Littelfuse Inc (LFUS) Q1 2025 Earnings Call Highlights: Strong Revenue Growth and Strategic ...

In This Article:

  • Revenue: $554 million, up 4% year-over-year, and up 3% organically.

  • GAAP Operating Margin: 12.7%.

  • Adjusted Operating Margin: 14.2%.

  • Adjusted EBITDA Margin: 20.1%.

  • GAAP Diluted Earnings: $1.75 per share.

  • Adjusted Diluted Earnings: $2.19 per share, up 24% year-over-year.

  • Operating Cash Flow: $66 million.

  • Free Cash Flow: $43 million, with a free cash conversion of 98%.

  • Cash on Hand: $619 million.

  • Net Debt to EBITDA Leverage: 1.3x.

  • Shareholder Returns: $45 million returned, including $17 million in dividends and $27 million in share repurchases.

  • Electronics Products Segment Sales: Up 6% year-over-year, 3% organically.

  • Transportation Products Segment Sales: Declined 4% organically.

  • Industrial Products Segment Sales: Grew 16% organically.

  • Second Quarter Sales Guidance: $565 million to $595 million.

  • Second Quarter EPS Guidance: $2.10 to $2.40.

Release Date: April 30, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Littelfuse Inc (NASDAQ:LFUS) reported first-quarter revenue of $554 million, up 4% year-over-year, exceeding the high end of their guidance range.

  • The company achieved a strong book-to-bill ratio across all segments, indicating robust demand and a strong backlog entering the second quarter.

  • The Industrial Products segment saw a 16% organic sales growth, driven by strong renewables, data center, and HVAC growth.

  • Littelfuse Inc (NASDAQ:LFUS) demonstrated strong cash generation with $66 million in operating cash flow and $43 million in free cash flow, maintaining a solid balance sheet with $619 million in cash.

  • The company is focused on strategic acquisitions and leveraging its strong global teams to capitalize on future growth opportunities, particularly in high-voltage and high-current applications.

Negative Points

  • The Transportation Products segment experienced a 4% decline in organic sales, with particular softness in Europe and North America.

  • Power semiconductor products saw a 5% decline, indicating continued softness in this area despite improvements in protection products.

  • The company faces potential demand risks in the second half of the year due to trade and market uncertainties.

  • Tariff impacts remain a concern, although Littelfuse Inc (NASDAQ:LFUS) is actively working on mitigation strategies with customers.

  • The macroeconomic environment presents challenges, with some submarkets like automotive and personal electronics showing signs of anxiety.

Q & A Highlights

Q: Can you elaborate on the tariff impacts and how they are reflected in the second-quarter guidance? A: Greg Henderson, CEO, explained that Littelfuse has been focusing on building a flexible and asset-light operating model, moving manufacturing and supply chains closer to customers. Meenal Sethna, CFO, added that they don't expect tariffs to have a material impact on earnings in the second quarter due to mitigation actions and pricing strategies.