Littelfuse (NASDAQ:LFUS) reported fourth-quarter 2025 results that management said reflected strong momentum in several high-growth end markets, alongside improved profitability and cash generation. On the company’s earnings call, executives also highlighted the December closing of the Basler Electric acquisition and previewed an Investor Day scheduled for May 14 in New York.
Fourth-quarter results and cash generation
For the fourth quarter, Littelfuse reported revenue of $594 million, up 12% year over year and up 7% organically, according to CFO Abhi Khandelwal. The Dortmund and Basler acquisitions contributed 3% to sales growth, while foreign exchange provided a 2% tailwind.
The company also emphasized cash generation and balance sheet metrics:
- Operating cash flow: $139 million
- Free cash flow: $120 million
- Cash on hand: $563 million at quarter end
- Net debt to EBITDA leverage: 1.2x
- Dividends paid: $90 million returned to shareholders in the quarter
Goodwill impairment tied to IXYS and Dortmund
Khandelwal also discussed a non-cash goodwill impairment charge of $301 million recorded in the fourth quarter related to the IXYS and Dortmund acquisitions. He said the impairment resulted from the company’s annual impairment testing and “reflects weaker sales and profitability than original expectations amid persistent soft market conditions.”
Basler acquisition and emphasis on grid, utility, and data center
Henderson opened the call by highlighting two developments: the closing of the Basler Electric acquisition in December and the upcoming Investor Day. He said Basler strengthens Littelfuse’s high-power capabilities and expands its position in growth markets including grid and utility infrastructure and data centers.
Khandelwal provided financial expectations for Basler in 2026, saying the company anticipates the acquisition will contribute:
- $130 million to $135 million in revenue
- $0.10 to $0.15 of adjusted earnings per share
- High-teens adjusted EBITDA margin
Henderson framed grid modernization as a major opportunity, citing an expectation of approximately $3 trillion to be invested in grid modernization through 2030. He said Basler enhances Littelfuse’s high-power protection capabilities and helps the company sell “more complete solutions.” As an example of traction, he noted Basler was selected as a design partner for a next-generation control system solution for a “leading player” in the high-power industrial and data center backup generator market.
Market momentum: data center growth and industrial recovery signals
Management said momentum was broadening beyond a handful of end markets. Henderson stated the company delivered double-digit revenue growth in data center, grid and utility infrastructure, and renewables markets in the fourth quarter. He added that automotive grew mid-single digits despite declining global vehicle production, and that Littelfuse is seeing “emerging signs of broad-based industrial recovery into 2026.”
In Q&A, Henderson and Khandelwal expanded on the data center opportunity. Henderson said the company was early to apply its revamped sales model to the data center market, and that 2025 data center design wins more than doubled versus the prior year. He said higher-voltage architectures in data centers increase Littelfuse’s content opportunity to “at least twice” current levels, though he said the company could not provide a precise quantitative outlook because architectures are evolving.
Henderson also described participation across the data center ecosystem, including hyperscalers, chip providers, and ODMs in Asia, and said the company is active in groups such as Open Compute and in standards and certification efforts as higher-voltage systems expand.
Khandelwal said data center grew strong double digits in the quarter and is expected to be a leading growth contributor in 2026. He added that data center exposure is “double digits as a % of revenue,” including Basler.
On industrial conditions, Henderson said bookings momentum and activity in diversified industrial and industrial automation segments suggest a broader-based improvement, while residential HVAC remains soft. Khandelwal noted bookings were up 20% in the fourth quarter and said similar strength was seen in the third quarter.
Portfolio focus in power semiconductors and commodity cost management
Henderson said operational excellence remains a strategic priority and provided an update on the company’s semiconductor business, noting that power semiconductor products account for roughly half of the semiconductor business. He said the company is sharpening focus on “high value and high growth” applications such as data center, battery energy storage, and grid and utility infrastructure, while rationalizing exposure to lower-value product families.
As part of this effort, Henderson said Littelfuse is reviewing and optimizing its power semiconductor manufacturing footprint to improve resilience and profitability. In response to an analyst question on potential earnings implications, Khandelwal said the company would incorporate changes into guidance as progress is made during the year, with more detail expected by Investor Day.
On commodity inflation, Khandelwal said Littelfuse is seeing pressure primarily in copper and ruthenium, with additional impacts from volatility in silver and gold. He said teams are pursuing alternative sourcing and pricing actions, including surcharges, aiming to be “price cost neutral” over the full year, while noting timing differences can occur between quarters. He added that the current commodity-price environment was factored into first-quarter guidance.
Segment performance and first-quarter 2026 outlook
By segment in the fourth quarter:
- Electronics: Sales up 21%, with adjusted EBITDA margin of 23.7% (up 370 basis points).
- Transportation: Sales up 1% but down 1% organically; adjusted EBITDA margin 16%, with passenger vehicle growth offset by softer commercial vehicle volumes.
- Industrial: Sales up 4% but down 1% organically; stronger energy storage, utility and grid infrastructure, renewables, and data center demand offset by lower HVAC demand; adjusted EBITDA margin 16.2%.
For full-year 2025, Khandelwal said revenue grew 9% and adjusted EBITDA margin expanded 260 basis points to 20.9%. He also said free cash flow expanded 26% and reiterated a target of more than 100% free cash flow conversion in 2026.
Looking ahead, the company guided for first-quarter 2026 sales of $625 million to $645 million, assuming 7% organic growth at the midpoint and five points of growth from Basler. Littelfuse guided first-quarter EPS of $2.70 to $2.90, including a $0.03 contribution from Basler and “25% flow through” at the midpoint. Executives pointed to strong backlog and bookings momentum entering 2026, with Henderson reiterating an expectation for double-digit first-quarter revenue growth and significant earnings expansion.
About Littelfuse (NASDAQ:LFUS)
Littelfuse, Inc is a global manufacturer of circuit protection, power control, and sensing technologies. Founded in 1927 and headquartered in Chicago, Illinois, the company develops and produces a broad range of products designed to safeguard electrical and electronic systems across a variety of end markets. Littelfuse’s offerings include fuses, semiconductors, relays, and sensors, all engineered to protect against overcurrent, overvoltage, and thermal events in demanding applications.
The company’s product portfolio is organized into key segments such as Automotive, Industrial & Electronics, and Power & Sensor.
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