Littelfuse (LFUS) Q3 2024 earnings summary

Executive summary

• Q3 2024 net sales were $567 million, down 6.5–7% year-over-year, but earnings and adjusted EPS exceeded expectations and guidance.

• Strong free cash flow and balance sheet flexibility supported operational execution and long-term growth strategy.

• Achieved robust design activity and new business wins across all segments, with margin expansion and profitability supported by operational actions.

• Diversified business model and unique portfolio provided resilience amid challenging end markets.

• Net income for Q3 2024 was $58.1 million ($2.32 per diluted share), nearly flat versus Q3 2023.

Financial highlights

• Q3 2024 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%; GAAP operating margin 15.5%.

• Q3 operating cash flow was $80 million; free cash flow was $65 million; year-to-date free cash flow $156.9–157 million, 103% conversion rate.

• Ended Q3 with $629.7–630 million cash on hand; net debt-to-EBITDA leverage at 1.6x.

• Gross margin for Q3 was 38.1%, up from 37.4% a year ago.

Outlook and guidance

• Q4 2024 sales expected in the range of $510–540 million, reflecting typical seasonality and muted demand.

• Q4 adjusted diluted EPS projected at $1.90–2.10, with a tax rate of about 14%.

• Full-year 2024 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.

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