Littelfuse, Inc. Q1 FY2026 earnings call

• Delivered strong first quarter results with net sales of $657 million, up 19% year-over-year. • Capitalized on broad-based demand strength across key markets. • Benefiting from leadership position in safe and efficient electrical energy transfer. • Sharpened growth focus with expansion in grid and utility infrastructure market, integration of Bassler acquisition showing transformative impact. • Partnering closely with customers to solve technology challenges, making progress in transportation market with share gains and expanding pipeline. • Enhancing operational excellence, driving margin expansion across portfolio, with transportation margins up 200 basis points, and semiconductor products business seeing profitability enhancement opportunities.

Net sales in the first quarter were $657 million, up 19% year-over-year, 9% organically. Adjusted EBITDA margin finished at 22.9%, up 280 basis points. Electronics product segment: Sales increased 18% year over year, organic growth of 15%, passive products up 22% organically, semiconductor products grew 8% organically. Transportation product segment: Sales increased 5% year-over-year, organic growth 1%, passenger vehicle organic sales plus 4%, adjusted EBITDA margin increased 200 basis points to 19.1%. Industrial segment: Sales increased 45% year-over-year, organic growth 5%, adjusted EBITDA margin increased 340 basis points to 21.9%.

• Expect second quarter net sales in the range of 690 million to 710 million, representing 14% growth versus the prior year, 8% organic growth and 6% contribution from Bassler acquisition. • Expect second quarter adjusted diluted EPS to be in the range of $3.65 to $3.85 with an adjusted effective tax rate of 21% to 22%.

Q: Drilled into electronics growth, specifically diversified industrial demand.

A: Strong performance across electronic segment, good in data center with pipeline up, industrial market broadening with all segments except HVAC doing well, book-to-bill well above one.

Q: Book-to-bill, sequential expansion of orders.

A: Sequential improvement from Q4 to Q1, within Q1 saw sequential improvement, bookings up over 20% year-over-year.

Q: Commercial vehicle double digit design wins.

A: Across transportation business, good momentum with content and share gains and strong pipeline.

Q: Data center, protection portfolio and industrial data center-related opportunities.

A: All segments participate in data center, strong growth in rack solutions and infrastructure, design wins from Bassler in data center infrastructure.

Q: Margin dynamics, offsets for commodity costs.

A: Flow-through in Q1 about 38%, guide for Q2 contemplates 31%, teams working to offset commodity pressures through supply chain savings, productivity, pricing.

Q: Margin pass-through pace.

A: Long-term 30% to 35% flow-through expected, quarter-to-quarter noise possible.

Q: Data center TAM and electronics margin.

A: Investor day to provide more color on data center TAM, electronics margin expected to improve over mid to long term with product rationalization and footprint optimization.

Q: Acquisition pipeline.

A: Growth strategy organic and inorganic, active pipeline, disciplined, will talk more about details in investor day, integration of Bassler going well.

Q: Residential HVAC market.

A: Market has cycles, some seasonality and noise in short term, medium to long term expect good performance.