Littelfuse (LFUS) Q3 2024 earnings summary

Executive summary

• Q3 2024 net sales were $567–$567.4 million, down 6.5–7% year-over-year, but earnings and cash flow exceeded expectations, with GAAP diluted EPS at $2.32 and adjusted EPS at $2.71.

• Demonstrated resilience and sequential margin expansion across diversified business segments, supported by strong operational execution and a well-positioned balance sheet.

• Achieved robust free cash flow ($65 million in Q3; $156.9–$157 million year-to-date, 103% conversion rate) and maintained net leverage at 1.6x.

• Continued robust design activity and new business wins across electronics, transportation, and industrial markets, with a focus on pricing actions and cost reductions.

• Operational and structural actions, including portfolio pruning, supported profitability and long-term growth positioning.

Financial highlights

• Q3 revenue was $567–$567.4 million, down 6.5–7% year-over-year; GAAP EPS $2.32, adjusted EPS $2.71.

• Adjusted EBITDA margin was 21.7%; adjusted operating margin 15.9%; gross margin 38.1%.

• Q3 operating cash flow was $80 million; free cash flow $65 million; cash on hand at quarter end was $629.7–$630 million.

• Net income for Q3 was $58.1 million, nearly flat year-over-year.

• Net debt-to-EBITDA leverage at 1.6x as of September 28, 2024.

Outlook and guidance

• Q4 2024 sales expected between $510–540 million, with adjusted diluted EPS forecasted at $1.90–2.10 and an adjusted effective tax rate of about 14%.

• Full-year 2024 adjusted operating margin outlook narrowed to about 13%; segment margins: Electronics mid-teens, Industrial low-teens, Transportation high single digits.

• $90 million in capital expenditures planned for the year.

• Management expects current cash, cash flow, and available credit to be sufficient for operations and obligations.

• FY24 pruning impact: -2% company-wide, -5% Transportation segment; 100% free cash flow conversion expected.