LITTELFUSE INC /DE

Previous wording

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.

Current wording

For the third quarter of 2026, the Company recognized net sales of $766.7 million, an increase of $142.1 million, or 22.7% as compared to $624.6 million in the third quarter of 2025 including $36.1 million, or 5.8% of incremental net sales, from the Basler acquisition within the Industrial segment and $1.0 million, or 0.2% of unfavorable 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 $115.4 million, or $4.49 per diluted share, in the third quarter of 2026 compared to $69.5 million, or $2.77 per diluted share, in the third quarter of 2025. The increase in net income was primarily due to higher operating income of $38.7 million and $16.4 million from the Electronics and Industrial segments, respectively, driven by higher net sales and volume leverage.

Previous wording

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.

Current wording

Net cash provided by operating activities was $456.6 million for the nine months ended September 26, 2026 compared to $295.1 million for the nine months ended September 27, 2025. The increase in net cash provided by operating activities of $161.5 million was primarily due to higher cash earnings and reductions in working capital.

Previous wording

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.

Current wording

The following table summarizes the Company’s unaudited condensed consolidated results of operations for the periods presented. The third quarter of 2026 included $4.7 million ($19.0 million year-to-date) of restructuring charges primarily related to employee termination costs and a $1.3 million non-cash impairment charge related to the acquired customer relationships from the acquisition of Dortmund Fab in the semiconductor business within the Electronics segment. In addition, for the third quarter of 2026, the Company recognized fixed asset impairment charges of $0.2 million ($13.4 million year-to-date) 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 third quarter of 2026, the Company recognized $3.5 million ($5.0 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.

Previous wording

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.

Current wording

The third quarter of 2025 included $1.6 million ($13.1 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 third quarter of 2025, the Company recognized $1.4 million ($3.0 million year-to-date) of legal and professional fees and other integration expenses related to completed and contemplated acquisitions, and a $0.3 million loss related to the sale of the Marine business within the Transportation segment. 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.

Previous wording

Net sales increased $125.4 million, or 20.4%, for the second quarter of 2026 compared to 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 of $44.7 million and $26.1 million in the electronics products and semiconductor businesses within the Electronics segment, respectively, driven by higher end market demand and favorable price, and higher volume from the industrial circuit protection products within the Industrial segment.

Current wording

Net sales increased $142.1 million, or 22.7%, for the third quarter of 2026 compared to the third quarter of 2025 including $36.1 million, or 5.8% of incremental net sales from the Basler acquisition within the Industrial segment and $1.0 million, or 0.2% of unfavorable changes in foreign exchange rates. The remaining increase in net sales was primarily due to higher volume of $55.4 million and $13.4 million in the electronics products and semiconductor businesses within the Electronics segment, respectively, driven by higher end market demand and favorable price, and higher volume from the industrial circuit protection products within the Industrial segment and the commercial vehicle business within the Transportation segment. Net sales from the semiconductor business within the Electronics segment included a one-time reduction of $28.5 million related to a customer contract amendment fee.

Previous wording

Net sales increased $228.0 million, or 19.5%, for the first six months of 2026 compared to the first six months of 2025 including $69.0 million, or 5.9% of incremental net sales from the Basler acquisition within the Industrial segment and $21.5 million, or 1.8% of favorable changes in foreign exchange rates. The remaining increase in net sales was primarily due to higher volume of $82.8 million and $43.4 million in the electronics products and semiconductor businesses within the Electronics segment, respectively, driven by higher end market demand and favorable price, and higher volume from the industrial circuit protection products within the Industrial segment.

Current wording

Net sales increased $370.1 million, or 20.6%, for the first nine months of 2026 compared to the first nine months of 2025 including $105.2 million, or 5.9% of incremental net sales from the Basler acquisition within the Industrial segment and $20.5 million, or 1.1% of favorable changes in foreign exchange rates. The remaining increase in net sales was primarily due to higher volume of $138.3 million and $56.8 million in the electronics products and semiconductor businesses within the Electronics segment, respectively, driven by higher end market demand and favorable price, and higher volume from the industrial circuit protection products within the Industrial segment. Net sales from the semiconductor business within the Electronics segment included a one-time reduction of $28.5 million related to a customer contract amendment fee.

Previous wording

Cost of sales was $432.7 million, or 58.6% of net sales, in the second quarter of 2026 compared to $381.4 million, or 62.2% of net sales, in the second quarter of 2025. The increase of $51.4 million included $20.8 million of incremental cost of sales from the Basler acquisition within the Industrial segment. The remaining increase was due to higher volume in the Electronics segment. As a percent of net sales, cost of sales decreased 3.6% primarily due to improved margin from the Electronics segment and the industrial circuit protection products business within the Industrial segment driven by volume leverage, operational execution, and favorable product mix. The improved margin was also favorably impacted by higher gross margin from the Basler acquisition.

Current wording

Cost of sales was $448.2 million, or 58.5% of net sales, in the third quarter of 2026 compared to $383.7 million, or 61.4% of net sales, in the third quarter of 2025. The increase of $64.5 million included $20.9 million of incremental cost of sales from the Basler acquisition within the Industrial segment. The remaining increase was due to higher volume in the Electronics segment. As a percent of net sales, cost of sales decreased 2.9% primarily due to improved margin from the Electronics and Industrial segments driven by volume leverage, operational execution, and favorable product mix. These margin improvements were partially offset by a reduction in net sales of $28.5 million in the semiconductor business within the Electronics segment related to a one-time customer contract amendment fee, which unfavorably impacted cost of sales as a percent of net sales by 2.1%.

Previous wording

Cost of sales was $835.5 million, or 59.9% of net sales, in the first six months of 2026 compared to $728.4 million, or 62.4% of net sales, in the first six months of 2025. The increase of $107.1 million included $45.9 million of incremental cost of sales from the Basler acquisition within the Industrial segment. The remaining increase was due to higher volume in the Electronics segment. As a percent of net sales, cost of sales decreased 2.5% primarily due to improved margin in the Electronics segment and the industrial circuit protection products business within the Industrial segment driven by volume leverage and operational execution. The improved margin was also favorably impacted by higher gross margin from the Basler acquisition, partially offset by purchase accounting inventory charges of $5.4 million, or 0.4%.

Current wording

Cost of sales was $1,283.7 million, or 59.4% of net sales, in the first nine months of 2026 compared to $1,112.1 million, or 62.0% of net sales, in the first nine months of 2025. The increase of $171.6 million included $66.7 million of incremental cost of sales from the Basler acquisition within the Industrial segment. The remaining increase was due to higher volume in the Electronics segment. As a percent of net sales, cost of sales decreased 2.7% primarily due to improved margin in the Electronics segment and the industrial circuit protection products business within the Industrial segment driven by volume leverage and operational execution. The improved margin was also favorably impacted by higher gross margin from the Basler acquisition, partially offset by a reduction in net sales of $28.5 million, or 0.8% in the semiconductor business within the Electronics segment related to a one-time customer contract amendment fee and purchase accounting inventory charges of $5.4 million, or 0.2%.

Previous wording

Gross profit was $560.2 million, or 40.1% of net sales, in the first six months of 2026 compared to $439.3 million, or 37.6% of net sales, in the first six months of 2025. The increase of $120.9 million in gross profit and the improved gross margin of 2.5% were primarily due to higher volume, operational execution, and favorable product mix from the Electronics segment and the industrial circuit protection business within the Industrial segment. Additionally, gross margin was higher due to higher gross margin from the Basler acquisition, partially offset by the purchase accounting inventory charges of $5.4 million, or 0.4%.

Current wording

Gross profit was $878.8 million, or 40.6% of net sales, in the first nine months of 2026 compared to $680.3 million, or 38.0% of net sales, in the first nine months of 2025. The $198.5 million increase in gross profit included $38.4 million of incremental gross profit from the Basler acquisition within the Industrial segment. The remaining increase in gross profit and the improved gross margin were primarily due to higher volume, operational execution, and favorable product mix from the Electronics segment and the industrial circuit protection business within the Industrial segment. Additionally, gross margin was higher due to higher gross margin from the Basler acquisition, partially offset by a one-time reduction of $28.5 million, or 0.8% in the semiconductor business within the Electronics segment related to a one-time customer contract amendment fee and the purchase accounting inventory charges of $5.4 million, or 0.2%.

Previous wording

Operating expenses were $186.3 million, or 25.2% of net sales, for the second quarter of 2026 compared to $139.3 million, or 22.7% of net sales, for the second quarter of 2025. The increase in operating expenses of $47.1 million was primarily due to higher selling, general, and administrative expenses of $25.1 million due to higher annual incentive expenses and incremental operating expenses of $11.7 million from the Basler acquisition, and higher restructuring, impairment, and other charges of $17.5 million, which included $13.1 million of fixed asset impairment charges primarily related to the announced closure and/or disposition of two manufacturing sites for the semiconductor business within the Electronics segment.

Current wording

Operating expenses were $165.2 million, or 21.5% of net sales, for the third quarter of 2026 compared to $143.6 million, or 23.0% of net sales, for the third quarter of 2025. The increase in operating expenses of $21.6 million was primarily due to higher selling, general, and administrative expenses of $15.0 million due to incremental operating expenses of $12.0 million from the Basler acquisition, higher annual incentive expenses and higher restructuring, impairment, and other charges of $4.6 million, which included $1.3 million of intangible assets impairment charge related to acquired customer relationships from the acquisition of Dortmund Fab in the semiconductor business within the Electronics segment.

Previous wording

Operating expenses were $339.3 million, or 24.3% of net sales, for the first six months of 2026 compared to $276.4 million, or 23.7% of net sales, for the first six months of 2025. The increase in operating expenses of $62.9 million was primarily driven by higher annual incentive expenses and incremental operating expenses of $23.5 million from the Basler acquisition, higher restructuring, impairment, and other charges of $15.9 million, which included $13.1 million of fixed asset impairment charges primarily related to the announced closure and/or disposition of two manufacturing sites for the semiconductor business within the Electronics segment., and higher research and development expenses of $8.3 million.

Current wording

Operating expenses were $504.5 million, or 23.3% of net sales, for the first nine months of 2026 compared to $420.0 million, or 23.4% of net sales, for the first nine months of 2025. The increase in operating expenses of $84.6 million was primarily driven by incremental operating expenses of $35.5 million from the Basler acquisition, higher annual incentive expenses, higher restructuring, impairment, and other charges of $20.5 million, which included $13.4 million of fixed asset impairment charges primarily related to the announced closure and/or disposition of two manufacturing sites for the semiconductor business within the Electronics segment, and higher research and development expenses of $10.7 million.

Previous wording

Operating income was $119.7 million, representing an increase of $26.9 million, or 29.0%, for the second quarter of 2026 compared to $92.8 million for the second quarter of 2025. The increase in operating income was due to higher gross profit from the Electronics segment and the industrial circuit protection products business within the Industrial segment, partially offset by higher operating expenses noted above. Operating margins increased from 15.1% in the second quarter of 2025 to 16.2% in the second quarter of 2026 due to improved gross margin from the Electronics segment and the industrial circuit protection products business within the Industrial segment driven by volume leverage, operational execution, and favorable price and product mix and incremental operating income from the Basler acquisition, partially offset by higher selling, general, and administrative expenses and restructuring, impairment, and other charges noted above.

Current wording

Operating income was $153.4 million, representing an increase of $55.9 million, or 57.4%, for the third quarter of 2026 compared to $97.4 million for the third quarter of 2025. The increase in operating income included the incremental operating income from the Basler acquisition. The remaining increase in operating income was due to higher gross profit from the Electronics segment, across all businesses within the Industrial segment and the commercial vehicle business with the Transportation segment, partially offset by higher operating expenses noted above. Operating margins increased from 15.6% in the third quarter of 2025 to 20.0% in the third quarter of 2026 due to improved gross margin from the Electronics and Industrial segments, and the commercial vehicle business within the Transportation segment driven by volume leverage, favorable price, operational execution, and favorable product mix, partially offset by higher selling, general, and administrative expenses and restructuring, impairment, and other charges noted above.

Previous wording

Operating income was $220.9 million, representing an increase of $58.0 million, or 35.6%, for the first six months of 2026 compared to $162.9 million for the first six months of 2025. The increase in operating income was due to higher gross profit from the Electronics segment, the industrial circuit protection products business within the Industrial segment, and the passenger car products business within the Transportation segment, partially offset by higher operating expenses mainly driven by the Basler acquisition noted above. Operating margins increased from 14.0% in the first six months of 2025 to 15.8% in the first six months of 2026 due to improved gross margin from the electronics products business within the Electronics segment and the industrial circuit protection products business within the Industrial segment driven by volume leverage, operational execution and favorable price and product mix, partially offset by higher selling, general, and administrative expenses, and restructuring, impairment, and other charges noted above.

Current wording

Operating income was $374.2 million, representing an increase of $113.9 million, or 43.8%, for the first nine months of 2026 compared to $260.3 million for the first nine months of 2025. The increase in operating income was due to higher gross profit from the Electronics segment and the industrial circuit protection products business within the Industrial segment, and the incremental gross profit from the Basler acquisition within the Industrial segment, partially offset by higher operating expenses noted above. Operating margins increased from 14.5% in the first nine months of 2025 to 17.3% in the first nine months of 2026 due to improved gross margin from the Electronics segment and the industrial circuit protection products business within the Industrial segment driven by volume leverage, operational execution and favorable price and product mix, partially offset by higher selling, general, and administrative expenses, and restructuring, impairment, and other charges, and higher research and development expenses noted above.

Previous wording

Income before income taxes was $117.1 million, or 15.8% of net sales, for the second quarter of 2026 compared to $78.2 million, or 12.8% of net sales, for the second quarter of 2025. In addition to the factors impacting comparative results for operating income discussed above, income before income taxes was primarily benefited by foreign exchange gains of $0.2 million in the second quarter of 2026 compared to foreign exchange losses of $10.4 million in the second quarter of 2025.

Current wording

Income before income taxes was $150.2 million, or 19.6% of net sales, for the third quarter of 2026 compared to $94.7 million, or 15.2% of net sales, for the third quarter of 2025. In addition to the factors impacting comparative results for operating income discussed above, income before income taxes was primarily impacted by higher foreign exchange losses of $1.5 million and lower interest income from short term cash investments in the third quarter of 2026 compared to the third quarter of 2025, offset by lower interest expense due to lower borrowings compared to the third quarter of 2025.

Previous wording

Income before income taxes was $213.8 million, or 15.3% of net sales, for the first six months of 2026 compared to $138.2 million, or 11.8% of net sales, for the first six months of 2025. In addition to the factors impacting comparative results for operating income discussed above, income before income taxes was primarily benefited by foreign exchange gains of $2.6 million in the first six months of 2026 compared to foreign exchange losses of $15.3 million in the first six months of 2025.

Current wording

Income before income taxes was $364.0 million, or 16.8% of net sales, for the first nine months of 2026 compared to $232.9 million, or 13.0% of net sales, for the first nine months of 2025. In addition to the factors impacting comparative results for operating income discussed above, income before income taxes primarily benefited from foreign exchange gains of $0.9 million in the first nine months of 2026 compared to foreign exchange losses of $15.5 million in the first nine months of 2025.

Previous wording

The effective tax rate for the three and six months ended June 27, 2026 was 23.6% and 23.0%, respectively, compared to the effective tax rate for the three and six months ended June 28, 2025 of 26.7% and 27.0%, respectively. The effective tax rate for 2026 was lower than the effective tax rate for the comparable 2025 periods primarily due to lapses in the statute of limitations for previously unrecognized tax benefits and excess tax benefits for share based compensation recognized in 2026, as well as foreign exchange losses in non-U.S. jurisdictions with no related tax benefit recognized in 2025.

Current wording

The effective tax rate for the three and nine months ended September 26, 2026 was 23.2% and 23.1%, respectively, compared to the effective tax rate for the three and nine months ended September 27, 2025 of 26.6% and 26.8%, respectively. The effective tax rate for 2026 was lower than the effective tax rate for the comparable 2025 periods primarily due to a one-time tax benefit associated with the dissolution of one of the Company's affiliates, lapses in the statute of limitations for previously unrecognized tax benefits, and excess tax benefits related to share-based compensation recognized in 2026. In addition, the 2025 effective tax rate was adversely impacted by foreign exchange losses in non-U.S. jurisdictions for which no related tax benefit was recognized.

Previous wording

The effective tax rate for the three and six months ended June 27, 2026 was higher than the statutory tax rate primarily due to losses in non-U.S. jurisdictions with no related tax benefit, partially offset by lapses in the statute of limitations for previously unrecognized tax benefits as well as excess tax benefits for share based compensation. The effective tax rate for the three and six months ended June 28, 2025 was higher than the statutory tax rate primarily due to foreign exchange losses and losses in non-U.S. jurisdictions with no related tax benefit.

Current wording

The effective tax rate for three and nine months ended September 26, 2026 was higher than the statutory tax rate primarily due to losses in non-U.S. jurisdictions with no related tax benefit recognized, partially offset by the one-time tax benefit associated with the dissolution of one of the Company's affiliates, lapses in the statute of limitations for previously unrecognized tax benefits, and excess tax benefits related to share-based compensation. The effective tax rate for the three and nine months ended September 27, 2025 was higher than the statutory tax rate primarily due to foreign exchange losses and losses in non-U.S. jurisdictions with no related tax benefit recognized.

Previous wording

(a) Included in "Other" Operating income for the second quarter of 2026 was $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.

Current wording

(a) Included in "Other" Operating income for the third quarter of 2026 included $4.7 million ($19.0 million year-to-date) of restructuring charges primarily related to employee termination costs and a $1.3 million non-cash impairment charge related to the acquired customer relationships from the acquisition of Dortmund Fab in the semiconductor business within the Electronics segment. In addition, for the third quarter of 2026, the Company recognized fixed assets impairment charges of $0.2 million ($13.4 million year-to-date) 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 third quarter of 2026, the Company recognized $3.5 million ($5.0 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 purchase accounting inventory step-up adjustment related to the Basler acquisition.

Previous wording

Included in "Other" Operating income for the second quarter of 2025 was $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.

Current wording

Included in "Other" Operating income for the third quarter of 2025 was $1.6 million ($13.1 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 third quarter of 2025, the Company recognized $1.4 million ($3.0 million year-to-date) of legal and professional fees and other integration expenses related to completed and contemplated acquisitions, and a $0.3 million loss related to the sale of the Marine business within the Transportation segment. During the first quarter of 2025, the Company recognized a $0.5 million purchase accounting inventory step-down adjustment related to the Dortmund Fab acquisition.

Previous wording

Operating income was $86.9 million, representing an increase of $37.1 million, or 74.3%, for the second quarter of 2026 compared to $49.9 million for the second quarter of 2025. The increase in operating income was primarily due to volume leverage, favorable product mix, and operational execution. Operating margins increased from 14.9% in the second quarter of 2025 to 21.4% in the second quarter of 2026 primarily due to volume leverage, operational execution and favorable price and product mix from the electronics products and the semiconductor businesses.

Current wording

Operating income was $102.4 million, representing an increase of $38.7 million, or 60.8%, for the third quarter of 2026 compared to $63.6 million for the third quarter of 2025. The increase in operating income was primarily due to volume leverage, favorable product mix, and operational execution. Operating margins increased from 17.8% in the third quarter of 2025 to 24.0% in the third quarter of 2026 primarily due to volume leverage, operational execution and favorable price and product mix from the electronics products and the semiconductor businesses, partially offset by a one-time reduction of $28.5 million related to a customer contract amendment fee.

Previous wording

Operating income was $157.2 million, representing an increase of $60.6 million, or 62.7%, for the first six months of 2026 compared to $96.6 million for the first six months of 2025. The increase in operating income was primarily from the electronics products business due to volume leverage and favorable product mix. Operating margins increased from 15.0% in the first six months of 2025 to 20.4% in the first six months of 2026 primarily due to volume leverage, operational execution, and favorable price and product mix from the electronics products and the semiconductor businesses.

Current wording

Operating income was $259.5 million, representing an increase of $99.3 million, or 61.9%, for the first nine months of 2026 compared to $160.3 million for the first nine months of 2025. The increase in operating income was primarily from the electronics products business due to volume leverage and favorable product mix. Operating margins increased from 16.0% in the first nine months of 2025 to 21.7% in the first nine months of 2026 primarily due to volume leverage, operational execution, and favorable price and product mix from the electronics products and the semiconductor businesses, partially offset by a one-time reduction of $28.5 million related to a customer contract amendment fee.

Previous wording

Net sales increased $3.0 million, or 1.7%, in the second quarter of 2026 compared to the second quarter of 2025 and included favorable changes in foreign exchange rates of $1.7 million, or 1.0%. The remaining net sales increase was due to higher volume in the commercial vehicle business within the Asia region, partially offset by lower volume from the automotive sensors business driven by the strategic exit of certain lower margin products.

Current wording

Net sales increased $11.3 million, or 6.6%, in the third quarter of 2026 compared to the third quarter of 2025 and included unfavorable changes in foreign exchange rates of $0.1 million, or 0.1%. The net sales increase was due to higher volume in the commercial vehicle business driven by improved truck, data center, material handing, construction and agricultural equipment demand, partially offset by lower volume from the passenger car products driven by lower market demand due to lower global passenger car builds and automotive sensors businesses driven by the strategic exit of certain lower margin products.

Previous wording

Net sales increased $11.5 million, or 3.4%, in the first six months of 2026 compared to the first six months of 2025 and included favorable changes in foreign exchange rates of $7.9 million, or 2.3%. The remaining net sales increase was due to higher volume in the passenger car products and the commercial vehicle businesses, partially offset by lower volume from the automotive sensors business driven by the strategic exit of certain lower margin products.

Current wording

Net sales increased $22.9 million, or 4.5%, in the first nine months of 2026 compared to the first nine months of 2025 and included favorable changes in foreign exchange rates of $7.8 million, or 1.5%. The remaining net sales increase was due to higher volume in the commercial vehicle and passenger car products businesses, partially offset by lower volume from the automotive sensors business driven by the strategic exit of certain lower margin products.

Previous wording

Net sales increased $90.2 million, or 49.2%, in the first six months of 2026 compared to the first six months of 2025 including $69.0 million, or 37.6% of incremental net sales from the Basler acquisition and favorable changes in foreign exchange rates of $0.6 million or 0.4%. The remaining net sales increase was from the industrial circuit protection products driven by higher volume, partially offset by lower volume from industrial control and sensor products.

Current wording

Net sales increased $152.2 million, or 54.5%, in the first nine months of 2026 compared to the first nine months of 2025 including $105.2 million, or 37.6% of incremental net sales from the Basler acquisition and favorable changes in foreign exchange rates of $0.2 million, or 0.1%. The remaining net sales increase was primarily from the industrial circuit protection products driven by higher volume and favorable price.

Previous wording

Operating income was $27.5 million, representing an increase of $8.6 million, or 45.7%, for the second quarter of 2026 compared to $18.9 million for the second quarter of 2025. The increase in operating income was due to higher gross margin from the industrial circuit protection products driven by volume leverage, operational efficiencies, favorable product mix and the incremental increases from the Basler acquisition. Operating margins decreased from 19.2% in the second quarter of 2025 to 18.3% in the second quarter of 2026 due to higher amortization expenses of $2.9 million, or 2.0% related to the Basler acquisition noted previously, partially offset by improved gross margin in the industrial circuit protection products.

Current wording

Operating income was $33.3 million, representing an increase of $16.4 million, or 97.1%, for the third quarter of 2026 compared to $16.9 million for the third quarter of 2025. The increase in operating income was due to higher gross profit margin from the industrial circuit protection products driven by volume leverage, operational efficiencies, favorable price and the incremental increases from the Basler acquisition. Operating margins increased from 17.6% in the third quarter of 2025 to 21.1% in the third quarter of 2026.

Previous wording

Operating income was $48.2 million, representing an increase of $16.3 million, or 51.0%, for the first six months of 2026 compared to $31.9 million for the first six months of 2025. The increase in operating income was due to higher gross margin from the industrial circuit protection products driven by volume leverage, operational efficiencies, favorable product mix and the incremental increases from the Basler acquisition. Operating margins increased from 17.4% in the first six months of 2025 to 17.6% in the first six months of 2026 due to improved gross margin in the industrial circuit protection products and the Basler acquisition noted previously, partially offset by higher amortization expenses of $5.9 million, or 2.2% related to the Basler acquisition.

Current wording

Operating income was $81.6 million, representing an increase of $32.7 million, or 67.0%, for the first nine months of 2026 compared to $48.9 million for the first nine months of 2025. The increase in operating income was due to higher gross margin from the industrial circuit protection products driven by volume leverage, operational efficiencies, favorable price and the incremental increases from the Basler acquisition. Operating margins increased from 17.5% in the first nine months of 2025 to 18.9% in the first nine months of 2026.

Previous wording

Cash and cash equivalents were $628.2 million as of June 27, 2026, an increase of $64.8 million, as compared to December 27, 2025. As of June 27, 2026, $139.3 million of the Company's $628.2 million cash and cash equivalents was held by U.S. subsidiaries.

Current wording

Cash and cash equivalents were $824.8 million as of September 26, 2026, an increase of $261.4 million, as compared to December 27, 2025. As of September 26, 2026, $195.8 million of the Company's $824.8 million cash and cash equivalents was held by U.S. subsidiaries.

Previous wording

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 of $353.1 million, net of cash acquired, subject to a working capital adjustment. The acquisition was funded with the Company's cash on hand.

Current wording

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 $352.0 million, net of cash acquired. The acquisition was funded with the Company's cash on hand.

Previous wording

During the second quarter of 2026, the Company paid quarterly dividends of $19.0 million to its shareholders. On July 29, 2026, the Company announced the declaration of a quarterly cash dividend of $0.80 per share, a 7% increase from the first quarter, payable on September 3, 2026 to stockholders of record as of August 20, 2026.

Current wording

During the third quarter of 2026, the Company paid quarterly dividends of $20.3 million to its common stockholders. On October 28, 2026, the Company announced the declaration of a quarterly cash dividend of $0.80 per share, payable on December 3, 2026 to common stockholders of record as of November 19, 2026.

Previous wording

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.

Current wording

Net cash provided by operating activities was $456.6 million for the nine months ended September 26, 2026 compared to $295.1 million for the nine months ended September 27, 2025. The increase in net cash provided by operating activities of $161.5 million was primarily due to higher cash earnings and reductions in working capital.

Previous wording

Net cash used in investing activities was $26.7 million for the six months ended June 27, 2026 compared to $89.7 million during the six months ended June 28, 2025. Capital expenditures for the six months ended June 27, 2026 were $33.0 million compared to $33.0 million for the six months ended June 28, 2025. The Company made a payment of $2.8 million for the Basler acquisition during the six months ended June 27, 2026. Net cash paid for the Dortmund Fab acquisition was $57.4 million during the six months ended June 28, 2025. In addition, the Company received proceeds of $7.4 million from the sale of the investment in Polytronics Technology Corporation Ltd. (“Polytronics”) and $1.7 million from an asset held for sale from the Basler acquisition during the six months ended June 27, 2026.

Current wording

Net cash used in investing activities was $39.9 million for the nine months ended September 26, 2026 compared to $99.7 million during the nine months ended September 27, 2025. Capital expenditures for the nine months ended September 26, 2026 were $47.5 million compared to $48.7 million for the nine months ended September 27, 2025. The Company paid $2.8 million of indebtedness as part of the purchase consideration and received a final working capital adjustment of $1.1 million for the Basler acquisition during the nine months ended September 26, 2026. Net cash paid for the Dortmund Fab acquisition was $57.4 million during the nine months ended September 27, 2025. In addition, the Company received proceeds of $7.4 million from the sale of the investment in Polytronics Technology Corporation Ltd. and $1.7 million from an asset held for sale from the Basler acquisition during the nine months ended September 26, 2026. During the nine months ended September 27, 2025, the Company received proceeds of $5.6 million from the sale of the Marine business within the Transportation segment.

Previous wording

Net cash used in financing activities was $131.9 million for the six months ended June 27, 2026 compared to $120.5 million for the six months ended June 28, 2025. On March 12, 2026, the Company entered into the Credit Agreement to amend and restate and effect certain changes to its existing credit agreement, dated as of June 30, 2022. 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 revolving credit facility under the Credit Agreement. Prior to the amendment on March 12, 2026, the Company paid off $100.0 million of the revolving credit facility and $3.8 million of the term loan under the prior Credit Agreement during the first quarter of 2026. During the six months ended June 28, 2025, the Company paid off $50.0 million of U.S. Senior Notes, Series A, due February 15, 2025 and made payments of $7.5 million on the term loan. The Company received $75.6 million of net proceeds related to stock-based award activities during the six months ended June 27, 2026 compared to $0.6 million for the six months ended June 28, 2025. In addition, the Company paid dividends of $37.9 million and $34.7 million in the six months ended June 27, 2026 and June 28, 2025, respectively. During the six months ended June 28, 2025, the Company repurchased 120,689 shares of its common stock totaling $27.4 million.

Current wording

Net cash used in financing activities was $152.4 million for the nine months ended September 26, 2026 compared to $126.3 million for the nine months ended September 27, 2025. On March 12, 2026, the Company entered into the Credit Agreement to amend and restate and effect certain changes to its existing credit agreement, dated as of June 30, 2022. 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 revolving credit facility under the Credit Agreement. Prior to the amendment on March 12, 2026, the Company paid off $100.0 million of the revolving credit facility and $3.8 million of the term loan under the prior Credit Agreement during the first quarter of 2026. During the nine months ended September 27, 2025, the Company paid off $50.0 million of U.S. Senior Notes, Series A, due February 15, 2025 and made payments of $11.3 million on the term loan. The Company received $75.5 million of net proceeds related to stock-based award activities during the nine months ended September 26, 2026 compared to $17.9 million for the nine months ended September 27, 2025. In addition, the Company paid dividends of $58.2 million and $53.3 million in the nine months ended September 26, 2026 and September 27, 2025, respectively. During the nine months ended September 27, 2025, the Company repurchased 120,689 shares of its common stock totaling $27.4 million and paid a $0.2 million excise tax related to the share repurchases.

Previous wording

On April 25, 2024, the Company's Board of Directors authorized a three-year program to repurchase up to $300.0 million in the aggregate of shares of the Company's stock for the period from May 1, 2024 to April 30, 2027 ("2024 program"). The Company did not repurchase any shares of its common stock for the three and six months ended June 27, 2026. The Company repurchased 120,689 shares of its common stock totaling $27.4 million pursuant to the 2024 program during the first quarter of 2025. The Company did not repurchase any shares of its common stock for the three months ended June 28, 2025.

Current wording

On April 25, 2024, the Company's Board of Directors authorized a three-year program to repurchase up to $300.0 million in the aggregate of shares of the Company's common stock for the period from May 1, 2024 to April 30, 2027 ("2024 program"). The Company did not repurchase any shares of its common stock for the three and nine months ended September 26, 2026. The Company did not repurchase any shares of its common stock for the three months ended September 27, 2025. During the nine months ended September 27, 2025, the Company repurchased 120,689 shares of its common stock totaling $27.4 million pursuant to the 2024 program.

Previous wording

The Company’s Condensed Consolidated Financial Statements are prepared in accordance with U.S. GAAP. In connection with the preparation of the Condensed Consolidated Financial Statements, the Company uses estimates and makes judgments and assumptions about future events that affect the reported amounts of assets, liabilities, revenue, expenses, and the related disclosures. The assumptions, estimates, and judgments are based on historical experience, current trends, and other factors the Company believes are relevant at the time it prepares the Condensed Consolidated Financial Statements.

Current wording

The Company’s Condensed Consolidated Financial Statements are prepared in accordance with U.S. Generally Accepted Accounting Principles. In connection with the preparation of the Condensed Consolidated Financial Statements, the Company uses estimates and makes judgments and assumptions about future events that affect the reported amounts of assets, liabilities, revenue, expenses, and the related disclosures. The assumptions, estimates, and judgments are based on historical experience, current trends, and other factors the Company believes are relevant at the time it prepares the Condensed Consolidated Financial Statements.

Previous wording

The significant accounting policies and critical accounting estimates are consistent with those discussed in Note 1, Summary of Significant Accounting Policies and Other Information, to the consolidated financial statements and the MD&A section of the Company’s Annual Report on Form 10-K for the year ended December 27, 2025. During the six months ended June 27, 2026, there were no significant changes in the application of critical accounting policies and estimates.

Current wording

The significant accounting policies and critical accounting estimates are consistent with those discussed in Note 1, Summary of Significant Accounting Policies and Other Information, to the consolidated financial statements and the MD&A section of the Company’s Annual Report on Form 10-K for the year ended December 27, 2025. During the nine months ended September 26, 2026, there were no significant changes in the application of critical accounting policies and estimates.