Operator: Welcome to The Littelfuse Third Quarter 2026 earnings conference call. Today's call is being recorded. At this time, I will turn the call over to the Vice President of Investor Relations, David Kelley. Please proceed.
David Kelley: Good morning, and welcome to the Littelfuse third quarter 2026 earnings conference call. With me today are Greg Henderson, President and CEO, and Abhi Khandelwal, Executive Vice President and CFO. This morning, we reported results for our third 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 2 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.
David Kelley: A reconciliation of these non-GAAP financial measures to the most comparable GAAP measure is provided on our earnings release, available in the investor relations section of our website. I will now turn the call over to Greg.
Greg Henderson: Thank you, David, and thank you to everyone for joining us today. This morning, I will provide details on our Q3 results, including performance highlights across our end markets. I will then share progress against our strategic priorities before turning the call over to Abhi to review our segment financials and Q4 outlook. Turning to the quarter, we delivered record net sales of $767 million. Our Q3 results were impacted by a one-time Dortmund contract amendment fee that reduced semiconductor sales by $28.5 million, which we will discuss in more detail shortly. Organic revenue growth accelerated to 22% year over year, driven by execution on our strategic priorities and demand strength across our markets. We also delivered significant margin expansion and 96% year-on-year earnings growth in the Q3. This culminated in an adjusted earnings of $5.79, a record for the company.
Greg Henderson: Finally, I wanted to highlight our free cash flow performance, which is up 66% year to date, reinforcing our strong execution. Turning to performance across our end market exposures, Computing, Communications, and Diversified Industrials, or CCDI, delivered another quarter of strong growth. Data center was again a leading contributor as we continue to capitalize on our unique grid-to-chip capability and customer-focused go-to-market model. Our data center backlog is expanding, and we see traction in our opportunity pipeline and design wins. Across diversified industrials, we delivered broad-based growth led by demand for medical and A&D applications. We also continued to execute on strong orders from our broad market channel partners, as end customer POS remains very healthy across geographies and applications. Turning to Energy and Industrial Infrastructure, or EII, we saw broad-based demand momentum, and Basler Electric continues to perform well.
Greg Henderson: Within industrial infrastructure, growth was led by industrial automation, heavy construction, and HVAC demand recovery. Within energy infrastructure, grid modernization and utility investment drove increased demand for our market-leading protection solutions. Battery energy storage served as another key growth engine, where we are developing market-leading protection architectures to support rapid power scaling. In Transportation and Logistics, or T&L, commercial vehicle demand strengthened in the quarter. This was driven by our proactive go-to-market engagement and a market recovery across heavy truck, agriculture, and material handling equipment. In passenger vehicles, revenue increased, driven by strong execution as our teams are delivering content and market share gains despite lower global vehicle production. Overall, our Q3 performance reinforces the strength of our end market diversity and technology positioning. Our growth also reflects our sharpened focus on high-growth opportunities and our go-to-market shift as we continue to outperform our end markets.
Greg Henderson: Heading into the Q4, we are well positioned to maintain our operational momentum. Bookings were again a record in Q3, driven by growth across our businesses, and our book-to-bill remained well north of 1.0. Now let me update you on the progress we are making across our strategic priorities. Starting with go to market, we continue to see strong customer engagement translate into a larger, higher-value new business funnel. By engaging customers earlier in the design cycle with more of our multi-technology solutions, we are increasing both the breadth and value of our opportunity pipeline. As evidence of our traction year to date, the average dollar value per new business opportunity has increased by more than 20%, while Q3 design wins again grew double digits year over year. Together, these results reinforce our confidence in our long-term organic growth targets. Now let us turn to our high-growth opportunities, or HGOs.
Greg Henderson: While early, we also believe our sharpened focus on our three HGOs, data center, grid and utility infrastructure, and aerospace and defense, is beginning to deliver tangible returns. Today, I wanted to specifically highlight our expanding aerospace and defense, or A&D, opportunities. While this high-growth market represents a small portion of revenue today, sales growth outpaced company average in Q3. A&D is an ideal market for our technology, given its mission-critical requirements and rapid transition towards high-voltage DC architectures. During the quarter, we secured several key A&D design wins, including high-reliability power semiconductor modules for defense flight control system and specialized switching solutions for a commercial space customer. Long-term, we believe a focused A&D growth strategy will diversify our market exposure while providing strong and resilient profit contribution. Finally, turning to operational excellence.
Greg Henderson: At our May Investor Day, we highlighted semiconductor products and transportation, where we see opportunities to enhance our long-term growth while optimizing our portfolio and driving long-term profitability enhancements. While early, we are seeing evidence of our progress towards our 2030 goals. Starting with semiconductors, we delivered significant revenue growth and improved profitability in the quarter. This was led by our protection franchise, which delivered record revenue and profitability, while we see continued strong bookings momentum into year-end. Long term, protection remains well-positioned as a market leader and key enabler of the long-term electrification megatrend across our markets. In power semiconductors, organic growth accelerated alongside improved margins. While early, we are executing our more focused power semiconductor strategy around higher power and higher value opportunities. We are delivering for our customers as our orders have accelerated.
Greg Henderson: We remain disciplined in balancing power semi growth opportunities with active portfolio rationalization and footprint optimization. During the third quarter, we executed an amendment to a commercial supply agreement for our Dortmund facility. In exchange for a one-time payment, this amendment accelerates the delivery of contracted volumes while eliminating restrictive covenants. This step materially improves the underlying economics of the Dortmund asset and grants us significant strategic flexibility and optionality as we evaluate our broader power semiconductor footprint. Over time, we remain committed to better positioning our power semiconductor franchise for sustainable growth, structural margin expansion, and enhanced long-term returns. Turning to transportation, our sharpened focus on our market-leading customers, efficiencies, and scale is driving solid growth while we are seeing continued margin expansion as we scale our operations and simplify our cost structure.
Greg Henderson: We believe our enhancements position us well to drive structural margin expansion in a muted underlying market environment. Taking a step back, we are encouraged by our third quarter results. Our teams are executing against attractive market demand, converting an expanding customer opportunity pipeline, and driving profitability enhancements across the portfolio. I want to thank our teams for their dedication to serving our customers and delivering value. With that, I will turn the call over to Abhi.
Abhi Khandelwal: Thank you, Greg, and good morning, everyone. Today, I will walk you through our Q3 financial performance before reviewing our Q4 outlook. Please turn to slide 6 for details on our Q3 performance. All comparisons are versus the prior year, unless noted otherwise. Reported net sales in Q3 were a record $767 million, reflecting the $28.5 million one-time Dortmund customer amendment fee, which was not contemplated in our previous guidance. Organic growth contributed 22%, the Basler acquisition contributed approximately 6%, and foreign exchange was neutral. Adjusted EBITDA was $226 million, while adjusted EBITDA margin finished at 28.4%, up 690 basis points. Adjusted diluted earnings per share were $5.79, up 96% versus the prior year, and a record for the company. The improvement reflects strong volume leverage, favorable mix, pricing, and operational execution.
Abhi Khandelwal: As a result of our operational excellence initiative, we expect to realize approximately $5 million in 2026 from run-rate savings. We continue to deliver progress towards our 2030 optimization goal of $50 million and see further opportunities into 2027. Operating cash flow was $230 million, and free cash flow was $216 million, up 64%. Year to date, free cash flow was $409 million, up 66%, as we continue to drive strong conversion. We ended the quarter with $825 million of cash on hand and a consolidated net leverage ratio of 0.7 times. We also returned $20 million to shareholders through our Q3 dividend. Please turn to slide 8 for our segment highlights, starting with the Electronics product segment. Reported Electronics sales were $426 million, reflecting the $28.5 million one-time Dortmund customer amendment fee. Organic sales increased 27%, with passive products up 30% and semiconductor products up 24%.
Abhi Khandelwal: Growth was broad-based across data center, diversified industrial, and transportation applications. Within semiconductor products, we observed continued strong protection demand and improved power demand. Excluding the one-time amendment fee, adjusted EBITDA margin for the Electronics segment was 33.1%, up 910 basis points versus the prior year, reflecting volume leverage, favorable price, product mix, and operational execution. While early, we are seeing the benefits of our more focused power semiconductor strategy. Looking ahead, we will continue to pair healthy end-market demand with disciplined portfolio and footprint actions in our power semiconductor franchise, with the goal of driving improved long-term profitability and returns. Moving to our Transportation product segment on slide 9. Sales were $183 million, up 7%, both on a reported basis and organically. Commercial vehicle organic sales expanded 20%, fueled by strong demand in heavy truck, data center, and agricultural equipment.
Abhi Khandelwal: Passenger vehicle organic sales declined 5%, reflecting lower global auto production and planned exits of legacy lower-margin sensor lines. Adjusted EBITDA margin was 19.6%, up 280 basis points. Strong commercial vehicle volume leverage and operational execution more than offset the impact of softer passenger vehicle demand. Turning to slide 10. Industrial segment sales were $158 million, up 65%. Organic growth was 27%, supported by strong data center and grid infrastructure, HVAC, and industrial automation demand. The Basler acquisition contributed approximately 38% to growth. Adjusted EBITDA margin was 25.2%, up 450 basis points, reflecting favorable volume leverage, operational efficiencies, price, and mix. Turning to our outlook for Q4 on slide 11. We expect continued healthy demand across several of our key markets, supported by strong backlog and customer engagement.
Abhi Khandelwal: Based on current market conditions, we expect Q4 net sales in the range of $750 million to $770 million. At the midpoint, this represents approximately 28% growth versus the prior year and better than typical seasonal sales. We expect Q4 adjusted diluted EPS to be in the range of $5.05 to $5.25 per share. Our guidance assumes an adjusted effective tax rate of approximately 24%. We remain focused on executing the value creation playbook we outlined at Investor Day, driving 7% to 9% organic growth over time, expanding adjusted EBITDA margin toward 24% to 26%, generating strong free cash flow, and deploying capital with discipline.
Greg Henderson: Our Q3 performance reinforces our confidence in the strategic path toward our 2030 targets of $4.5 billion in revenue, $1.1 billion in adjusted EBITDA, and more than $600 million of annual free cash flow. Thank you to the Littelfuse teams for their continued execution and commitment to our customers. With that, operator, please open the call for Q&A.
Operator: We will now begin the question and answer session. If you would like to ask a question, please press star one to raise your hand. To withdraw your question, press star one again. We ask that you pick up your handset when asking a question to allow for optimum sound quality. If you are muted locally, please remember to unmute your device. Please stand by while we compile the Q&A roster. Your first question comes from the line of David Williams with Needham. Your line is open. Please go ahead.
David Williams: Hey, good morning, and congratulations on the really stellar results here.
Greg Henderson: Thank you, David.
David Williams: So maybe first, just kind of thinking about the mechanics of the semi growth, can you kind of walk through some of that, but can you help us understand how much of this is maybe cyclical versus demand and perhaps maybe the repositioning of what you have done within those power semis. I am just trying to understand how much of this is really demand versus the operational changes that you have made within that business.
Greg Henderson: Yeah, thank you, David. Yeah, so look, semiconductors as part of our Electronics segment had strong performance in the quarter. You start with our protection semiconductor franchise. We had record revenue and profitability from this segment, and this is a very model profitability segment for us in general. I would say two things. One, we do have good market momentum. We actually have broad-based growth in our protection semiconductor business across our markets. Second, I would say we also are taking share. So we have some opportunities to take share. For example, in transportation, we outperformed the market in the passenger car, and a lot of that was driven by, some of that anyway, a significant part of it was driven by our protection semiconductor business with other franchises like our passives as well, that we are doing well in that business.
Greg Henderson: I would say that is the thing about protection semiconductor. Then in power semiconductors, we had also good performance. We do have volume growth, so we do see volume growth and momentum, and that is driving obviously volume in this business with a high fixed cost is driving good profitability improvement. But we are also starting to see benefits from our manufacturing optimization and our portfolio optimization. So it is early, but we have more focus. Like we have said, we are focused much more now on high voltage, high power, high-value applications. We are de-emphasizing parts of the portfolio where we have less value and differentiation. It is early in the progress, but we are seeing some of that momentum. So power semiconductor revenue and profitability growth did deliver also materially to the Electronic segment profitability growth in the quarter.
Abhi Khandelwal: Yeah, David, just to add to a couple of things. If you think about it at the highest level and kind of think about the year and the way the year played out, for Q1, we saw an organic growth of 9%, in Q2 it was 14%, and then in Q3, we just posted 22% organic. Okay? That's point 1. Point 2 I'd say is if I just think about our semiconductor business or semiconductor products, right? If I think about the organic progression throughout the year, in Q1 we posted 8%, Q2 was 15%, and then Q3 is 24%. So you're seeing sequential improvement based on kind of what Greg was saying, which is the demand has improved and has improved sequentially throughout the year.
Greg Henderson: And one other thing, because you asked a little bit about the cycle, just add that we see broad-based demand across our markets. We talked about diversified industrials. We're seeing broad-based demand across our markets, and also we're very focused on making sure that channel inventory is normal. We have strong POS growth in our channel as well. So we feel that there is still just broad-based strength across the markets.
David Williams: Okay, fantastic. Thanks for all the color there. And then maybe just secondly on that, the kind of the pricing and the lead times, any color there on what you're seeing in terms of being able to raise pricing and how are your lead times as we kind of seem to be getting into a more constrained environment here? Thanks again for the help.
Greg Henderson: Yeah, sure. Thank you. Look, we continue to be in an inflationary environment. I think we all know that with commodities, freight, fuel costs, et cetera. We continue to be in an inflationary environment, and we're working to manage that as best as we can. It is an environment where we are passing price increases along to our customers as we need to based on that so that we can maintain our business conditions. We also have a lot of productivity activities to improve our cost structure as well. So I would say that's the environment that we continue to be in from that perspective.
Abhi Khandelwal: David, I will just say this, we said this in 2025. We made a commitment, we delivered on our commitment. Same thing in 2026, which is our intent is to be price cost neutral, okay? At the end of the day, I mean, to Greg's point, we are in an inflationary environment, whether you think about pricing, whether you do it through surcharges, driving product to be in the factory. Our intent for 2026 is to be price cost neutral in an effort to manage inflation. Then to the second part of your question on lead times. I would say our lead times are pretty normal across our business, but one thing we are seeing is customers booking farther out.
Abhi Khandelwal: So they are now booking outside of lead time, so we have more bookings into next year, for example, at this time, than we would normally. So we see customers booking farther out, but as of now, lead times are materially normal, I would say, in our business.
David Williams: Thanks again, good luck into the Q4, gentlemen. Appreciate it.
Greg Henderson: Thank you.
Operator: Your next question comes from the line of Christopher Glynn with Oppenheimer. Your line is open. Please go ahead.
Christopher Glynn: Yeah. Thanks. Appreciate all the color today and good times there. Congrats on the success that is ongoing. Wanted to ask, builds off the comment on sort of customer-dictated lead times there, booking a little further out. Just in terms of them being more proactive about securing supply, is there any view they need to, on their part, you think they need to get in line before others?
Greg Henderson: Yeah. Thank you, Chris. Look, I think, from our perspective, our lead times are broadly normal. We do not have a challenge, right? That they are needing to get in line and we have this backlog. But I will say, we are just seeing a customer behavior where they are tending to book farther out. I think the whole ecosystem is planning a little more now because there has been a lot of growth and they continue to see a lot of growth. I think, we do all hear about, in the supply chain, some constraints here and there. We are not largely having constraints in our supply chain, but I think there are some constraints in the supply chain that is making people book out. From our perspective, it is not for our business.
Greg Henderson: We do not have people needing to get in line, but they are tending to book farther out, and I think that is just maybe a little bit of a different customer behavior. The other thing I will say is that where bookings are good across our markets. So we are seeing broad strength across our markets, and all of our markets have kind of a strong kind of bookings, that sort of thing I would add.
Christopher Glynn: Yep, that makes sense. I realize you have very crisp book-to-bill visibility at the distributor level. But maybe it is a little more opaque as you kind of think about the end customers' inventories and what they are pulling through distribution. I think that is a little more of an art as you try to evaluate that dynamic. Just curious how you think about that, just given the fact that we are just stacking quarter after quarter of really robust and expanding book-to-bill.
Greg Henderson: One thing I will just, Chris, on the question, I think, to be clear, in our new go-to-market model, one of the value propositions we have of our new go-to-market model is that we call on two-thirds of our revenue customers direct. We talked about this. That is about 1,000 customers, is about two-thirds of our revenue, and we call on those customers direct. Now, some of those customers choose to buy through distribution, but we call on them direct, which means we are talking to the end customer about their end demand, and so we understand their platforms and what is going on. This puts us in a better position that actually two-thirds of our revenue, we talk directly to the customer about the platforms we are in.
Greg Henderson: Then there is the one-third that is kind of the broad market through the channel, where, yeah, you have less visibility to the individual customers. Talking to that first top two-thirds, I would say we do not see broadly customers hoarding inventory or building inventory either. There is a planning further out, but we do not see kind of an inventory building phase broadly in the ecosystem. In the bottom third, we talk to our channel partners, and they also see breadth to the market. I mean, one important thing we look in the bottom third is number of new customers, breadth of customers, number of design wins, and that also seems to be very healthy. That is what I would say.
Greg Henderson: We do not see that as much, and one of the changes in our go-to-market model is we are closer to more of our customers directly to understand what is going on. We think that is going to help us as we all navigate through this upcycle.
Christopher Glynn: Great. Thanks for that color. Just going a little Dortmund move, how should we think about the fixed cost savings with that? Was there any impact to adjusted EPS from this action, and should accounting or adjustment to the range of this structural move have, is it one and done?
Abhi Khandelwal: No, Chris, it's not. If you kind of think about the Investor Day and what we laid out, we had said, "Hey, we're going to walk away from one to two points of revenue as we look over the next five years in terms of product rationalization, and then that should generate about $50 million of incremental EBITDA over the next five years." So far, what we've identified in 2026 is a $5 million savings in connection to that $50 million. We expect more to come through in 2027, and as we get more clarity in 2027, we'll be transparent and lay it out for you.
Christopher Glynn: Okay. Thanks.
Operator: Your next question comes from the line of Luke Junk with Baird. Your line is open. Please go ahead.
Luke Junk: Yeah, good morning. Thanks for taking the questions. Apologize if any of these are repeat. Juggling a lot of calls today. Greg, maybe to start with, just would be great if you can help us understand some of the factors animating your data center growth right now in terms of maybe seeing some initial high voltage uptake or maybe, more interestingly, if you could talk through some of the impacts that you're seeing relative to all the work that you've done to align with customers from a co-engineering standpoint. Are you seeing some benefits in the low voltage portfolio today of all the work that you're doing to position into those high voltage sockets into the future?
Greg Henderson: Yeah. Thanks, Luke, and thank you for the question. Yeah, so first starting, I think just starting with data center, we are continuing to see large, significant growth in data center. Data center was the leading growth driver for our performance in the quarter, and so that continues to be good. The vast majority of the revenue we ship today is still in the low voltage shipments. We're starting to see, I would call it small volume of the higher voltage platforms, but that's really yet to ramp meaningfully from our perspective. So I would say the growth we've had so far is all in the low voltage systems. Now, if you go and look at our bookings and our backlog, we have strong backlog going into the next quarter.
Greg Henderson: And like I talked about previously, we have backlog into next year, and bookings and backlog and design wins have more contribution from the higher voltage system. So we continue to have momentum actually in both. I would say we have an increasing number of design wins around high voltage systems. We talked about the content expansion we have, so we expect that to continue to accelerate, but we continue to have design wins in both, and we continue to have revenue in both. And for us, it's really, I know there's a lot of questions in the market about how fast that's going to really go and what percent will actually evolve. For us, we consider that we're going to continue to have strong growth either way.
Greg Henderson: For example, design wins again in Q3 were 2x last year, and so we continue to see good momentum across that. I'll also just emphasize as well that our growth, data center is a strong growth driver, but our growth in this electrification megatrend is broad. So we are seeing breadth across the other markets, which also gives us a strong view into next year.
Luke Junk: Thank you. For my follow-up, maybe Greg or Abhi, you could both comment on this. Just thinking out loud here, comparing and contrasting now with Electronics adjusted operating margins reaching the high 20s in Q3 today. Just thinking through some of the underlying dynamics versus what prior peak margin dynamics were like in this business. Just maybe some of the key drivers behind incremental margins in Electronics, and importantly, how sustainable you think those drivers are going forward. Thank you.
Abhi Khandelwal: Absolutely. Thanks, Luke. Thanks for the question. First of all, if you kind of think about the performance in the quarter tied to our Electronics segment, we saw 27% organic growth in Electronics. Then if you kind of peel the onion a little bit, passive was up 30%. As you would imagine, passive products, when they have organic growth of 30%, you will see a flow through, and operating leverage in that business is super strong. Greg mentioned it, protection had the highest quarter in terms of revenue and profitability. That also played a big role in the Electronics margin expansion of 910 basis points. Lastly, if I think about power semi, I just highlighted the $5 million out of the $50 million that played out in the year so far between transportation and power semi.
Abhi Khandelwal: As we start to streamline that, drive more operational execution there, start to look at more product line rationalization, footprint optimization, you are going to see margin expansion in Electronics over the longer haul. That is how I would think about it. At the highest level, if you think about Q3, it is volume leverage, it is operational execution. When protection and passives grow, the operating leverage in that business is really, really strong.
Luke Junk: Yeah, maybe Greg, I would be curious to get you to chime in here as well, because I think maybe there is a little bit of concern relative to where margins have been in this business in the past. High 20s to 30 margins, Electronics were kind of a little bit of a cyclical high previously. It feels like this has more undergirding towards it. Can you maybe just talk about qualitatively your margin expectations in this business, especially as you bring on the incremental high voltage content and think through some of these mixed factors, especially? Thank you.
Greg Henderson: Yeah, look, what is important, I think, is that we are increasingly focused on strategically capturing more value at our customers and more share at our customers. Our new go-to-market model is also very focused about making sure that we are optimizing across all the markets that we are in. Obviously, there is a lot of momentum right now in data center, but there are a lot of other good markets, too. We mentioned, for example, earlier that the content, the dollar content per opportunity in our design wins is up 20% versus the year before. Our design wins are also broadly across all of our markets, up double digits. I do think that we are making progress on our relative market and share position, which is going to improve our relative performance as we go through the cycle. There is always going to be cycles in the business, right?
Greg Henderson: Our view is that our goal is to be much more market-focused and to outperform the markets and also make sure we are investing in the markets that are growing. That is why having focused on the high-growth markets, that is why we focus on markets that also have a lot of resilience, like aerospace and defense, for example, that have a little bit of different resilience than the normal cycle. I think we feel strong about our 2030 model we put out there. We feel like we are making a lot of progress on the 2030 model, both from a top line and a bottom line performance. To me, the most significant thing is we will be able to get more share at a top line and also have higher value solutions and higher voltage.
Greg Henderson: There are a lot of, I would call them, tailwinds in those directions. In addition, like Abhi mentioned, we have a lot of focus on the bottom line as well. I think our goal is to have improved performance as we go through whatever cycles the business is in.
Luke Junk: Understood. I will leave it there. Thank you.
Operator: Your next question comes from the line of David Williams with Needham. Your line is open. Please go ahead.
David Williams: Hey, thanks for letting me jump back in. Just wanted to ask quickly on Basler. That seems to be performing very well, but just curious if you are seeing the benefits of the synergies that you thought you might have in that business, or is this mainly just the recovery and demand dynamics within that business? What are the opportunities for growth there, maybe to outpace what your original expectations were when you made the acquisition?
Greg Henderson: Yeah, thank you. I will start with the strategic point of view and where we are, and then Abhi can fill in some of the details. I would say we are seeing significant benefit from Basler in our market position, especially in the grid infrastructure and grid and data center, and those were two of our strong growth markets. Those two is our strong growth organic markets, but also Basler significantly contributed to growth. Our new go-to-market model is actually benefiting us. There is actually in two ways, right? One, I would say that we are seeing more opportunity for Basler products in data center due to the relationships that Littelfuse has at the hyperscalers, leveraging some of Basler's technology like their protective relay technology for next generation architecture. We are talking to data center customers now about, call it N+2 architectures leveraging the Basler technology.
Greg Henderson: Our go-to-market is benefiting us there. On the flip side, kind of the other way around, Basler had a good go-to-market in utility and grid space where Littelfuse did not have any direct sales coverage. We are actually seeing good traction now for some legacy Littelfuse product opportunities like arc fault protection solutions through to utility customers or some of our grid scale protection solutions into the grid where we did not have the customer relationships. It is early, but we are seeing traction already from, I would call it, a customer opportunity pipeline perspective that has not followed through directly yet, but will. Abhi can maybe give a little bit more on the details of the synergy.
Abhi Khandelwal: Yeah. David, as you think about what that all means in terms of what Greg just described. When we came out with the Basler guide the first time around, we said, "Hey, look, our top line is going to be in the $130 to $135 million range." Clearly we are ahead of our synergy realization, so our latest view for the year is $135 to $140 million in top line. Then if you think about the bottom line, when we announced Basler, we said, "Hey, we expect $0.10 to $0.15 of accretion." Our current view for the year is about $0.25 to $0.30. Just kind of building off of what Greg is saying, our synergy realization is ahead of schedule, and we feel really good about the asset and the acquisition that we did, both in the top line and the bottom line.
David Williams: Great. Certainly appreciate the color.
Operator: If you would like to ask a question, please press star one. There are no further questions at this time. I will now turn the call back to CEO Greg Henderson for closing remarks.
Greg Henderson: Okay. Thank you, and thank you all for joining us today. I would just like to, in closing, thank our global teams for a strong Q3. We have good market momentum, but also strong execution across the business. We feel confident on the progress we are making to our 2030 targets. Thank you very much.
Operator: This concludes today's call. Thank you for attending. You may now disconnect. This event has now concluded. Thank you for joining Littelfuse's Q3 2026 earnings call. The line will disconnect automatically.
