Littelfuse (NASDAQ:LFUS) Reports Q4 CY2025 Revenue Surpassing Expectations

Littelfuse Surpasses Q4 2025 Expectations

Littelfuse (NASDAQ:LFUS), a leading supplier of electronic components, delivered fourth-quarter 2025 results that outperformed market forecasts. The company reported revenue of $593.9 million, representing a 12.2% increase compared to the same period last year. Additionally, Littelfuse’s revenue outlook for the upcoming quarter stands at $635 million (midpoint), which is 3.5% higher than analysts’ projections. Adjusted earnings per share reached $2.69, exceeding consensus estimates by 6.2%.

Curious whether Littelfuse is a smart investment right now?

Highlights from Littelfuse’s Q4 2025 Performance

• Total Revenue: $593.9 million, surpassing the $582.1 million analyst estimate (12.2% year-over-year growth, 2% above expectations)
• Adjusted EPS: $2.69, beating the $2.53 consensus (6.2% above expectations)
• Adjusted EBITDA: $121.6 million, compared to the $119 million estimate (20.5% margin, 2.2% beat)
• Q1 2026 Revenue Guidance: $635 million (midpoint), exceeding the $613.4 million analyst forecast
• Q1 2026 Adjusted EPS Guidance: $2.80 (midpoint), roughly matching analyst expectations
• Operating Margin: -37.5%, a decline from -6.9% in the prior year’s quarter
• Free Cash Flow Margin: 0%, down from 25.5% in the same period last year
• Market Cap: $7.38 billion

Greg Henderson, President and CEO of Littelfuse, commented, “I’m proud of our teams for ending the year with strong momentum, delivering results above our guidance, and completing the Basler Electric acquisition.”

About Littelfuse

Littelfuse, known for pioneering the blade-style automotive fuse, supplies electrical protection and control solutions to the automotive, industrial, electronics, and telecom sectors.

Examining Revenue Trends

Assessing a company’s long-term growth helps gauge its overall quality. While any business can have a strong quarter, sustained expansion is a sign of resilience. Over the past five years, Littelfuse achieved a robust 10.5% compound annual growth rate in sales, outpacing the average for industrial companies and indicating strong customer demand.

However, it’s important to consider that five-year snapshots may overlook industry cycles or unique catalysts. In recent years, Littelfuse’s revenue growth has stalled, remaining flat over the last two years, signaling a slowdown in demand.

Breaking down revenue by segment, Electronics and Automotive account for 58.1% and 27.6% of total sales, respectively. Both segments have seen little change in revenue over the past two years.

Recent Revenue Developments

This quarter, Littelfuse posted a 12.2% year-over-year revenue increase, with its $593.9 million in sales beating Wall Street’s forecast by 2%. Management anticipates a 14.6% year-over-year sales increase next quarter.

Looking ahead, analysts expect Littelfuse’s revenue to rise by 8% over the next year, a pace above the sector average, suggesting that new products and services could drive stronger growth.

Profitability and Margins

Operating margin is a key indicator of profitability, reflecting how much profit remains after covering production, sales, and R&D costs. Over the last five years, Littelfuse maintained an average operating margin of 12.6%, ranking among the more profitable companies in its sector, thanks in part to its strong gross margin.

Despite this, the company’s operating margin has dropped by 17 percentage points over the same period, raising concerns about rising expenses. Ideally, revenue growth should have improved economies of scale and profitability.

In the most recent quarter, Littelfuse reported a negative operating margin of 37.5%, a sharp decline of 30.6 percentage points from the previous year. This drop occurred even as revenue and gross margin improved, suggesting that operating costs—such as marketing, R&D, and administration—grew faster than sales.

Earnings Per Share (EPS) Analysis

Tracking long-term EPS growth is essential, as it reveals whether a company’s expansion is translating into higher profitability per share. Littelfuse’s EPS has grown at an annual rate of 10.8% over the past five years, mirroring its revenue growth and indicating consistent profitability.

However, over the last two years, annual EPS has declined by 4.7%, underperforming its flat revenue. The primary driver behind this decline has been the drop in operating margin, rather than factors like interest or taxes.

For Q4, adjusted EPS reached $2.69, up from $2.04 a year earlier and 6.2% above analyst expectations. Wall Street projects full-year EPS to rise to $10.68 over the next 12 months, an 18.3% increase.

Summary and Investment Perspective

Littelfuse’s latest quarter featured notable outperformance in its Electronics segment and overall revenue, making for a strong set of results. The stock price remained steady at $296.20 immediately after the announcement.

While the quarterly performance was impressive, evaluating Littelfuse as an investment requires a broader view of its long-term business quality and valuation.