LITTELFUSE INC /DE has recently released its 10-Q report for the quarter ended March 28, 2026. Littelfuse designs and sells electronic components, modules, and subassemblies through three segments: Electronics, Transportation, and Industrial. Its products are used in applications ranging from power protection and switching to sensing and circuit control, and the company sells through distributors, direct sales, and manufacturers’ representatives.
In Item 2, management said first-quarter 2026 net sales rose to $657.0 million from $554.3 million a year earlier, up $102.7 million, or 18.5%. The company attributed $33.2 million of that increase to the Basler acquisition in Industrial and $17.5 million to foreign exchange, with the rest mainly from higher volume in Electronics. Net income climbed to $75.1 million, or $2.96 per diluted share, from $43.6 million, or $1.75 per diluted share.
Operating cash flow increased to $80.3 million from $65.8 million. Littelfuse said the gain was driven by higher cash earnings, partly offset by working-capital use tied to higher annual incentive bonus payments in 2026. The company also said it recognized $7.4 million of restructuring charges in the quarter, plus $1.2 million of legal, professional, and integration expenses related to acquisitions and a $5.4 million inventory step-up adjustment tied to Basler.
Gross profit rose to $254.1 million from $207.3 million, and gross margin improved to 38.7% from 37.4%. Cost of sales increased to $402.8 million from $347.1 million, but as a share of sales it fell to 61.3% from 62.6%. Operating income advanced to $101.2 million from $70.2 million, pushing operating margin to 15.4% from 12.7%.
The Electronics segment was the main driver of the quarter’s improvement, with management citing higher volume in electronics products and semiconductor businesses. Industrial also benefited from Basler, while Transportation saw better gross margin in passenger car products. Income before taxes increased to $96.7 million from $59.9 million, helped by foreign exchange gains of $2.4 million versus losses of $4.8 million a year earlier.
The effective tax rate fell to 22.3% from 27.3%, mainly because previously unrecognized tax benefits became recognized after statute-of-limitations lapses. In financing, Littelfuse amended its credit agreement on March 12, 2026, eliminated a $300 million term loan, expanded its revolver to $800 million from $700 million, and extended maturity to March 12, 2031. It paid off $62.5 million of term loan debt and refinanced $200 million of term loan borrowings into the revolver. The market has reacted to these announcements by moving the company's shares 4.38% to a price of $441.31. If you want to know more, read the company's complete 10-Q report here.
