Littelfuse (LFUS) Q2 EPS Jumps 45%

Key Points

• GAAP revenue beat expectations, reaching $613.4 million in Q2 FY2025, up 9.8% from the prior year.

• Non-GAAP EPS was $2.85, topping analyst estimates and Non-GAAP EPS rose 45% year over year.

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Littelfuse (NASDAQ:LFUS), a global leader in circuit protection and power management solutions, delivered its second quarter 2025 earnings on July 30, 2025. The company reported GAAP revenue of $613.4 million and Non-GAAP earnings per share (EPS) of $2.85. Both metrics exceeded Wall Street expectations, with revenue surpassing estimates by $36.35 million and EPS beating by $0.52. Year over year, Littelfuse saw GAAP revenue grow by 9.8% and Non-GAAP EPS rose by 45%. GAAP operating margin expanded to 15.1%, up from 11.7% in the prior-year quarter. Overall, the quarter showed sharp margin improvement, and continued execution on strategic priorities such as acquisitions and innovation.

Source: Analyst estimates provided by FactSet. Management expectations based on management's guidance, as provided in Q1 2025 earnings report.

Overview of Littelfuse’s Business and Strategic Focus

Littelfuse makes products that protect, control, and sense electrical systems. Its components help ensure safety in industrial, transportation, and electronic devices. The company's portfolio spans fuses, semiconductor products, sensors, and relays that are used in cars, factories, consumer electronics, data centers, and renewable energy projects.

Recently, Littelfuse has focused on a strategy built around targeted acquisitions, expanding its technology capabilities, and growing across varied end-markets. Its ongoing priorities center on innovation in circuit protection and power semiconductors, extending reach in electrification and data center markets, and maintaining strength through a balanced approach to industrial, transportation, and electronics. Key factors for success include robust research and development (with $107.8 million invested in FY2024), and deep customer relationships in global markets.

Quarterly Developments: Segment Performance and Strategic Achievements

All three key segments—Electronics, Transportation, and Industrial—contributed to sales growth. In Electronics, sales grew 9.8%, with organic growth at 4% in the Electronics segment, and the remainder from acquisitions and currency effects. The Electronics segment, which includes circuit protection fuses and power semiconductor products, maintained a steady operating margin of 14.9% on a GAAP basis, with strong performance in passive electronics offsetting some softness in legacy power semiconductors.

The Transportation segment saw revenue rise 6.2%. Operating income for Transportation climbed 84.3%, with margin expanding to 15.6% from 9.0% year over year.

The Industrial segment delivered the strongest growth, with sales up 17.2% year over year and organic growth matching that figure. Products in this segment serve renewable energy, heating and cooling (HVAC), and data center infrastructure markets. Operating margin nearly doubled to 19.2% compared to 11.4% in Q2 FY2024. Demand in renewable energy and data center applications, plus favorable pricing, were significant contributors to this jump.

During the quarter, Littelfuse integrated facilities like Dortmund Fab to strengthen power semiconductor production. Acquisitions accounted for a notable share of Electronics segment growth. The period also included a non-operating foreign exchange (FX) loss of $10.4 million. Integration of new businesses remains an area to watch, as future cost savings and productivity benefits will rely on effective alignment of processes and resources across these additions.

Product Lines: Explanations for Non-Experts

Littelfuse's Electronics products include circuit protection fuses—components that break a circuit if current gets too high—and power semiconductor devices, which control electricity in industrial and commercial equipment. Its sensors detect heat, current, and other conditions to keep systems safe. In Transportation, Littelfuse supplies automotive fuses and relays, along with switching devices for electric vehicles and commercial trucks. In the Industrial segment, it provides protection components and relays for factory equipment, HVAC systems, and renewable power infrastructure. Many of its products enable safe energy transfer and reduce risk of fire, failure, or downtime.

Looking Ahead: Management Forecast and Investor Considerations

Management expects net sales between $610 million and $630 million for Q3 FY2025, essentially matching the result from the latest period. Adjusted (non-GAAP) EPS guidance is set in a range of $2.65 to $2.85, but also reflects the company's caution about economic, trade policy, and customer order trends in the second half of the year. An adjusted effective tax rate in the range of 23% to 25% is projected. At this time, leadership did not provide further annual guidance.

Investors should keep an eye on how Littelfuse handles currency swings, especially since a $10.4 million FX loss was reported in the quarter. Management also cited “pockets of softness” in power semiconductors, even as most other product categories showed improvement. Future performance may depend on continued success with acquisitions, operational execution, and adaptation to rising demand for electrification, renewable energy, and AI-driven data centers. The company increased its quarterly dividend to $0.75 per share, up from $0.70, effective with the Q3 FY2025 dividend.

Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.

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