CTS Announces First Quarter 2025 Results

Core Insights - CTS Corporation reported strong first quarter 2025 results with double-digit sales growth in diversified markets despite a challenging operating environment [2][10] - The company maintains its sales guidance for 2025 in the range of $520-$550 million and adjusted diluted EPS between $2.20-$2.35 [4] Financial Performance - First quarter 2025 net sales were $126 million, flat year-over-year, with a 14% increase in sales to diversified end markets and a 12% decrease in transportation end market sales [10] - Net income for the quarter was $13 million, representing 11% of sales, compared to $11 million or 9% of sales in Q1 2024 [10] - Earnings per diluted share increased to $0.44 from $0.36 in the same quarter last year, while adjusted earnings per diluted share decreased to $0.44 from $0.47 [10] - Adjusted EBITDA margin improved to 20.5% from 20.3% year-over-year [10] Market Strategy - The company emphasized diversification as a strategic priority, focusing on growth in revenues and quality of earnings through organic growth and strategic acquisitions [2] - Strong bookings were noted in medical, aerospace and defense, and industrial markets during the quarter [2] Guidance and Economic Outlook - Management is closely monitoring the economic impact of tariffs and geopolitical conditions, emphasizing agility in adapting to cost and price adjustments [4] - The company expects to maintain its current market conditions for the remainder of the year [4] Operational Metrics - Operating cash flow for Q1 2025 was $16 million, down from $18 million in Q1 2024 [10] - The company reported a gross margin of $46.5 million for the quarter, compared to $45.1 million in Q1 2024 [13]