Littelfuse Q2 2025 presentation: Revenue jumps 10% as all segments outperform

Introduction & Market Context

Littelfuse Inc (NASDAQ:LFUS) released its Q2 2025 earnings presentation on July 30, 2025, revealing strong performance across all business segments with both sales and earnings per share exceeding the high end of guidance. The company’s stock responded positively in premarket trading, rising 2.12% to $240.79.

The results build on Littelfuse’s momentum from Q1 2025, when the company also beat analyst expectations. The circuit protection and power semiconductor specialist has leveraged its global footprint and diversified product portfolio to navigate market challenges while capitalizing on growth opportunities in data centers, grid storage, and renewable energy applications.

Quarterly Performance Highlights

Littelfuse reported Q2 2025 revenue of $613.4 million, representing a 10% increase compared to the prior year. Organic growth contributed 6%, while the Dortmund acquisition added 2% and favorable foreign exchange provided an additional 1%.

As shown in the following chart of quarterly financial performance:

Profitability metrics showed significant improvement, with adjusted EBITDA margin reaching 21.4%, a 280 basis point increase year-over-year. GAAP EPS rose 26% to $2.30, while adjusted EPS jumped 45% to $2.85 compared to the prior year period.

The company generated strong cash flow with operating cash flow of $82 million and free cash flow of $73 million, representing a 44% increase from Q2 2024. Year-to-date free cash flow conversion reached an impressive 114%.

"We exited Q2 with the strongest bookings since the first half of 2022," noted the company in its presentation, signaling potential continued strength in upcoming quarters.

Segment Performance Analysis

All three of Littelfuse’s business segments delivered year-over-year growth, with the Industrial segment showing particularly strong results.

The Electronics segment, which represents the largest portion of the company’s business, posted revenue of $336 million, up 10% on a reported basis and 4% organically. Passive products were especially strong with 14% organic growth, while semiconductors experienced a 5% organic decline. The Dortmund acquisition contributed 4% to segment growth. Adjusted EBITDA margin remained flat at 21.6% year-over-year.

The segment’s performance is illustrated in the following chart:

The Transportation segment delivered revenue of $179 million, increasing 6% on a reported basis and 4% organically, with a 2% benefit from foreign exchange. Passenger vehicle sales grew 3% organically, while commercial vehicle sales increased 5% organically despite soft end market conditions, indicating market share gains.

Most notably, the Transportation segment’s adjusted EBITDA margin improved dramatically to 20.5%, a 610 basis point increase from the prior year, driven by volume leverage and operational initiatives:

The Industrial segment showed the strongest performance with revenue of $98 million, representing 17% growth both reported and organic. Growth was driven by strong demand in grid storage, renewables, data centers, industrial safety, and HVAC applications. The segment’s adjusted EBITDA margin expanded to 22.1%, a 610 basis point improvement year-over-year:

Strategic Initiatives & Global Positioning

Littelfuse outlined three key strategic priorities in its presentation: enhancing focus on future growth opportunities, providing more complete solutions for customers, and driving operational excellence to improve long-term performance.

The company’s strategic priorities are detailed in the following slide:

Littelfuse maintains a balanced global footprint with revenue distributed across major regions: 37% from the US, 23% from China, 21% from Europe, and 19% from the rest of the world. This geographic diversification helps mitigate regional market fluctuations and tariff impacts.

The company highlighted its asset-light manufacturing model, with capital expenditures at approximately 3.5% of sales, providing flexibility to adapt to changing market conditions:

Q3 Guidance & Full Year Outlook

Looking ahead to Q3 2025, Littelfuse provided a positive outlook based on a strong backlog entering the quarter. The company expects Q3 sales in the range of $610-$630 million, representing approximately 9% year-over-year growth, with 2% contribution from the Dortmund acquisition and 1% from favorable foreign exchange.

The Q3 guidance is illustrated in the following chart:

Adjusted EPS for Q3 is projected to be between $2.65 and $2.85, with an expected adjusted effective tax rate of approximately 25%. The guidance includes an estimated $0.08 headwind from foreign exchange and commodities.

For the full year 2025, Littelfuse expects the Dortmund acquisition to contribute 2% growth to company sales with a neutral EPS impact. Foreign exchange and commodities are anticipated to provide a 1% tailwind to sales and approximately $0.14 benefit to EPS.

The company provided a detailed bridge explaining the factors influencing Q3 2025 sales and adjusted EPS guidance compared to Q3 2024:

Capital expenditures for the full year are projected to be between $90-95 million, with free cash flow conversion expected at approximately 100%. The company remains focused on executing its strategic priorities to drive growth and long-term shareholder value.

With strong Q2 results and positive Q3 guidance, Littelfuse appears well-positioned to continue its growth trajectory through the remainder of 2025, supported by its diversified business model and operational improvements across segments.

Full presentation:

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