Littelfuse’s second quarter results were marked by broad-based strength across its business segments, with management attributing the performance to improved demand in electronics, continued transportation growth, and accelerating momentum in industrial markets. CEO Gregory Henderson highlighted the company’s leadership in safe and efficient electrical energy transfer and noted that the electronics segment benefited from increased orders for passive components, while transportation achieved margin gains through operational improvements and market diversification. Henderson also emphasized that the industrial segment’s double-digit organic growth reflected strong traction in grid storage, renewables, and data center applications.
Is now the time to buy LFUS? Find out in our full research report (it’s free).
Littelfuse (LFUS) Q2 CY2025 Highlights:
- Revenue: $613.4 million vs analyst estimates of $574.3 million (9.8% year-on-year growth, 6.8% beat)
- Adjusted EPS: $2.85 vs analyst estimates of $2.33 (22.2% beat)
- Adjusted EBITDA: $131.1 million vs analyst estimates of $111 million (21.4% margin, 18.1% beat)
- Revenue Guidance for Q3 CY2025 is $620 million at the midpoint, above analyst estimates of $581.2 million
- Adjusted EPS guidance for Q3 CY2025 is $2.75 at the midpoint, above analyst estimates of $2.51
- Operating Margin: 15.1%, up from 11.7% in the same quarter last year
- Market Capitalization: $6.33 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Littelfuse’s Q2 Earnings Call
- Luke Junk (Baird) asked about the sustainability of margin improvements in transportation and industrial segments. CEO Gregory Henderson explained that operational excellence initiatives and business diversification are providing leverage, though margin trends may not be linear due to seasonality.
- Luke Junk (Baird) requested clarification on tariff timing impacts. CFO Abhi Khandelwal clarified that a $0.15 tailwind in Q2 will reverse in Q3 due to the timing of price realization versus cost.
- Christopher Glynn (Oppenheimer) inquired about the scale of new data center opportunities. Henderson responded that data center exposure, while not historically large, is “materially important” and growing, with new design wins and pipeline momentum.
- Saree Boroditsky (Jefferies) questioned the accretive potential and investment needs of high-voltage and data center opportunities. Henderson stated that these markets should drive both top- and bottom-line growth but will require continued investment in technology and talent.
- David Williams (Benchmark) asked when the power semiconductor segment might show leverage. Henderson indicated that while the market remains soft, order trends are improving and sequential momentum is expected.
Catalysts in Upcoming Quarters
In the coming quarters, the StockStory team will monitor (1) Littelfuse’s ability to translate design wins in data centers, renewables, and grid storage into sustained revenue growth, (2) the impact of operational improvements and cost discipline on margins across all segments, and (3) the trajectory of recovery in the power semiconductor business. Additional attention will be paid to how management executes on portfolio diversification and adapts to shifting customer demand in high-growth applications.
Littelfuse currently trades at $253.99, up from $235.79 just before the earnings. Is the company at an inflection point that warrants a buy or sell? Find out in our full research report (it’s free).
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