Third Quarter 2026
Filed Oct 28, 2026Record net sales and adjusted diluted EPS, broad-based organic growth, material margin expansion, and fourth-quarter guidance for approximately +28% year-over-year revenue growth.
Third-quarter net sales increased 22.7%, GAAP operating income increased 57.4%, GAAP diluted EPS increased to $4.49 from $2.77, and adjusted diluted EPS increased to $5.79 from $2.95. All three segments grew, cash flow strengthened, and fourth-quarter guidance calls for net sales of $750 - $770 million.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Q3 2026 net salesGAAP | $766.7M | – | 22.7 % |
| Year-to-date 2026 net salesGAAP | $2.16B | – | 20.6 % |
| Q3 2026 gross profitGAAP | $318.6M | – | – |
| Year-to-date 2026 gross profitGAAP | $878.8M | – | – |
| Q3 2026 selling, general, and administrative expensesGAAP | $114.6M | – | – |
| Q3 2026 research and development expensesGAAP | $29.72M | – | – |
| Q3 2026 amortization of intangiblesGAAP | $14.65M | – | – |
| Q3 2026 restructuring, impairment, and other chargesGAAP | $6.22M | – | – |
| Q3 2026 total operating expensesGAAP | $165.2M | – | – |
| Q3 2026 operating incomeGAAP | $153.4M | – | 57.4 % |
| Year-to-date 2026 operating incomeGAAP | $374.2M | – | 43.8 % |
| Q3 2026 operating marginGAAP | 20.0 % | – | +440 bps |
| Year-to-date 2026 operating marginGAAP | 17.3 % | – | – |
| Q3 2026 net incomeGAAP | $115.4M | – | – |
| Year-to-date 2026 net incomeGAAP | $279.9M | – | – |
| Q3 2026 basic earnings per shareGAAP | $4.54 | – | – |
| Q3 2026 diluted earnings per shareGAAP | $4.49 | – | +62% |
| Year-to-date 2026 diluted earnings per shareGAAP | $10.94 | – | – |
| Q3 2026 adjusted diluted EPSnon-GAAP | $5.79 | – | +96% |
| Year-to-date 2026 adjusted diluted EPSnon-GAAP | $13.29 | – | – |
| Q3 2026 adjusted operating incomenon-GAAP | $191.5M | – | – |
| Q3 2026 adjusted operating marginnon-GAAP | 24.1 % | – | – |
| Q3 2026 adjusted EBITDAnon-GAAP | $225.9M | – | – |
| Q3 2026 adjusted EBITDA marginnon-GAAP | 28.4 % | – | +690 bps |
| Year-to-date 2026 adjusted EBITDAnon-GAAP | $551.2M | – | – |
| Year-to-date 2026 adjusted EBITDA marginnon-GAAP | 25.2 % | – | – |
| Q3 2026 net cash provided by operating activitiesGAAP | $230.1M | – | +57% |
| Q3 2026 free cash flownon-GAAP | $215.7M | – | +64% |
| Year-to-date 2026 net cash provided by operating activitiesGAAP | $456.6M | – | +55% |
| Year-to-date 2026 free cash flownon-GAAP | $409.2M | – | +66% |
| Q3 2026 effective tax rateGAAP | 23.2 % | – | – |
| Q3 2026 adjusted effective tax ratenon-GAAP | 21.8 % | – | – |
| Q3 2026 adjusted net salesnon-GAAP | $795.2M | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| ElectronicsOrganic sales increased +27%, driven by improved passive products (+30% organic) and semiconductor products (+24% organic). Reported sales included a $28.5 million (€24.6 million) one-time Dortmund contract amendment fee recorded as a reduction of semiconductor net sales. | $426.2M | – | 19.2 % |
| TransportationOrganic sales increased +7%. Improved commercial vehicle sales (+20% organic) offset lower passenger vehicle organic sales (-5%), with commercial vehicle demand supported by truck, data center, material handling, construction and agricultural equipment demand. | $182.6M | – | 6.6 % |
| IndustrialOrganic sales increased +27%, driven by data center, grid & utility infrastructure, HVAC, industrial automation, and construction demand. The Basler acquisition contributed +38% to growth. | $157.8M | – | 64.6 % |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
Fourth Quarter of 2026 outlook
- Revenue$750 - $770 million
- Tax rateapproximately ~24%
- NoteAdjusted diluted EPS in the range of $5.05 - $5.25
- NoteApproximately +28% yr/yr revenue growth
Capital returns
- Quarterly cash dividend of $0.80 per share on common stock.
- Dividend payable December 3, 2026, to shareholders of record as of November 19, 2026.
- Nine months ended September 26, 2026: cash dividends paid of $58,193 (in thousands).
- Nine months ended September 26, 2026: repurchases of common stock of —.
What drove it
- Total organic net sales growth was 22% in Q3 2026.
- Electronics adjusted EBITDA margin increased to 33.1 % from 24.0 %, due to volume leverage, operational execution, and favorable price and product mix.
- Transportation adjusted EBITDA margin increased to 19.6 % from 16.8 %, driven by commercial vehicle volume leverage and operational execution.
- Industrial adjusted EBITDA margin increased to 25.2 % from 20.7 %, driven by improved volume leverage, operational efficiencies, and favorable price and product mix.
- Industrial reported growth included a +38% contribution from the Basler acquisition.
- The one-time customer contract amendment fee reduced Q3 2026 net sales by $28.5 million and reduced Electronics-Semiconductor net sales.
Concerns
- The $28.5 million one-time Dortmund contract amendment fee was recorded as a reduction of semiconductor net sales.
- Passenger vehicle organic sales declined -5%, affected by lower global passenger car builds and auto sensor product declines.
- Q3 2026 restructuring, impairment, and other charges were $6,222 (in thousands), compared with $1,633 (in thousands) in Q3 2025.
- Fourth-quarter guidance is provided on a non-GAAP adjusted basis, and the company states it cannot forecast excluded GAAP items without unreasonable efforts.
What to watch
- Delivery against fourth-quarter net sales guidance of $750 - $770 million and adjusted diluted EPS guidance of $5.05 - $5.25.
- Whether Electronics semiconductor and passive-product organic growth continues after the Dortmund contract amendment fee.
- Commercial vehicle demand trends and the trajectory of lower passenger vehicle and auto sensor sales.
- Industrial demand in data center, grid & utility infrastructure, HVAC, industrial automation, and construction markets.
- Basler acquisition contribution to Industrial segment growth and margins.
- Cash generation, debt reduction, and the consolidated net leverage ratio of 0.7x.
Balance sheet and cash flow
- Cash and cash equivalents were $824,840 (in thousands) at September 26, 2026, versus $563,391 (in thousands) at December 27, 2025.
- Current portion of long-term debt was $100,000 (in thousands) and long-term debt, less current portion, was $529,934 (in thousands) at September 26, 2026.
- Consolidated total debt was $629.9 million as of September 26, 2026.
- Net debt was $437.3 million as of September 26, 2026.
- Consolidated net leverage ratio was 0.7x as of September 26, 2026.
- Nine-month net cash provided by operating activities was $456,633 (in thousands), versus $295,099 (in thousands).
- Nine-month purchases of property, plant, and equipment were $47,474 (in thousands), versus $48,697 (in thousands).
- Nine-month net cash used in investing activities was $39,913 (in thousands), versus $99,701 (in thousands).
- Nine-month net payments of credit facility were $166,250 (in thousands), versus $61,250 (in thousands).
Analysis
Littelfuse reported a strong third quarter, with net sales of $766,729 (in thousands), up 22.7 % from $624,640 (in thousands). Organic net sales growth was 22%, despite a $28.5 million one-time Dortmund contract amendment fee recorded as a reduction of semiconductor net sales. GAAP operating income increased 57.4 % to $153,356 (in thousands), while GAAP operating margin expanded to 20.0 % from 15.6 %. GAAP diluted EPS rose to $4.49 from $2.77, and adjusted diluted EPS increased to $5.79 from $2.95.
Growth was broad across the portfolio. Electronics revenue increased 19.2 % to $426,239 (in thousands), with 27% organic growth driven by passive products and semiconductor volumes. Transportation revenue increased 6.6 % to $182,643 (in thousands), as 20% organic commercial vehicle growth offset a -5% decline in passenger vehicle organic sales. Industrial revenue increased 64.6 % to $157,847 (in thousands), supported by 27% organic growth and a +38% contribution from the Basler acquisition.
Margins improved meaningfully across the company and segments. Consolidated adjusted EBITDA margin increased to 28.4 % from 21.5 %, while adjusted operating margin rose to 24.1 % from 16.1 %. Electronics adjusted EBITDA margin reached 33.1 %, Transportation reached 19.6 %, and Industrial reached 25.2 %. The company attributed these gains to volume leverage, operational execution, operational efficiencies, and favorable price and product mix.
Cash generation also strengthened. Q3 net cash provided by operating activities was $230.1 million and free cash flow was $215.7 million, compared with $146.9 million and $131.2 million, respectively, in Q3 2025. Year-to-date free cash flow was $409.2 million. At September 26, 2026, cash and cash equivalents were $824,840 (in thousands), consolidated total debt was $629.9 million, net debt was $437.3 million, and the consolidated net leverage ratio was 0.7x. The company also announced a quarterly cash dividend of $0.80 per share.
For the fourth quarter, Littelfuse expects net sales of $750 - $770 million, adjusted diluted EPS of $5.05 - $5.25, and an adjusted effective tax rate of approximately ~24%. Management expects approximately +28% year-over-year revenue growth and cited continued strong demand across its diverse market exposures. Key reported offsets remain the one-time semiconductor contract fee, lower passenger vehicle sales, and higher restructuring, impairment, and other charges of $6,222 (in thousands) in the quarter.
Management, verbatim
We delivered strong third quarter results reflecting broad-based demand strength, disciplined execution, and continued momentum across the portfolio.
Greg Henderson, Littelfuse President and Chief Executive Officer
Our teams drove significant growth across our segments, while delivering meaningful margin expansion and robust cash generation as we continued to advance our strategic priorities.
Greg Henderson, Littelfuse President and Chief Executive Officer
Looking ahead to the fourth quarter, we continue to see strong demand across our diverse market exposures, and we expect approximately +28% yr/yr revenue growth.
Greg Henderson, Littelfuse President and Chief Executive Officer
Not in the filing
stated, not guessed- Prior-quarter comparative figures for reported metrics were not provided.
- GAAP gross margin was not reported.
- Fourth-quarter guidance for gross margin and operating expenses was not provided.
- GAAP EPS guidance was not provided.
- Prior-release outlook was not provided, so no comparison with prior guidance is available.
- Q3 2026 segment operating income and operating-margin metrics are reported in the filing but are not represented in the Segment schema, which only supports segment revenue, growth, and driver fields.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was checked against the filing text, and a metric whose value, prior period and change do not add up is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.