Littelfuse(US:LFUS)2025-10-29 11:02Financial Performance - Net sales for Q3 2025 were $625 million, representing a 10% increase year-over-year, with organic growth contributing 6.5%[4] - GAAP diluted earnings per share for Q3 2025 were $2.77, up 19%, while adjusted diluted earnings per share were $2.95, an increase of 9%[4] - Net sales for Q3 2025 reached $624.64 million, a 10.1% increase from $567.39 million in Q3 2024[29] - Gross profit for Q3 2025 was $240.99 million, compared to $215.89 million in Q3 2024, reflecting an increase of 11.6%[29] - Operating income for Q3 2025 increased by 10.9% to $97.42 million from $87.82 million in Q3 2024[29] - Net income for the nine months ended September 27, 2025, was $170.44 million, up from $151.98 million in the same period of 2024, representing a growth of 12.1%[27] - Year-to-date net income for 2025 was $170.4 million, up from $152.0 million in the same period of 2024[32] - The company reported a net income as a percentage of net sales of 11.1% for Q3-25, up from 10.2% in Q3-24[32] Segment Performance - The Electronics Segment saw a net sales increase of 18%, driven by a 12% organic sales growth from improved demand for passive products[9] - The Transportation Segment's net sales were flat, with a 2% organic sales decline attributed to lower commercial vehicle sales[9] - The Industrial Segment reported a 4% increase in net sales, driven by demand in energy storage and renewables, despite lower HVAC demand[15] - The Electronics segment saw a 17.5% increase in net sales for Q3 2025, totaling $357.46 million compared to $304.19 million in Q3 2024[29] - Transportation segment net sales declined by 2% in Q3-25, with organic net sales decline of 3%[35] Cash Flow and Expenses - The company reported year-to-date cash flow from operations of $295 million and free cash flow of $246 million, achieving a cash conversion rate of 145%[2] - Free cash flow for Q3 2025 was $131.2 million, up from $65.0 million in Q3 2024, and YTD free cash flow reached $246.4 million compared to $156.9 million in YTD 2024[36] - Total operating expenses for the nine months ended September 27, 2025, were $419.95 million, compared to $402.43 million in the same period of 2024, reflecting a 4.4% increase[27] Dividends and Shareholder Returns - The company declared a cash dividend of $0.75 per share, payable on December 4, 2025[11] Future Outlook - For Q4 2025, the company anticipates net sales in the range of $570 - $590 million, with adjusted diluted EPS expected between $2.40 and $2.60[6] Tax and Debt - Income taxes for Q3 2025 were $25.2 million, with an effective tax rate of 26.6%, compared to $19.7 million and 25.3% in Q3 2024[36] - Consolidated total debt as of September 27, 2025, was $805.8 million, with net debt at $463.2 million[36] Other Financial Metrics - The adjusted EBITDA margin for the Electronics Segment increased to 24.0%, while the Transportation Segment's margin decreased to 16.8% due to lower volume[9][15] - Adjusted EBITDA for Q3-25 was $134.3 million, up from $123.3 million in Q3-24, indicating an 8.1% increase[32] - The adjusted operating margin for Q3-25 was 16.1%, compared to 15.9% in Q3-24[32] - Consolidated EBITDA for the twelve months ended September 27, 2025, was $510.8 million, with a consolidated net leverage ratio of 0.9x[36] Acquisitions - The acquisition of Basler Electric is expected to enhance Littelfuse's high power technology capabilities and broaden its industrial customer exposure[3] - The company experienced a 4% impact from acquisitions on net sales growth, while foreign exchange (FX) impact was negligible[36] Impairments and Adjustments - The company recorded a non-cash impairment charge of $92.7 million during the twelve months ended September 27, 2025[36] - Non-GAAP adjustments to net income for Q3-25 totaled $4.5 million, compared to $9.8 million in Q3-24[32]