Littelfuse, Inc.

Second-quarter net sales were $739 million, up 20% year over year and 14% organically; Basler added about 6 points to growth and FX was a 1% tailwind. Adjusted EBITDA margin was 23.6%, up 220 basis points, and adjusted diluted EPS was $4.19, up 47%. Operating cash flow was $146 million and free cash flow was $127 million, up 75% year over year. The company ended with $628 million of cash, net leverage of about 0.8 turns, and returned $90 million to shareholders via dividends. For Q3, Littelfuse guided to net sales of $780 million to $800 million and adjusted EPS of $4.85 to $5.05; guidance implies 26% sales growth and 68% EPS growth at the midpoint, with 21% organic growth, 6% from Basler, and a 1% FX headwind. The adjusted tax rate is expected to be 23% to 24%.

Greg Henderson framed the quarter as evidence that Littelfuse is executing on the growth strategy laid out at Investor Day, with stronger customer engagement, more design wins, and broader momentum across markets. He stressed that growth is increasingly broad-based rather than dependent on a single end market, and said the company is well positioned for the back half of 2026 and beyond. He also highlighted strategic progress in data center, transportation, and power semiconductor portfolio rationalization, while sounding confident that design wins and bookings are building future growth.

Abhi Khandelwal emphasized that financial performance was strong across the board, citing $739 million in sales, 23.6% adjusted EBITDA margin, $4.19 adjusted EPS, $146 million of operating cash flow, and $127 million of free cash flow. He noted that the company ended the quarter with $628 million of cash and about 0.8 turns of net leverage, and returned $90 million to shareholders through dividends. He also pointed to a 7% increase in the quarterly dividend to $0.80 per share and said Basler is now expected to contribute $135 million to $140 million of revenue in 2026 and $0.25 to $0.30 of earnings, above prior expectations.

Analysts focused on the breadth of growth, data center mix, margin flow-through, bookings, share gains, and whether inventory demand was replenishment or true end demand. Management said bookings were a company-wide record and well north of 1.0 on book-to-bill, while design wins were up double digits across all markets and were seen as the best indicator of future growth. On data center, Greg said current revenue is still mostly tied to low-voltage architectures, while higher-voltage content is expected in 2027 and beyond; Abhi reiterated confidence in a 25% to 30% CAGR over five years for data center markets. On Allen, CFO said savings should show up in the back half of 2027 and that the closure is part of a broader make-vs-buy and footprint simplification effort. Management also said channel inventory looked normal and that most demand appeared to be real end-demand rather than replenishment.