LITTELFUSE INC /DE

Littelfuse is a diversified industrial technology manufacturing company that operates across more than 20 countries with approximately 17,000 global associates, leveraging its position as a scaled supplier of passive electronics and protection components complemented by high-value-add power semiconductor capabilities. The Company's end markets are transitioning toward higher power and energy density, and it has prioritized high-growth strategic market opportunities including data centers and data center infrastructure, aerospace and defense, battery energy storage, and grid and utility infrastructure.

The Company competes globally on the basis of innovative products, breadth of product line, quality, design, performance, technical capabilities, global footprint, and customer service. In the Electronics segment, competitors include Eaton Corporation, Bourns Inc., TDK, ON Semiconductor Corporation, Infineon Technologies, STMicroelectronics NV, Semtech Corporation, and Vishay Intertechnology Inc. In the Transportation segment, competitors include Eaton Corporation, Pacific Engineering, MTA, Amphenol Corporation, Sensata Technologies Holding NV, and TE Connectivity Ltd. In the Industrial segment, competitors include Eaton Corporation, GE Multilin, and Mersen. Sales to Arrow Electronics, Inc. were 9.5% of consolidated net sales in 2025 ¹.

The Company generates revenue through the design, manufacture, and marketing of electronic components, modules, subassemblies, and integrated solutions across three reportable segments: Electronics, Transportation, and Industrial. Products are sold worldwide through distributors, a direct sales force, and manufacturers' representatives. For fiscal 2025, approximately 65% of net sales were to customers outside the United States, including approximately 24% to China ².

The Electronics segment consists of one of the broadest product offerings in the industry, including fuses and fuse accessories, positive temperature coefficient resettable fuses, electromechanical switches and interconnect solutions, polymer electrostatic discharge suppressors, varistors, reed switch based magnetic sensing, gas discharge tubes, and semiconductor products such as discrete transient voltage suppressor diodes, TVS diode arrays, protection and switching thyristors, silicon and silicon carbide MOSFETs and diodes, and insulated gate bipolar transistors technologies. The segment covers end markets including data center computing and communication, data center and communications infrastructure, industrial controls, building controls, aerospace and defense, appliances, consumer electronics, healthcare, industrial equipment, energy storage, diversified industrials, grid and utility infrastructure, renewable energy, passenger vehicles, and commercial vehicles. Net sales for the Electronics segment were $1,345.5 million in 2025 ³.

The Transportation segment consists of circuit protection, power control and sensing technologies for global OEMs, Tier-one suppliers, and aftermarket distributors in passenger vehicles, heavy-duty truck and bus, off-road and recreational vehicles, material handling, agricultural equipment, construction equipment and other commercial vehicle end markets. Passenger vehicle products include blade fuses, battery cable protectors, resettable fuses, high-current fuses, high-voltage fuses, and sensor products. Commercial vehicle products include fuses, switches, circuit breakers, relays, and power distribution modules and units. Net sales for the Transportation segment were $676.4 million in 2025 ⁴. The Industrial segment consists of industrial circuit protection, protective and monitoring relays, and industrial controls and sensors for applications such as data center computing and communication, data center and communications infrastructure, industrial controls, building controls, grid and utility infrastructure, construction, renewable energy, HVAC, processing and extracting, and energy storage. Net sales for the Industrial segment were $364.4 million in 2025 ⁵.

On December 11, 2025, the Company completed the acquisition of Basler Electric Company for total purchase consideration of $350.3 million, net of cash acquired, subject to a working capital adjustment, funded with cash on hand ⁶. Basler had annualized sales of approximately $130 million ⁷. On December 31, 2024, the Company completed the acquisition of a 200mm wafer fab in Dortmund, Germany from Elmos Semiconductor SE for a total purchase price of approximately €94 million, of which a €37.2 million down payment (approximately $40.5 million) was paid in the third quarter of 2023 and €56.7 million (approximately $58.8 million) was paid at closing ⁸. On February 3, 2023, the Company completed the acquisition of Western Automation for approximately $162 million in cash ⁹. During fiscal 2025, the Company repurchased 120,689 shares of its common stock totaling $27.4 million pursuant to the 2024 program ¹⁰. There is $270.6 million of authorized amount not yet purchased under the 2024 program as of December 27, 2025 ¹¹. The Company paid dividends of $72.0 million in fiscal 2025 ¹².

Net sales were $2,386.3 million in 2025, an increase of $195.5 million, or 8.9%, compared to 2024 ¹³. The Company recognized a net loss of $71.7 million, or $2.89 per diluted share, in 2025 compared to net income of $100.2 million, or $4.00 per diluted share in 2024 ¹⁴. The net loss was primarily impacted by a $301.2 million non-cash goodwill impairment charge for the Electronics-Semiconductor reporting unit within the Electronics segment during the fourth quarter of 2025 ¹⁵. Net cash provided by operating activities was $433.8 million in fiscal 2025, an increase of $66.1 million compared to $367.6 million in fiscal 2024 ¹⁶.

The Company has identified three primary strategic priorities guiding day-to-day operations and execution. The first priority is to enhance focus to capitalize on future growth opportunities by sharpening focus on secular growth trends, particularly the industry transition toward higher voltage and higher energy density applications, and continuing to utilize disciplined, strategic acquisitions to enhance long-term technology positioning and broaden market reach in critical infrastructure and power distribution. The second priority is to provide more complete solutions for a broader set of customers by transitioning from a siloed, product-centric approach to a collaborative, market-facing sales structure to increase engagement with market leaders and increase product content across diverse and high growth end markets.

The third strategic priority is to drive further operational excellence to amplify long-term performance by applying best-in-class operating practices across the global organization, including the establishment of a Global Operations team focused on safety, quality, delivery, cost, and inventory to drive performance improvements across manufacturing sites, and further optimizing the operating structure and footprint to support long-term growth priorities and maintain resilient profitability through market cycles. The Company plans to unveil its long-term strategy at a May 14, 2026 Investor Day.The Company maintains a robust global manufacturing and operational footprint strategically located in-region with both customers and supply chain partners. The Company's manufacturing facilities are in China, France, Germany, India, Ireland, Italy, Japan, Lithuania, Mexico, Philippines, the U.K., the U.S., and Vietnam. The Company performs the majority of its own fabrication and maintains in-house capabilities for metal stamping, surface mount assembly, plating, thermoplastic molding, high-precision manufacturing, miniaturization and haptics, and fabricates semiconductor wafers for certain applications. The Company also utilizes external wafer foundries and subcontracted test and assembly facilities for a portion of its semiconductor business.

During fiscal years 2025, 2024, and 2023, the Company expended $106.9 million, $107.8 million, and $102.4 million, respectively, on research and development ¹⁷. Capital expenditures were $67.6 million in fiscal 2025 ¹⁸. The Company's Board of Directors authorized a three-year program to repurchase up to $300.0 million in the aggregate of shares of the Company's stock for the period May 1, 2024 to April 30, 2027 ¹⁹. The Company expects to continue paying cash dividends on a quarterly basis for the foreseeable future.

The Company faces headwinds from the imposition of extensive tariffs by the U.S. government on goods imported from several countries, including China, Mexico and Canada, as well as certain broad, product-specific tariffs on foreign goods and products, which may increase the cost of materials in the supply chain, result in reciprocal levies, and have an adverse impact on cost of goods sold. Sales to customers outside of the U.S., and to China in particular, comprise a significant portion of net sales, and reciprocal tariffs may impact the Company's business in China. Additionally, the Company uses various metals in manufacturing including copper, zinc, tin, gold, silver, and ruthenium, and in the fourth quarter of 2025 and through the date of filing, precious metal commodity pricing has significantly increased, which could reduce profit margins.

The Company is exposed to political, economic, and other risks from operating a multinational business, including currency fluctuations, import and export duties, tariffs, changing regulatory requirements, political and economic instability, and potential disruptions from geopolitical tensions such as the Russia-Ukraine and Israel-Hamas wars. The Company's operations and transactions with customers in China could be adversely affected by changes to market conditions, the regulatory environment, increased trade barriers, tariffs, or restrictions. Economic conditions in China have been, and may continue to be, volatile and uncertain.

The Company's industry is subject to intense competitive pressures, and some competitors have substantially greater sales, financial and manufacturing resources and may have greater access to capital. The Company may not always be able to compete on price, particularly compared to manufacturers with lower cost structures. The Company recorded a $301.2 million non-cash goodwill impairment charge for the Electronics-Semiconductor reporting unit in 2025 ²⁰, and a decline in expected profitability of reporting units could result in further impairment of goodwill and other long-lived assets. The Company is exposed to significant changes in certain metal prices, and in the fourth quarter of 2025 and through the date of filing, precious metal commodity pricing has significantly increased, which could reduce profit margins. The Company's revenues may vary significantly from period to period due to factors including changes in customer buying decisions, demand, distributor inventory stocking, product mix, and general economic and industry conditions. The Company has been notified by one of its customers of a product recall potentially due to certain fuses provided by the Company, and product defects could lead to significant expenses including recall, repair, and replacement costs.

In 2025, the Company underwent a CEO and CFO transition, with new management focused on leveraging technology leadership and a diverse product portfolio to drive long-term growth, enhanced profitability and best-in-class shareholder returns. Management has identified three primary strategic priorities: enhance focus to capitalize on future growth opportunities, provide more complete solutions for a broader set of customers, and drive further operational excellence to amplify long-term performance. The Company plans to unveil its long-term strategy at a May 14, 2026 Investor Day. Management emphasizes that the Company's financial performance is characterized by resilient profitability and strong cash flow generation, reflecting the value proposition of mission-critical products and diverse end-market exposure, and that with a strong balance sheet providing significant capital allocation flexibility, the Company is well-positioned to pursue both organic and inorganic growth opportunities.