Littelfuse(LFUS) - 2025 Q1 - Quarterly Results

Q1 2025 Earnings Release First Quarter 2025 Performance Highlights Littelfuse exceeded Q1 2025 expectations with $554 million net sales (+3.5% YoY) and $2.19 adjusted diluted EPS (+24%), driven by strong segment recovery and operational execution Q1 2025 Key Financial Metrics (YoY) | Metric | Q1 2025 Value | YoY Change | | :--- | :--- | :--- | | Net Sales | $554 million | +3.5% | | Organic Growth | N/A | +2.9% | | GAAP Diluted EPS | $1.75 | -9.3% | | Adjusted Diluted EPS | $2.19 | +24% | | Free Cash Flow | $43 million | +3% | - Management highlighted that results exceeded expectations, driven by a solid demand recovery in the Electronics Segment and robust growth in the Industrial Segment, with improved bookings and strong operational performance reflected in an expanded operating margin[2] - The company returned $45 million to shareholders during the quarter through a combination of dividends and share repurchases[3] Second Quarter 2025 Outlook For Q2 2025, Littelfuse forecasts net sales between $565 million and $595 million, with adjusted diluted EPS projected from $2.10 to $2.40, and an adjusted effective tax rate of 23% to 25% Q2 2025 Guidance | Metric | Guidance Range | | :--- | :--- | | Net Sales | $565 - $595 million | | Adjusted Diluted EPS | $2.10 – $2.40 | | Adjusted Effective Tax Rate | 23% - 25% | Dividend Announcement Littelfuse declared a cash dividend of $0.70 per share, payable on June 5, 2025, to shareholders of record as of May 22, 2025 - A cash dividend of $0.70 per share will be paid on June 5, 2025[5] Financial Statements Condensed Consolidated Balance Sheets As of March 29, 2025, total assets were $3.888 billion, cash and equivalents decreased to $618.7 million, and total equity increased to $2.457 billion Balance Sheet Highlights (in thousands) | Account | March 29, 2025 | December 28, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $618,687 | $724,924 | | Total current assets | $1,433,084 | $1,552,009 | | Total assets | $3,888,235 | $3,891,779 | | Total current liabilities | $369,567 | $433,905 | | Total liabilities | $1,431,480 | $1,478,167 | | Total equity | $2,456,755 | $2,413,612 | Condensed Consolidated Statements of Net Income Q1 2025 net sales rose 3.5% to $554.3 million, operating income surged 27.7% to $70.2 million, but GAAP net income decreased 10.1% to $43.6 million due to foreign exchange loss and higher taxes Q1 Income Statement Summary (in thousands, except per share data) | Metric | Q1 2025 | Q1 2024 | % Change | | :--- | :--- | :--- | :--- | | Net sales | $554,307 | $535,385 | +3.5% | | Gross profit | $207,256 | $187,808 | +10.4% | | Operating income | $70,150 | $54,952 | +27.7% | | Net income | $43,571 | $48,452 | -10.1% | | Diluted EPS | $1.75 | $1.93 | -9.3% | Condensed Consolidated Statements of Cash Flows In Q1 2025, net cash provided by operating activities increased to $65.8 million from $57.2 million in Q1 2024, while investing activities used $80.5 million (due to acquisition) and financing activities used $97.0 million, resulting in a $106.2 million cash decrease Q1 Cash Flow Summary (in thousands) | Activity | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $65,758 | $57,150 | | Net cash used in investing activities | ($80,508) | ($8,483) | | Net cash used in financing activities | ($97,034) | ($33,520) | | (Decrease) increase in cash | ($106,181) | $6,597 | Segment Performance Net Sales and Operating Income by Segment In Q1 2025, Industrial segment sales grew 15.3% with operating income up 172.6%, Electronics sales rose 5.5% with operating income up 23.7%, while Transportation sales declined 5.0% but operating income increased 16.7%, with all segments showing improved margins Q1 2025 Net Sales by Segment (YoY) | Segment | Q1 2025 Net Sales (in thousands) | YoY Growth | | :--- | :--- | :--- | | Electronics | $307,249 | 5.5% | | Transportation | $161,862 | (5.0)% | | Industrial | $85,196 | 15.3% | | Total | $554,307 | 3.5% | Q1 2025 Operating Income & Margin by Segment (YoY) | Segment | Q1 2025 Operating Income (in thousands) | YoY Growth | Q1 2025 Operating Margin | Q1 2024 Operating Margin | | :--- | :--- | :--- | :--- | :--- | | Electronics | $46,766 | 23.7% | 15.2% | 13.0% | | Transportation | $18,917 | 16.7% | 11.7% | 9.5% | | Industrial | $13,074 | 172.6% | 15.3% | 6.5% | Non-GAAP Financial Measures & Reconciliations Reconciliation of GAAP to Non-GAAP EPS Q1 2025 adjusted diluted EPS increased to $2.19 from $1.76 in Q1 2024, primarily due to adjustments for restructuring charges and non-operating foreign exchange loss Non-GAAP EPS Reconciliation | Description | Q1-25 | Q1-24 | | :--- | :--- | :--- | | GAAP diluted EPS | $1.75 | $1.93 | | EPS impact of Non-GAAP adjustments | $0.44 | ($0.17) | | Adjusted diluted EPS | $2.19 | $1.76 | Reconciliation of Adjusted Operating Margin & Adjusted EBITDA Q1 2025 adjusted operating income reached $78.8 million (14.2% margin) and adjusted EBITDA rose to $111.5 million (20.1% margin), with Electronics as the largest EBITDA contributor Adjusted EBITDA Reconciliation (in millions) | Metric | Q1-25 | Q1-24 | | :--- | :--- | :--- | | GAAP operating income | $70.2 | $55.0 | | Non-GAAP adjustments | $8.6 | $3.8 | | Adjusted operating income | $78.8 | $58.8 | | Amortization & Depreciation | $32.7 | $32.5 | | Adjusted EBITDA | $111.5 | $91.3 | | Adjusted operating margin | 14.2% | 11.0% | | Adjusted EBITDA margin | 20.1% | 17.1% | Adjusted EBITDA by Segment (in millions) | Segment | Q1-25 | Q1-24 | | :--- | :--- | :--- | | Electronics | $68.0 | $57.6 | | Transportation | $27.7 | $24.9 | | Industrial | $15.8 | $8.8 | Reconciliation of Net Sales and Organic Growth Total net sales grew 3.5% in Q1 2025, driven by 2.9% organic growth and 1.5% from acquisitions, offset by a 0.9% negative foreign exchange impact, with Industrial leading organic growth Q1 2025 vs Q1 2024 Net Sales Growth Reconciliation | Component | Electronics | Transportation | Industrial | Total | | :--- | :--- | :--- | :--- | :--- | | Net sales growth | 6% | (5)% | 15% | 4% | | Less: Acquisitions | 4% | —% | —% | 2% | | Less: FX impact | (1)% | (1)% | (1)% | (1)% | | Organic net sales growth | 3% | (4)% | 16% | 3% | Reconciliation of Income Tax The Q1 2025 GAAP effective tax rate was 27.3%, with the adjusted effective tax rate at 25.5%, higher than the 19.3% adjusted rate in Q1 2024 Income Tax Reconciliation | Metric | Q1-25 | Q1-24 | | :--- | :--- | :--- | | GAAP Effective Rate | 27.3% | 13.0% | | Adjusted Effective Rate | 25.5% | 19.3% | Reconciliation of Free Cash Flow Q1 2025 free cash flow slightly increased to $42.7 million, derived from $65.8 million in operating cash flow less $23.1 million in capital expenditures Free Cash Flow Reconciliation (in millions) | Description | Q1-25 | Q1-24 | | :--- | :--- | :--- | | Net cash provided by operating activities | $65.8 | $57.1 | | Less: Purchases of property, plant and equipment | ($23.1) | ($15.5) | | Free cash flow | $42.7 | $41.6 | Debt and Leverage As of March 29, 2025, Littelfuse's net debt was $634.4 million, with a Consolidated Net Leverage Ratio of 1.3x, well below the 3.50x covenant limit - Consolidated Total Debt was $805.7 million, with Net Debt calculated at $634.4 million as of March 29, 2025[28] - The Consolidated Net Leverage Ratio was 1.3x, which is well within the 3.50:1.00 covenant limit required by its credit agreements[29]