CTS Announces Third Quarter 2024 Results

Core Insights - CTS Corporation reported improved earnings and stronger cash flow in Q3 2024, despite challenging market conditions [2][3] - The company is focused on diversifying its customer base and end markets while maintaining a disciplined capital structure [2] Financial Performance - Q3 2024 sales were $132 million, a decrease of 2% year-over-year but an increase of 2% sequentially [3] - Sales to diversified end markets increased by 18% year-over-year and 5% sequentially, while sales to the transportation end market decreased by 17% year-over-year and 2% sequentially [3] - Net income for Q3 2024 was $19 million, representing 14% of sales, up from $14 million (10% of sales) in Q3 2023 [3] - Earnings per diluted share were $0.61, compared to $0.44 in Q3 2023, while adjusted earnings per diluted share rose to $0.63 from $0.54 [3][23] - Adjusted EBITDA margin improved to 24.8% from 22.5% in Q3 2023 [3][20] Guidance - CTS updated its full-year 2024 sales guidance to a range of $515 - $525 million, down from the previous range of $525 - $540 million [4] - The adjusted diluted EPS guidance remains in the range of $2.05 - $2.25 [4] Operational Highlights - Operating cash flow increased to $35 million from $22 million in Q3 2023 [3] - The company continues to focus on operational improvements and margin expansion [2]