CTS Announces Third Quarter 2025 Results

Core Insights - CTS Corporation reported strong growth in the third quarter of 2025, with sales increasing by 22% year-over-year in diversified end markets, while overall sales rose by 8% to $143 million [2][7] - The company emphasized diversification as a strategic priority to enhance growth and margin expansion [2] - For 2025, CTS has narrowed its sales guidance to a range of $535-$545 million and adjusted diluted EPS to between $2.20 and $2.25, assuming current market conditions persist [3] Financial Performance - Net income for Q3 2025 was $14 million, representing 9.6% of sales, which included a $4.2 million charge related to an EPA claim [7] - Adjusted diluted EPS was $0.60, slightly down from $0.61 in Q3 2024, while diluted EPS decreased to $0.46 from $0.59 in the same period [7][25] - Adjusted gross margin improved to 38.9% from 38.2% year-over-year, while adjusted EBITDA margin decreased to 23.8% from 24.4% [7][23] Market Segments - Sales to diversified end markets, which include industrial, aerospace & defense, and medical sectors, saw a significant increase of 22% [7][8] - Conversely, sales to the transportation end market experienced a decline of 7% [7] Cash Flow and Expenses - Operating cash flow for Q3 2025 was reported at $29 million, down from $35 million in Q3 2024 [7] - The company incurred selling, general, and administrative expenses of $27.2 million, up from $22.5 million year-over-year [7][12] Balance Sheet Highlights - As of September 30, 2025, total assets were $790.4 million, an increase from $765.4 million at the end of 2024 [15] - Current assets rose to $276.2 million, compared to $242.2 million in the previous year [15] Future Outlook - CTS Corporation's management remains optimistic about the company's growth trajectory, driven by its focus on diversification and solid execution in challenging market conditions [2][3]