Littelfuse Inc.: Q3 FY2025 earnings call

What management said about Q3 FY2025, from the documents filed with the SEC on 29 October 2025: press release. Guidance figures: 4 new. The quarter’s numbers.

Read the filing

Key takeaways

• Sales rose 10% with organic growth: Net sales reached $625 million, up 10%. Organic growth contributed 6.5%, with acquisitions and currency making up the rest. Source
• Adjusted EPS topped third-quarter range: GAAP diluted EPS was $2.77, up 19%. Adjusted diluted EPS was $2.95, up 9%, above the $2.65 - $2.85 third-quarter range in the prior release. Source
• Electronics sales up 17.5% on passives: Electronics net sales were $357.5 million, up 17.5%. Organic growth was 12%, and the Dortmund Fab acquisition added 4 points. Source
• Transportation margin fell 220 bps: Transportation adjusted EBITDA margin was 16.8%, down 220 bps. Management cited lower volume, higher compensation and tariff timing. Source
• Adjusted EBITDA margin slipped 20 bps: Adjusted EBITDA margin was 21.5%, against 21.7% a year earlier. GAAP operating margin rose to 15.6% from 15.5%; adjusted operating margin was 16.1% against 15.9%. Source
• Fourth-quarter growth expected at 10%: Management expects fourth-quarter revenue to rise 10% on the prior year, citing its backlog and customer positioning. Source
• Free cash flow $246 million year to date: Year-to-date operating cash flow was $295 million and free cash flow was $246 million, a cash conversion of 145%. Source
• Basler Electric acquisition announced: Management announced an upcoming acquisition of Basler Electric, a leader in electrical control and protection for industrial markets, disclosed the prior day. Source

“while our adjusted diluted earnings exceeded the high end of our guidance range reflecting solid execution amid mixed end market conditions”

Greg Henderson, Littelfuse President and Chief Executive Officer

Guidance

What changed from last quarter

• New: Management announced a pending acquisition of Basler Electric, a supplier of electrical control and protection solutions to industrial markets, disclosed the prior day. Source
• Ended: Third-quarter results include a $0.3 million loss on the sale of the Marine business within the Transportation segment. Source

Results and growth drivers

• Sales rose 10% with organic growth: Net sales reached $625 million, up 10%. Organic growth contributed 6.5%, with acquisitions and currency making up the rest. Source
• Adjusted EPS topped third-quarter range: GAAP diluted EPS was $2.77, up 19%. Adjusted diluted EPS was $2.95, up 9%, above the $2.65 - $2.85 third-quarter range in the prior release. Source
• Operating income rose 10.9%: Operating income was $97.4 million against $87.8 million a year earlier. Electronics operating income rose 30.2%, while Transportation fell 14.0% and Industrial fell 4.5%. Source
• Nine-month sales up 7.9%: Year-to-date net sales were $1,792.4 million, up 7.9%. Year-to-date operating income rose 25.0% to $260.3 million. Source

Segment performance

• Electronics sales up 17.5% on passives: Electronics net sales were $357.5 million, up 17.5%. Organic growth was 12%, and the Dortmund Fab acquisition added 4 points. Source
• Protection chips up, power chips down: Semiconductor products grew 5% organically, driven by improved protection demand, partly offset by lower power semiconductor volumes. Source
• Transportation sales flat, organic down 2%: Transportation net sales were $171.3 million, flat year over year, as favorable currency added 2 points. Commercial vehicle sales fell 3% organically on softer on-highway, off-road and agriculture demand. Source
• Transportation margin fell 220 bps: Transportation adjusted EBITDA margin was 16.8%, down 220 bps. Management cited lower volume, higher compensation and tariff timing. Source
• Industrial sales up 4% on energy demand: Industrial net sales were $95.9 million, up 4% organically, on energy storage, renewables and data center demand, partly offset by lower HVAC and soft construction. Source
• Industrial margin fell 310 bps: Industrial adjusted EBITDA margin was 20.7%, down 310 bps. Management attributed the decline to unfavorable mix and higher stock and variable compensation. Source

“We look forward to welcoming the Basler team to Littelfuse and to leveraging our complementary technologies, engineering capabilities and manufacturing footprint to drive long-term growth, profitability enhancements, and shareholder value.”

Greg Henderson, Littelfuse President and Chief Executive Officer

Margins and costs

• Adjusted EBITDA margin slipped 20 bps: Adjusted EBITDA margin was 21.5%, against 21.7% a year earlier. GAAP operating margin rose to 15.6% from 15.5%; adjusted operating margin was 16.1% against 15.9%. Source
• Electronics margin rose 140 bps: Electronics adjusted EBITDA margin reached 24.0%. Management credited passive and protection volume leverage, which more than offset soft power semiconductor volumes and higher compensation. Source
• SG&A rose about 19%: Selling, general, and administrative expenses were $99.6 million against $83.9 million a year earlier, a rise of about 19%. Source
• Non-GAAP operating adjustments totaled $3.3M: Non-GAAP adjustments to operating income were $3.3 million in the quarter, including restructuring, impairment and other charges and acquisition and integration costs. Source
• Adjusted tax rate edged up: Adjusted effective tax rate was 24.6%, against 24.3% a year earlier. Year-to-date it was 24.5%, compared with 23.2%. Source

Demand and fourth-quarter expectations

• Fourth-quarter growth expected at 10%: Management expects fourth-quarter revenue to rise 10% on the prior year, citing its backlog and customer positioning. Source
• Mixed end markets persist: Management expects typical fourth-quarter seasonality alongside continued mixed end market conditions. Source
• Focus on customer innovation: Management said it remains focused on driving innovations with customers and delivering operational enhancements while pursuing its strategic priorities. Source

“Looking ahead to the fourth quarter, we expect +10% revenue growth versus the prior year given our strong backlog and customer positioning.”

Littelfuse Inc., press release

Cash flow, balance sheet and capital returns

• Free cash flow $246 million year to date: Year-to-date operating cash flow was $295 million and free cash flow was $246 million, a cash conversion of 145%. Source
• Leverage ratio down to 0.9x: Consolidated net leverage ratio was 0.9x, against 1.1x in the second-quarter release. Net debt was $463.2 million, with $345.0 million of cash held in the U.S. Source
• Buybacks lower, dividends higher: Year-to-date share repurchases were $27.6 million, against $40.9 million a year earlier. Cash dividends paid were $53.3 million, against $49.7 million. Source
• Capital spending $48.7 million year to date: Year-to-date capital expenditure was $48.7 million, against $50.1 million a year earlier. Source

Basler Electric acquisition and strategy

• Basler Electric acquisition announced: Management announced an upcoming acquisition of Basler Electric, a leader in electrical control and protection for industrial markets, disclosed the prior day. Source
• Basler to add high-power and industrial reach: Management said Basler will expand high growth markets, enhance high power technology capabilities and broaden industrial customer exposure. Source
• Integration aimed at long-term growth: Management plans to use the combined technologies, engineering capabilities and manufacturing footprint to drive long-term growth, profitability and shareholder value. Source

Coming up, as management said on 29 October 2025

• Basler Electric closing pending: The Basler Electric acquisition is described as upcoming; the release gives no closing date. Source
• Dividend payable December 4: The $0.75 quarterly dividend is payable December 4, 2025, to shareholders of record on November 20, 2025. Source

Figures management reported

Risks management discussed

• Demand: Management cited continued mixed end market conditions alongside its expectation of typical fourth-quarter seasonality. Source
• Demand: Auto sensor sales fell 18% organically, while passenger car product demand was stable. Source
• Demand: Power semiconductor volumes remained soft during the quarter. Source
• External: Management cited unfavorable tariff timing as a factor in the Transportation margin decline. Source
• Demand: Lower HVAC demand and soft construction demand offset gains in the Industrial segment. Source
• Operational: Management cited unfavorable mix as a driver of the Industrial margin decline. Source

Earlier plans management reported on

• Ahead: Management said adjusted diluted earnings exceeded the high end of the third-quarter guidance range given in the prior release. Source
• Not stated: Management referred to strategic priorities outlined in the second-quarter release, with a goal of long-term shareholder returns.

Other quarters

• Q2 FY2026 earnings call
• Q1 FY2026 earnings call
• Q4 FY2025 earnings call
• Q2 FY2025 results

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.