리틀퓨즈(LFUS) 2026년 3분기 실적 발표회: 사상 최대 매출과 EPS, 견조한 4분기 전망

리텔퓨즈(Littelfuse, NASDAQ: LFUS)는 광범위한 수요, 영업 레버리지, 개선된 제품 믹스에 힘입어 역대 최고 3분기 매출과 조정 희석 주당순이익(EPS)을 기록했다고 발표했다. 도르트문트 계약 변경에 따른 일회성 수수료 2,850만 달러가 반도체 매출을 감소시켰다.

핵심 요약

• 순매출은 7억 6,700만 달러로 역대 최고치를 기록했으며, 자체 성장률은 22%를 나타냈다. 바슬러(Basler) 인수가 약 6% 기여한 반면, 환율 영향은 중립적이었다.
• 조정 희석 EPS는 전년 동기 대비 96% 증가한 5.79달러로 사상 최고치를 기록했다. 조정 EBITDA는 2억 2,600만 달러, 이익률은 28.4%를 기록했다.
• 분기 잉여현금흐름은 64% 증가한 2억 1,600만 달러를 기록했다. 연초 대비 누적 잉여현금흐름은 66% 증가한 4억 900만 달러로 집계됐다.
• 데이터센터가 성장을 이끈 주요 동력이었다. 경영진은 전력망 인프라, 공장 자동화, HVAC, 의료, 항공우주 및 방산, 상용차 부문의 견조한 실적도 함께 언급했다.
• 역대 최고 수준의 수주액과 1.0을 크게 상회하는 수주비율(book-to-bill ratio)에 힘입어 경영진은 4분기 매출 7억 5,000만~7억 7,000만 달러, 조정 희석 EPS 5.05~5.25달러 전망치를 제시했다.
• 경영진은 매출 45억 달러, 조정 EBITDA 11억 달러, 연간 잉여현금흐름 6억 달러 이상이라는 2030년 목표를 재확인했다.

주요 재무 데이터

사업 및 경영 성과

전자 제품 부문

도르트문트 계약 변경 수수료 2,850만 달러를 포함한 전자 부문 매출은 4억 2,600만 달러였다. 자체 매출은 27% 증가했으며, 수동부품은 30%, 반도체 제품은 24% 증가했다.

성장은 데이터센터, 다양한 산업용 및 운송 애플리케이션 전반에 걸쳐 광범위하게 나타났다. 보호용 반도체는 사상 최대 매출과 수익성을 기록했으며, 전력 반도체 수요와 이익률도 개선되었다.

일회성 변경 수수료를 제외한 해당 부문의 조정 EBITDA 이익률은 33.1%로 910bp 상승했다. 경영진은 물량 레버리지, 가격 정책, 우호적인 제품 믹스 및 운영 실행력을 이러한 이익률 확대의 원인으로 꼽았다.

도르트문트 계약 변경으로 약정 물량의 인도가 조기화되었으며 제한적 약정 조항이 제거되었다. 경영진은 이번 변경으로 자산의 기초 경제성이 개선되었으며, 리텔퓨즈가 광범위한 전력 반도체 사업 기반을 평가하는 과정에서 더 큰 유연성을 확보하게 되었다고 밝혔다.

운송 제품 부문

운송 부문 매출은 보고 기준 및 자체 성장 기준 모두 7% 증가한 1억 8,300만 달러를 기록했다. 상용차 자체 매출은 대형 트럭, 데이터센터, 농기계 수요에 힘입어 20% 증가했다.

승용차 자체 매출은 글로벌 자동차 생산 감소와 기존 저마진 센서 라인에서의 계획된 철수를 반영하여 5% 감소했다. 조정 EBITDA 이익률은 상용차 물량 레버리지와 운영 실행력이 승용차 수요 둔화를 상쇄하면서 280bp 상승한 19.6%를 기록했다.

산업용 제품 부문

산업용 매출은 65% 증가한 1억 5,800만 달러를 기록했다. 데이터센터 및 전력망 인프라, HVAC, 공장 자동화 수요에 힘입어 자체 성장률은 27%를 기록했다. 바슬러는 부문 성장에 약 38% 기여했다.

조정 EBITDA 이익률은 물량 레버리지, 운영 효율성, 가격 결정력 및 제품 믹스 개선에 힘입어 450bp 상승한 25.2%를 기록했다.

데이터센터 및 기타 고성장 시장

데이터센터는 회사 성장에 가장 크게 기여한 부문으로 남아 있다. 현재 출하량은 여전히 저전압 시스템 중심이지만, 고전압 플랫폼도 소량 기여하기 시작했다.

경영진은 고전압 시스템이 수주, 수주잔고, 수주 확정(design wins)에서 차지하는 비중이 더 커지고 있다고 밝혔다. 3분기 데이터센터 수주 확정 수량은 전년 동기 대비 2배에 달했다.

리텔퓨즈는 전력망 및 유틸리티 인프라, 항공우주 및 방산 부문에도 집중하고 있다. 항공우주 및 방산 매출은 회사 평균보다 빠르게 성장했으며, 방산용 비행 제어 시스템을 위한 고신뢰성 전력 반도체 모듈 및 상업용 우주 고객사를 위한 특수 스위칭 솔루션 등이 주요 수주 확정 건에 포함됐다.

바슬러 통합

경영진은 바슬러가 전력망 인프라 및 데이터센터 분야에서 리텔퓨즈의 입지를 강화하고 있다고 설명했다. 리텔퓨즈의 하이퍼스케일러 고객 관계는 바슬러 제품의 기회를 창출하고 있으며, 바슬러의 유틸리티 관계는 리텔퓨즈의 기존 보호 솔루션 판매 기회를 확대하고 있다.

회사는 연간 바슬러 매출 전망치를 기존 1억 3,000만~1억 3,500만 달러에서 1억 3,500만~1억 4,000만 달러로 상향 조정했다. 시너지 효과가 예상보다 조기에 실현됨에 따라 예상 연간 EPS 증대 효과도 0.10~0.15달러에서 약 0.25~0.30달러로 상향되었다.

경영진 실적 전망(가이던스)

경영진은 견조한 수주잔고와 고객 참여에 힘입어 주요 시장 전반에서 건전한 수요가 지속될 것이라는 가정이 이번 전망에 반영되어 있다고 밝혔다.

장기적으로 리텔퓨즈는 7%~9%의 자체 성장률과 24%~26%의 조정 EBITDA 이익률을 목표로 하고 있다. 또한 운영 우수성 이니셔티브를 통해 2026년에 약 500만 달러의 런레이트(run-rate) 비용 절감을 기대하고 있으며, 2030년까지 5,000만 달러 최적화 목표를 달성하는 과정에서 2027년에도 추가적인 절감 기회가 있을 것으로 예상하고 있다.

리스크 및 관전 포인트

• 원자재, 화물, 연료 전반에 걸쳐 인플레이션이 여전히 변수로 남아 있다. 경영진은 가격 인상, 할증료, 공장 생산성 향상을 통해 2026년에 가격-비용 중립을 유지할 계획이다.
• 승용차 수요는 저마진 센서 제품의 계획된 철수와 더불어 글로벌 자동차 생산 감소로 인해 계속 압박을 받고 있다.
• 경영진은 일반적인 경기 순환성이 있음을 인정하면서도, 시장 점유율 확대, 고부가가치 제품, 포트폴리오 최적화를 통해 사이클 전반에 걸쳐 실적이 개선될 것으로 기대하고 있다.
• 고객사들은 생태계 다른 분야의 국지적 공급망 제약 등으로 인해 주문을 더 먼 미래 시점으로 제출하고 있다. 리텔퓨즈는 자사의 리드 타임이 전반적으로 정상 수준을 유지하고 있다고 밝혔다.
• 경영진은 현재 고객사들의 광범위한 재고 축적 현상은 관찰되지 않고 있으며, 유통업체의 최종 판매(point-of-sale) 추세도 건전하게 유지되고 있다고 밝혔다.

애널리스트 Q&A 하이라이트

반도체 성장: 경영진은 수요 개선과 자체적인 대응 조치 모두가 성장 가속화의 원인이라고 설명했다. 반도체 자체 성장률은 1분기 8%에서 2분기 15%, 3분기 24%로 지속적으로 확대되었다. 보호 제품은 광범위한 수요와 점유율 확대의 수혜를 입었으며, 전력 반도체는 물량 성장, 제조 최적화 및 포트폴리오 합리화에 힘입어 이익을 얻었다.

전자 부문 이익률 지속 가능성: 경영진은 수동부품 및 보호용 반도체의 강력한 영업 레버리지와 전력 반도체 구조조정을 이익률 상승의 주요 요인으로 꼽았다. 회사는 차별화가 적은 제품의 비중을 줄이는 한편 고전압, 고전력, 고부가가치 애플리케이션에 집중하고 있다.

주문 가시성: 수주액이 다시 한번 역대 최고치를 기록했으며, 수주비율(book-to-bill ratio)은 1.0을 크게 상회했다. 경영진은 직접 거래 관계가 매출의 약 3분의 2를 차지하는 고객을 커버하고 있어 최종 시장 플랫폼 및 수요에 대한 가시성이 향상되었다고 밝혔다.

데이터센터 전압 전환: 현재 매출 성장은 주로 저전압 시스템에서 발생하고 있다. 그러나 경영진은 고전압 아키텍처가 향후 수주, 수주잔고, 수주 확정에 더 크게 기여하고 있으며, 시간이 지남에 따라 제품 탑재량 확대 가능성을 뒷받침하고 있다고 말했다.

실적 발표 컨퍼런스 콜 전문

전체 실적 발표 컨퍼런스 콜 녹취록

경영진 발표

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.

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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.