Littelfuse, Inc.

Good day, everyone, and welcome to the Little Fuse 4th Quarter 2025 Earnings Conference Call. Today's call is being recorded. At this time, I will turn the call over to Head of Investor Relations, David Kelly. Please proceed.

Good morning, and welcome to the Little Fuse 4th Quarter 2025 Earnings Conference Call. With me today are Greg Henderson, President and CEO, and Abhi Kandilwal, Executive Vice President and CFO. This morning we reported results for our fourth quarter, and a copy of our earnings release and slide presentation is available in the investor relations section of our website. A webcast of today's conference call will also be available on our website. Please advance to slide two for our disclaimers. Our discussions today will include forward-looking statements. These forward-looking statements may involve significant risks and uncertainties. Please review today's press release and our forms 10-K and 10-Q for more detail about important risks that could cause actual results to differ materially from our expectations. We assume no obligation to update any of this forward-looking information. Also, our remarks today refer to non-GAAP financial measures. A reconciliation of these non-GAAP financial measures to the most comparable GAAP measure is provided in our earnings release available in the investor relations section of our website. I will now turn the call over to Greg.

Thank you, David, and thank you to everyone for joining us today. This morning, I will provide highlights on our fourth quarter and then an update on the progress we're making on our strategic priorities. But I wanted to start by highlighting two recent exciting developments. First, we closed the acquisition of Bassler Electric in December. Bassler strengthens our high power capabilities and expands our position in key growth markets, including grid and utility infrastructure and data center. I got the opportunity to meet their leadership and technical teams last month, and this left me even more excited about Bassler's market and technology positioning, scalability, and long-term growth opportunities with LittleFuse. Second, we are excited to announce that we'll host an Investor Day on May 14th in New York, where we'll provide a detailed review of our strategy and long-term financial goals. I look forward to sharing more about LittleFuse and our opportunities at this event. Now, turning to our fourth quarter, we delivered strong performance with year-over-year revenue growth of 12%. Across our businesses, we continue to drive momentum in our high-growth markets. We delivered double-digit revenue growth in data center, grid and utility infrastructure, and renewables markets. Automotive grew mid-single digits despite declining global vehicle production in the quarter. Finally, we're seeing emerging signs of broad-based industrial recovery into 2026. In the fourth quarter, our teams also delivered on our operational excellence priority, which culminated in our earnings results exceeding the high end of our guidance range. Throughout 2025, we remained focused on executing our strategic priorities, and we exited the year with a robust backlog and considerable momentum. Entering 2026, we are well positioned to drive strong performance. We expect to deliver double-digit first quarter revenue growth and significant earnings expansion, supported by our fourth quarter bookings, up more than 20% versus the prior year. Avi will discuss specific results and our outlook in more detail shortly, but I want to thank our global teams for their persistent hard work and efforts. Now, I want to share the progress we're making as we enhance our focus on future growth opportunities. Our end markets require increasingly higher power and higher energy density solutions from Little Fuse. We are seeing broad-based momentum reflected in our 2025 design wins, which were up double-digit relative to the prior year. Today, I wanted to specifically highlight our grid and utility infrastructure opportunity. If you turn to slide 6, our position in this high growth market was significantly bolstered by the closing of our Bassel Electric acquisition this past December. with approximately $3 trillion expected to be invested in grid modernization through 2030. The market is demanding more advanced and higher power protection and excitation systems. With the strategic timing of the acquisition, we are well positioned to help our expanding grid and utility customer base navigate the challenges of higher voltages and increasingly complex system requirements. Bassler enhances our core high power protection capabilities and equips us to sell more complete solutions. We believe our complimentary portfolio, coupled with our deeply embedded relationships, positions us for double digit growth and strong profitability within this market. An example of our expanding reach, this quarter BASA was selected as a design partner for a next generation control system solution for a leading player in the high power industrial and data center backup generator market. Now turning to our second strategic priority, which is to work more closely with our customers to help better understand and solve their technology challenges. Our new go-to-market evolution is live, and we're seeing the early signs of success following our Salesforce realignment, which is now market-facing, customer-centric, and focused on solving our customers' most complex challenges with our complete technology portfolio. As an example, we continue to drive significant progress in the data center market, where we were early to adapt our new sales model. Our 2025 data center design wins more than doubled relative to the prior year. As you can see on slide seven, We have a comprehensive data center technology portfolio, and we are capturing meaningful wins with leading hyperscaler, cloud, and infrastructure customers. The data center market is undergoing a significant architectural shift to high power systems. As shown on slide eight, we believe our content opportunity on these next generation architectures will be significantly more than double current levels. Importantly, we also have meaningful growth opportunities across the data center infrastructure ecosystem. and the acquisition of Bassler further expands our high-power data center infrastructure capabilities. To illustrate our momentum, we secured a significant design win for a static transfer switch with a leading data center infrastructure provider. This solution leverages our high-power semiconductor and packaging technology, which enables increased power density of approximately 20%, improved efficiency, and simplified integration into the customer's equipment. This win is for a 2-megawatt UPS bypass and power distribution unit application, that enables uninterrupted power to data center racks. Shipments are slated to begin in the first half of 2026, representing continued momentum and growth in high-powered data center solutions. Turning to our third strategic priority, enhancing operational excellence. Today, I want to highlight our semiconductor business opportunities. This business is core to our technology differentiation. Our market-leading protection and complementary power semiconductor products are critical to our mission of enabling a safe and efficient transfer of electrical energy. Last quarter we shared that we made a change in semiconductor leadership. I would like to provide an update on the strategic progress we're making in optimizing our power semiconductor products, which accounts for roughly half our semiconductor business. First, we have made a decision to sharpen our focus on high-value and high-growth applications. We have differentiated technology and strong customer relationships in high-power markets, such as data center, battery energy storage, grid and utility infrastructure. We have started the process of rationalizing our portfolio. to reduce exposure to lower value product families and are aligning our manufacturing strategy accordingly. As part of this initiative, we are reviewing our power semiconductor manufacturing footprint to ensure it is optimized and resilient. We believe these actions will significantly improve the strategic focus and profitability of the business and position us to deliver next generation technologies that will drive growth in our targeted markets. We look forward to providing further updates on these initiatives and sharing our firm's strategic and financial roadmap at our May investor day. Taking a step back, we closed 2025 with considerable momentum, reflected in our fourth quarter performance. We closed the Basler acquisition and drove robust backlog through customer and market traction throughout year end. Into 2026, we are focused on executing our three strategic priorities and believe we are positioning LittleFuse today for meaningful long-term scale and leading shareholder performance. With that, I'll hand the call over to Avi.