Littelfuse (LFUS) came out with quarterly earnings of $2.69 per share, beating the Zacks Consensus Estimate of $2.51 per share. This compares to earnings of $2.04 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of +7.17%. A quarter ago, it was expected that this circuit protection manufacturer would post earnings of $2.75 per share when it actually produced earnings of $2.95, delivering a surprise of +7.27%.Over the last four qua ...

Q4 2025 Earnings Release January 28, 2026 DISCLAIMERS Important Information About Littelfuse, Inc. This presentation does not constitute or form part of, and should not be construed as, an offer or solicitation to purchase or sell securities of Littelfuse, Inc. and no investment decision should be made based upon the information provided herein. Littelfuse strongly urges you to review its filings with the Securities and Exchange Commission, which can be found at investor.littelfuse.com. This website also pr ...

Financial Performance - Net sales for Q4 2025 were $594 million, representing a 12% increase year-over-year, with organic growth contributing 7%[4] - Full year 2025 net sales reached $2,386 million, a 9% increase year-over-year, with organic growth contributing 6%[4] - Adjusted diluted earnings per share for Q4 2025 were $2.69, while the full year adjusted diluted EPS was $10.68, reflecting a 34% increase year-over-year[4] - For Q1 2026, the company expects net sales in the range of $625 - $645 million, indicating approximately 15% total revenue growth compared to the prior year[5] - The Electronics Segment saw a 21% increase in net sales for Q4 2025, driven by improved passive products and semiconductor demand[7] - The Transportation Segment's net sales increased by 1% in Q4 2025, with organic sales decreasing by 1% due to lower commercial vehicle sales[7] - The Industrial Segment's net sales for Q4 2025 increased by 4%, with the Basler acquisition contributing 5% to growth[11] - Net sales for the three months ended December 27, 2025, were $593.9 million, a 12.2% increase from $529.5 million in the same period last year[22] - YTD-25 net sales increased by 9% compared to YTD-24, with organic growth at 6%[33] Profitability and Expenses - Gross profit for the same period was $225.7 million, up from $176.8 million, reflecting a significant improvement in profitability[22] - Adjusted EBITDA margin for the full year 2025 increased to 22.9%, primarily due to strong passive products and protection volume leverage[11] - The operating margin for the electronics segment improved to 17.3% from 13.0% year-over-year, indicating better operational efficiency[27] - Adjusted EBITDA for Q4-25 was $121.6 million, compared to $83.0 million in Q4-24, marking a 46.4% increase[29] - Total operating expenses surged to $448.6 million, compared to $226.3 million in the same quarter last year, primarily due to restructuring and impairment charges[22] - The operating loss for the quarter was $222.8 million, a significant decline from a loss of $49.5 million in the previous year[22] - Research and development expenses were $27.1 million for the quarter, slightly increasing from $26.5 million year-over-year[22] Cash Flow and Debt - Cash provided by operating activities was $433.8 million, an increase from $367.6 million year-over-year[24] - The company made acquisitions totaling $407.7 million during the fiscal year, impacting cash flows significantly[24] - Free cash flow for Q4-25 was $119.7 million, slightly down from $134.8 million in Q4-24[34] - Consolidated Total Debt as of December 27, 2025, is $802.6 million, with a net debt of $660.3 million[35] - The company’s total funded indebtedness stands at $804.6 million[35] - Cash held in U.S. subsidiaries amounts to $144.3 million, with up to $400 million available for netting under the Credit Agreement[36] Impairment and Charges - The company recorded a non-cash goodwill impairment charge of $301 million related to the Semiconductor Products business within the Electronics Segment[4] - A non-cash goodwill impairment charge of $301.2 million was recorded in Q4 2025 related to the Electronics-Semiconductor reporting unit[39] - The company recognized impairment charges totaling $92.6 million in Q4 2024, primarily related to intangible assets and goodwill[39] - The company recorded a $0.3 million loss related to the sale of the Marine business within the Transportation segment in 2025[41] Dividends and Shareholder Returns - The company plans to pay a cash dividend of $0.75 per share on March 5, 2026, to shareholders of record as of February 19, 2026[11] Taxation - The effective tax rate for Q4-25 was (5.6)%, significantly lower than (21.3)% in Q4-24[34]

Acquisition Overview - GulfStar Group announced the acquisition of Basler Electric Company by Littelfuse, Inc. for approximately $350 million in cash, with the transaction closing on December 11, 2025 [2] - GulfStar served as the exclusive financial advisor to Basler during this transaction [2] Company Profile: Basler Electric Company - Founded in 1942, Basler is a family-owned manufacturer of electrical control and protection solutions, based in Highland, Illinois, employing around 700 people [3] - Basler's products are utilized by over 1,600 global customers across various critical applications and high-growth markets, including power generation, power transmission, grid infrastructure, HVAC, data centers, and industrial equipment [3] - The company operates three manufacturing facilities located in Highland, Illinois; Taylor, Texas; and Piedras Negras, Mexico [3] Strategic Importance of the Acquisition - Ken Rhodes, president of Basler, expressed excitement about joining Littelfuse, highlighting the alignment of their customer-focused culture and commitment to technology innovation [4] - The acquisition enhances Littelfuse's presence in mission-critical, high-growth markets and provides a platform for expansion in high-power applications [4] - Basler's established brand reputation and leadership in its product categories, combined with Littelfuse's scale and global reach, create a comprehensive solution for an expanding customer base [4] GulfStar Group's Role - GulfStar's team, led by Managing Directors Brian Lobo, Colt Luedde, and Ben Stanton, provided strategic guidance throughout the acquisition process [4] - GulfStar has a strong track record in mergers and acquisitions, having completed over 760 transactions since its founding in 1990 [7]

Core Insights - The article discusses the challenges faced by companies in managing excess inventory, particularly in the semiconductor industry, highlighting the financial burden of storage and capital costs associated with unsold materials [1] - It emphasizes the services provided by a company called "Chip Superman," which has successfully served 22,000 users and offers rapid inventory clearance solutions [2][10] - The article lists various semiconductor components available for sale at discounted prices, indicating a significant inventory of over 50 million chips valued at over 100 million [9] Group 1: Inventory Management - Companies are facing substantial costs due to excess inventory, with monthly storage and capital costs amounting to at least 5,000, leading to potential losses of 30,000 after six months [1] - There is a need for effective promotion strategies for unsold materials to mitigate financial losses [1] Group 2: Services Offered - "Chip Superman" has a robust operational capacity with a 1,600 square meter smart storage facility, housing over 1,000 different models and 100 brands of chips [9] - The company guarantees quality control (QC) for each component, ensuring reliability for customers [9] Group 3: Sales and Discounts - The article highlights a range of semiconductor components available for sale, including various models from brands like MICRON, SAMSUNG, and INFINEON, with quantities ranging from thousands to millions [5][6] - The company is actively promoting discounted sales to clear inventory, with transactions completed in as little as half a day [2][10]

Core Viewpoint - Littelfuse, Inc. will release its financial results for the fourth quarter of fiscal 2025 on January 28, 2026, before market open [1] Financial Results Announcement - The financial results will be available in the Investor Relations section of the company's website, Littelfuse.com [1] - A conference call is scheduled for January 2, 2026, to discuss the financial results [1]

CHICAGO--(BUSINESS WIRE)--Littelfuse, Inc. (NASDAQ: LFUS), a leader in developing smart solutions that enable safe and efficient electrical energy transfer, today announced the completion of its previously announced acquisition of Basler Electric Company ("Basler†), further strengthening the company's high- power application capabilities. Basler is a leading designer and manufacturer of innovative electrical control and protection technologies serving high-growth industrial markets. Its portfoli. ...

Core Thesis - Littelfuse, Inc. is being reexamined for its inclusion in QVI's Real-Time Stock Picks due to concerns over its weakening financial performance despite a strong industry position [2][4]. Company Overview - Littelfuse, Inc. operates in the information technology sector as a small-cap electronics manufacturer, supplying critical components such as fuses, sensors, switches, relays, and power modules across various segments including electronics, transportation, and industrial [2]. - The company was added to QVI's portfolio in 2022 at a cost basis of $199.54 per share, with its stock trading at $253.56 as of December 1st [2]. Financial Performance - Revenue growth has lagged behind the S&P 500 over both one-year and five-year periods, raising concerns about management execution [3]. - Littelfuse's net margin is in the mid-single digits, indicating structurally lower gross margins compared to the broader market [3]. - Returns on equity and invested capital have fallen below acceptable thresholds, with ROIC not exceeding the cost of capital, suggesting inefficiencies in capital deployment [4]. - Owners' earnings have underperformed expectations, showing negative EPS growth over the past year and only low single-digit growth over five years, although free cash flow growth improves long-term owners' earnings [4]. Market Position and Valuation - The company has a century-long operating history and strong customer relationships, which contribute to its narrow moat rating by Morningstar [3]. - QVI maintains a bullish view on the company's value proposition due to the resilience of technology-oriented component suppliers, despite the deteriorating fundamentals [4].

Group 1 - Harvey Partners increased its stake in Littelfuse by 41,763 shares, bringing the total position to 108,700 shares valued at $28.2 million as of September 30 [2][3] - Littelfuse represents 2.5% of Harvey Partners' 13F assets under management (AUM), indicating a strategic investment in a company with resilient fundamentals despite stock underperformance [3][11] - The stock price of Littelfuse was $259.55, reflecting a 7% increase over the past year, which is lower than the S&P 500's 13% increase [3] Group 2 - Littelfuse reported a revenue of $2.3 billion and a net income of $118.6 million for the trailing twelve months (TTM) [4] - The company achieved a 10% year-over-year revenue growth to $625 million in the third quarter, with a 19% growth in GAAP EPS to $2.77 and a 21.5% adjusted EBITDA margin [10] - The electronics segment showed strong performance with an 18% sales growth and a 24% adjusted EBITDA margin, driven by demand for passive components [10] Group 3 - Littelfuse is a global provider of circuit protection and power management solutions, serving the electronics, transportation, and industrial markets [6][9] - The company operates a diversified business model, generating revenue through product sales to OEMs, distributors, and direct customers [9] - Primary customers include original equipment manufacturers, Tier-I suppliers, and companies in the automotive, industrial, and electronics sectors [9]

Core Insights - Littelfuse, a global supplier of circuit protection and power control products, reported an insider sale by Deepak Nayar, Senior Vice President and General Manager of the Electronics Business division, amid ongoing electrification trends [1][6] Transaction Summary - Deepak Nayar sold 2,333 shares for approximately $596,100, leaving him with 5,998 shares valued at around $1.54 million post-transaction [2][6] - The transaction was executed at a price of $255.50 per share, based on the SEC Form 4 filing [6] Company Overview - Littelfuse generated $2.32 billion in revenue and $118.65 million in net income over the trailing twelve months (TTM) [4] - The company has a dividend yield of 1.14% and its stock price was $255.50 as of November 26, 2025 [4] Insider Transaction Context - The sale of 2,333 shares exceeded Deepak's historical median of 1,391 shares sold in open-market transactions, representing about 28% of his direct holdings prior to the sale [6] - The difference between the sell price and the exercise price of the stock options was $25.10 per share, resulting in a profit of $58,500, which may indicate a lack of confidence in the company's near-term prospects [10] Revenue and Market Performance - Littelfuse's revenue growth has been cyclical, with negative year-over-year growth for eight consecutive quarters since early 2023, but has shown signs of modest recovery in the first three quarters of the current year [11] - The stock is currently trading at 48 times trailing twelve-month earnings, suggesting a potential recovery in valuation, although the company faces execution challenges in its electronics and power semiconductor segments [12] Industry Position - Littelfuse operates with a global workforce of 16,000 and focuses on high-growth markets such as electric vehicles, industrial automation, and renewable energy [8] - The company serves a diverse customer base, including original equipment manufacturers and Tier-I suppliers across automotive, industrial, and electronics sectors [7][8]