Littelfuse Inc

Littelfuse, Inc. (LFUS) is an electronics component supplier specializing in power management fuses for electrical products. The company has seen significant growth in its high-medium voltage protection products, which are crucial for the AI data center buildout. This segment has grown to around 20% of the business and is highly profitable. The stock surged 40% since March, with bookings up more than 20% year over year and rising EPS. Management is returning cash to shareholders through increasing dividends and stock buybacks, and despite its recent gains, LFUS trades at a discount to peers averaging nearly 40X earnings.

Littelfuse (LFUS) is positioned as a durable business that benefits from the ongoing AI build-out. The company specializes in circuit protection and electronic components, which are essential for advanced computing. The manager believes that Littelfuse, along with other 'picks and shovels' of the AI build-out, can benefit for years, not just quarters. This positions Littelfuse favorably in a market that is increasingly focused on companies with strong fundamentals and long-term growth potential.

Littelfuse is an industrial manufacturing company focused on developing circuit protection, sensing, and power control products used to safeguard electrical systems in automotive, industrial, and electronics end markets. The company reported strong results for the quarter with revenues rising 12% and margins improving by over 500 basis points. In addition, their data center business is growing very strongly and is now up to a double-digit percentage of revenue. Data center design wins doubled in 2025 and next generation data centers use significantly more of Littelfuse’s content, often double or more. We expect the data center opportunity to contribute meaningfully to growth and continued margin expansion going forward.

Littelfuse is an industrial manufacturing company focused on developing circuit protection, sensing, and power control products used to safeguard electrical systems in automotive, industrial, and electronics end markets. The company reported strong results for the quarter with revenues rising 12% and margins improving by over 500 basis points. In addition, their data center business is growing very strongly and is now up to a double-digit percentage of revenue. Data center design wins doubled in 2025 and next generation data centers use significantly more of Littelfuse’s content, often double or more. We expect the data center opportunity to contribute meaningfully to growth and continued margin expansion going forward.

Littelfuse is an industrial manufacturing company focused on developing circuit protection, sensing, and power control products used to safeguard electrical systems in automotive, industrial, and electronics end markets. The company reported strong results for the quarter with revenues rising 12% and margins improving by over 500 basis points. Their data center business is growing very strongly and is now up to a double-digit percentage of revenue. Data center design wins doubled in 2025 and next generation data centers use significantly more of Littelfuse’s content, often double or more. We expect the data center opportunity to contribute meaningfully to growth and continued margin expansion going forward.

Littelfuse (LFUS) performed particularly well due to increased demand for its data center products as technology companies rush to invest in projects to power advances in Generative AI. This trend highlights the company's durable competitive advantage in a sector that is experiencing significant growth. The Fund's focus on companies with a durable competitive advantage and reasonable valuation resulted in equity outperformance during the quarter, further solidifying Littelfuse's position as a key holding.

We made significant additions to the Fund’s holdings in Littelfuse (LFUS), taking the position above a 1% weight. Littelfuse is an electronics component manufacturer that has become significantly more attractively priced during the quarter. The company sits cleanly atop our four pillars, indicating strong fundamentals and a long-term perspective. This suggests that we see potential for growth and value in Littelfuse, aligning with our investment strategy focused on quality businesses.

We made significant additions to the Fund’s holdings in Littelfuse (LFUS), taking the position above a 1% weight. Littelfuse is an electronics component manufacturer that has become significantly more attractively priced during the quarter. The company sits cleanly atop each of our four pillars, indicating strong fundamentals and a long-term perspective. We believe that Littelfuse's position in the market and its operational quality will contribute positively to our portfolio.

Littelfuse, Inc. experienced weaker demand during the first quarter, which was compounded by broader macro softness. The company is tied to the automotive and industrial sectors, which are currently facing challenges. This has negatively impacted its performance, contributing to the underperformance of the Mairs & Power Small Cap Fund. Given these factors, the outlook for Littelfuse appears cautious as it navigates through these market conditions.

Littelfuse, Inc. experienced weaker demand during the first quarter, which was compounded by broader macro softness. This decline in demand is particularly concerning as it is tied to both the automotive and industrial sectors, which are currently facing challenges. The overall performance of Littelfuse has contributed negatively to the fund's relative performance, indicating that the company is struggling in the current market environment.