Circle (NYSE: CRCL) noted that every day trillions of dollars move between businesses. These business-to-business (B2B) transactions underpin everything from “keeping factories running to facilitating digital services, with an estimated ~$88 trillion in B2B transactions in 2024 alone.”Despite despite their size and importance, the systems that “support these B2B flows remain outdated.”Circle also mentioned that paper checks, legacy wires, and semi-manual ACH transfers still “dominate.”The result is mostly a ...

Core Viewpoint - CTS Corporation has appointed Pratik Trivedi as Chief Operating Officer (COO), effective December 5, 2025, to enhance its growth strategy [1][2]. Company Overview - CTS Corporation (NYSE: CTS) is a prominent designer and manufacturer of products that Sense, Connect, and Move, with operations in North America, Europe, and Asia [2]. - The company produces sensors, actuators, and electronic components, serving markets such as aerospace/defense, industrial, medical, and transportation [2]. Leadership Appointment - Pratik Trivedi, currently Senior Vice President at CTS, has a strong background from previous leadership roles at Eaton Corporation and Cummins Inc. [1]. - Kieran O'Sullivan, Chairman and CEO of CTS, expressed confidence in Trivedi's ability to lead and deliver results, emphasizing the importance of his leadership in executing the company's growth strategy [2].

Core Insights - The article discusses the investment potential of CTS Corporation, highlighting that the shares were previously considered stagnant but may present new opportunities for investors [1]. Group 1: Company Overview - CTS Corporation is identified as an engineering solutions player, indicating its focus on providing specialized services and products in the engineering sector [1]. Group 2: Investment Opportunities - The investment group "Value In Corporate Events" offers insights into major corporate events such as earnings reports, mergers and acquisitions, and IPOs, aiming to identify actionable investment opportunities [1]. - The service covers approximately 10 major events each month, focusing on finding the best investment opportunities in the market [1].

Core Viewpoint - CTS Corporation has declared a cash dividend of $0.04 per share and announced a new share repurchase program authorizing up to $100 million in buybacks [1][2]. Group 1: Dividend Declaration - The Board of Directors of CTS Corporation declared a cash dividend of $0.04 per share on outstanding shares of common stock [1]. - The dividend is scheduled to be paid on January 23, 2026, to shareholders of record at the close of business on December 26, 2025 [1]. Group 2: Share Repurchase Program - The new share repurchase program replaces the prior program approved in February 2024 [2]. - The program has no set expiration date and allows for repurchases in the open market or through privately negotiated transactions [2]. - The timing and actual amount of shares repurchased will depend on various factors, including market conditions [2]. Group 3: Company Overview - CTS Corporation is a leading designer and manufacturer of products that Sense, Connect, and Move [3]. - The company manufactures sensors, actuators, and electronic components in North America, Europe, and Asia [3]. - CTS provides engineered products to customers in the aerospace/defense, industrial, medical, and transportation markets [3].

Core Viewpoint - CTS Corporation has appointed Kimberly Banks MacKay to its Board of Directors, effective November 5, 2025, enhancing its governance and strategic capabilities [1][3]. Group 1: Appointment Details - Kimberly Banks MacKay brings over 30 years of experience in multinational companies and currently serves as SVP, General Counsel, and Corporate Secretary at West Pharmaceutical Services, Inc. [2] - MacKay will be a member of the Nominating, Governance and Sustainability Committee, as well as the Technology and Transactions Committee [1]. Group 2: Company Background - CTS Corporation is a leading designer and manufacturer of products that "Sense, Connect, and Move," with operations in North America, Europe, and Asia [4]. - The company provides engineered products to key markets including aerospace/defense, industrial, medical, and transportation [4]. Group 3: Leadership Perspective - Kieran O'Sullivan, Chairman, President, and CEO of CTS, expressed that MacKay's extensive experience in healthcare and global business leadership will be a valuable addition to the board [3].

Company Participation - CTS Corporation will participate in the 17th Annual Southwest IDEAS Conference on November 20, 2025, at The Westin Las Colinas in Dallas, TX [1] - The presentation by CTS is scheduled to begin at 4:00 PM Central Time [1] Webcast Information - A live webcast of the event can be accessed through a provided link or from the Investors section of the CTS Corporation website [2] - The webcast will be available for replay on the conference website for one year following the presentation [2] Company Overview - CTS Corporation is a leading designer and manufacturer of products that Sense, Connect, and Move [3] - The company manufactures sensors, actuators, and electronic components in North America, Europe, and Asia, serving markets such as aerospace/defense, industrial, medical, and transportation [3]

Financial Performance - Net sales for Q3 2025 were $142,970, an increase of $10,586 or 8.0% from Q3 2024, with diversified end markets up by $15,070 or 21.7%[111] - Gross margin for Q3 2025 was $55,341, a 12.5% increase from Q3 2024, with gross margin percentage rising from 37.2% to 38.7%[112] - Net earnings for Q3 2025 were $13,687, a decrease of 24.3% from $18,084 in Q3 2024, with diluted earnings per share falling from $0.59 to $0.46[111] - For the nine months ended September 30, 2025, net sales were $404,047, an increase of $15,751 or 4.1% from the same period in 2024[118] - Gross margin for the nine months ended September 30, 2025 was $154,320, a 9.7% increase from $140,651 in 2024, with gross margin percentage rising from 36.2% to 38.2%[119] Expenses - SG&A expenses in Q3 2025 were $27,222, representing 19.0% of net sales, up from $22,509 or 17.0% in Q3 2024[113] - R&D expenses for Q3 2025 were $6,901, or 4.8% of net sales, compared to $5,031 or 3.8% in Q3 2024, reflecting continued investment in product development[114] - SG&A expenses for the nine months ended September 30, 2025 were $73,922, or 18.3% of net sales, compared to $66,100 or 17.0% in 2024[120] - R&D expenses for the nine months ended September 30, 2025 were $19,416, or 4.8% of net sales, up from $17,718 or 4.6% in 2024[121] Restructuring and Charges - Restructuring charges for the nine months ended September 30, 2025 were $1,028, or 0.3% of net sales, down from $3,657 or 0.9% in 2024[122] Interest and Taxes - Interest expense increased to $3,398 million for the nine months ended September 30, 2025, compared to $2,942 million in 2024, primarily due to higher borrowings for the SyQwest acquisition[123] - Interest income decreased to $1,603 million in 2025 from $3,800 million in 2024, attributed to lower investments in high-yield deposit accounts following the SyQwest acquisition[123] - Effective tax rate rose to 22.5% for the nine months ended September 30, 2025, up from 17.4% in 2024, due to a change in the mix of earnings taxed at higher rates[124] Cash Flow and Debt - Cash and cash equivalents increased to $110,296 million as of September 30, 2025, from $94,334 million at December 31, 2024, with a significant portion held outside the United States[126] - Net cash provided by operating activities was $72,893 million for the nine months ended September 30, 2025, compared to $73,335 million in 2024[127][128] - Net cash used in investing activities decreased significantly to $12,542 million in 2025 from $134,455 million in 2024, primarily due to the SyQwest acquisition payments in 2024[129] - Net cash used in financing activities increased to $47,404 million in 2025 from $7,494 million in 2024, driven by treasury stock purchases and debt payments[130][131] - Total long-term debt was $90,700 million as of September 30, 2025, down from $92,300 million at December 31, 2024[126] - The company maintains a total credit facility of $400,000 million, with $307,660 million available as of September 30, 2025, subject to covenant restrictions[132][135] Customer Concentration - Significant customers include Toyota Motor Corporation, accounting for 11.5% of total net sales in the nine months ended September 30, 2025, and Cummins Inc. at 8.7%[138]

Group 1 - The article does not provide any relevant content regarding company or industry insights [1]

Financial Data and Key Metrics Changes - Sales for the third quarter were $143 million, up 8% from $132 million in the same period last year [4][16] - Adjusted diluted EPS were $0.60 per share, down from $0.61 in the third quarter of 2024, primarily due to unfavorable tax impacts [5][17] - Adjusted gross margin was 38.9%, an increase of 66 basis points year-over-year [16][17] - Operating cash flow generated was $29 million, compared to $35 million in the third quarter of 2024 [18] Business Line Data and Key Metrics Changes - Diversified end market sales increased by 22% year-over-year, accounting for 59% of overall company revenue [4][5] - Transportation sales decreased by 7% from the same period last year, totaling $58.5 million [10][16] - SideQuest revenues increased to $8.8 million, with bookings up 29% from the prior year [8][16] Market Data and Key Metrics Changes - Book-to-bill ratio for the third quarter was slightly above 1, compared to marginally below 1 in the third quarter of 2024 [4] - Aerospace and defense sales rose by 23% year-over-year [7] - Industrial market sales were up 21% compared to the prior year, with a 9% sequential increase [9][49] Company Strategy and Development Direction - The company is transitioning from a component supplier to a supplier of sensors, transducers, and subsystems, validated by recent naval defense contract awards [8] - Focus remains on strong cash generation, appropriate capital allocation, and supporting organic growth and strategic acquisitions [19] - The company aims to enhance its growth profile through increased volumes in portable ultrasound diagnostics and therapeutics [7][12] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth prospects for medical, aerospace, and defense markets despite mixed signals in the transportation sector [25][49] - The company anticipates continued softness in commercial vehicle demand but expects strong performance in diversified end markets [14][12] - Management is closely monitoring the impact of tariffs and geopolitical factors while adapting to cost and price adjustments [14][51] Other Important Information - The company repurchased 400,000 shares for approximately $17 million during the quarter, returning $44 million to shareholders through dividends and buybacks year-to-date [18][19] - The company expects to maintain momentum in SideQuest revenues through the end of the year, with additional platform awards anticipated [8][42] Q&A Session Summary Question: Guidance on revenue and EPS - Management raised the midpoint on revenue guidance but lowered EPS guidance due to tax impacts from recent U.S. tax legislation [23][24] Question: Transportation production rates for 2026 - Transportation market signals are mixed, with some OEMs optimistic and others cautious; however, solid bookings were noted [25] Question: Gross margin contributions by end market - Margins are good across diversified end markets, with transportation trailing behind but still performing well [26][27] Question: Tax impact in 2026 - The adverse tax impact is expected to continue into 2026, with a projected tax rate in the low 20% range [37][38] Question: Inventory levels in transportation - Days of supply for light vehicles are around 50 days, which is considered normal; no concerns were raised [40][41] Question: SideQuest revenue contributions - SideQuest is expected to show seasonal revenue patterns, with a positive outlook for future awards [42] Question: Operating expenses increase - The increase in operating expenses was primarily due to a $4.2 million reserve increase and higher equity-based compensation [43]

Financial Data and Key Metrics Changes - The company reported third-quarter sales of $143 million, an increase of 8% from $132 million in the same quarter of 2024 [4] - Adjusted diluted EPS for the third quarter was $0.60, down from $0.61 in the same period last year, primarily due to unfavorable impacts from recent U.S. tax legislation [5][17] - Adjusted gross margin improved to 38.9%, up 66 basis points year-over-year [16][17] - Operating cash flow for the third quarter was $29 million, compared to $35 million in the same quarter of 2024 [18] Business Line Data and Key Metrics Changes - Diversified end market sales increased by 22% year-over-year, accounting for 59% of overall company revenue, up from 52% in the previous year [4][5] - Medical end market sales rose by 22% compared to the same period in 2024, with bookings up 8% [5][7] - Aerospace and defense sales increased by 23% year-over-year [7] - Transportation sales decreased by 7% from the same period last year, attributed to softness in commercial vehicle products [9][10] Market Data and Key Metrics Changes - The book-to-bill ratio for the third quarter was slightly above 1, compared to marginally below 1 in the same quarter of 2024 [4] - Industrial and distribution sales showed a 9% sequential increase and a 21% year-over-year increase, indicating a steady recovery [9][46] - The North American light vehicle market is expected to be in the 15 million unit range, with European production forecasted at 16 million units and China at 30 million units [12] Company Strategy and Development Direction - The company aims to transition from a component supplier to a supplier of sensors, transducers, and subsystems, as validated by recent naval defense contract awards [8] - The focus remains on strong cash generation, appropriate capital allocation, and supporting organic growth and strategic acquisitions [18][19] - The company is monitoring the tariff and geopolitical environment while adapting to cost and price adjustments [14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth prospects for medical, aerospace, and defense markets, despite mixed signals from the transportation sector [24][46] - The company anticipates continued strength in therapeutic products, with expectations for increased volumes in 2026 [7][11] - The adverse tax impact from recent U.S. tax legislation is expected to persist into 2026, with a projected tax rate in the low 20% range [35][36] Other Important Information - SideQuest revenues increased to $8.8 million in the third quarter, with bookings up 29% year-over-year [8][16] - The company repurchased 400,000 shares for approximately $17 million during the quarter, returning a total of $44 million to shareholders through dividends and buybacks year-to-date [18] Q&A Session Summary Question: Guidance on revenue and EPS - Management raised the midpoint on revenue guidance but lowered the midpoint on EPS guidance due to tax impacts and mixed market signals [22][23] Question: Transportation customers' production rates for 2026 - The transportation market is mixed, with some OEMs optimistic and others cautious, but solid bookings were noted [24] Question: Gross margin contribution by end markets - Margins are good across diversified end markets, with transportation trailing behind [25][26] Question: Tax impact in 2026 - The adverse tax impact from U.S. tax legislation is expected to continue, with a similar tax rate projected for 2026 [35][36] Question: Inventory levels in transportation - Days of supply for light vehicles are around 50 days, which is considered normal, with no immediate concerns [38] Question: SideQuest revenue contribution - Revenue from SideQuest is expected to show seasonality, with a step-up in revenues anticipated [39] Question: Operating expenses increase - The increase in operating expenses is primarily due to a $4.2 million reserve increase and higher equity-based compensation [40]