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    LFUS
    Earnings call· Jun 2026(Q2 FY26)

    LITTELFUSE INC /DE Q2 FY26 earnings call LFUS

    Jul 29, 2026 Source

    Executive summary

    Littelfuse Q2 FY26 — Strong Organic Growth and Record Bookings

    Littelfuse delivered a strong Q2 FY26, surpassing sales and earnings expectations driven by broad-based momentum across key growth markets like data centers, diversified industrials, and energy infrastructure. The company achieved record bookings and a book-to-bill ratio well above 1.0, reinforcing confidence in its long-term growth and profitability framework. Strategic initiatives, including power semiconductor optimization and successful Basler integration, are positioning Littelfuse for continued value creation into the second half of the year and towards its 2030 targets.

    Highlights

    5

    • Net sales of $739 million, up 20% year-over-year and 14% organically, exceeding expectations.

    • Adjusted diluted EPS of $4.19, up 47% versus prior year, reflecting strong execution.

    • Operating cash flow of $146 million and free cash flow of $127 million, up 75% year-over-year.

    • Record bookings and book-to-bill well north of 1.0, indicating strong future demand.

    • Basler acquisition performing ahead of expectations, contributing $135M-$140M revenue and $0.25-$0.30 EPS for FY26.

    Concerns

    3

    • Consumer electronic sales declined in the quarter, representing less than 10% of company sales.

    • Passenger vehicle organic sales declined 2% due to lower global production and continued sensor product sales declines.

    • Foreign exchange was a 1% headwind for Q3 FY26 net sales guidance.

    Guidance & targets

    11
    CategoryTargetConfidence
    Q3 FY26 Net Sales
    $780 million to $800 million
    high materiality
    High
    Q3 FY26 Organic Sales Growth
    21%
    high materiality
    High
    Q3 FY26 Basler Acquisition Sales Contribution
    6%
    medium materiality
    High
    Q3 FY26 FX Impact on Sales
    1% headwind
    low materiality
    High
    Q3 FY26 Adjusted Diluted EPS
    $4.85 to $5.05
    high materiality
    High
    Q3 FY26 Adjusted Effective Tax Rate
    23% to 24%
    medium materiality
    High
    FY26 Basler Revenue Contribution
    $135 million to $140 million
    medium materiality
    High
    FY26 Basler Earnings Contribution
    $0.25 to $0.30
    medium materiality
    High
    2030 Revenue Target
    $4.5 billion
    high materiality
    High
    2030 Adjusted EBITDA Target
    $1.1 billion
    high materiality
    High
    Data Center CAGR
    25% to 30%
    high materiality
    High

    Segment performance

    3
    SegmentRevenueYoYQoQMargin
    Electronics Products
    Benefited from increased demand in data center, diversified industrials, and transportation end markets. Asset products delivered strong growth, and semiconductor products benefited from continued protection strength and improved power semiconductor demand. Margin up 470 basis points versus prior year due to strong volume leverage, mix, and execution.
    Organic Growth: 20%
    		—21%—26.3%
    Transportation Products
    Organic growth driven by stronger commercial vehicle volumes (truck, construction, agricultural equipment). Passenger vehicle organic sales declined due to lower global production and sensor product sales declines. Margin was lower in the quarter but improved year-to-date amid mixed market conditions.
    Organic Growth: 1%Passenger Vehicle Organic Sales Decline: 2%
    		—2%—18.6%
    Industrial
    Organic growth supported by strong data center, industrial automation, and construction demand, plus faster-than-expected HVAC sales recovery. Basler acquisition performing ahead of expectations. Margin up year-over-year supported by volume leverage and favorable mix.
    Organic Growth: 16%Basler Contribution to Growth: 36%
    		—52%—22.6%

    Operational metrics

    15
    Net Sales
    $739 millionup 20% YoY
    Q2 FY26

    Exceeded expectations.

    Organic Sales Growth
    14%up YoY
    Q2 FY26

    Exceeded expectations.

    Adjusted EBITDA Margin
    23.6%up 220 bps YoY
    Q2 FY26

    Reflecting strong volume leverage, favorable mix, and operational execution.

    Adjusted Diluted EPS
    $4.19up 47% YoY
    Q2 FY26
    Cash and investments balance
    $628 million
    Q2 FY26
    Net Leverage Ratio
    0.8 turns
    Q2 FY26

    Consolidated.

    Dividend per Share
    $0.80increased by 7%
    Q2 FY26

    Reflects continued commitment to returning capital to shareholders.

    Capital Returned to Shareholders (Dividend)
    $9 million
    Q2 FY26

    Returned through dividend.

    Basler Sales Contribution
    6%
    Q2 FY26

    Contributed to total sales growth.

    FX Impact on Sales
    1% tailwind
    Q2 FY26
    Design Wins Increase
    double digitsup YoY
    H1 FY26

    Reflecting improved conversion of expanding new business opportunity pipeline.

    Power Semiconductor Demand
    strengthened
    Q2 FY26

    Contributing to improved growth and profitability; continued momentum expected into Q3.

    Consumer Electronics Sales
    declined
    Q2 FY26

    Limited impact on long-term growth trajectory as company prioritizes strategic industrial and data center opportunities.

    HVAC Market Recovery
    faster-than-expected
    Q2 FY26

    First time seeing growth on a year-over-year basis since H1 2025, after 4 straight quarters of decline.

    Data Center Content Opportunity (High Voltage)
    2 to 4x highervs low voltage
    Future

    Refers to the content opportunity in high voltage architectures compared to current low voltage architectures.

    Industry KPIs

    10
    MetricValueDetails
    M a contribution6%%
    Orders book to billwell north of 1.0
    Segment revenue growth21%%
    Content per device per vehicle—
    Design wins product cycle rampsdouble digits%
    Order visibility backlog policyRecord bookings
    Supply demand imbalance lead times—
    Capacity expansion internal sourcing—
    End market revenue mix organic growth14%%
    Operating margin incremental leverage23.6%%

    Orderbook & backlog

    2
    BookingsRecordQ2 FY26 end

    Company-wide record, reflecting broad-based momentum across end markets.

    Book-to-Bill Ratiowell north of 1.0Q2 FY26 end

    Indicates strong future demand.

    Product announcements

    3
    ProductTypeDetails
    Integrated Solution (Current Sensor & MEGA Fuse)launch
    Fast-Acting TLS Fuseslaunch
    High-Voltage IGBT and Diodeslaunch

    Deals & partnerships

    1
    BaslerAcquisition of a company specializing in grid and utility infrastructure.

    Integration efforts progressing well, performing ahead of expectations. Expands exposure to attractive energy and industrial infrastructure applications.

    Capital programs

    1
    Allen, Texas Power Semiconductor Manufacturing Facility Closureunderway
    Start: announced earlier this year

    Benefit: Enhance 2027 Electronics segment profitability; simplify operational footprint; reduce lead times; improve cost structure.

    Marks an important early step in ongoing portfolio optimization and footprint rationalization process for power semiconductors. Decision around make versus buy.

    Risks & headwinds

    4
    Consumer electronics sales declineQ2 FY26

    declined in the quarter

    Mitigation: Consumer electronics represents less than 10% of company sales and has a limited impact on long-term growth trajectory as company prioritizes strategic industrial and data center opportunities.

    Lower global passenger vehicle productionQ2 FY26

    Passenger vehicle organic sales declined 2%

    Mitigation: Mitigated by content expansion and share gains in passenger vehicles, and improving demand in commercial vehicles.

    Continued sensor product sales declines (Transportation)Q2 FY26

    Passenger vehicle organic sales declined 2%

    Mitigation: Focused execution driving improved profitability year-to-date amid mixed market conditions.

    Foreign exchange headwindQ3 FY26

    1% FX headwind

    What to watch in Q3 FY26

    5

    Power Semiconductor Profitability Enhancement

    2027
    CurrentOngoing portfolio optimization and footprint rationalization
    TargetEnhanced 2027 Electronics segment profitability

    Why it matters

    This initiative is expected to improve long-term profitable growth for the power semiconductor business by simplifying operations and optimizing cost structure.

    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.

    Q&A highlights

    6

    How Littelfuse plans to leverage the improved breadth of growth in electronics and industrial markets, including potential for share gains and pricing, and prioritizing actions for the rest of the year.

    Management emphasized the broad-based momentum across all end markets, including strengthening in previously slower areas like HVAC and diversified industrials (medical, A&D). They highlighted strong design win traction (double-digit increase across all markets) as a key driver of future growth and share gains, focusing on capturing upside volume.

    “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.”

    asked by Luke Junk (Baird) · answered by Gregory Henderson

    2 min read6 chapters

    Detailed Narrative

    01

    Q2 FY26 Performance Exceeds Expectations

    Littelfuse reported Q2 FY26 net sales of $739 million, a 20% year-over-year increase and 14% organically, surpassing expectations. Adjusted diluted EPS reached $4.19, up 47% year-over-year, driven by strong execution, volume leverage, and favorable mix. The company also generated robust operating cash flow of $146 million and free cash flow of $127 million, marking a 75% increase year-over-year.

    02

    Broad-Based End Market Momentum

    The company experienced broad-based growth across its end markets. The Computing, Communications, and Diversified Industrial (CCDI) segment saw strong growth, led by data centers and diversified industrial channels, including medical and aerospace and defense. Energy and Industrial Infrastructure (EII) benefited from demand in industrial automation, construction, grid modernization, and a faster-than-expected HVAC recovery. Transportation and Logistics showed moderate growth, with commercial vehicles improving and passenger vehicles seeing content expansion despite lower global production.

    03

    Strategic Design Wins and Pipeline Expansion

    Littelfuse highlighted significant progress in design wins, which were up double digits across all markets in the first half of the year. Key wins include an integrated solution for a leading transportation customer (light truck/commercial vehicle platform) with a $20 million annual revenue opportunity, and a partnership for battery energy storage solutions for data center and grid-scale markets. The company also secured a design win with a fusion power leader, leveraging high-voltage IGBT and diodes, with shipments starting in Q3.

    04

    Power Semiconductor Portfolio Optimization

    The company is actively optimizing its power semiconductor portfolio to focus on high-power and high-value applications. As part of this strategy, Littelfuse announced the closure of its Allen, Texas power semiconductor manufacturing facility in 2027. This move is expected to enhance the Electronics segment's profitability in 2027 by simplifying the operational footprint and improving cost structure through a make-versus-buy decision.

    05

    Basler Acquisition Outperformance

    The Basler acquisition continues to perform ahead of expectations, contributing approximately 36% of growth to the Industrial segment in Q2. Integration efforts are progressing well, and the business is performing strongly both operationally and commercially. As a result, Littelfuse raised its full-year 2026 revenue contribution outlook for Basler to $135 million-$140 million and its earnings contribution to $0.25-$0.30 per share.

    06

    Strong Demand Outlook and Channel Health

    Littelfuse entered Q3 with record bookings and a book-to-bill ratio "well north of 1.0," indicating strong future demand. Management confirmed that channel inventory levels are healthy in terms of weeks, and the current demand is largely driven by real end consumption rather than replenishment, with some normalization in previously low inventory areas. The sequential improvement in organic growth (9% in Q1, 14% in Q2, 21% guided for Q3) further supports the robust demand outlook.

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