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- **Acquisition Boost**: $350M Basler Electric acquisition to expand grid, utility, and data center solutions, accretive to EPS in 2026.
- **Revenue Momentum**: Q3 revenue up 10% YoY, driven by 18% Electronics segment growth and strong data center design wins (+50% YoY).
- **Power Semi Reset**: New leadership and realignment to improve execution, with sequential improvement in Q3 despite YoY softness.
- **Cash Flow Strength**: $131M free cash flow in Q3, 145% conversion rate, supporting $815M cash balance.
- **Q4 Guidance**: 5% organic growth, EPS $2.40-$2.60, with $0.40 headwind from stock/variable comp.

**【CEO Summary Section】**
- **Revenue Growth**: Q3 revenue of $625 million, up 10% YoY (7% organically), driven by 18% growth in Electronics segment. Basler Electric acquisition valued at $350M, expected to close by end of Q4 2025.
- **Strategic Priorities**: 
  1. Enhancing focus on energy transfer solutions (e.g., multi-technology battery charging design win with 2026 production start).
  2. Sales realignment to market-facing teams, boosting data center design wins (+50% YoY).
  3. Operational excellence in power semiconductors, with Dr. Karim Hamed as new leader.
- **Acquisition Impact**: Basler adds high-voltage protection capabilities, targeting grid, utility, and data center markets. Expected to be accretive to EPS in 2026, with 13.5x EBITDA multiple.

**【CFO Financial Commentary】**
- **Q3 Financials**: Adjusted EPS of $2.95 (vs. guidance of $2.65-$2.85), 9% YoY growth. Free cash flow of $131M, 145% conversion rate. Cash balance of $815M, net leverage 0.9x.
- **Segment Performance**: 
  - **Electronics**: 18% revenue growth, 24% EBITDA margin. Passive products up 19%, semiconductors flat.
  - **Industrial**: 4% organic growth (energy storage, renewables), 20.7% EBITDA margin.
  - **Transportation**: Flat YoY, 16.8% EBITDA margin (impacted by sensor declines).
- **Q4 Outlook**: Revenue $570-590M (5% organic growth), EPS $2.40-$2.60. $0.40 headwind from stock/variable comp, 23-25% tax rate.

**【Q&A Highlights】**
- **Power Semiconductors**: Sequential improvement in Q3, but still soft YoY. Margins constrained by execution challenges, targeting better utilization of global footprint.
- **Data Center Growth**: Design wins up >50% YoY, revenue contribution accelerating. Focus on hyperscalers and AI factories.
- **Stock Comp Impact**: $0.40 EPS headwind in Q4 due to reset of variable compensation. Normalized in 2026.
- **Tariffs**: Neutral impact in Q4, with $3M Q3 headwind from timing adjustments.
- **Sales Realignment**: Early success in data center, with multi-technology wins and closer customer engagement.

Littelfuse, Inc. (LFUS) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

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Interest Income

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Income Tax Expense

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Net Income from Continuing Operations

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Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

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Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

LFUS

LFUS fundamentals

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