Littelfuse, Inc. (LFUS) | The Buildout — AI Infrastructure
The Verdict
Littelfuse makes circuit protection, sensing, and power control components that sit across the electrical power path, from utility and high-power protection down to server-rack passives and power semiconductors. In the AI infrastructure buildout, its products appear in the power distribution, backup, and conversion layers that keep data centers running.
| Market Cap | — |
| Revenue (TTM) | $2.6B |
| Revenue Growth | +15.4% |
| EBITDA Margin (TTM) | 10.3% |
| Net Debt | $81M |
| Earnings Beats | 6 of 7 |
| P/E (TTM) | — |
| EV/EBITDA (TTM) | — |
What We Like
- Organic sales stepped from 9% in Q1 FY2026 to 14% in Q2, with Q3 guided to 21% organic.
- Q2 bookings hit a company-wide record; management described book-to-bill as well north of 1.0.
- Basler full-year 2026 revenue guidance was raised to $135–140 million, with adjusted EPS of $0.25–0.30.
- Data center design wins more than doubled year over year in H1 2026; high-voltage content is disclosed at 2–4x low-voltage.
- Cash of $628 million and net leverage near 0.8 turns at Q2-end support continued M&A activity.
What We’re Watching
- Passenger vehicle organic sales declined 2% in Q2 FY2026; Transportation adjusted EBITDA margin was 18.6%, lower in the quarter.
- High-voltage data center revenue is not current; management frames production revenue as 2027 and beyond.
- Allen, Texas facility closure savings arrive in back half 2027, with amounts not disclosed.
- A Q3 FY2026 non-cash pension settlement charge is expected, with the amount not disclosed.
The disclosed evidence points to a strengthening thesis. Management has beaten its last two quarterly guides, raised Basler's full-year contribution, and guided another organic acceleration. The main open question is whether high-voltage data center design wins convert to production revenue on the 2027-plus timeline and whether Transportation stabilizes.
Earnings Beat
Littelfuse reported Q2 FY2026 revenue of $739 million, up 20% year over year, with gross margin of 41.4%. Adjusted EBITDA margin was 23.6%, up 220 basis points year over year, and adjusted diluted EPS rose 47% to $4.19; management called Q2 bookings a company-wide record.
| Metric | Q2 FY2026 | Q1 FY2026 | Q2 FY2025 | YoY |
|---|---|---|---|---|
| Revenue | $739M | $657M | $613M | +20.4% |
| Gross margin | 41.4% | 38.7% | 37.8% | +360bps |
| EBITDA | $134M | $137M | $127M | +5.8% |
| EPS | $3.49 | $2.96 | $2.30 | +51.8% |
| Adjusted EBITDA margin | 23.6% | 22.9% | 21.4% | +10.3% |
We entered the quarter with record bookings and our book-to-bill is well north of 1.0.— Greg Henderson, CEO, July 29, 2026
Management tone: Management's tone shifted from early signs of recovery in Q1 to explicit broad-based confidence by Q2. The CEO pointed to "broad-based momentum" and strengthening in markets that had been slow, while the CFO answered channel-inventory questions directly with POS and POA evidence and said "this is real end demand across our markets."
Management Guidance
For Q3 FY2026, management guided net sales to $780–800 million, representing 26% y/y growth at the midpoint, with 21% organic, a 6% Basler contribution, and a 1% FX headwind. Adjusted diluted EPS was guided to $4.85–5.05, reflecting 68% y/y growth at the midpoint, with an adjusted effective tax rate of 23%–24%. Basler's full-year 2026 contribution was raised to $135–140 million in revenue and $0.25–0.30 in adjusted EPS.
Trajectory
Reported revenue rose from $657 million in Q1 FY2026 to $739 million in Q2, and gross margin improved from 38.7% to 41.4%. Organic growth stepped from 9% to 14%, and management guided 21% organic for Q3; bookings and broadened demand are the stated drivers. On an adjusted basis, total EBITDA margin ended Q2 at 23.6%, up 220 basis points year over year.
The Model
The model projects fiscal-year-plus-one revenue of $2,785 million and EBITDA of $654 million, a 23.5% margin. For fiscal-year-plus-two, it projects revenue of $3,075 million and EBITDA of $753 million, a 24.5% margin. Near-term forecasts are anchored by Q3 guidance and record bookings; the second year leans on high-voltage data center content and continued Basler/grid contributions.
| Metric | FY2025 | Next FY (E) | Following FY (E) |
|---|---|---|---|
| Revenue | $2.4B | $2.8B | $3.1B |
| YoY Growth | — | +16.7% | +10.4% |
| EBITDA | $229M | $654M | $753M |
| EBITDA Margin | 9.6% | 23.5% | 24.5% |
Projections are the median of 5 independent model runs. The model’s revenue sits 1.8% above analyst consensus.
For Q3 FY2026, management guided net sales to $780–800 million, representing 26% y/y growth at the midpoint, with 21% organic, a 6% Basler contribution, and a 1% FX headwind. Adjusted diluted EPS was guided to $4.85–5.05, reflecting 68% y/y growth at the midpoint, with an adjusted effective tax rate of 23%–24%. Basler's full-year 2026 contribution was raised to $135–140 million in revenue and $0.25–0.30 in adjusted EPS.
What Could Go Right — and Wrong
- High-voltage data center design wins convert earlier or at the high end of the disclosed 2–4x content range.
- Book-to-bill stays well above 1.0 and record bookings continue through the second half.
- The more than $20 million light truck/commercial vehicle system win scales across additional vehicles.
- Basler grid/utility order momentum continues, with U.S. utility excitation shipments starting in 2027.
- Power semiconductor demand momentum continues while the Allen closure improves 2027 Electronics profitability.
- High-voltage data center ramp slips beyond 2027, delaying the 2–4x content step-up.
- Transportation volume stays soft; passenger vehicle organic sales remain down and segment margin stays under pressure.
- The Allen closure disrupts power semiconductor operations before savings arrive in back-half 2027.
- Commodity and precious-metal inflation plus FX headwinds outrun price-cost actions.
- Customer concentration in Arrow at 9.5% of FY2025 sales remains a downside risk.
Looking Ahead
The next 12 months test whether record bookings and design wins convert into revenue. Q3 FY2026 guidance implies 21% organic growth, and fusion power shipments begin in Q3 FY2026. Static transfer switch shipments are slated for 2026; U.S. utility high-power excitation shipments begin in 2027. The larger AI-linked step-up is high-voltage data center production revenue, framed as 2027 and beyond, while the Allen, Texas closure is expected to close in 2027 with savings in the back half.
- Q3 FY2026Q3 results vs guide — Tests $780–800M revenue, 21% organic, and $4.85–5.05 adjusted EPS.
- Q3 FY2026Fusion power shipments begin — First high-voltage IGBT/diode shipments for a prototype fusion reactor.
- 2026Static transfer switch shipments — Data center UPS bypass and power distribution unit win slated to ship.
- 2027U.S. utility excitation shipments — Basler high-power excitation system design win begins shipping.
- 2027Allen, Texas closure — Facility closes; savings expected in back half, with Electronics margin benefit.
- 2027 and beyondHigh-voltage data center ramp — Production revenue from high-voltage architecture; 2–4x content opportunity.
Financials
Annual Summary
| Metric | FY2024 | FY2025 | TTM | YoY |
|---|---|---|---|---|
| Revenue | $2.2B | $2.4B | $2.6B | +8.9% |
| Gross Margin | 35.9% | 38.0% | 39.3% | +203bps |
| EBITDA | $289M | $229M | $3.6B | -21.0% |
| EBITDA Margin | 13.2% | 9.6% | 10.3% | 362bps |
| Net Income | $100M | −$72M | −$8M | -171.5% |
| Free Cash Flow | $292M | $366M | $2.8B | — |
| Net Cash | — | — | — | — |
Key Ratios (Trailing)
- P/E TTM—
- EV/EBITDA TTM—
- EV/Revenue TTM—
- Price/FCF TTM—
- Gross Margin (TTM)39.3%
- EBITDA Margin (TTM)10.3%
- Net Margin (TTM)-0.3%
- ROIC2.8%
- FCF Conversion164.0%
- SBC / Revenue0.5%
The Company
Littelfuse is a diversified industrial technology manufacturer focused on safe and efficient electrical energy transfer. It reports through Electronics, Transportation, and Industrial segments, and its products range from fuses and passive electronics to protection semiconductors, sensors, and high-power protection. The December 2025 Basler Electric acquisition added high-power protection and excitation systems for grid/utility and data-center power infrastructure.
The company has approximately 17,000 employees across more than 20 countries and runs manufacturing facilities in China, France, Germany, India, Ireland, Italy, Japan, Lithuania, Mexico, the Philippines, the U.K., the U.S., and Vietnam. The 10-Q confirms it owns a 200mm wafer fab in Dortmund, Germany, acquired from Elmos in December 2024; the only disclosed footprint action in the supplied material is the planned closure of the Allen, Texas power semiconductor facility in 2027.
Business Segments
Competitive Landscape
The FY2025 10-K names a broad set of competitors across the three segments; Eaton appears in all three.
- Named in LFUS FY2025 10-K as a competitor in Electronics, Transportation, and Industrial.
- Named in LFUS FY2025 10-K as an Electronics competitor.
- Named in LFUS FY2025 10-K as an Electronics competitor.
- TE Connectivity Ltd.Named in LFUS FY2025 10-K as a Transportation competitor.
- MersenNamed in LFUS FY2025 10-K as an Industrial competitor.
Supply Chain
Littelfuse sits between specialty materials and wafer suppliers and downstream OEMs, infrastructure providers, and distributors. Its grid-to-chip footprint covers fuses, passives, power semiconductors, and high-power protection.
More on LFUS: Earnings recap