Littelfuse Q3 Sales Rise 23% on Broad-Based Demand

Littelfuse Inc. (NASDAQ: LFUS) reported record third-quarter 2026 sales and adjusted earnings as broad-based demand lifted organic revenue by 22% and strengthened margins across all three of its business segments. The company also projected continued year-over-year growth in the fourth quarter, supported by a book-to-bill ratio above 1.0 and record third-quarter bookings.

Revenue rose 23% year over year to $767 million from $625 million. The result included a $28.5 million one-time customer contract amendment fee recorded as a reduction of semiconductor net sales. Excluding that item, adjusted net sales were $795.2 million. The Basler acquisition contributed six percentage points to reported growth, while foreign exchange had no impact.

GAAP diluted earnings per share increased 62% to $4.49. Adjusted diluted EPS nearly doubled to $5.79 from $2.95, reflecting higher volumes and operating leverage. Adjusted EBITDA climbed to $225.9 million from $134.3 million, while the adjusted EBITDA margin expanded 690 basis points to 28.4%. The margin was calculated using adjusted net sales that exclude the Dortmund contract amendment fee.

Littelfuse generated $230.1 million of operating cash flow during the quarter. Free cash flow rose 64% to $215.7 million, while year-to-date free cash flow increased 66% to $409.2 million. Year-to-date free cash flow conversion was 146%.

Electronics Leads Organic Growth

Electronics revenue reached $426 million, with organic sales up 27% from the prior year. Passive products and sensors posted 30% organic growth, while semiconductor sales increased 24% organically. The company cited higher volumes across passive products and protection and power semiconductors.

Reported Electronics sales included the $28.5 million contract amendment fee, which reduced semiconductor revenue. Littelfuse said the amendment is intended to provide greater strategic flexibility, simplify certain legacy contractual arrangements and increase its ability to optimize the Dortmund Semiconductor asset over time.

The segment’s adjusted EBITDA margin rose to 33.1% from 24.0%, supported by volume leverage, operational execution and favorable pricing and product mix. Its GAAP operating margin increased to 24.0% from 17.8%.

Transportation revenue advanced 7% on both a reported and organic basis to $183 million. Commercial vehicle sales grew 20% organically, reflecting improved demand in truck, data center, material-handling, construction and agricultural equipment applications. Passenger vehicle sales declined 5% organically as content gains were more than offset by lower global passenger vehicle production and weaker sensor sales.

Transportation’s adjusted EBITDA margin expanded 280 basis points to 19.6%, which the company attributed to commercial vehicle volume leverage and operational execution.

Industrial revenue jumped 65% to $158 million, including a 38% contribution from the Basler acquisition. Organic sales increased 27%, driven by demand from data centers, battery energy storage systems, industrial automation and construction. Basler’s contribution was supported by grid and utility and data center infrastructure demand.

The Industrial segment’s adjusted EBITDA margin improved to 25.2% from 20.7%, benefiting from volume leverage, operating efficiencies, pricing and product mix.

Fourth-Quarter Outlook

Littelfuse expects fourth-quarter sales of $750 million to $770 million. At the midpoint, that would represent 28% year-over-year growth, comprising 21% organic growth, a six-percentage-point contribution from Basler and a one-percentage-point foreign-exchange benefit.

Adjusted diluted EPS is expected to range from $5.05 to $5.25, up 91% year over year at the midpoint. The company assumes an adjusted effective tax rate of approximately 24%.

For the full year, management expects broad-based strength in industrial infrastructure, led by industrial automation and construction, while noting typical HVAC seasonality in the fourth quarter. It also anticipates continued strength in grid and utility infrastructure, renewable energy, battery energy storage systems and data centers.

The company expects consumer electronics demand to remain soft. In passenger vehicles, Littelfuse anticipates content expansion and market-share gains amid weak automotive production in China. Commercial vehicle markets are expected to recover, led by truck and agricultural equipment demand.

The outlook remains subject to risks including changes in general economic conditions and product demand, competitive pricing, supply and capacity constraints, tariffs, foreign-exchange and commodity-price movements, labor shortages and acquisition integration. Littelfuse also cautioned that the anticipated benefits and synergies from acquisitions and strategic investments may not be realized on schedule or at all.