Littelfuse(LFUS) - 2025 Q2 - Quarterly Results

Performance Overview and Outlook Littelfuse exceeded Q2 2025 expectations with strong sales and EPS growth, provided positive Q3 guidance, and increased its quarterly dividend Q2 2025 Key Financial Highlights | Metric | Q2 2025 | YoY Change | | :--- | :--- | :--- | | Net Sales | $613 million | +9.8% | | Organic Growth | N/A | +6.2% | | GAAP Diluted EPS | $2.30 | +26% | | Adjusted Diluted EPS | $2.85 | +45% | | GAAP Operating Margin | 15.1% | +340 bps | | Adjusted EBITDA Margin | 21.4% | +280 bps | | YTD Operating Cash Flow | $148 million | N/A | | YTD Free Cash Flow | $115 million | N/A | - Management emphasized solid growth and operational execution, focusing on capitalizing on opportunities and driving excellence[2] Q3 2025 Financial Guidance | Guidance Metric | Q3 2025 Range | | :--- | :--- | | Net Sales | $610 - $630 million | | Adjusted Diluted EPS | $2.65 - $2.85 | | Adjusted Effective Tax Rate | 25% | - The Board approved a 7% increase in the quarterly cash dividend to $0.75 per share[3][5] Consolidated Financial Statements Consolidated financial statements reflect a healthy position with asset growth, increased net income, and strong operating cash flow Condensed Consolidated Balance Sheets Total assets grew to $4.07 billion by June 28, 2025, driven by goodwill and property, while cash and debt remained stable Condensed Consolidated Balance Sheets | Balance Sheet Item | June 28, 2025 (in thousands) | December 28, 2024 (in thousands) | | :--- | :--- | :--- | | Total Current Assets | $1,542,050 | $1,552,009 | | Cash and cash equivalents | $685,184 | $724,924 | | Total Assets | $4,065,881 | $3,891,779 | | Total Current Liabilities | $379,742 | $433,905 | | Long-term debt, less current portion | $792,524 | $788,502 | | Total Equity | $2,598,965 | $2,413,612 | Condensed Consolidated Statements of Net Income Q2 2025 net sales grew 9.8% to $613.4 million, driving a 41.6% increase in operating income and higher net income Condensed Consolidated Statements of Net Income | Income Statement | Q2 2025 (in thousands) | Q2 2024 (in thousands) | YTD 2025 (in thousands) | YTD 2024 (in thousands) | | :--- | :--- | :--- | :--- | :--- | | Net sales | $613,413 | $558,489 | $1,167,720 | $1,093,874 | | Gross profit | $232,054 | $207,004 | $439,310 | $394,812 | | Operating income | $92,778 | $65,506 | $162,928 | $120,458 | | Net income | $57,342 | $45,466 | $100,913 | $93,918 | | Diluted EPS | $2.30 | $1.82 | $4.05 | $3.75 | Condensed Consolidated Statements of Cash Flows Operating cash flow increased to $148.2 million year-to-date, while investing and financing activities used significant cash Condensed Consolidated Statements of Cash Flows | Cash Flow | YTD 2025 (in thousands) | YTD 2024 (in thousands) | | :--- | :--- | :--- | | Net cash provided by operating activities | $148,225 | $126,574 | | Net cash used in investing activities | ($89,704) | ($26,677) | | Net cash used in financing activities | ($120,543) | ($79,290) | | (Decrease) increase in cash | ($39,554) | $6,173 | Segment Performance All segments demonstrated strong Q2 2025 growth, with Industrial leading sales and significant operating income gains across segments Q2 2025 Net Sales by Segment | Q2 2025 Net Sales | Amount (in thousands) | YoY Growth | | :--- | :--- | :--- | | Electronics | $335,666 | 9.8% | | Transportation | $179,400 | 6.2% | | Industrial | $98,347 | 17.2% | | Total net sales | $613,413 | 9.8% | Q2 2025 Operating Income by Segment | Q2 2025 Operating Income | Amount (in thousands) | YoY Growth | | :--- | :--- | :--- | | Electronics | $49,861 | 8.0% | | Transportation | $28,074 | 84.3% | | Industrial | $18,863 | 97.6% | | Total operating income | $92,778 | 41.6% | Segment Operating Margins | Operating Margin | Q2 2025 (%) | Q2 2024 (%) | | :--- | :--- | :--- | | Electronics | 14.9% | 15.1% | | Transportation | 15.6% | 9.0% | | Industrial | 19.2% | 11.4% | Supplemental Financial Information (Non-GAAP) This section reconciles GAAP to non-GAAP measures, detailing adjusted EPS, EBITDA margins, organic sales growth, and debt leverage Non-GAAP EPS and EBITDA Reconciliations Q2 2025 GAAP diluted EPS of $2.30 was adjusted to $2.85, with GAAP operating income adjusted to a 21.4% EBITDA margin Non-GAAP Diluted EPS Reconciliation | EPS Reconciliation | Q2 2025 ($) | Q2 2024 ($) | | :--- | :--- | :--- | | GAAP diluted EPS | $2.30 | $1.82 | | EPS impact of Non-GAAP adjustments | $0.55 | $0.15 | | Adjusted diluted EPS | $2.85 | $1.97 | Non-GAAP Margin Reconciliations | Margin Reconciliation | Q2 2025 (%) | Q2 2024 (%) | | :--- | :--- | :--- | | GAAP Operating Margin | 15.1% | 11.7% | | Adjusted Operating Margin | 15.8% | 12.7% | | Adjusted EBITDA Margin | 21.4% | 18.6% | Segment-Level and Other Reconciliations Q2 2025 adjusted EBITDA margins were strong across segments, with total organic sales growth of 6% and increased free cash flow Q2 2025 Organic Net Sales Growth by Segment | Q2 2025 Organic Net Sales Growth | Electronics (%) | Transportation (%) | Industrial (%) | Total (%) | | :--- | :--- | :--- | :--- | :--- | | Net sales growth | 10% | 6% | 17% | 10% | | Less: Acquisitions & FX | 5% | 2% | 0% | 4% | | Organic net sales growth | 4% | 4% | 17% | 6% | Free Cash Flow Reconciliation | Free Cash Flow Reconciliation | YTD 2025 (in millions) | YTD 2024 (in millions) | | :--- | :--- | :--- | | Net cash provided by operating activities | $148.2 | $126.6 | | Less: Purchases of property, plant and equipment | ($33.0) | ($34.7) | | Free cash flow | $115.2 | $91.9 | Debt and Leverage Analysis As of June 28, 2025, net debt was $547.6 million, resulting in a 1.1x Consolidated Net Leverage Ratio, well below covenant Net Debt Calculation | Net Debt Calculation | As of June 28, 2025 (in millions) | | :--- | :--- | | Consolidated Total Debt | $810.2 | | Plus: Unamortized debt issuance costs & Finance lease liability | $2.5 | | Less: Cash held in U.S. | ($265.1) | | Net debt | $547.6 | - The Consolidated Net Leverage Ratio for the twelve months ended June 28, 2025 was 1.1x[30] Disclosures This section provides standard disclosures on forward-looking statements and the rationale for using non-GAAP financial measures - The "Safe Harbor" statement cautions that forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially[9] - Non-GAAP financial measures are used to enhance understanding of core financial performance and facilitate historical comparisons, with reconciliations provided[12]