the full year. More importantly, our early success reinforces the strategic rationale for the acquisition, expands our exposure to attractive energy and industrial infrastructure applications and positions us to capture additional opportunities through our broader customer relationships and technology portfolio. Adjusted EBITDA margin was 22.6%, up 50 bps year-over-year, supported by volume leverage and favorable mix. We remain focused on executing against favorable industrial end market trends while continuing to advance Basler integration initiatives. Turning to our outlook for the third quarter on Slide 11. We expect continued healthy demand across several of our key markets, supported by a strong backlog and increased customer traction. Based on current market conditions, we expect third quarter net sales in the range of $780 million to $800 million. This represents 26% growth versus the prior year at the midpoint. We expect 21% organic growth, a contribution of 6% to growth from the Basler acquisition and a 1% FX headwind. We also expect third quarter adjusted diluted EPS to be in the range of $4.85 to $5.05. At the midpoint, this represents 68% growth versus the prior year. Finally, our third quarter guidance assumes an adjusted effective tax rate of 23% to 24%. Thank you to the Littelfuse teams for their persistent efforts throughout the first half of 2026. We're excited about our continued momentum and the strategic progress we're making on the way to achieving our 2030 targets of $4.5 billion in revenue and $1.1 billion in adjusted EBITDA. With that, operator, please open the call for Q&A. Operator: Your first question comes from the line of Luke Junk with Baird. Luke Junk: To start with, Greg, hopefully, you could just comment on ways that the company can lean into this better breadth that you're seeing in electronics and industrial for that sake, be it taking share in a strategic way, leaning into pricing and capitalizing on the potential for some channel normalization. Just how do you think about prioritizing some actions moving through the year in this environment? Gregory Henderson: Thanks, Luke. I think, look, what's important that we see this quarter is we really see broad-based momentum. So across all of our end markets where we see growth, we see broad-based momentum. And actually, we see a strengthening of momentum in markets that maybe last quarter were a little bit slow, for example, specifically in our industrial business. We had good growth in energy infrastructure, industrial automation, grid, utility. But also this quarter, we had strength in HVAC, which is something that hadn't happened in the past. And actually, this is in our CCDI market, but we also mentioned that we have very broad strength in our diversified industrial business that includes medical and aerospace and defense. So we see a broadening. We talked about that last quarter. We see that continuing. And so I would say we really see broad-based strength and growth. Also importantly, for us, kind of strategically is about our design win traction. We talked about our design wins being up double digits across all of our markets. So for us, I think it's broad growth across our reported segments and across our markets. And so our strategy and focus right now is being well positioned to capture the upside in the volume. Luke Junk: Great. And then for my follow-up, obviously, there's been a lot of discussion of your data center business in total and the next-gen content lift as we move into higher voltages. But just curious if you could comment on just continuing to improve the positioning of the business in the near term as we move through 2026 and just in terms of year-to-date progress, anything you can share to just kind of level set where the company is as of midyear in data center as well. Gregory Henderson: Yes. Thanks, Luke. I think data center was a strong growth driver in the quarter. We talked about strong growth in the CCDI market. and data center was a strong growth driver of that. And we -- with the outlook we're giving in 3Q and actually through the back half of '26, we expect data center to continue to grow. I think what's also important, though, is that to understand that the revenue growth that we have now in data center this year is all related to the low-voltage architectures. And we've talked about the high-voltage architectures coming in, in the future, probably in '27 and beyond. We have very low volume shipments now for kind of the proof of concept of those systems, but that comes in. And if you look at our revenue, it's largely around the lower voltage architectures. Going forward, our pipeline and design wins are heavily -- have a heavy strength around these high-voltage architectures. So we see that. And I think one thing we'll say about data center, we've continued to have strong design win traction in the first half of 2020 -- in the first half of 2026 as well as in the quarter, our design wins again more than doubled compared to a year before. And like I said, a lot of those design wins are heavily focused around the higher voltage architectures that we expect to come in the future. So we have good momentum. We had good results in the quarter. We expect that to continue through '26, and the design wins are positioning us well for beyond '26 into the future. Abhishek Khandelwal: And then, Luke, this is Abhi. Just to take you back to Investor Day, if you kind of think about the content opportunity, we talked about content opportunity being 2 to 4x higher in high voltage versus low voltage today that we're seeing in terms of revenue. And so just to bring it all back, I think we're pretty confident in our 25% to 30% CAGR that we laid out over the next 5 years to our data center markets. Luke Junk: And just to read between the lines, I mean, it seems like data center mix has to be moving up in the first half of the year. Anything you can share relative to the exit rate coming out of last year, which was low double digits? Gregory Henderson: By mix, do you mean data center compared to other markets? Or do you mean mix of our products inside of data center? Luke Junk: Yes, data center as a percentage of sales, Greg. Gregory Henderson: Yes, I think this is also important, right? Like we are very positive on our data center. We see strong growth. But we did talk about this, right? Last year, our growth was really dominated by data center and grid, utility. This year, we have the broadening momentum across other markets, diversified industrials, our other industrial markets. And even like we said, now we see improvements in HVAC, which was kind of soft for the last couple of quarters. So I think that's the difference we see now is a much broader base demand across our business than we had last year. Abhishek Khandelwal: But to Greg's point, data center still remains -- continues to be the fastest-growing market in the quarter and for the first half of the year. Luke Junk: Got it. And then, maybe just incremental margin dynamics, if you could unpack those a little bit, especially the 3Q guidance, that floating up to 40%. Can you talk about some of the drivers, be it volume or maybe even taking some price in the market right now? Abhishek Khandelwal: Yes. Look, at the highest level, if you think about our business model, we've talked about this before, right, when you start to see organic growth in the mid- to high singles or double digits for that matter, our incrementals are pretty positive. So if you think about the margin drivers, right, I'll bring it down to a couple of things. Number one is the volume leverage that you see unpack as we start to grow the company on a year-over-year basis. Two, it's tied to operational execution. Three, it's tied to mix. So if you think about the growth drivers and think about where the growth is coming from, passives and protection have a very high flow-through on the uptick. And so it's a combination of operational execution, volume leverage and mix of revenue that we're seeing within the quarter that's contemplated in the guide. Operator: Your next question comes from the line of David Williams with Needham. David Williams: Congrats on the really strong results. Greg, if you kind of think about the savings from the Allen semi-fab closure, you said you'll have more color on that later. But just curious if there's any additional information you can provide around that, when you think you'll see that come into the P&L and maybe the magnitude of what those savings could look like? Gregory Henderson: Yes. Maybe, David, thank you. I'll just start with kind of a little bit of context around power semis and kind of how we're thinking about that, and then I'll let Abhi kind of give you kind of the detailed color on Allen and some of the kind of the timing of this. But I think we talked about this in our Investor Day. And I would say the thing to understand is that this -- the power semiconductor kind of rationalization and footprint optimization, it's a -- I will call it a multiyear process that we're really making progress on, but it's going to take some time. And so it's really about optimizing the portfolio to focus on the areas where we really have differentiation where we can win. We're making progress. We also did mention in the call that we have good momentum in power semi from a market perspective, from a bookings and order. We had good growth in the power semi business in the quarter, and we actually have -- it will be a strong contributor to our incrementals in 3Q. So we're making progress. The Allen is like one of the first things we announced. There's other actions that we'll be taking over time, and maybe give Abhi some -- can give some more color on that. Abhishek Khandelwal: Yes, David. So look, just building on the Allen piece, first of all, when you think about savings and when we'll realize those savings, I'd say it's in the back half of 2027. It marks an important step, I would say, in the footprint optimization move that we have discussed in the prior quarters and that we discussed as part of Investor Day, okay? The easiest way to think about the Allen closure is this is a decision that we're making to simplify our operational footprint and a decision on make versus buy, which will help us reduce our lead times and improve our cost structure. More to come as we finalize the actual numbers behind it, but it does mark a big step in the direction of where we want to take the company. David Williams: Okay. And then maybe secondly, just you talked about the record bookings. Any way to size that? How should we think about those bookings relative to the prior record and maybe on a year-over-year basis? Gregory Henderson: Yes. Look, I think the important thing to understand is that we -- number one, we have good momentum; number two, that it's very broad. And so we are -- we have said that the book-to-bill is significantly north of 1 and the record -- and the bookings in Q2 were a record, and that's kind of a company-wide record. The other thing I'll say, though, is that it's the breadth of these bookings across the end markets. So like we said before, it's data center, industrial verticals, diversified industrials, HVAC. And the other thing I think that's important from our perspective, right, we see good market momentum in the bookings, but also our design wins are continuing to be strong. And actually, across all of our markets, our design wins were up double digits year-on-year. So it's -- the bookings are good, but also design wins, which is I would call that really future bookings, we also feel good about. So we see good momentum, and it is broad. I think that's what we're comfortable saying. Abhishek Khandelwal: And David, just to size it up a slightly different way, while we don't hand out on the exact booking numbers, if you think about the year and think about our actuals in the guide and see the sequential improvement, it supports the strong booking comment that we made, which is, look, organically, Q1, we delivered 9%. Q2, we came in at 14%. And at the midpoint of -- for Q3 guide, we're guiding a 21% organic. So what it also points to the sequential improvement throughout the year, broad-based momentum throughout the year and the strong bookings support the 21% organic guide that we just put out. David Williams: Okay. Fantastic. And then maybe just one last one, if I can. Just kind of thinking about the inventory dynamic within the distribution and across your channels, do you get a sense that we're seeing some of this demand from replenishment? Or do you feel like most of this is really from end consumption? Gregory Henderson: Look, I think generally, we feel good about the channel inventory. And I would say that the channel inventory is normal in terms of weeks. Obviously, when you're in the growth cycle, right, the dollars are going up because -- but in terms of weeks, the channel inventory is good. And there were some areas in the channel also at our end customers that I think inventories were low that are kind of normalizing. But in general, I would say we feel good about this. We track the POS as well as POA, both are growing strong. And so I would say, generally, this is with some exceptions on kind of a little bit of here or there, channel normalization, I would -- inventory normalization, I would say this is real end demand across our markets. Operator: Your next question comes from the line of Christopher Glynn with Oppenheimer & Co Inc. Christopher Glynn: So just on the bookings, following up a little bit on the prior question. A lot of times at this point in the cycle where destocking is done and demand is picking up a lot, you tend to take a lot of share. I think a lot of the fragmented competition just doesn't have the capacity and capital flexibility that's always been built into Littelfuse. So wondering how much of that you're seeing at the present moment? Gregory Henderson: I mean I think -- look, I'll start. I think, internally, what we really try to track is our growth relative to market. And we do believe that on balance, that we're gaining share. I would say that there are some cases of opportunistic share. But largely, it's not really -- I don't think the business is largely like that. I think for us, it's largely more about design position share. And that's why we really, really try to track our design wins and our design win opportunities. And like I talked about, I think we feel very good about that. So I think, in general, markets are doing well, but where we measure ourselves internally is how are we doing relative to market and are we generally taking share? And I would say heavily influenced by our design win position that's the case. There are some cases of, I'll call it, opportunistic share, which we can take because we can execute, and that's a key focus of us. But really, our focus on share is more about the design and the [ timing ]. Abhishek Khandelwal: And Chris, just to support Greg's comment, here's the other thing I'll tell you. So we're also really focused on the operational piece of it, right? As the -- as we saw record bookings in the quarter, as we put out a guide that's 21% organic, we're also laser-focused on making sure operationally, we can go execute. So that's the other big focus area internally that we're spending a lot of time to be able to fulfill our customers' demand. Christopher Glynn: Great. Appreciate that. And then on the HVAC market, this was kind of interesting because it didn't really seem to become an easy comparison until the third quarter last year. And so Industrial put up a 16% organic on a 17% comp. Just kind of curious, are you taking share in resi HVAC there? Or was that late in the quarter, sector stocking strategies by a couple of OEMs that got caught short? Gregory Henderson: I would say, first, I'll start, and I'll let Abhi give a little bit more color on the numbers. I think, in the HVAC market, we have a very good strong market position. So we have good products, good market position. I think our design position is good. But I will say we also are seeing a market recovery that's happening faster than we expected. So we have a strong position. That means also we are a little bit subject to -- obviously, we work on winning share, but we're subject to the overall market. I would say for us, there is a market recovery there that we're seeing a little faster than maybe we expected. Abhishek Khandelwal: And Chris, just to add more color. Look, I think, if you think about the HVAC end market, we were down for 4 straight quarters. This is the first time since first half of 2025 that we've seen growth on a year-over-year basis. So to Greg's point, the market recovery was sooner than we expected, and this is the first quarter since first half of '25 where we've seen organic growth. Operator: The next question comes from the line of Christopher Glynn with Oppenheimer. Christopher Glynn: Figured I'd take advantage of the light queue on this very busy earnings day. So you guys went frequently over the topic of diversified industrials, called out medical and A&D in particular. I think that comment is really an electronics-centric comment, but just curious to peel back a little on medical and A&D being particular callouts under the emphasized theme of diversified industrials. Gregory Henderson: Yes. Thanks, Chris. So I think first, just to give context, right? So in diversified industrials, when we reported our markets, we started talking about our markets in our new go-to-market structure at Investor Day. So diversified industrials are inside the CCDI market, actually on the website, I think there's a pie chart that shows that. Diversified industrials includes a bunch of markets. But -- so there's like -- there's a bunch of markets in there, but 2 of the key ones that are probably the largest contributors in there is defense, aerospace and defense and medical. So those are probably the 2 largest submarkets inside diversified industrial, but there's a bunch of others as well. And I would say both of those submarkets did well. It is true that I would say generally that our Electronics segment are probably the largest products that play there. But actually, one of the things about our business is that all of our segments actually play in there. Actually, our Basler business, for example, does sell into the aerospace and defense market as well. And that would -- when they do that, that would show up inside diversified industrials. So I would say broad-based strength in diversified industrials. That also includes some of the broad channel customers as well. So it's a little bit of both. But specifically, if you look at medical and aerospace and defense, we had good growth, we had good bookings growth, and we see momentum there. Christopher Glynn: Okay. And are you seeing -- what kind of velocity are you seeing in the defense market in terms of innovation, new designs versus replenishment? Just curious kind of the layering of drivers for that defense market. Gregory Henderson: I mean, look, I think defense is very dynamic right now, right? There's a lot of business that is kind of, I would call it, very legacy traditional business that is growing, but also there's a lot of kind of new entrant business that is also growing. So we see momentum in both. And I would say in the design activity, we see a lot of momentum specifically around the new entrants as well. Operator: We have reached the end of the Q&A session. I will now turn the call back to Chief Executive Officer, Greg Henderson, for closing remarks. Gregory Henderson: Okay. Thank you. Thank you all for attending this morning. And just to close, I'd like to just emphasize again, first to thank our global teams for the progress. We see a lot of broad-based momentum across our markets and a lot of strength. And as Abhi mentioned, we're very focused on making sure that we are in the right position to execute against this. We see good progress. We feel good about the back half of 2026 and on track to the model we laid out at Investor Day. So thank you all for joining, and we look forward to talking to you next quarter. Operator: This concludes today's call. Thank you for attending. You may now disconnect. Before you buy stock in Littelfuse, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Littelfuse wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. 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As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Littelfuse (LFUS) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Make better investment decisions with Simply Wall St's easy, visual tools that give you a competitive edge. Littelfuse announced a 7% increase in its quarterly dividend. The higher payout reflects management's confidence in the company and its outlook. Littelfuse, traded as NasdaqGS:LFUS, is increasing its cash return to investors with a 7% uplift to its quarterly dividend. The stock last closed at $445.2, following a period that includes a 13.6% return over the past week and a 69.6% return year to date. Over the past year, the stock is up 78.7%, with a 79.4% return over three years and 73.1% over five years. For investors who focus on growing income streams, the higher dividend can be a notable development. It indicates that Littelfuse views its current financial position as sufficient to support a larger recurring cash commitment. Readers may want to monitor how future earnings, cash flows and capital allocation decisions compare with this new payout level. Stay updated on the most important news stories for Littelfuse by adding it to your watchlist or portfolio. Alternatively, explore our Community to discover new perspectives on Littelfuse. Is Littelfuse's dividend sustainable? Check out what every dividend investor needs to know in our dividend analysis. The 7% dividend increase to US$0.80 per share comes alongside a period where Littelfuse is reporting higher profit and revenue figures. For the second quarter of 2026, sales were US$738.78 million compared to US$613.41 million a year earlier. Net income was US$89.41 million compared to US$57.34 million, and diluted EPS from continuing operations was US$3.49 compared to US$2.30. Over the first half of 2026, sales were US$1,395.75 million and net income was US$164.55 million. That earnings base gives Littelfuse more room to support a larger cash distribution. The company has also completed a US$56.75 million buyback since 2024, although no shares were repurchased in the most recent tranche. For income focused investors, the combination of a higher dividend and prior buybacks points to a shareholder returns mindset. The key question is whether future cash flows and capital needs, including integration of acquisitions such as Basler, remain compatible with a rising payout over time. The dividend uplift lines up with the narrative that Littelfuse is benefiting from demand in electrification, data centers and grid infrastructure, since stronger earnings can support higher cash returns. A larger recurring dividend could limit flexibility if the power semiconductor business or cyclical end markets like automotive and industrial take longer to recover than expected. The narrative focuses on growth investments and acquisitions, while this dividend increase adds another long term cash commitment that may not be fully reflected in earlier assumptions. Knowing what a company is worth starts with understanding its story. Check out one of the top narratives in the Simply Wall St Community for Littelfuse to help decide what it's worth to you. ⚠️ Littelfuse is exposed to cyclical sectors such as automotive and industrial, so a weaker cycle in these markets could test how comfortable investors feel about the higher dividend. ⚠️ The company is investing in acquisitions and new technologies while also increasing shareholder payouts, which could strain resources if integration or demand trends disappoint. 🎁 Analysts highlight that earnings are forecast to grow 31% per year, which, if achieved, would give more headroom for dividends and reinvestment. 🎁 The stock is flagged as trading at 20.7% below one estimate of fair value, which some investors may view as additional upside potential on top of the higher income stream. After this dividend increase, keep an eye on Littelfuse's payout ratio relative to earnings and free cash flow as future results come through. The company has guided to third quarter 2026 net sales between US$780 million and US$800 million, supported by record bookings and the Basler acquisition. Investors may also want to watch how management balances cash returns with reinvestment, especially as competitors like TE Connectivity, Amphenol and Sensata Technologies invest in similar electrification and industrial themes. To ensure you're always in the loop on how the latest news impacts the investment narrative for Littelfuse, head to the community page for Littelfuse to never miss an update on the top community narratives. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include LFUS. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Performance was driven by broad-based momentum across key growth markets, particularly in computing, communications, and diversified industrial (CCDI) segments. Data center demand remains a primary growth engine, currently fueled by low-voltage architectures with a strategic shift toward high-voltage proof-of-concepts. The Industrial segment benefited from a faster-than-expected recovery in the HVAC market, which saw its first organic growth since the first half of 2025. Management is actively rationalizing the power semiconductor portfolio to focus on high-power, high-value applications where the company maintains a differentiated competitive advantage. Design win traction increased double digits across all markets, reflecting improved conversion of the new business pipeline into long-term revenue opportunities. Transportation growth was achieved through content expansion and share gains, which successfully offset lower global passenger vehicle production volumes. The Basler acquisition is outperforming initial expectations, providing critical scale in grid and utility infrastructure markets. Third quarter guidance assumes 21% organic growth, supported by record bookings and a book-to-bill ratio significantly north of 1.0. The closure of the Allen, Texas power semiconductor facility is expected to enhance Electronics segment profitability starting in the back half of 2027. Management anticipates data center revenue will transition toward high-voltage architectures in 2027 and beyond, where content opportunity is 2 to 4x higher than current levels. The company remains committed to its 2030 targets of $4.5 billion in revenue and $1.1 billion in adjusted EBITDA, driven by a 25% to 30% CAGR in data center markets. Operational focus for the second half of 2026 is centered on execution and capacity management to fulfill the surge in record backlog and customer demand. The Basler revenue outlook for 2026 was raised to $135 million to $140 million, with an increased earnings contribution of $0.25 to $0.30 per share. Consumer electronics now represents less than 10% of total sales as the company intentionally de-prioritizes this segment in favor of industrial and data center opportunities. A significant $20 million annual revenue design win in the transportation sector for light trucks utilizes integrated sensor and fuse technologies to prevent battery degradation. Power semiconductor rationalization is described as a multi-year process involving footprint optimization and 'make versus buy' decisions to improve lead times. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management believes they are gaining share primarily through design position rather than just opportunistic volume, though they are leveraging their capacity to capture upside. Channel inventory is described as 'normal' in terms of weeks, with current growth driven by real end-market demand rather than simple replenishment. Current data center revenue is almost entirely from low-voltage systems; the high-voltage design wins currently in the pipeline will not scale until 2027. Design wins in the data center space more than doubled year-over-year, reinforcing the long-term 25% to 30% CAGR target. The projected margin expansion is driven by a combination of strong volume leverage, favorable product mix (specifically passives and protection), and operational execution. Power semiconductors are expected to be a strong contributor to incrementals in the third quarter as demand strengthens. Aerospace, defense, and medical are the two largest sub-markets within the diversified industrial category, both showing strong growth and booking momentum. Defense market strength is coming from both legacy replenishment and high innovation velocity from new entrants.

Littelfuse, Inc. LFUS highlighted broad-based demand strength and strategic progress during its second-quarter 2026 earnings call, with management emphasizing data center growth, industrial recovery and customer design wins as key drivers. Executives also raised their outlook for the next quarter, citing record bookings, stronger customer momentum and contributions from the Basler acquisition. Management identified data center demand as one of the strongest growth drivers during the quarter. Chief executive officer Gregory Henderson said growth in computing, communications and diversified industrial markets was supported by Littelfuse’s ability to provide solutions across electrical architectures. Henderson noted that current data center revenue growth is primarily tied to lower-voltage architectures, while future opportunities are expected from higher-voltage systems. He said design wins related to these next-generation architectures increased significantly during the first half of 2026. Chief financial officer Abhishek Khandelwal added that higher-voltage architectures represent a larger content opportunity compared with existing solutions. Management reiterated confidence in its long-term data center growth framework during the call. Littelfuse reported second-quarter adjusted earnings per share of $4.19 and revenues of $738.8 million, exceeding the Zacks Consensus Estimate of $3.77 and $701 million, respectively. The company reported revenue growth of 20% year over year, with organic growth of 14%. Littelfuse, Inc. price-consensus-eps-surprise-chart | Littelfuse, Inc. Quote Henderson emphasized that growth was becoming more balanced across end markets rather than being concentrated in a few areas. He pointed to diversified industrial demand, including medical and aerospace and defense markets, as contributors to momentum. The company also highlighted improving industrial conditions, including stronger demand in industrial automation, construction and HVAC. Management said HVAC recovery was faster than previously expected, supporting industrial performance. The Industrial segment was a major contributor to quarterly growth, with sales increasing 52% year over year. Organic growth was 16%, supported by data center, industrial automation and construction demand, while the Basler acquisition contributed 36% of segment growth. Management said Basler integration was progressing well and raised expectations for its 2026 contribution. Khandelwal stated that Basler revenue contribution is now expected at $135 million to $140 million for 2026, with earnings contribution projected at $0.25 to $0.3. The company reported an Industrial adjusted EBITDA margin of 22.6%, supported by volume leverage and favorable mix. Executives said the acquisition expands exposure to energy and industrial infrastructure opportunities. Littelfuse continued its effort to optimize its power semiconductor portfolio, focusing resources on higher-value applications where management sees stronger competitive positioning. The company said power semiconductor demand improved during the quarter. Khandelwal discussed the planned closure of the Allen, TX power semiconductor facility, describing it as part of a broader footprint optimization effort. The closure is expected to support profitability improvements in the Electronics segment beginning in 2027. The Electronics segment posted 21% sales growth, including 20% organic growth, driven by passive products and semiconductor demand. Adjusted EBITDA margin expanded to 26.3% due to volume leverage, mix and operational execution. A Baird analyst asked about the company’s ability to capitalize on improving demand and potential share gains. Henderson said Littelfuse was seeing broad momentum and remained focused on capturing growth through customer relationships and design wins. A Needham analyst questioned record bookings and whether demand reflected replenishment or end consumption. Management said channel inventory remained healthy and characterized demand trends as largely driven by underlying customer demand. Analysts also asked about margins and operational leverage. Khandelwal attributed improving profitability to volume leverage, operational execution and a favorable revenue mix. Littelfuse guided third-quarter revenues of $780 million to $800 million, suggesting approximately 26% growth at the midpoint. The company expects adjusted EPS of $4.85 to $5.05, supported by continued demand and Basler contributions. Management said third-quarter expectations include 21% organic growth, a 6% contribution from Basler and a 1% foreign exchange headwind. Executives also pointed to record bookings and a book-to-bill ratio well above 1.0 as indicators of continued customer momentum. The company ended the quarter with $628 million of cash, a consolidated net leverage ratio of approximately 0.8 times and increased its quarterly dividend by 7% to $0.8 per share. LFUS carries Zacks Rank #3 (Hold), indicating that earnings estimate revisions may not currently provide a strong directional signal. The Zacks Rank can change as analysts update earnings estimates following new company developments and quarterly results. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. The stock has a Value Score of D, Growth Score of B, Momentum Score of A and VGM Score of B. Zacks Style Scores are designed to complement the Zacks Rank by evaluating characteristics such as value, growth and momentum, with higher grades representing stronger attributes within each category. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Littelfuse, Inc. (LFUS) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Second Quarter Highlights: (Year-over-year comparisons unless otherwise noted) Net sales of $739 million, +20%; organic growth contributed +14% Cash flow from operations of $146 million; free cash flow of $127 million, +75% YTD Cash flow from operations of $226 million; free cash flow of $193 million, +68% GAAP diluted earnings per share of $3.49; Adjusted diluted earnings per share of $4.19 GAAP operating margin of 16.2%, +110 bps; Adjusted EBITDA margin of 23.6%, +220 bps Cash dividend of $0.80 per share, annualized to $3.20 per share, +7% CHICAGO, July 29, 2026--(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 its second quarter ended June 27, 2026: "We delivered strong second quarter results, with performance exceeding our expectations reflecting broad-based demand strength and disciplined execution across the portfolio," said Greg Henderson, Littelfuse President and Chief Executive Officer. "We drove growth across our segments as our teams continued to make progress on our strategic priorities while leveraging our leadership position in safe and efficient electrical energy transfer. We remain focused on scaling our high growth opportunities, partnering with our market leading customers, enhancing operational excellence, and deploying capital with discipline as we execute our long‑term strategy." "Looking ahead to the third quarter, we expect approximately 26% total revenue growth versus the prior year, supported by record bookings, continued customer momentum, and contributions from the Basler acquisition. We continue to partner closely with our customers to drive the ongoing evolution to higher power and higher energy density solutions." Third Quarter of 2026* Based on current market conditions, for the third quarter the company expects, Net sales in the range of $780 - $800 million, adjusted diluted EPS in the range of $4.85 – $5.05 and an adjusted effective tax rate of approximately 23% - 24%. *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. Second Quarter 2026 Segment Performance Highlights Electronics Segment Net sales for the second quarter 2026 increased +21%. Organic sales increased +20% driven by improved passive products (+26% organic) sales. Semiconductor product (+15% organic) sales also contributed to growth driven by increased protection and power semiconductor volumes. Favorable FX contributed +1% to growth. Adjusted EBITDA margin for the second quarter 2026 increased to 26.3% (+470 bps) due to volume leverage, favorable mix, and operational execution in both passive products and semiconductor products. Transportation Segment Net sales for the second quarter 2026 increased +2% as organic sales increased +1% while favorable FX contributed +1% to growth. Organic sales growth benefited from improved commercial vehicle sales (+4% organic), which offset lower passenger vehicle organic sales (-2%). Commercial vehicle sales growth benefited from improved truck, construction and agricultural equipment demand. Passenger vehicle sales were impacted by lower global passenger car builds and auto sensor product declines. Adjusted EBITDA margin for the second quarter 2026 decreased to 18.6% (-190 bps) driven by lower commercial vehicle profitability which more than offset passenger vehicle margin expansion. Industrial Segment Net sales for the second quarter 2026 increased +52%. Organic sales increased +16% driven by improved data center, HVAC, industrial automation, and construction demand. The Basler acquisition contributed +36% to growth. Adjusted EBITDA margin for the second quarter 2026 increased to 22.6% (+50 bps) driven by favorable volume leverage and mix. Dividend The company will pay a cash dividend of $0.80 per share on its common stock, a 7% increase from the prior quarter dividend of $0.75 per share. The dividend will be paid on September 3, 2026, to shareholders of record as of August 20, 2026. Conference Call and Webcast Information Littelfuse will host a conference call on Wednesday, July 29, 2026, 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 18,000 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; the risk that expected benefits, synergies and growth prospects of the transaction with Basler may not be achieved in a timely manner, or at all; 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 27, 2025. 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 27, 2025, 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 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 the company’s core financial performance and facilitate comparisons to historical results of operations, by excluding items that are not related directly to the underlying performance of its fundamental business operations or were not part of the company’s 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 the company’s definitions of these non-GAAP financial measures may differ from those terms as defined or used by other companies. LFUS-F View source version on businesswire.com: https://www.businesswire.com/news/home/20260729230361/en/ Contacts David [email protected]

Interested in Littelfuse, Inc.? Here are five stocks we like better. Littelfuse exceeded expectations in Q2: Net sales rose 20% year over year to $739 million, while adjusted EPS increased 47% to $4.19. Adjusted EBITDA margin expanded to 23.6%, and free cash flow jumped 75% to $127 million. Growth was broad-based, led by data centers and industrial markets: Electronics Products sales grew 21% and Industrial Products sales surged 52%, including a major contribution from the Basler acquisition. Data-center design wins more than doubled, with larger high-voltage opportunities expected from 2027 onward. The company issued a strong Q3 outlook: Littelfuse expects sales of $780 million to $800 million and adjusted EPS of $4.85 to $5.05, representing midpoint growth of 26% and 68%, respectively. It also raised its expected 2026 Basler revenue contribution to $135 million-$140 million. Littelfuse Stock is Hitting on All Cylinders Littelfuse (NASDAQ:LFUS) reported second-quarter results above its expectations, citing broad demand across data center, industrial, energy infrastructure and selected transportation markets. The company posted net sales of $739 million, up 20% from a year earlier and 14% on an organic basis, while adjusted diluted earnings per share rose 47% to $4.19. President and CEO Greg Henderson said the results reflected progress against the company’s growth strategy, including efforts to support customers adopting higher-power and more advanced electrical architectures. He said Littelfuse entered the third quarter with record bookings and a book-to-bill ratio “well north of 1.0.” → This Tiny AI Supplier Could Be More Important Than the Chipmakers Adjusted EBITDA margin expanded 220 basis points from the prior year to 23.6%, which CFO Abhi Khandelwal attributed to volume leverage, favorable product mix and operational execution. Operating cash flow totaled $146 million, while free cash flow increased 75% year over year to $127 million. The company ended the quarter with $628 million in cash and consolidated net leverage of about 0.8 times. Littelfuse returned $90 million to shareholders through dividends and raised its quarterly dividend 7% to $0.80 per share. → Refiner Stocks Are Near Record Highs—Can Iran-Driven Margins Keep Them There? Henderson said computing, communications and diversified industrial, or CCDI, markets delivered strong growth, with data center remaining a leading contributor. The company said it benefited from its “grid-to-chip” capabilities across its businesses as data-center customers pursue more advanced power architectures. Data-center revenue growth during the first half was tied largely to lower-voltage architectures, Henderson said. While the company has begun low-volume shipments for proof-of-concept high-voltage systems, it expects the larger high-voltage opportunity to emerge in 2027 and beyond. Henderson said Littelfuse’s data-center design wins more than doubled from a year earlier, with many related to higher-voltage architectures. → Innovative ETF Strategies That Are Paying Off This Summer Khandelwal reiterated the company’s Investor Day outlook for data-center revenue to grow at a 25% to 30% compound annual rate over the next five years. He said the company sees content opportunities in high-voltage data-center systems that are two to four times greater than in lower-voltage systems. Diversified industrial channels also contributed to CCDI growth, while medical and aerospace and defense markets showed improving demand. Henderson said aerospace and defense includes both traditional programs and new entrants, with design activity particularly strong among newer participants. Consumer electronics sales declined, though the company said that market represents less than 10% of total sales. Energy and industrial infrastructure demand was broad-based, supported by grid modernization, utility investment and renewable-energy deployment. Industrial automation, construction and a faster-than-expected recovery in HVAC demand also contributed. Khandelwal said HVAC recorded year-over-year organic growth for the first time since the first half of 2025 after four consecutive quarters of declines. Electronics Products: Sales increased 21%, including 20% organic growth. Passive products remained strong, while semiconductor products benefited from protection demand and improved power semiconductor demand. Adjusted EBITDA margin rose 470 basis points to 26.3%. Transportation Products: Sales increased 2%, including 1% organic growth. Commercial vehicle demand improved in truck, construction and agricultural equipment markets, while passenger vehicle organic sales declined 2% amid lower global production and continued sensor sales declines. Adjusted EBITDA margin was 18.6%. Industrial Products: Sales increased 52%, with 16% organic growth. The Basler acquisition contributed about 36% of the segment’s growth, while data center, industrial automation, construction and HVAC demand also supported results. Adjusted EBITDA margin rose 50 basis points to 22.6%. Littelfuse said Basler is performing ahead of its prior operational and commercial expectations. The company now expects Basler to contribute approximately $135 million to $140 million of revenue in 2026, above its previous outlook, along with $0.25 to $0.30 of full-year earnings contribution. The company also highlighted design wins in transportation and energy storage. A light truck and commercial vehicle platform using Littelfuse current-sensor and MEGA Fuse technologies represents an annual revenue opportunity of more than $20 million, Henderson said, with potential to extend to other vehicles. In addition, the company secured a battery energy storage and power supply program using fast-acting TLS fuses for data-center battery backup units. Littelfuse is narrowing its power semiconductor focus toward high-power, high-value applications where it believes it has differentiated capabilities. Henderson said the business experienced stronger demand during the quarter and is expected to be a meaningful contributor to third-quarter growth. The company previously announced plans to close its Allen, Texas, power semiconductor manufacturing facility in 2027. Khandelwal said savings from the closure are expected to begin affecting results in the second half of 2027. He described the move as part of a multiyear effort to simplify the company’s manufacturing footprint, improve lead times and reduce costs through make-versus-buy decisions. Henderson also cited a power semiconductor design win with a fusion power company. Littelfuse plans to begin third-quarter shipments of high-voltage IGBT and diode products for the customer’s first prototype reactor. For the third quarter, Littelfuse forecast net sales of $780 million to $800 million. At the midpoint, the outlook represents 26% year-over-year growth, including 21% organic growth, a 6% contribution from Basler and a 1% foreign-exchange headwind. The company expects adjusted diluted earnings per share of $4.85 to $5.05, with the midpoint representing 68% growth from the prior-year period. Its outlook assumes an adjusted effective tax rate of 23% to 24%. Henderson said the company’s demand is increasingly broad-based rather than concentrated in data center and grid-related markets. He added that channel inventories appear normal in terms of weeks of supply and that growth is primarily being driven by end-market demand, aside from limited inventory normalization in certain areas. Littelfuse, Inc is a global manufacturer of circuit protection, power control, and sensing technologies. Founded in 1927 and headquartered in Chicago, Illinois, the company develops and produces a broad range of products designed to safeguard electrical and electronic systems across a variety of end markets. Littelfuse's offerings include fuses, semiconductors, relays, and sensors, all engineered to protect against overcurrent, overvoltage, and thermal events in demanding applications. The company's product portfolio is organized into key segments such as Automotive, Industrial & Electronics, and Power & Sensor. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Littelfuse Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

Littelfuse (LFUS) came out with quarterly earnings of $4.19 per share, beating the Zacks Consensus Estimate of $3.77 per share. This compares to earnings of $2.85 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +11.14%. A quarter ago, it was expected that this circuit protection manufacturer would post earnings of $2.83 per share when it actually produced earnings of $3.31, delivering a surprise of +16.96%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Littelfuse, which belongs to the Zacks Electronics - Miscellaneous Components industry, posted revenues of $738.78 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 5.39%. This compares to year-ago revenues of $613.41 million. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Littelfuse shares have added about 55% since the beginning of the year versus the S&P 500's gain of 8.5%. While Littelfuse has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Littelfuse was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $3.88 on $711 million in revenues for the coming quarter and $14.86 on $2.78 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Electronics - Miscellaneous Components is currently in the top 25% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, nVent Electric (NVT), has yet to report results for the quarter ended June 2026. The results are expected to be released on July 31. This maker of electrical connection and protection products is expected to post quarterly earnings of $1.16 per share in its upcoming report, which represents a year-over-year change of +34.9%. The consensus EPS estimate for the quarter has been revised 0.4% higher over the last 30 days to the current level. nVent Electric's revenues are expected to be $1.26 billion, up 30.6% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Littelfuse, Inc. (LFUS) : Free Stock Analysis Report nVent Electric PLC (NVT) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

This article first appeared on GuruFocus. Release Date: July 29, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Littelfuse Inc (NASDAQ:LFUS) reported a 20% increase in net sales for the second quarter, with 14% organic growth. The company achieved a significant design win with a leading transportation customer, representing over $20 million in annual revenue opportunity. Littelfuse Inc (NASDAQ:LFUS) saw strong growth in its industrial segment, with a 52% year-over-year increase in sales, driven by industrial automation and construction demand. The Bassler acquisition contributed approximately 6% to sales growth and is expected to contribute $135 million to $140 million in revenue for 2026. The company reported record bookings and a book-to-bill ratio well above 1.0, indicating strong future demand. Passenger vehicle organic sales declined by 2%, reflecting lower global production volumes. The closure of the Allen, Texas Power Semiconductor manufacturing facility is expected to take until 2027 to realize cost savings. Despite strong overall performance, the transportation product segment only saw a 2% year-over-year sales increase. The company faces a 1% foreign exchange headwind impacting sales growth. Littelfuse Inc (NASDAQ:LFUS) is undergoing a multi-year process of power semiconductor rationalization, which may take time to optimize. Warning! GuruFocus has detected 4 Warning Signs with LFUS. Is LFUS fairly valued? Test your thesis with our free DCF calculator. Q: Greg, can you comment on how Littelfuse plans to capitalize on the broad-based momentum in electronics and industrial sectors? A: Unidentified_1 (likely CEO): We see broad-based momentum across all our end markets, particularly in industrial automation and energy infrastructure. Our strategy is to capture the upside in volume by focusing on design win traction, which is up double-digits across all markets. Q: Can you provide an update on the data center business and its progress in 2026? A: Unidentified_1 (likely CEO): Data center was a strong growth driver this quarter, and we expect this to continue. Current growth is driven by low voltage architectures, but future growth will focus on high voltage architectures, with design wins positioning us well for 2027 and beyond. Q: What are the expected savings from the Allen semi-FAB closure, and when will they impact the P&L? A: Unidentified_2 (likely CFO): Savings from the Allen closure are expected in the back half of 2027. This move is part of our footprint optimization strategy to simplify operations and improve cost structure. Q: How should we interpret the record bookings and their impact on future growth? A: Unidentified_1 (likely CEO): Bookings in Q2 were a company-wide record, with a book-to-bill ratio significantly above one. This broad-based momentum across end markets, along with strong design wins, supports our 21% organic growth guidance for Q3. Q: Are current demand levels driven by channel replenishment or end consumption? A: Unidentified_1 (likely CEO): Channel inventory levels are normal, and the demand is largely driven by real end consumption across our markets, with some channel normalization occurring. For the complete transcript of the earnings call, please refer to the full earnings call transcript.