# LITTELFUSE INC /DE (LFUS)

Informational only - not investment advice.

CIK: 0000889331
SIC: 3613 Switchgear & Switchboard Apparatus
SIC breadcrumb: [Manufacturing](/division/D/) > [Electronic And Other Electrical Equipment And Components, Except Computer Equipment](/major-group/36/) > [SIC 3613 Switchgear & Switchboard Apparatus](/industry/3613/)
Latest 10-K filed: 2026-02-19
SEC page: https://www.sec.gov/edgar/browse/?CIK=889331
Filing source: https://www.sec.gov/Archives/edgar/data/889331/000162828026009585/lfus-20251227.htm

## At a glance

FY2025 · period end 2025-12-27 · filed 2026-02-19 · accession 0001628280-26-009585 · source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000889331.json

| Metric | Value | FY | Provenance |
| --- | ---: | ---: | --- |
| Revenue | 2,386,294,000 USD | 2025 | verified |
| Net income | -71,700,000 USD | 2025 | verified |
| Assets | 3,956,796,000 USD | 2025 | verified |
| Free cash flow | 366,127,000 USD | 2025 | computed |
| Net margin | -3.00% | 2025 | computed |
| Operating margin | 1.57% | 2025 | computed |
| Revenue YoY | +8.92% | 2025 | computed |
| ROE | -2.96% | 2025 | computed |

Computed values are grepcent-computed from the verified facts above and may differ from ratios the company itself reports. Free cash flow = operating cash flow − capital expenditures. Net margin = net income ÷ revenue. Operating margin = operating income ÷ revenue. Revenue YoY = FY2025 revenue ÷ FY2024 revenue − 1 (consecutive fiscal years only). ROE = net income ÷ period-end stockholders' equity.

No market price, no rating, no forecast on this site. Not investment advice.

### Peer percentile fingerprint

| Ratio | LFUS | Peer median | Percentile | N |
| --- | ---: | ---: | ---: | ---: |
| Net margin | -3.0% | 4.4% | 29 | 135 |
| Operating margin | 1.6% | 4.4% | 33 | 128 |
| Revenue growth | 8.9% | 10.2% | 46 | 142 |
| FCF margin | 15.3% | 8.0% | 73 | 138 |
| ROE | -3.0% | 5.4% | 33 | 136 |
| ROA | -1.8% | 2.7% | 34 | 143 |
| Liabilities / equity | 0.63 | 0.81 | 42 | 138 |
| Current ratio | 2.69 | 2.59 | 56 | 144 |

Percentile = share of the N covered peers reporting that ratio whose value is lower (ties counted half); computed among grepcent-covered companies in SIC major-group 36 Electronic And Other Electrical Equipment And Components, Except Computer Equipment, not the whole market. A higher percentile means a higher value of the ratio, not a better company. Ratios with fewer than 8 reporting peers are omitted. Latest reported values per company; fiscal periods may differ. Descriptive arithmetic - not a score, rating, or ranking.

## Selected Fundamentals
| Metric | Value | Unit | FY | Filed |
| --- | ---: | --- | ---: | --- |
| Revenue | 2386294000 | USD | 2025 | 2026-02-19 |
| Net income | -71700000 | USD | 2025 | 2026-02-19 |
| Assets | 3956796000 | USD | 2025 | 2026-02-19 |

## Financials

Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-02-19. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000889331.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts.

| Metric | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Revenue |  |  |  | 1,056,159,000 | 1,221,534,000 | 1,718,468,000 | 1,503,873,000 | 1,445,695,000 | 2,079,928,000 | 2,513,897,000 | 2,362,657,000 | 2,190,768,000 | 2,386,294,000 |
| Net income | 88,784,000 | 98,100,000 | 80,866,000 | 104,488,000 |  |  |  | 129,986,000 | 283,806,000 | 373,306,000 | 259,485,000 | 100,190,000 | -71,700,000 |
| Operating income |  |  |  | 130,644,000 | 218,511,000 | 225,049,000 | 192,791,000 | 162,372,000 | 385,642,000 | 500,826,000 | 360,862,000 | 158,780,000 | 37,528,000 |
| Gross profit |  |  |  | 413,117,000 | 506,533,000 | 653,415,000 | 546,295,000 | 501,172,000 | 771,926,000 | 1,006,913,000 | 900,241,000 | 787,542,000 | 906,043,000 |
| Diluted EPS |  |  |  | 4.60 | 5.21 | 6.52 | 5.60 | 5.29 | 11.38 | 14.94 | 10.34 | 4.00 | -2.89 |
| Operating cash flow |  |  |  | 180,133,000 | 269,170,000 | 331,828,000 | 245,328,000 | 258,031,000 | 373,344,000 | 419,718,000 | 457,387,000 | 367,621,000 | 433,764,000 |
| Capital expenditures |  |  |  | 46,228,000 | 65,925,000 | 74,753,000 | 61,895,000 | 56,191,000 | 90,562,000 | 104,341,000 | 86,188,000 | 75,877,000 | 67,637,000 |
| Dividends paid |  |  |  | 27,866,000 | 31,770,000 | 39,993,000 | 44,689,000 | 46,839,000 | 49,730,000 | 55,911,000 | 62,161,000 | 67,061,000 | 71,991,000 |
| Share buybacks |  |  |  | 0.00 | 0.00 | 63,564,000 | 99,387,000 | 22,927,000 | 0.00 | 0.00 | 0.00 | 40,862,000 | 27,553,000 |
| Assets |  |  |  | 1,491,194,000 | 1,740,102,000 | 2,614,306,000 | 2,559,898,000 | 2,747,593,000 | 3,151,704,000 | 3,903,734,000 | 3,995,275,000 | 3,891,779,000 | 3,956,796,000 |
| Liabilities |  |  |  |  |  |  |  |  |  | 1,692,356,000 | 1,514,794,000 | 1,478,167,000 | 1,530,762,000 |
| Stockholders' equity |  |  |  | 814,788,000 | 927,419,000 | 1,478,211,000 | 1,495,883,000 | 1,608,642,000 | 1,893,389,000 | 2,211,194,000 | 2,480,169,000 | 2,413,257,000 | 2,426,034,000 |
| Cash and cash equivalents |  |  |  | 275,124,000 | 429,676,000 | 489,733,000 | 531,139,000 | 687,525,000 | 478,473,000 | 562,588,000 | 555,513,000 | 724,924,000 | 563,391,000 |
| Free cash flow |  |  |  | 133,905,000 | 203,245,000 | 257,075,000 | 183,433,000 | 201,840,000 | 282,782,000 | 315,377,000 | 371,199,000 | 291,744,000 | 366,127,000 |

### Ratios

ROE and ROA use period-end equity/assets. Liabilities / equity uses total liabilities divided by stockholders' equity. Current ratio uses current assets divided by current liabilities when both are reported.

| Metric | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Net margin |  |  |  | 9.89% |  |  |  | 8.99% | 13.64% | 14.85% | 10.98% | 4.57% | -3.00% |
| Operating margin |  |  |  | 12.37% | 17.89% | 13.10% | 12.82% | 11.23% | 18.54% | 19.92% | 15.27% | 7.25% | 1.57% |
| Return on equity |  |  |  | 12.82% |  |  |  | 8.08% | 14.99% | 16.88% | 10.46% | 4.15% | -2.96% |
| Return on assets |  |  |  | 7.01% |  |  |  | 4.73% | 9.00% | 9.56% | 6.49% | 2.57% | -1.81% |
| Liabilities / equity |  |  |  |  |  |  |  |  |  | 0.77 | 0.61 | 0.61 | 0.63 |
| Current ratio |  |  |  | 3.26 | 3.52 | 3.50 | 4.45 | 4.42 | 2.92 | 2.64 | 3.75 | 3.58 | 2.69 |

## As-reported value updates

2 tracked differences above grepcent's stated thresholds were found between the earliest XBRL-filed value and the value currently on file for the same fiscal period.

Ledger: /company/LFUS/revisions/


## Quarterly

Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-05-06. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000889331.json.

Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived.

| Quarter | End date | Revenue | Net income | Diluted EPS | Method |
| --- | --- | ---: | ---: | ---: | --- |
| 2022-Q2 | 2022-07-02 |  |  | 3.48 | reported discrete quarter |
| 2022-Q3 | 2022-10-01 |  |  | 3.02 | reported discrete quarter |
| 2023-Q1 | 2023-04-01 |  |  | 3.54 | reported discrete quarter |
| 2023-Q2 | 2023-04-01 |  | 88,745,000 |  | reported discrete quarter |
| 2023-Q2 | 2023-07-01 | 611,997,000 |  | 2.79 | reported discrete quarter |
| 2023-Q3 | 2023-07-01 |  | 70,071,000 |  | reported discrete quarter |
| 2023-Q3 | 2023-09-30 | 607,071,000 |  | 2.30 | reported discrete quarter |
| 2023-Q4 | 2023-12-30 | 533,807,000 | 42,881,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2024-Q1 | 2024-03-30 | 535,385,000 | 48,452,000 | 1.93 | reported discrete quarter |
| 2024-Q2 | 2024-03-30 |  | 48,452,000 |  | reported discrete quarter |
| 2024-Q2 | 2024-06-29 | 558,489,000 |  | 1.82 | reported discrete quarter |
| 2024-Q3 | 2024-06-29 |  | 45,466,000 |  | reported discrete quarter |
| 2024-Q3 | 2024-09-28 | 567,390,000 |  | 2.32 | reported discrete quarter |
| 2024-Q4 | 2024-12-28 | 529,505,000 | -51,786,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2025-Q1 | 2025-03-29 | 554,307,000 | 43,571,000 | 1.75 | reported discrete quarter |
| 2025-Q2 | 2025-03-29 |  | 43,571,000 |  | reported discrete quarter |
| 2025-Q2 | 2025-06-28 | 613,413,000 |  | 2.30 | reported discrete quarter |
| 2025-Q3 | 2025-06-28 |  | 57,342,000 |  | reported discrete quarter |
| 2025-Q3 | 2025-09-27 | 624,640,000 |  | 2.77 | reported discrete quarter |
| 2025-Q4 | 2025-12-27 | 593,934,000 | -242,135,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2026-Q1 | 2026-03-28 | 656,969,000 | 75,147,000 | 2.96 | reported discrete quarter |

## Filed narrative (10-K & 10-Q)

## Business

Verbatim Item 1 Business section from LFUS's latest 10-K: [/company/LFUS/business/](/company/LFUS/business/).

## Risk Factors

Verbatim Item 1A Risk Factors from LFUS's latest 10-K: [/company/LFUS/risk-factors/](/company/LFUS/risk-factors/).

## Latest quarter (10-Q)

Latest 10-Q source: https://www.sec.gov/Archives/edgar/data/889331/000162828026050481/lfus-20260627.htm

Extracted structurally from real Item 2 body heading to real Item 3/4 boundary. Published MD&A gate trimmed front/tail over-capture.
Confidence: high
Filing date: 2026-07-29
Report date: 2026-06-27

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Cautionary Statement Regarding Forward-Looking Statements Under the Private Securities Litigation Reform Act of 1995 (“PSLRA”).

Certain statements in this section and other parts of this Quarterly Report on Form 10-Q may constitute "forward-looking statements" within the meaning of the federal securities laws and are entitled to the safe-harbor provisions of the PSLRA. These statements include statements regarding the Company’s future performance, as well as management's expectations, beliefs, intentions, plans, estimates or projections relating to the future. Such statements can be identified by the use of forward-looking terminology such as "believes," "expects," "may," "estimates," "will," "should," "plans" or "anticipates" or the negative thereof or other variations thereon or comparable terminology, or by discussions of strategy, although not all forward-looking statements contain such terms. The Company cautions that forward-looking statements, which speak only as of the date they are made, are subject to risks, uncertainties and other factors, and actual results and outcomes may differ materially from those indicated or implied by the forward-looking statements. These risks, uncertainties and other factors include, but are not limited to, risks and uncertainties relating to general economic conditions; product demand and market acceptance; economic conditions; the impact of competitive products and pricing; product quality problems or product recalls; capacity and supply difficulties or constraints; coal mining exposures reserves; cybersecurity matters; failure of an indemnification for environmental liability; changes in import and export duty and tariff rates; exchange rate fluctuations; commodity price fluctuations; the effect of the Company's accounting policies; labor disputes and shortages; restructuring costs in excess of expectations; pension plan asset returns less than assumed; uncertainties related to political or regulatory changes; integration of acquisitions may not be achieved in a timely manner, or at all; limited realization of the expected benefits from investment and strategic plans; and other risks that may be detailed in Item 2, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and Item 3, “Quantitative and Qualitative Disclosures About Market Risk” of Part I and Item 1, “Legal Proceedings” and Item 1A, “Risk Factors” of Part II of this Report, as well as Item 1A. "Risk Factors" and Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and Item 7A, “Quantitative and Qualitative Disclosures About Market Risk” of Part II of the Company's Annual Report on Form 10-K for the year ended December 27, 2025, and the Company's other filings and submissions with the Securities and Exchange Commission. The Company does not undertake any obligation to update or revise any forward-looking statements to reflect future events or circumstances, new information or otherwise.

This report, including the Management’s Discussion and Analysis of Financial Condition and Results of Operations, should be read in conjunction with information provided in the consolidated financial statements and the related Notes thereto appearing in the Company's Annual Report on Form 10-K for the year ended December 27, 2025. 

Management’s Discussion and Analysis of Financial Condition and Results of Operations ("MD&A") is designed to provide information that is supplemental to, and should be read together with, the consolidated financial statements and the accompanying notes. Information in MD&A is intended to assist the reader in obtaining an understanding of (i) the consolidated financial statements, (ii) the changes in certain key items within those financial statements from year-to-year, (iii) the primary factors that contributed to those changes, and (iv) any changes in known trends or uncertainties that the Company is aware of and that may have a material effect on future performance. In addition, MD&A provides information about the Company’s segments and how the results of those segments impact the results of operations and financial condition as a whole.

35

Table of Contents

Executive Overview

Founded in 1927, Littelfuse is a diversified, industrial technology manufacturing company empowering a sustainable, connected, and safer world. Across more than 20 countries, and with approximately 18,000 global associates, we partner with customers to design and deliver innovative, reliable solutions. Serving over 100,000 end customers, our products are found in a variety of industrial, transportation and electronics end markets – everywhere, every day.

The Company maintains a network of global laboratories and engineering centers that develop new products and product enhancements, provide customer application support and test products for safety, reliability, and regulatory compliance. The Company conducts its business through three reportable segments: Electronics, Transportation, and Industrial. Within these segments, the Company designs, manufactures and sells components and modules empowering a sustainable, connected, and safer world. Our products protect against electrostatic discharge, power surges, short circuits, voltage spikes and other harmful occurrences, safely and efficiently control power and improve productivity and are used to identify and detect temperature, proximity, flow speed and fluid level in various applications.

Executive Summary

For the second quarter of 2026, the Company recognized net sales of $738.8 million, an increase of $125.4 million, or 20.4% as compared to $613.4 million in the second quarter of 2025 including $35.8 million, or 5.8% of incremental net sales, from the Basler acquisition within the Industrial segment and $4.1 million, or 0.7% of favorable changes in foreign exchange rates. The remaining increase in net sales was primarily due to higher volume in the Electronics segment. The Company recognized net income of $89.4 million, or $3.49 per diluted share, in the second quarter of 2026 compared to $57.3 million, or $2.30 per diluted share, in the second quarter of 2025. The increase in net income was primarily due to higher operating income of $37.1 million from the Electronics segment driven by higher net sales and volume leverage.

Net cash provided by operating activities was $226.5 million for the six months ended June 27, 2026 compared to $148.2 million for the six months ended June 28, 2025. The increase in net cash provided by operating activities of $78.2 million was primarily due to higher cash earnings.

On March 12, 2026, the Company entered into an Amended and Restated Credit Agreement (the "Credit Agreement") to amend and restate and effect certain changes to its existing Credit Agreement, dated as of June 30, 2022 (the “Existing Credit Agreement”), including, among other changes: (i) paying off and eliminating the $300 million unsecured term loan credit facility; (ii) increasing the size of the revolver from $700 million to $800 million; and (iii) extending the maturity date to March 12, 2031 (the “Maturity Date”). As a result of entering into the Credit Agreement, the Company paid off $62.5 million of the term loan and replaced $200 million of the term loan under the Existing Credit Agreement with $200 million borrowing under the revolver under the Credit Agreement. Pursuant to the Credit Agreement, the Company may, from time to time, increase the size of the revolving credit facility or enter into one or more tranches of term loans in minimum increments of $25 million if there is no event of default and the Company is in compliance with certain financial covenants.

Other Risk

In Item 1A. "Risk factors" of the Company’s Annual Report on Form 10-K for the year ended December 27, 2025, the Company disclosed its exposure to political, economic, and other risks that arise from operating a multinational business, including effects on the global economy due to geopolitical tensions. Among those tensions, is the ongoing military conflict among the U.S., Israel, Iran and Lebanon and the related disruptions to shipping through the Strait of Hormuz, which have led to significant volatility in global energy markets and could lead to prolonged increases in crude oil and natural gas prices. Disruptions in these markets may reduce supply availability and increase material costs, including petroleum-based plastic resins, which we use in some of our products and manufacturing processes. Energy price volatility may also increase transportation and logistics costs for the Company.

36

Table of Contents

Results of Operations

The following table summarizes the Company’s unaudited condensed consolidated results of operations for the periods presented. The second quarter of 2026 included $6.9 million ($14.3 million year-to-date) of restructuring charges primarily related to employee termination costs. During the second quarter of 2026, the Company recognized fixed asset impairment charges of $13.1 million, primarily related to the announced closure and/or disposition of two manufacturing sites for the semiconductor business within the Electronics segment. See Note 7, Restructuring, Impairment, and Other Charges, for further discussion. In addition, during the second quarter of 2026, the Company recognized $0.4 million ($1.5 million year-to-date) of legal and professional fees and other integration expenses related to completed and contemplated acquisitions. During the first quarter of 2026, the Company recognized a $5.4 million of purchase accounting inventory step-up adjustment related to the Basler acquisition.

The second quarter of 2025 included $2.5 million ($11.4 million year-to-date) of restructuring charges primarily related to employee termination costs. During the first quarter of 2025, the Company recognized a $0.1 million impairment charge related to certain machinery and equipment within the Electronics segment. See Note 7, Restructuring, Impairment, and Other Charges, for further discussion. In addition, during the second quarter of 2025, the Company recognized $1.5 million ($1.6 million year-to-date) of legal and professional fees and other integration expenses related to completed and contemplated acquisitions. During the first quarter of 2025, the Company recognized a $0.5 million of purchase accounting inventory step-down adjustment related to the Dortmund Fab acquisition.

[[GREPCENT_TABLE]]
[["","","Second Quarter","","First Six Months"],["(in thousands)","","2026","","2025","","Change","","% Change","","2026","","2025","","Change","","% Change"],["Net sales","","$","738,781","","","$","613,413","","","$","125,368","","","20.4","%","","$","1,395,750","","","$","1,167,720","","","$","228,030","","","19.5","%"],["Cost of sales","","432,717","","","381,359","","","51,358","","","13.5","%","","835,537","","","728,410","","","107,127","","","14.7","%"],["Gross profit","","306,064","","","232,054","","","74,010","","","31.9","%","","560,213","","","439,310","","","120,903","","","27.5","%"],["Operating expenses","","186,340","","","139,276","","","47,064","","","33.8","%","","339,324","","","276,382","","","62,942","","","22.8","%"],["Operating income","","119,724","","","92,778","","","26,946","","","29.0","%","","220,889","","","162,928","","","57,961","","","35.6","%"],["Income before income taxes","","117,064","","","78,214","","","38,850","","","49.7","%","","213,795","","","138,161","","","75,634","","","54.7","%"],["Income taxes","","27,659","","","20,872","","","6,787","","","32.5","%","","49,243","","","37,248","","","11,995","","","32.2","%"],["Net income","","89,405","","","57,342","","","32,063","","","55.9","%","","164,552","","","100,913","","","63,639","","","63.1","%"]]
[[/GREPCENT_TABLE]]

Net Sales

Net sales increased $125.4 millio

[Excerpt truncated for page length; source filing is linked above.]

## Latest 10-K MD&A (excerpt)

Latest 10-K Item 7 source: https://www.sec.gov/Archives/edgar/data/889331/000162828026009585/lfus-20251227.htm
Complete FY 2025 MD&A: /company/LFUS/mda/fy2025/

Extracted structurally from real Item 7 body heading to real Item 7A/8 boundary.
Confidence: high
Filing date: 2026-02-19
Report date: 2025-12-27

ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.

The following discussion of the Company's financial condition and results of operations should be read together with the Consolidated Financial Statements and notes to those statements included in Item 8 of Part II of this Annual Report on Form 10-K.

BUSINESS

For a description of the Company’s business, segments and product offerings, see Item 1, Business.

2025 EXECUTIVE OVERVIEW

Net sales were $2,386.3 million, which increased by $195.5 million, or 8.9%, in 2025 compared to 2024 including $49.0 million, or 2.2% of incremental net sales, from the Dortmund Fab acquisition (defined below) in the semiconductor business within the Electronics segment and $17.6 million or 0.8% of favorable changes in foreign exchange rates. The remaining increase in net sales was primarily due to higher volume of $104.5 million in the electronics products business within the Electronics segment and $32.8 million in the Industrial segment due to higher end market demand and favorable pricing. The Company recognized a net loss of $71.7 million, or $2.89 per diluted share, in 2025 compared to net income of $100.2 million, or $4.00 per diluted share in 2024. The net loss was primarily impacted by a $301.2 million non-cash goodwill impairment charge for the Electronics-Semiconductor reporting unit within the Electronics segment during the fourth quarter of 2025, partially offset by higher operating income of $50.2 million within the Electronics segment driven by the electronics products business and increases of $26.2 million and $16.7 million in operating income across the Transportation and Industrial segments, respectively.

Net cash provided by operating activities was $433.8 million in the fiscal year 2025, an increase of $66.1 million, compared to $367.6 million in the fiscal year 2024. The increase in net cash provided by operating activities was primarily due to higher cash earnings compared to prior year.

On December 11, 2025, the Company completed the acquisition of Basler Electric Company ("Basler"). Basler is a leading designer and manufacturer of innovative electrical control and protection solutions for high-growth industrial markets including grid and utility infrastructure, power generation and data center. At the time of acquisition, Basler had annualized sales of approximately $130 million. The business is reported within the Company’s Industrial segment. The total purchase consideration was $350.3 million, net of cash acquired, subject to a working capital adjustment.

On December 31, 2024, the Company completed the acquisition of a 200mm wafer fab located in Dortmund, Germany (“Dortmund Fab”) from Elmos Semiconductor SE. The total purchase price for the Dortmund Fab was approximately €94 million, of which a €37.2 million down payment (approximately $40.5 million) was paid in the third quarter of 2023 after regulatory approvals, and €56.7 million (approximately $58.8 million) was paid at closing. The business is reported in the Electronics-Semiconductor business within the Company’s Electronics segment.

Other Risk

The Company uses various metals in the manufacturing of its products, including copper, zinc, tin, gold, silver, and ruthenium. Worldwide demand, availability, and pricing of these raw materials have been volatile. In recent years, the prices of many of these raw materials continue to fluctuate, and in many cases increase, and fluctuations may persist in the future. Also in the fourth quarter and through the date of filing, precious metal commodity pricing has significantly increased. If the Company must pay more for certain materials, it could reduce our profit margin or otherwise have a material adverse effect on our business and financial results.

Recently, the U.S. government has imposed extensive tariffs on goods imported from several countries, including, without limitation, China, Mexico and Canada, as well as certain broad, product-specific tariffs on foreign goods and products. Tariffs may increase the cost of materials in our supply chain, incur reciprocal levies on components and finished products exported to or imported from affected countries, and have an adverse impact on our cost of goods sold in the U.S. and abroad. These factors in turn could require us to materially increase prices to our customers which may reduce demand, or, if we do not or are unable to increase prices, could result in lower gross margins on products sold.

27

Table of Contents

Tariffs have resulted in China and other countries imposing reciprocal tariffs on U.S. goods and ceasing sales of certain products to the U.S. and could result in more U.S. trading partners adopting responsive trade policies, including making it more difficult or costly for us to export our products to those countries. Sales to customers outside of the U.S., and to China in particular, comprise a significant portion of our net sales, and reciprocal tariffs may impact our business in China. Further, tariffs and trade policies may continue to change quickly and without warning, and we may not be able to accurately anticipate and mitigate the impacts.

Critical Accounting Estimates

The preparation of financial statements in conformity with Generally Accepted Accounting Principles ("GAAP") requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Although management believes that its estimates and assumptions are reasonable, they are based upon information available when they are made, and therefore, actual results may differ from these estimates under different assumptions or conditions. The Company has reviewed these critical accounting estimates and related disclosures with the Audit Committee of its Board of Directors. Significant accounting policies are described in the Notes to Consolidated Financial Statements included elsewhere in this Annual Report.

Goodwill

The Company’s methodology for allocating the purchase price of acquisitions is based on established valuation techniques that reflect the consideration of a number of factors, including valuations performed by third-party appraisers when appropriate. Goodwill is measured as the excess of the cost of an acquired entity over the fair value assigned to identifiable assets acquired and liabilities assumed. Based on its current organization structure, the Company has seven reporting units for which cash flows are determinable and to which goodwill has been allocated.

The Company annually tests goodwill for impairment on the first day of its fiscal fourth quarter, or more frequently if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying value. The Company also performs an interim review for indicators of impairment each quarter to assess whether an interim impairment review is required for any reporting unit. As part of its interim reviews, management analyzes potential changes in the value of individual reporting units based on each reporting unit’s operating results for the period compared to expected results as of the prior year’s annual impairment test. In addition, management considers how other key assumptions, including discount rates and expected long-term growth rates, used in the last annual impairment test, could be impacted by changes in market conditions and economic events.

Based on the results of the annual goodwill impairment test in 2025, in the fourth quarter, the Company recorded a non-cash charge of $301.2 million to reflect the impairment of goodwill for the Electronics-Semiconductor reporting unit within the Electronics segment, reflecting the amount by which the reporting unit’s estimated fair value was below its carrying value. The estimated fair value declined primarily due to updates to management’s forecasts that reduced revenue growth, profitability and cash flows. These forecasts require significant judgment and are inherently uncertain, particularly in light of the recent leadership transition and strategic reassessment in the semiconductor business. The reduction in projected cash flows was driven principally by lower projected volumes in the power semiconductor business, largely associated with the Dortmund fab, which reduced expected future cash generation for the reporting unit. Changes in future operating performance relative to these projections, or further changes in strategy, market conditions, or execution related to the Dortmund fab, could affect the reporting unit’s estimated fair value and may result in additional impairment charges in future periods.

As a result of the 2024 annual goodwill impairment test, the Company recorded non-cash charges of $36.1 million and $8.6 million to reflect the impairment of goodwill for the Industrial Controls and Sensors reporting unit within the Industrial segment and the Automotive Sensors reporting unit within the Transportation segment, respectively. The goodwill impairment charge for the Industrial Controls and Sensors reporting unit was due to a reduction in the estimated fair value of the reporting unit based on lower expectations for future revenue, profitability and cash flows as compared to the expectations of the 2023 annual goodwill impairment test. These lower expectations were driven by lower-than-expected demand in the electric vehicle end market as well as reduced government funding to support charging infrastructures for electric vehicles, primarily in Europe.

There was no impairment charge recorded during the fiscal year of 2023.

Quantitative Assessment for Impairment

For the six reporting units with goodwill, the Company compares the estimated fair value of each reporting unit to its carrying value. There was no goodwill remaining within the Automotive Sensors reporting unit. If the carrying value of a reporting unit exceeds the estimated fair value, the difference between the estimated fair value and carrying value is recorded as the amount of the goodwill impairment charge. As a result of the impairment charge described above, the Electronics-Semiconductor reporting unit had $238.5 million of goodwill as of December 27, 2025. For the remainder of the Company's reporting units with goodwill: Electronics-Passive Products and Sensors, Passenger Car Products, Commercial Vehicle Products, Industrial Controls and Sensors, and Industrial Circuit Protection, the results of the goodwill impairment test as of September 28, 2025 indicated that their estimated fair values exceeded their respective carrying values.

As part of its impairment test for these reporting units, the Company engaged a third-party appraisal firm to assist in the Company’s determination of the estimated fair values. This determination included estimating the fair value of each reporting unit using both the income and market approaches. The income approach requires management to estimate a number of factors for each reporting unit, including projected operating results, economic projections, anticipated future cash flows, discount rates and the allocation of shared or corporate items. The market approach estimates fair values using comparable marketplace fair value data from within a comparable industry grouping. The Company weighted both the income and market approach equally to estimate the concluded fair value of each reporting unit. The determination of fair value requires the Company to make significant estimates and assumptions, which primarily include, but are not limited to: the selection of appropriate peer group companies; control premiums appropriate for acquisitions in which the Company competes; the discount rate; terminal growth rates; and forecasts of revenue, operatin

[Excerpt truncated for page length; the complete text is on the linked full-MD&A page.]

Read the full FY 2025 MD&A: /company/LFUS/mda/fy2025/
All MD&A years: /company/LFUS/mda/


## MD&A history

Prior-year 10-K MD&A spans are extracted from SEC filings with the same bounded parser used for the latest filing. Each year's full verbatim text is on its own sub-page.

- [FY 2024 MD&A](/company/LFUS/mda/fy2024/): filed 2025-03-13; accession 0000889331-25-000039 (https://www.sec.gov/Archives/edgar/data/889331/000088933125000039/lfus-20241228.htm)
- [FY 2023 MD&A](/company/LFUS/mda/fy2023/): filed 2024-02-16; accession 0000889331-24-000034 (https://www.sec.gov/Archives/edgar/data/889331/000088933124000034/lfus-20231230.htm)
- [FY 2022 MD&A](/company/LFUS/mda/fy2022/): filed 2023-02-16; accession 0000889331-23-000016 (https://www.sec.gov/Archives/edgar/data/889331/000088933123000016/lfus-20221231.htm)
- [FY 2022 MD&A](/company/LFUS/mda/a-0000889331-22-000011/): filed 2022-02-17; accession 0000889331-22-000011 (https://www.sec.gov/Archives/edgar/data/889331/000088933122000011/lfus-20220101.htm)




## Macro cross-references

Indicators mapped to this company's SIC classification (industry 3613 Switchgear & Switchboard Apparatus) by grepcent's deterministic macro-sector crosswalk. A navigational mapping, not a statistical or causal claim.

- [INDPRO](/indicator/INDPRO/): Industrial Production: Total Index
- [TCU](/indicator/TCU/): Capacity Utilization: Total Index
- [PPIACO](/indicator/PPIACO/): Producer Price Index by Commodity: All Commodities
- [GDPC1](/indicator/GDPC1/): Real Gross Domestic Product
- [DGS10](/indicator/DGS10/): Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity
- [FEDFUNDS](/indicator/FEDFUNDS/): Federal Funds Effective Rate
- [CES0500000003](/indicator/CES0500000003/): Average Hourly Earnings of All Employees, Total Private
- [PAYEMS](/indicator/PAYEMS/): All Employees, Total Nonfarm

Macro-to-micro threads including this sector: [Inflation (CPI / PCE / PPI)](/thread/inflation-cpi-pce-ppi/), [US labor market](/thread/us-labor-market/), [Growth & output](/thread/growth-output/), [Money & trade](/thread/money-trade/), [Government finances](/thread/government-finances/), [Sector employment](/thread/sector-employment/), [Industrial orders & inventories](/thread/industrial-orders/), [Trade & external](/thread/trade-external/).

All macro indicators: /indicators/


## For LLMs & downloads

Markdown twin: /company/LFUS.md · JSON record: /company/LFUS.json · verified financials: /company/LFUS/financials.json / /company/LFUS/financials.csv · machine TOC for the whole site: /llms.txt