リテルヒューズ (LFUS) 2026年第3四半期決算説明会：過去最高の売上高とEPS、好調な第4四半期見通し

リテルヒューズ（NASDAQ: LFUS）は、広範な需要、営業レバレッジ効果、製品ミックスの改善に支えられ、2026年第3四半期の売上高と調整後希薄化EPSが過去最高を記録したと発表しました。なお、ドルトムントとの契約改定に伴う一時的な費用により、半導体部門の売上高は2,850万ドル減少しました。

主要なポイント

• 売上高は7億6,700万ドルと過去最高に達し、オーガニック成長率は22％となりました。バスラーの買収が約6％寄与し、為替の影響は中立的でした。
• 調整後希薄化EPSは前年同期比96％増の5.79ドルとなり、同社としての最高益を更新しました。調整後EBITDAは2億2,600万ドル、利益率は28.4％でした。
• 四半期フリーキャッシュフローは64％増の2億1,600万ドルとなりました。年初来累計のフリーキャッシュフローは66％増の4億900万ドルに達しました。
• データセンターが最大の成長要因となりました。経営陣はまた、送電網インフラ、産業自動化、HVAC（空調設備）、医療、航空宇宙・防衛、商用車での好調さも挙げました。
• 過去最高の受注高と1.0を大幅に上回るBBレシオ（受注出荷比率）を背景に、経営陣は第4四半期の売上高の見通しを7億5,000万〜7億7,000万ドル、調整後希薄化EPSを5.05〜5.25ドルと設定しています。
• 経営陣は、売上高45億ドル、調整後EBITDA 11億ドル、年間フリーキャッシュフロー6億ドル超とする2030年の目標を改めて表明しました。

主要財務データ

事業および業績ハイライト

エレクトロニクス製品部門

エレクトロニクス部門の売上高は、ドルトムントの契約改定費用2,850万ドルを含めて4億2,600万ドルとなりました。オーガニック売上高は27％増加し、受動部品が30％増、半導体製品が24％増となりました。

成長はデータセンター、多角化産業、輸送用途全般に広範囲に及びました。保護半導体は過去最高の売上高と収益性を達成し、パワー半導体の需要と粗利益率も改善しました。

一時的な契約改定費用を除くと、同セグメントの調整後EBITDA利益率は33.1％となり、910ベーシスポイント向上しました。経営陣はこの上昇について、数量効果、価格設定、好調な製品ミックス、業務執行力によるものとしています。

ドルトムントとの契約改定により、契約数量の納品が加速され、制限条項が撤廃されます。経営陣は、今回の改定によって資産の基礎的な収益性が向上し、リテルヒューズがより広いパワー半導体事業の体制を評価・見直す上での柔軟性が高まるとしています。

輸送機器製品部門

輸送機器部門の売上高は報告ベースおよびオーガニックベースで7％増加し、1億8,300万ドルとなりました。商用車のオーガニック売上高は、大型トラック、データセンター、農業機械の需要に牽引され、20％増加しました。

乗用車のオーガニック売上高は、世界的な自動車生産の減少と、利益率の低い従来型センサー製品ラインからの計画的撤退を反映して5％減少しました。商用車の数量効果と業務執行が乗用車の需要軟化を補い、調整後EBITDA利益率は280ベーシスポイント上昇して19.6％となりました。

産業用製品部門

産業用部門の売上高は65％増の1億5,800万ドルとなりました。データセンター、送電網インフラ、HVAC、産業自動化の需要に支えられ、オーガニック成長率は27％となりました。バスラーは同セグメントの成長に約38％寄与しました。

数量効果、業務効率化、価格設定、製品ミックスの改善を反映し、調整後EBITDA利益率は450ベーシスポイント上昇して25.2％となりました。

データセンターおよびその他の高成長市場

データセンターは引き続き同社の最大の成長寄与要因です。現在の出荷は低電圧システム向けが大半を占めていますが、より高電圧のプラットフォームも少量ながら寄与し始めています。

経営陣によると、高電圧システムは受注高、受注残高、デザインウィン（採用実績）においてシェアを高めています。第3四半期のデータセンター向けデザインウィンは前年同期の2倍に達しました。

リテルヒューズはまた、電力・ユーティリティインフラおよび航空宇宙・防衛分野にも注力しています。航空宇宙・防衛向け売上高は全社平均を上回るペースで拡大しており、防衛向け飛行制御システム用の高信頼性パワー半導体モジュールや、民間宇宙関連顧客向けの専門的スイッチングソリューションなどのデザインウィンを獲得しました。

バスラーの統合

経営陣は、バスラーの統合が送電網インフラおよびデータセンターにおけるリテルヒューズのポジションを強化していると説明しました。リテルヒューズのハイパースケーラーとの関係がバスラー製品の機会を生み出す一方、バスラーの電力会社との関係により、リテルヒューズの従来型保護ソリューションの市場アクセスが拡大しています。

同社は、バスラーの通期売上高見通しを従来の1億3,000万〜1億3,500万ドルから1億3,500万〜1億4,000万ドルに引き上げました。シナジー効果の前倒し達成を反映し、予想通期EPS押し上げ幅も0.10〜0.15ドルから約0.25〜0.30ドルへと拡大しました。

業績予想（ガイダンス）

経営陣は、この見通しが堅調な受注残高と顧客との強固な関係に支えられた、主要市場における好調な需要の継続を前提としていると述べました。

中長期的には、リテルヒューズはオーガニック成長率7％〜9％、調整後EBITDA利益率24％〜26％を引き続き目指します。また、業務効率化の取り組みにより2026年に約500万ドルの年間ランレート削減を見込んでおり、2030年までに5,000万ドルの最適化目標に向けて、2027年にはさらなる機会が見込まれています。

リスクと注視事項

• 商品、運賃、燃料全般においてインフレが引き続き懸念要因となっています。経営陣は、価格設定、サーチャージ、工場の生産性向上を通じて、2026年も価格とコストの収支中立を維持する方針です。
• 乗用車需要は、世界的な自動車生産の減少に加え、低利益率のセンサー製品からの計画的な撤退により、引き続き圧迫されています。
• 経営陣は通常の景気循環による影響を認めているものの、市場シェアの獲得、高付加価値製品、ポートフォリオの最適化により、サイクルを通じて業績を向上させることができると期待しています。
• サプライチェーンの他の部分での限定的な制約を背景に、顧客はより先の納期での発注を行っています。リテルヒューズ自体のリードタイムは概ね正常を維持しているとしています。
• 経営陣は、現時点では顧客による広範な在庫の囲い込みは見られず、販売代理店の実売（POS）動向も引き続き堅調であると述べました。

アナリスト質疑応答のハイライト

半導体の成長： 経営陣は加速の要因として、需要の改善と同社独自の取り組みの双方を挙げました。半導体のオーガニック成長率は第1四半期の8％から第2四半期に15％、第3四半期に24％へと拡大しました。保護製品は広範な需要と市場シェアの獲得から恩恵を受け、パワー半導体は数量増加、製造の最適化、ポートフォリオの合理化により伸びました。

エレクトロニクス部門の利益率の持続可能性： 経営陣は、受動部品および保護半導体における強力な営業レバレッジ効果と、パワー半導体の事業再編が主な利益率向上要因であると特定しました。同社は、より高電圧、高電力、高付加価値の用途を優先する一方、差別化の乏しい製品への注力を低減させています。

受注の見通し（可視性）： 受注高は再び過去最高を記録し、BBレシオも1.0を大幅に上回り続けました。経営陣によると、直接取引を行う顧客が売上高の約3分の2を占めており、エンドマーケットのプラットフォームや需要の見通し向上につながっています。

データセンターの電圧移行： 現在の売上成長は主に低電圧システムによるものです。しかし経営陣は、高電圧アーキテクチャが将来の受注高、受注残高、デザインウィンに一層寄与しており、中長期的な製品採用規模（コンテンツ）の拡大を後押ししていると述べました。

決算説明会トランスクリプト全文

決算説明会の完全なトランスクリプト

経営陣による説明

Operator

Good day, everyone, and welcome to the Littelfuse Third Quarter 2026 Earnings Conference Call. Today's call is being recorded. At this time, I will turn the call over to the Vice President of Investor Relations, David Kelley. Please proceed.

David Kelley

Good morning, and welcome to the Littelfuse Third Quarter 2026 Earnings Conference Call. With me today are Greg Henderson, President and CEO; and Abhi Khandelwal, Executive Vice President and CFO. This morning, we reported results for our third quarter, and a copy of our earnings release and slide presentation is available on the Investor Relations section of our website. A webcast of today's conference call will also be available on our website.

Please advance to Slide 2 for our disclaimers. Our discussions today will include forward-looking statements. These forward-looking statements may involve significant risks and uncertainties. Please review today's press release and our Forms 10-K and 10-Q for more detail about important risks that could cause actual results to differ materially from our expectations. We assume no obligation to update any of this forward-looking information.

Also, our remarks today refer to non-GAAP financial measures. A reconciliation of these non-GAAP financial measures to the most comparable GAAP measure is provided in our earnings release available in the Investor Relations section of our website. I will now turn the call over to Greg.

Gregory Henderson

Thank you, David, and thank you to everyone for joining us today. This morning, I'll provide details on our third quarter results, including performance highlights across our end markets. I'll then share progress against our strategic priorities before turning the call over to Abhi to review our segment financials and fourth quarter outlook.

Turning to the quarter. We delivered record net sales of $767 million. Our Q3 results were impacted by a onetime Dortmund contract amendment fee that reduced semiconductor sales by $28.5 million, which we will discuss in more detail shortly. Organic revenue growth accelerated to 22% year-over-year, driven by execution on our strategic priorities and demand strength across our markets. We also delivered significant margin expansion and 96% year-over-year earnings growth in the third quarter. This culminated in an adjusted earnings of $5.79, a record for the company. Finally, I wanted to highlight our free cash flow performance, which is up 66% year-to-date, reinforcing our strong execution.

Turning to performance across our end market exposures. Computing, Communications and Diversified Industrials, or CCDI, delivered another quarter of strong growth. Data center was again a leading contributor as we continue to capitalize on our unique grid-to-chip capability and customer-focused go-to-market model. Our data center backlog is expanding, and we see traction in our opportunity pipeline and design wins. Across diversified industrials, we delivered broad-based growth, led by demand for medical and aerospace and defense applications. We also continue to execute on strong orders from our broad market channel partners as end customer POS remains very healthy across geographies and applications.

Turning to Energy and Industrial Infrastructure, or EII, we saw broad-based demand momentum and Basler Electric continues to perform well. Within Industrial Infrastructure, growth was led by industrial automation, heavy construction and HVAC demand recovery. Within energy infrastructure, grid modernization and utility investment drove increased demand for our market-leading protection solutions. Battery energy storage served as another key growth engine where we are developing market-leading protection architectures to support rapid power scaling.

In Transportation and Logistics, or T&L, commercial vehicle demand strengthened in the quarter. This was driven by our proactive go-to-market engagement and a market recovery across heavy truck, agriculture and material handling equipment. In passenger vehicles, revenue increased driven by strong execution as our teams are delivering content and market share gains despite lower global vehicle production. Overall, our third quarter performance reinforces the strength of our end market diversity and technology positioning. Our growth also reflects our sharpened focus on high-growth opportunities and our go-to-market shift as we continue to outperform our end markets.

Heading into the fourth quarter, we are well positioned to maintain our operational momentum. Bookings were again a record in Q3, driven by growth across our businesses, and our book-to-bill remained well north of 1.0.

Now let me update you on the progress we're making across our strategic priorities. Starting with go-to-market, we continue to see strong customer engagement translate into a larger, higher-value new business funnel. By engaging customers earlier in the design cycle with more of our multi-technology solutions, we are increasing both the breadth and value of our opportunity pipeline. As evidence of our traction year-to-date, the average dollar value per new business opportunity has increased by more than 20%, while third quarter design wins again grew double digits year-over-year. Together, these results reinforce our confidence in our long-term organic growth targets.

Now let's turn to our high-growth opportunities or HGOs. While early, we also believe our sharpened focus on our 3 HGOs, data center, grid and utility infrastructure and aerospace and defense is beginning to deliver tangible returns. Today, I wanted to specifically highlight our expanding aerospace and defense or A&D opportunity. While this high-growth market represents a small portion of revenue today, sales growth outpaced company average in Q3. A&D is an ideal market for our technology, given its mission-critical requirements and rapid transition towards high-voltage DC architectures. During the quarter, we secured several key A&D design wins, including high reliability power semiconductor modules for defense flight control system and specialized switching solutions for a commercial space customer. Long term, we believe a focused A&D growth strategy will diversify our market exposure while providing strong and resilient profit contribution.

Finally, turning to operational excellence. At our May Investor Day, we highlighted semiconductor products and transportation, where we see opportunities to enhance our long-term growth while optimizing our portfolio and driving long-term profitability enhancements. While early, we're seeing evidence of our progress towards our 2030 goals. Starting with semiconductors. We delivered significant revenue growth and improved profitability in the quarter. This was led by our protection franchise, which delivered record revenue and profitability, while we see continued strong bookings momentum into year-end. Long term, protection remains well positioned as a market leader and key enabler of the long-term electrification megatrend across our markets.

In power semiconductors, organic growth accelerated alongside improved margins. While early, we are executing our more focused power semiconductor strategy around higher power and higher value opportunities. We are delivering for our customers as our orders have accelerated. We remain disciplined in balancing power semi growth opportunities with active portfolio rationalization and footprint optimization. During the third quarter, we executed an amendment to a commercial supply agreement for our Dortmund facility. In exchange for a onetime payment, this amendment accelerates the delivery of contracted volumes while eliminating restrictive covenants. This step materially improves the underlying economics of the Dortmund asset and grants us significant strategic flexibility and optionality as we evaluate our broader power semiconductor footprint. Over time, we remain committed to better positioning our power semiconductor franchise for sustainable growth, structural margin expansion and enhanced long-term returns.

Turning to Transportation. Our sharpened focus on our market-leading customers, efficiencies and scale is driving solid growth, while we're seeing continued margin expansion as we scale our operations and simplify our cost structure. We believe our enhancements position us well to drive structural margin expansion in a muted underlying market environment.

Taking a step back, we are encouraged by our third quarter results. Our teams are executing against attractive market demand, converting and expanding customer opportunity pipeline and driving profitability enhancements across the portfolio. I want to thank our teams for their dedication to serving our customers and delivering value. With that, I'll turn the call over to Abhi.

Abhishek Khandelwal

Thank you, Greg, and good morning, everyone. Today, I will walk you through our third quarter financial performance before reviewing our fourth quarter outlook. Please turn to Slide 6 for details on our third quarter performance. All comparisons are versus the prior year unless noted otherwise.

Reported net sales in the third quarter were a record $767 million, reflecting the $28.5 million onetime Dortmund customer amendment fee, which was not contemplated in our previous guidance. Organic growth contributed 22%. The Basler acquisition contributed approximately 6% and foreign exchange was neutral. Adjusted EBITDA was $226 million, while adjusted EBITDA margin finished at 28.4%, up 690 basis points. Adjusted diluted earnings per share were $5.79, up 96% versus the prior year and a record for the company. The improvement reflects strong volume leverage, favorable mix, pricing and operational execution.

As a result of our operational excellence initiative, we expect to realize approximately $5 million in 2026 run rate savings. We continue to deliver progress towards our 2030 optimization goal of $50 million and see further opportunities into 2027. Operating cash flow was $230 million and free cash flow was $216 million, up 64%. Year-to-date, free cash flow was $409 million, up 66% as we continue to drive strong conversion. We ended the quarter with $825 million of cash on hand and a consolidated net leverage ratio of 0.7x. We also returned $20 million to shareholders through our third quarter dividend.

Please turn to Slide 8 for our segment highlights, starting with the Electronics Products segment. Reported electronics sales were $426 million, reflecting the $28.5 million onetime Dortmund customer amendment fee. Organic sales increased 27%, with passive products up 30% and semiconductor products up 24%. Growth was broad-based across data center, diversified industrial and transportation applications. Within semiconductor products, we observed continued strong protection demand and improved power demand. Excluding the onetime amendment fee, adjusted EBITDA margin for the Electronics segment was 33.1%, up 910 basis points versus the prior year, reflecting volume leverage, favorable price, product mix and operational execution. While early, we are seeing the benefits of our more focused power semiconductor strategy. Looking ahead, we will continue to pair healthy end market demand with disciplined portfolio and footprint actions in our power semiconductor franchise with the goal of driving improved long-term profitability and returns.

Moving to our Transportation Products segment on Slide 9. Sales were $183 million, up 7%, both on a reported basis and organically. Commercial vehicle organic sales expanded 20%, fueled by strong demand in heavy truck, data center and agricultural equipment. Passenger vehicle organic sales declined 5%, reflecting lower global auto production and planned exits of legacy lower-margin sensor lines. Adjusted EBITDA margin was 19.6%, up 280 basis points. Strong commercial vehicle volume leverage and operational execution more than offset the impact of softer passenger vehicle demand.

Turning to Slide 10. Industrial segment sales were $158 million, up 65%. Organic growth was 27%, supported by strong data center and grid infrastructure, HVAC and industrial automation demand. The Basler acquisition contributed approximately 38% to growth. Adjusted EBITDA margin was 25.2%, up 450 basis points, reflecting favorable volume leverage, operational efficiencies, price and mix.

Turning to our outlook for the fourth quarter on Slide 11. We expect continued healthy demand across several of our key markets supported by strong backlog and customer engagement. Based on current market conditions, we expect fourth quarter net sales in the range of $750 million to $770 million. At the midpoint, this represents approximately 28% growth versus the prior year and better than typical seasonal sales. We expect fourth quarter adjusted diluted EPS to be in the range of $5.05 to $5.25 per share. Our guidance assumes an adjusted effective tax rate of approximately 24%.

We remain focused on executing the value creation playbook we outlined at Investor Day, driving 7% to 9% organic growth over time, expanding adjusted EBITDA margin towards 24% to 26%, generating strong free cash flow and deploying capital with discipline. Our third quarter performance reinforces our confidence in the strategic path toward our 2030 targets of $4.5 billion in revenue, $1.1 billion in adjusted EBITDA and more than $600 million of annual free cash flow. Thank you to the Littelfuse teams for their continued execution and commitment to our customers. With that, operator, please open the call for Q&A.

Operator

Your first question comes from the line of David Williams with Needham.

質疑応答

David Williams

So maybe first, just kind of thinking about the mechanics of the semi growth and you kind of walked through some of that. But can you help us understand how much of this is maybe cyclical versus demand and perhaps maybe the repositioning of what you've done within those power semis? I'm just trying to understand how much of this is really demand versus the operational changes that you've made within that business.

Gregory Henderson

Yes. Thank you, David. Yes. So look, semiconductors as part of our Electronics segment had strong performance in the quarter. You start with our protection semiconductor franchise. We had record revenue and profitability from this segment, and this is a very model profitability segment for us in general. And I would say 2 things.

One, we do have good market momentum. We actually had broad-based growth in our protection semiconductor business across our markets. And second, I would say we also are taking share. So we have some opportunities to take share. For example, in transportation, we outperformed the market in the passenger car, and a lot of that was driven by some of that anyway significant part of it was driven by our protection semiconductor business. We have other franchises like our passives as well that we're doing well in that business. So I would say that's the thing about protection semiconductor.

And then in power semiconductors, we had also good performance. We do have volume growth. So we do see volume growth and momentum. And that is driving, obviously, volume in this business with a high fixed cost is driving good profitability improvement. But we're also starting to see benefits from our manufacturing optimization and our portfolio optimization. So it's early, but we have more focus. Like we've said, we're focused much more now on high-voltage, high-power, high-value applications, and we're deemphasizing parts of the portfolio where we have less value and differentiation. And it's early in the progress, but we are seeing some of that momentum. So power semiconductor revenue and profitability growth did deliver also materially to the Electronics segment profitability growth in the quarter.

Abhishek Khandelwal

Yes. And David, just to add to a couple of things. So if you think about it at the highest level and kind of think about the year and the way the year played out, for Q1, we saw an organic growth of 9% in Q2 was 14%. And in Q3, we just posted 22% organic, okay? So that's point one.

Point two, I'd say is if I just think about our semiconductor business or semiconductor products, right, if I think about the organic progression throughout the year, in Q1, we posted 8%, Q2 was 15% and then Q3 is 24%. So you're seeing sequential improvement based on kind of what Greg was saying, which is the demand has improved and has improved sequentially throughout the year.

Gregory Henderson

And one other thing because you asked a little bit about the cycle, just to add that. We see broad-based demand across our markets. We talked about diversified industrials, industrials. We're seeing broad-based demand across our markets. And also, we're very focused on making sure that channel inventory is normal. We have strong POS growth in our channel as well. So we feel that there is still just broad-based strength across the markets.

David Williams

Okay. Fantastic. And then maybe just secondly, on the kind of the pricing and the lead times. Any color there on what you're seeing in terms of being able to raise pricing? And how are your lead times as we kind of seem to be getting into a more constrained environment here?

Gregory Henderson

Yes, sure. Thank you. So look, we continue to be in an inflationary environment. I think we all know that where commodities, freight, fuel costs, et cetera. So we continue to be in an inflationary environment. And we're working to manage that as best as we can. It is an environment where we are passing price increases along to our customers as we need to based on that so that we can maintain our business conditions. We also have a lot of productivity activities to improve our cost structure as well. So I would say that that's the environment that we continue to be in from that perspective.

Abhishek Khandelwal

And David, I'll just say this, we said this in '25, we made a commitment. We delivered on our commitment, same thing in '26, which is our intent is to be price/cost neutral, okay? At the end of the day, I mean, to Greg's point, we're in an inflationary environment, whether you think about pricing, whether you do it through surcharges, driving productivity in the factory, but our intent for 2026 is to be price/cost neutral in an effort to manage inflation.

Gregory Henderson

And then to the second part of your question on lead times, I would say our lead times are pretty normal across our business. But one thing we are seeing is customers booking further out. So it's -- they're now booking outside of lead time. And so we have more bookings into next year, for example, at this time than we would normally. So we see customers booking further out. But as of now, lead times are materially normal, I would say, in our business.

Operator

Your next question comes from the line of Christopher Glynn with Oppenheimer.

Christopher Glynn

I wanted to ask -- build off the comment on sort of kind of customer dictated lead times there booking a little further out. Just in terms of them being more proactive about securing supply, is there any view they need to -- on their part, you think they need to get in line before others?

Gregory Henderson

Yes. Thank you, Chris. Look, I think from our perspective, our lead times are broadly normal. So we don't have a challenge, right, that they're needing to get in line, and we have this backlog. But I will say we're just seeing a customer behavior where they're tending to book farther out. I think the whole ecosystem is planning a little more now because there's been a lot of growth, and they continue to see a lot of growth.

I think we do all hear about in the supply chain, some constraints here and there. We're not largely having constraints in our supply chain, but I think there are some constraints in the supply chain that's making people book out. So from our perspective, it's not for our business, we don't have people needing to get in line, but they are tending to book further out. And I think that's just maybe a little bit of a different customer behavior. The other thing I'll say is that where bookings are good across our markets. So we are seeing broad strength across our markets and all of our markets have kind of a strong kind of bookings. That's the other thing I would add.

Christopher Glynn

Yes, that makes sense. And I realize you have very crisp book-to-bill visibility at the distributor level. But maybe it's a little more [ opaque ] as you kind of think about the end customers' inventories and what they're pulling through distribution. So I think that's a little more of an art as you try to evaluate that dynamic. Just curious how you think about that, just given the fact that we're just stacking quarter after quarter of really robust and expanding book-to-bill.

Gregory Henderson

So one thing I'll just -- Chris, on the question, I think to be clear, in our new go-to-market model, one of the value propositions we have of our new go-to-market model is that we call on 2/3 of our revenue customer direct. So we talked about this, about 1,000 customers is about 2/3 of our revenue, and we call on those customers direct. Now some of those customers choose to buy through distribution, but we call on them direct, which means we're talking to the end customer about their end demand, and so we understand their platforms and what's going on. So this puts us in a better position that actually 2/3 of our revenue, we talk directly to the customer about the platforms we're in.

And then there's the 1/3 that's kind of the broad market through the channel where, yes, it's more -- you have less visibility to the individual customers. So talking to that first top 2/3, I would say we don't see broadly a customer hoarding inventory or building inventory either. There is a planning further out but we don't see kind of an inventory building phase broadly in the ecosystem. In the bottom 1/3, we talk to our channel partners, and they also see breadth to the market. I mean one important thing we look in the bottom 1/3 is number of new customers, breadth of customers, number of design wins, and that also seems to be very healthy. So that's what I would say. So we don't see that as much. And one of the changes in our go-to-market model is we're closer to more of our customers directly to understand what's going on. We think that's going to help us as we all navigate through this up cycle.

Christopher Glynn

Great. Just going a little deeper and move to [indiscernible]. How should we think about the fixed cost savings with that? Was there any impact to adjusted EPS from this action in the [indiscernible] and kind of adjust of this structural move has -- is it one and done?

Abhishek Khandelwal

No. Chris, this is not. So if you kind of think about the Investor Day and what we laid out, we had said, hey, we're going to walk away from 1 to 2 points of revenue as we look over the next 5 years in terms of product rationalization and then that should generate about $50 million of incremental EBITDA over the next 5 years. So, so far, what we have identified in 2026 is a $5 million savings in connection to that $50 million. We expect more to come through in 2027. And as we get more clarity in 2027, we'll be transparent and lay it out for you.

Operator

Your next question comes from the line of Luke Junk with Baird.

Luke Junk

I apologize if any of these are repeat juggling a lot of calls today. Greg, maybe to start with, just it'd be great if you can help us understand some of the factors animating your data center growth right now in terms of maybe seeing some initial high-voltage uptake or maybe more interestingly, if you could talk through some of the impacts that you're seeing relative to all the work that you've done to align with customers from a co-engineering standpoint. Are you seeing some benefits in the low-voltage portfolio today of all the work that you're doing to position into those high-voltage sockets into the future?

Gregory Henderson

Yes. Thanks, Luke, and thank you for the question. Yes. So first, starting -- I think just starting with data center. We are continuing to see large -- significant growth in data center. Data center was the leading growth driver for our performance in the quarter. And so that continues to be good. The vast majority of the revenue we ship today is still in the low-voltage shipments. We're starting to see, I would call it, small volume of the higher voltage platforms, but that's really yet to ramp meaningfully from our perspective. So I would say the growth we've had so far is all in the low-voltage systems.

Now if you go and look at our bookings and our backlog, we have strong backlog going into the next quarter. And like I talked about previously, we have backlog into next year. And bookings and backlog and design wins have more contribution from the higher voltage systems. So we continue to have momentum actually in both. I would say we have an increasing number of design wins around high-voltage systems. We talked about the content expansion we have. So we expect that to continue to accelerate, but we continue to have design wins in both, and we continue to have revenue in both.

And so for us, it's really -- I know there's a lot of questions in the market about how fast that's going to really go and what percent will actually evolve. For us, we consider that we're going to continue to have strong growth either way. And for example, design wins, again, in the third quarter were 2x last year. And so we continue to see good momentum across that. I'll also just emphasize as well that our growth -- data center is a strong growth driver, but our growth in this electrification megatrend is broad. So we are seeing breadth across the other markets, which also gives us a strong view into next year.

Luke Junk

And then for my follow-up, maybe, Greg or Abhi, you could both comment on this. Just thinking out loud here, comparing and contrasting now with electronic adjusted operating margins reaching the high 20s in the third quarter today, just thinking through some of the underlying dynamics versus what prior peak margin dynamics were like in this business. Just maybe some of the key drivers behind incremental margins in electronics and importantly, how sustainable you think those drivers are going forward?

Abhishek Khandelwal

Absolutely. Thanks, Luke. Thanks for the question. So first of all, if you kind of think about the performance in the quarter tied to our Electronics segment, right, we saw a 27% organic growth in electronics. Then if you kind of peel the onion a little bit, passive was up 30%. And as you would imagine, passive products when they have organic growth of 30%, you will see your flow-through and operating leverage in that business is super strong. Greg mentioned it, protection had the highest quarter in terms of revenue and profitability that also played a big role in the electronics margin expansion of 910 basis points, right?

And then lastly, if I think about power semi, right, I just highlighted the $5 million of the $50 million that played out in the year so far between transportation and power semi. So as we start to streamline that, drive more operational execution there, start to look at more product line rationalization, footprint optimization, you're going to see margin expansion in electronics over the longer haul. Okay? So that's how I would think about it. But at the highest level, if you think about Q3, it's volume leverage, it's operational execution. And when protection and passives grow, the operating leverage in that business is really, really strong.

Luke Junk

Yes. Maybe, Greg, I'd be curious to get you to chime in here as well because I think maybe there's a little bit of concern relative to where margins have been in this business in the past, high 20s to 30 margins, electronics were kind of a little bit of a cyclical high previously. It feels like this has more undergrading towards it. Can you maybe just talk about qualitatively your margin expectations in this business, especially as you bring on that incremental high-voltage content and think through some of these mix factors, especially?

Gregory Henderson

Yes. Look, I think what's important, I think, is that we're increasingly focused on strategically capturing more value at our customers and more share at our customers. And also our new go-to-market model is also very focused about making sure that we're optimizing across all the markets that we're in. Obviously, there's a lot of momentum right now in data center, but there's a lot of other good markets, too. And we mentioned, for example, in the -- earlier that the content, the dollar content per opportunity in our design wins is up 20% versus a year before. And our design wins are also broadly across all of our markets up double digits.

So I do think that we're making progress on our relative market and share position, which is going to improve our relative performance as we go through the cycle. So there's always going to be cycles in the business, right? But our view is that our goal is to be much more market focused and to outperform the markets and also make sure we're investing in the markets that are growing. So that's why having focused on the high-growth markets. That's why we focus on markets that also have a lot of resilience like aerospace and defense, for example, that have a little bit of different resilience than the normal cycle.

So I think we feel strong about our 2030 model we put out there. We feel like we're making a lot of progress on the 2030 model, both from a top line and the bottom line performance. And to me, the most significant thing is we will be able to get more share at a top line and also have higher value solutions and higher voltage. So there's a lot of -- I would call them tailwinds in those directions. But in addition, like Abhi mentioned, we have a lot of focus on the bottom line as well. So I think our goal is to have improved performance as we go through whatever cycles the business is.

Operator

Your next question comes from the line of David Williams with Needham.

David Williams

Just wanted to ask quickly on Basler, and that seems to be performing very well. But just curious if you're seeing the benefits of the synergies that you thought you might have in that business? Or is this mainly just the recovery and demand dynamics within that business? And maybe what are the opportunities for growth there, maybe to outpace what your original expectations were when you made the acquisition?

Gregory Henderson

Yes. Thank you. So I'll kind of start with kind of the strategic point of view and where we are and then Abhi can fill in some of the kind of details. But I would say we're seeing significant benefit from Basler in our market position, especially in the grid infrastructure and grid and data center, and those were 2 of our strong growth markets -- those are 2 our strong growth organic markets, but also Basler significantly contributed to growth.

So our new go-to-market model is actually benefiting us, and there's actually in 2 ways, right? So one, I would say that we are seeing more opportunity for Basler products in data center due to the relationships that Littelfuse has at the hyperscalers, leveraging some of Basler's technology like their protective relay technology for next-generation architectures. So we're talking to data center customers now about, call it, N+2 architectures leveraging the Basler technology. Our go-to-market is benefiting us there.

On the flip side, kind of the other way around, Basler had a good go-to-market in utility and grid space where Littelfuse did not have any direct sales coverage. And we are actually seeing good traction now for some Littelfuse product -- some legacy Littelfuse product opportunities like arc fault protection solutions through to utility customers or some of our grid scale protection solutions into the grid where we didn't have the customer relationship. So it's early, but we're seeing traction already from, I would call it, a customer opportunity pipeline perspective that hasn't followed through to revenue yet, but will. And Abhi can maybe give a little bit more on the details of the synergies.

Abhishek Khandelwal

Yes. And David, as you kind of then think about what that all means in terms of what Greg just described. So when we came out with the Basler guide the first time around, we said, hey, look, our top line is going to be in the $130 million to $135 million range. Clearly, we're ahead of our synergy realization. And so our latest view for the year is $135 million to $140 million in top line.

Then if you kind of think about the bottom line, when we announced Basler, we said, hey, we expect $0.10 to $0.15 of accretion. And our current view for the year is about $0.25 to $0.30. So just kind of building off of what Greg is saying, our synergy realization is ahead of schedule, and we feel really good about the asset and the acquisition that we did, both in the top line and the bottom line.

Operator

There are no further questions at this time. I will now turn the call back to CEO, Greg Henderson, for closing remarks.

Gregory Henderson

Okay. Thank you, and thank you all for joining us today. I'd just like to, in closing, thank our global teams for a strong third quarter. We have good market momentum, but also strong execution across the business, and we feel confident on the progress we're making to our 2030 targets. So thank you very much.

Operator

This concludes today's call. Thank you for attending. You may now disconnect.