LFUS

Littelfuse is an industrial technology company with roots going back to 1927, originally making fuses — the simplest but most essential circuit protection device. Over decades, the company has expanded into a broad portfolio of protection, power, and sensing components that sit inside virtually every electronic system that handles significant power.

The company operates three segments. Electronics (~55% of revenue) is the largest and most AI-relevant, manufacturing fuses, TVS diodes, varistors, GDTs (gas discharge tubes), MOSFETs, IGBTs, SiC modules, and thyristors. These components protect and control power in data center servers, power supplies, AI accelerator boards, and networking equipment. Transportation (~25%) serves automotive with fuses, relays, sensors, and power semiconductors for EVs and traditional vehicles. Industrial (~20%) includes industrial fuses, protection relays, contactors, and power distribution components for grid infrastructure, renewable energy, HVAC, and data center power distribution.

The data center story is accelerating — and now quantified. On the Q4 call, CFO Khandelwal disclosed that data center is "double digits as a percent of revenue inclusive of Basler," the first time management has sized this exposure. Data center grew "strong double digits" in Q4 and was a "material contributor" to growth. Design wins more than doubled in 2025, driven by a dedicated market-facing sales team covering hyperscalers, chip providers (architecting next-gen power delivery), and the ODM ecosystem in Asia/Taiwan. Littelfuse is active in Open Compute Project and involved in UL standard-setting for high-voltage DC architectures. The content growth driver is the migration beyond 48V to 400-800V DC power distribution — CEO Henderson stated content opportunity is "at least twice" current levels and "in some cases significantly more than that." A notable Q4 design win: a static transfer switch for a leading DC infrastructure provider — a 2MW UPS bypass and PDU application enabling 20% higher power density, with shipments starting in 2026. The opportunity spans both white space (in-rack) and gray space (facility power infrastructure).

The Basler Electric acquisition, closed December 2025 for ~$350M, adds approximately $125-135M in 2026 revenue with high-teens EBITDA margins and $0.10-0.15 adjusted EPS accretion. Basler makes voltage regulators, excitation systems, power system stabilizers, and protection relays for power generation and grid utility infrastructure. The strategic value goes beyond revenue: Basler brings established go-to-market and customer relationships in the core utility grid space where Littelfuse previously lacked channel presence. Basler was selected in Q4 as a design partner for a next-generation control system for a leading player in the high-power industrial data center backup generator market. CEO Henderson described the integration as a revenue synergy play — leveraging Basler's utility channel to pull through the broader Littelfuse protection portfolio. With ~$3 trillion expected in grid modernization investment through 2030, management sees double-digit growth and strong profitability in this market.

FY2025 delivered $2.39B in revenue (up 9% YoY), with adjusted EBITDA margins expanding 260 basis points to 20.9%. Free cash flow grew 26%. Q4 revenue of $594M grew 12% YoY (7% organic + 3% Dortmund/Basler acquisitions + 2% FX), with Electronics up 21% led by strong passive products and protection semiconductor growth. Q4 bookings were up 20%+ YoY with book-to-bill above 1. Q1 2026 guidance of $625-645M implies 7% organic growth at midpoint plus 5% from Basler, with EPS of $2.70-$2.90 (28% growth at midpoint). The $301M non-cash goodwill impairment specifically relates to the IXYS and Dortmund acquisitions — weaker sales and profitability than original expectations. Management is now rationalizing the power semiconductor portfolio: exiting lower-value commoditized product families, sharpening focus on high-power applications (data center, battery storage, grid/utility) where Littelfuse has differentiated technology and share, and optimizing the manufacturing footprint. The target is to bring power semi profitability up to the "model level" of the protection semiconductor franchise. A strategic roadmap will be presented at the May Investor Day.