Oct 28, 2026 earnings call — Record quarter and Dortmund contract amendment
Reported record net sales of $767 million and adjusted diluted EPS of $5.79.
Revenue $0.8B (est $0.8B) · EPS $5.79 (est $4.97) · Next-quarter revenue outlook $0.8B–$0.8B
Key quotes
"During the third quarter, we executed an amendment to a commercial supply agreement for our Dortmund facility. In exchange for a 1-time payment, this amendment accelerates the delivery of contracted volumes while eliminating restrictive covenants."
"Data center was again a leading contributor as we continue to capitalize on our unique grid to chip capability and customer focused go to market model."
"As evidence of our traction year to date, the average dollar value per new business opportunity has increased by more than 20%, While third quarter design wins again grew double digits year over year."
Analyst Q&A 5
Why semiconductor sales rose now
Q (David Williams · Needham): He asked whether semiconductor growth was cyclical demand or from operational changes and portfolio repositioning.
A: Management said semiconductor results came from both strong market demand and taking share. They also said power semiconductors show volume growth and early benefits from manufacturing and portfolio optimization as they focus on high-voltage, high-power, high-value applications.
"Based on kind of what Gregory was saying, which is the demand has improved and has improved sequentially throughout the year." — Abhishek Khandelwal (CFO)
Pricing and lead times
Q (David Williams · Needham): He asked about ability to raise prices and what lead times look like as the market tightens.
A: Management said they are in an inflationary environment and are passing price increases to customers as needed while running productivity programs to manage costs. They said lead times are pretty normal across the business, although customers are booking farther out.
Customer booking behavior and cost cuts
Q (Christopher Glynn · Oppenheimer): He asked if customers are booking early to secure supply and how to read distributor inventory, and whether fixed-cost savings affect adjusted EPS or are one-time.
A: Management said lead times are broadly normal but customers are planning farther out, and two-thirds of revenue is sold direct giving visibility that they do not see broad inventory hoarding. On cost savings, they said they plan product rationalization that walks away from 1 to 2 points of revenue over five years to generate about $50 million incremental EBITDA; so far they identified $5 million savings in 2026 and expect more in 2027.
"I will say we are just seeing a customer behavior where they are tending to book farther out." — Gregory N. Henderson (CEO)
Data center growth and margins
Q (Luke Junk · Baird): He asked what is driving data center growth (low vs high voltage, co-engineering) and how sustainable high electronics margins are with more high-voltage content.
A: Management said current data center revenue is mostly low-voltage, with small volumes of higher-voltage starting and more high-voltage contribution in bookings and design wins. For margins, they said electronics margin expansion was driven by volume leverage—passives up 30% and strong protection semiconductor results—and they expect further margin gains from product rationalization, footprint optimization, and capturing higher-value content.
"So first of all, if you kind of think about the performance in the quarter, tied to our Electronics segment, we saw 27% organic growth in electronics." — Abhishek Khandelwal (CFO)
Basler acquisition benefits and synergies
Q (David Williams · Needham): He asked whether Basler's performance reflects synergies from the deal or just market recovery, and whether growth could beat initial expectations.
A: Management said they are seeing significant benefits from Basler in grid infrastructure and data center, with cross-selling both ways: Littelfuse relationships help Basler in data centers and Basler opens utility channels for Littelfuse products. They now expect Basler top line of about 130 million to 140 million for the year and said synergy realization is ahead of schedule, with accretion now seen around $0.25 to $0.30 versus prior $0.01 to $0.05 guidance.
"Then if you kind of think about the bottom line, when we announced that, we said, hey, we expect $0.01 to $0.05 of accretion and our current view for the year is about $0.25 to $0.30." — Abhishek Khandelwal (CFO)