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    LFUS
    Earnings call· Mar 2026(Q1 FY26)

    LITTELFUSE INC /DE Q1 FY26 earnings call LFUS

    May 6, 2026 Source

    Executive summary

    Littelfuse Q1 FY26 — Strong Start to Year Driven by Data Center and Basler Integration

    Littelfuse delivered a strong first quarter, exceeding expectations with robust sales growth and significant margin expansion, driven by broad-based demand in data centers, grid infrastructure, and diversified industrial markets. The successful integration of the Basler acquisition and early benefits from sales force realignment contributed to the positive performance. The company is focused on operational excellence and strategic portfolio actions, with further details expected at the upcoming Investor Day.

    Highlights

    5

    • Net sales of $657 million, up 19% year-over-year (9% organically), exceeded expectations.

    • Adjusted EBITDA margin expanded by 280 basis points to 22.9%.

    • Adjusted diluted EPS increased 51% year-over-year to $3.31.

    • Book-to-bill was "well above 1.0" with bookings up more than 20% versus the prior year.

    • Basler acquisition outpaced initial expectations, contributing 39% to Industrial segment growth.

    Concerns

    3

    • Soft residential HVAC demand partially offset strength in construction and industrial automation.

    • Lower commercial vehicle volumes due to the marine business exit, though flat excluding this impact.

    • Continued portfolio actions and optimization are needed for long-term structural profitability improvement in power semiconductors.

    Guidance & targets

    7
    CategoryTargetConfidence
    Net sales
    $690 million to $710 million
    high materiality
    High
    Adjusted diluted EPS
    $3.65 to $3.85
    high materiality
    High
    Adjusted effective tax rate
    21% to 22%
    medium materiality
    High
    Flow-through
    30% to 35%
    medium materiality
    High
    Transportation profitability initiatives
    continued progress
    medium materiality
    High
    Electronics segment margin improvement
    margin improvement
    high materiality
    Medium
    Acquisition targets
    clear targets
    high materiality
    High

    Segment performance

    3
    SegmentRevenueYoYQoQMargin
    Electronics Products
    Benefited from increased data center and diversified industrial demand. Adjusted EBITDA margin increased 300 basis points, reflecting strong volume leverage and execution.
    Organic growth: 15%Passive products organic growth: 22%Semiconductor products organic growth: 8%
    		—18%—25.1%
    Transportation Products
    Organic growth driven by passenger vehicle content expansion, share gains, and pricing, partially offset by lower commercial vehicle volumes due to marine business exit (flat excluding marine exit). Adjusted EBITDA margin increased 200 basis points, reflecting disciplined execution and productivity initiatives.
    Organic growth: 1%Passenger vehicle organic sales: +4%
    		—5%—19.1%
    Industrial segment
    Organic growth supported by strong grid and utility infrastructure and data center demand, partially offset by soft residential HVAC volumes. The Basler acquisition outpaced expectations. Adjusted EBITDA margin increased 340 basis points, driven by volume leverage and mix.
    Organic growth: 5%Basler acquisition contribution: 39%
    		—45%—21.9%

    Operational metrics

    21
    Adjusted EBITDA margin
    22.9%up 280 bps
    Q1 FY26
    Adjusted diluted EPS
    $3.31up 51%
    Q1 FY26
    Net leverage ratio
    ~1x
    Q1 FY26
    Capital returned to shareholders (dividend)
    $19 million
    Q1 FY26
    Flow-through
    38%
    Q1 FY26

    Flow-through for the quarter.

    Flow-through
    31%
    Q2 FY26

    Flow-through contemplated in Q2 guidance.

    Flow-through
    30% to 35%
    Annual

    Long-term flow-through expectation for the business.

    Transportation margins increase
    200 bps
    Q1 FY26

    Increase in transportation margins for the quarter.

    Electronics Adjusted EBITDA margin
    25.1%up 300 bps
    Q1 FY26
    Transportation Adjusted EBITDA margin
    19.1%up 200 bps
    Q1 FY26
    Industrial Adjusted EBITDA margin
    21.9%up 340 bps
    Q1 FY26
    Passive products organic growth
    22%
    Q1 FY26
    Semiconductor products organic growth
    8%
    Q1 FY26
    Passenger vehicle organic sales growth
    4%
    Q1 FY26
    Commercial vehicle sales (excluding marine exit)
    flat
    Q1 FY26
    Industrial organic growth
    5%
    Q1 FY26
    Basler acquisition contribution to Industrial growth
    39%
    Q1 FY26
    Data center growth
    strong double digits
    Q1 FY26
    Transportation design win growth
    double-digit
    FY26

    On track for double-digit design win growth in the transportation and logistics market in 2026.

    Design wins
    more than doubled
    FY25

    Design wins in 2025 were up more than doubled year-over-year.

    Pipeline
    up meaningfully
    Q1 FY26

    Data center pipeline was up meaningfully in Q1.

    Industry KPIs

    8
    MetricValueDetails
    M a contribution6%%
    Orders book to billwell above 1.0
    Segment revenue growthElectronics: 18% YoY, 15% organic; Transportation: 5% YoY, 1% organic; Industrial: 45% YoY, 5% organic%
    Content per device per vehiclehigh single digitsdirectional
    Design wins product cycle rampsstrategic design win with a market leader for data center power system solutions; significant design win with a leading U.S. grid infrastructure utility for high-power excitation systems
    Order visibility backlog policystrong backlog
    End market revenue mix organic growth—
    Operating margin incremental leverage38%%

    Orderbook & backlog

    3
    Book-to-billwell above 1.0Q1 FY26 end

    We exited the first quarter with a book-to-bill well above 1.0

    Bookings growth>20%Q1 FY26

    YoY

    bookings were again up more than 20% versus the prior year.

    Book-to-bill (sequential improvement)sequential improvementQ1 FY26

    from Q4 FY25 and within Q1 FY26

    we saw sequential improvement. And even within Q1, as I kind of look at the progression of the quarter, we saw sequential improvement as we went through the quarter.

    Deals & partnerships

    1
    BaslerAcquisition to strengthen position in high-power applications and provide control and protection solutions.

    The Basler acquisition, closed in December, significantly strengthens Littelfuse's position in high-power applications and outpaced initial expectations during its first full quarter as part of the Littelfuse portfolio.

    Risks & headwinds

    4
    Soft residential HVAC demandQ1 FY26

    partially offset by continued soft residential HVAC demand

    Lower commercial vehicle volumesQ1 FY26

    partially offset by lower commercial vehicle volumes due to the impact of the marine business exit

    Mitigation: Excluding the marine exit, commercial vehicle sales were flat versus the prior year.

    Inflationary pressures from commodities (silver, copper)Q1 FY26, ongoing

    seeing pressure from the commodities, the things that you mentioned, silver, copper

    Mitigation: Teams are working diligently to offset these pressures through supply chain savings, productivity, pricing, and surcharges, aiming for price cost neutrality, similar to 2025.

    Power semiconductor portfolio optimizationongoing, mid- to long term

    rationalizing lower-value products and optimizing our footprint

    Mitigation: Increasing focus on higher growth, higher-value applications, which is expected to lead to margin improvement in the Electronics segment over the mid- to long term.

    What to watch in Q2 FY26

    5

    Data Center TAM and opportunities

    next week (Investor Day on May 14)
    Currentbroadly across the data center
    TargetMore color on SAM and opportunities

    Why it matters

    Data center is the fastest-growing market; understanding the addressable market and specific opportunities is key to assessing long-term growth potential.

    we have our Investor Day next week, and we're giving a lot more color at that time on all of our markets and specifically focused on the high-growth markets that we've talked about, data center being one. So we're going to provide more color on the SAM and our opportunities in data center in our Investor Day next week.

    Q&A highlights

    6

    Seeking more detail on the drivers of diversified industrial demand within the Electronics segment, specifically new design wins or end markets.

    Management confirmed broad-based demand beyond data centers, noting strong performance in diversified industrials which includes aerospace, defense, and medical. They highlighted that all industrial segments except HVAC are performing well.

    “We're seeing broadening across the industrial segments. And actually, all of our industrial segments with the exception of HVAC are doing well. We did see very strong performance in the diversified industrials.”

    asked by Christopher Glynn · answered by Gregory Henderson

    2 min read6 chapters

    Detailed Narrative

    01

    Data Center and Grid Infrastructure Momentum

    Littelfuse experienced strong double-digit growth in data centers and grid utility infrastructure, driven by the broader electrification megatrend. The company secured a strategic design win for data center power system solutions, specifically for an 800-volt system deployment, utilizing its advanced protection, automation, and control capabilities. Additionally, a significant design win was achieved with a leading U.S. grid infrastructure utility for high-power excitation systems, with shipments scheduled to commence in 2027, providing long-term growth visibility.

    02

    Basler Integration Exceeding Expectations

    The Basler acquisition, completed in December, has significantly strengthened Littelfuse's position in high-power applications and surpassed initial expectations in its first full quarter. Basler contributed 39% to the Industrial segment's growth. The integration is accelerating demand for high-power protection and excitation systems, particularly for grid modernization supporting data center build-outs, and is revealing clear revenue synergies with Littelfuse's existing protection capabilities.

    03

    Sales Force Realignment and Customer Engagement

    Littelfuse implemented a new go-to-market model at the start of 2026, realigning sales teams to offer the complete product portfolio. This strategy has led to increased market share in transportation for overcurrent and overvoltage protection platforms, contributing to high single-digit growth in the segment. The company is also on track for double-digit design win growth in the transportation and logistics market for 2026, driven by collaboration on next-generation platforms.

    04

    Operational Excellence and Margin Expansion

    The company's focus on operational excellence and disciplined execution is yielding tangible results, driving meaningful margin expansion across the portfolio. This is exemplified by a 200 basis point increase in transportation margins, achieved through targeted productivity initiatives and improved execution despite mixed market conditions. Littelfuse aims to scale these best practices across the organization for sustainable and scalable long-term margin expansion.

    05

    Power Semiconductor Portfolio Rationalization

    Within the Semiconductor Products business, Littelfuse is undertaking a strategic rationalization of its power semiconductor portfolio. This involves increasing focus on higher-growth, higher-value applications while optimizing its footprint and rationalizing lower-value products. This ongoing process is expected to lead to long-term structural profitability improvement within the Electronics segment, with regular updates on progress to be provided.

    06

    Commodity Headwinds and Mitigation Strategies

    Littelfuse is facing inflationary pressures from commodities such as silver and copper, similar to trends observed in the prior year. To counteract these headwinds, the company's teams are diligently implementing various strategies, including supply chain savings, driving incremental productivity, and utilizing pricing adjustments or surcharges. The overarching goal is to maintain price-cost neutrality, a target successfully achieved in 2025.

    AI-generated summary of the company’s earnings call. Not investment advice.