Littelfuse (LFUS) Q4 2025 earnings summary

Executive summary

• Q4 2025 revenue reached $594 million, up 12% year-over-year, exceeding guidance, with strong cash generation and the Basler Electric acquisition enhancing high-power and industrial market presence.

• Full year 2025 revenue grew 9% to $2.39 billion, with adjusted EBITDA margin at 20.9% and free cash flow up 26% to $366 million.

• Adjusted diluted EPS for Q4 was $2.69; full year adjusted diluted EPS was $10.68, up 34%.

• A $301 million non-cash goodwill impairment charge was recorded in Q4, impacting GAAP results.

• Strategic priorities include growth opportunities, broader customer solutions, and operational excellence, with Investor Day scheduled for May 14.

Financial highlights

• Q4 revenue was $594 million, up 12% year-over-year, with 7% organic growth; adjusted EBITDA margin reached 20.5%, up 480 basis points.

• Q4 adjusted EPS was $2.69; GAAP diluted loss per share was ($9.72) due to the impairment charge.

• Q4 operating cash flow was $139 million; free cash flow $120 million; year-end cash on hand was $563 million.

• Full-year 2025 free cash flow was $366 million, up 26% year-over-year.

• Returned $90 million to shareholders via dividend in Q4; paid $72 million in dividends and repurchased $28 million in stock during 2025.

Outlook and guidance

• Q1 2026 sales expected between $625 million and $645 million, with 7% organic growth at midpoint and 5% from Basler; total revenue growth anticipated at 15% year-over-year.

• Q1 2026 adjusted EPS projected at $2.70–$2.90, up 28% year-over-year at midpoint, including a 3-cent contribution from Basler.

• Entered Q1 2026 with strong backlog and bookings momentum, supported by Q4 bookings up over 20% year-over-year.

• Free cash flow conversion target remains above 100% for 2026.

• Adjusted effective tax rate for Q1 2026 expected at 24%.