Group 1 - TimesSquare Capital Management's "U.S. Mid Cap Growth Strategy" fund returned 13.13% (gross) and 12.91% (net) in Q2 2025, underperforming the Russell Midcap® Growth Index's 18.20% return [1] - The fund's top holding, Curtiss-Wright Corporation (NYSE:CW), reported a one-month return of 10.02% and a 52-week gain of 57.51%, closing at $530.68 per share with a market capitalization of $19.995 billion on September 29, 2025 [2] - Curtiss-Wright Corporation's Q2 2025 sales reached $877 million, marking a 12% year-over-year increase with 9% organic growth [4] Group 2 - Curtiss-Wright Corporation exceeded expectations across major metrics in Q2 2025, leading to an increase in management's guidance for 2025, particularly strong in Defense Electronic and Nuclear sectors [3] - The number of hedge funds holding Curtiss-Wright Corporation increased to 60 in Q2 2025 from 46 in the previous quarter, indicating growing interest among institutional investors [4] - Despite the positive outlook for Curtiss-Wright Corporation, the company is viewed as having less upside potential compared to certain AI stocks, which are considered to carry less downside risk [4]

Core Insights - CTS reported Q2 2025 results with non-GAAP EPS of $0.57 and GAAP revenue of $135.3 million, reflecting a year-over-year revenue increase of 3.8% from $130.2 million in Q2 2024 [1][2] - The adjusted gross margin improved by 2.9 percentage points to 38.7% compared to Q2 2024, indicating ongoing progress in margin expansion and profitability [1][2][5] - The company is focusing on diversification in industrial, medical, and aerospace/defense sectors to mitigate risks associated with transportation market fluctuations [4][7] Financial Performance - Non-GAAP free cash flow increased significantly from $15.0 million in Q2 2024 to $25.1 million in Q2 2025, showcasing strong cash generation capabilities [2][6] - Adjusted EBITDA margin rose to 23.0%, up 1.3 percentage points from the previous year, reflecting improved profitability metrics [2][5] - Revenue from the medical and aerospace/defense markets showed strong volume gains, while transportation revenue faced challenges due to softer demand in China and increased competition [7][8] Business Strategy - CTS has shifted its strategy to prioritize growth in industrial, medical, and aerospace/defense sectors, which helps offset risks from declining transportation sales [4] - The company emphasizes continuous innovation, disciplined cost management, and a strong pipeline of new program wins in targeted growth markets as key success factors [4] - Management is focused on M&A-driven growth and shareholder returns, with planned capital expenditures expected to be approximately 4% of sales for FY2025 [10] Outlook - CTS maintains its fiscal 2025 guidance, expecting GAAP net sales between $520 million and $550 million and non-GAAP adjusted diluted EPS of $2.20 to $2.35 [9] - Investors should monitor margin performance, customer concentration dilution, and the pace of end-market diversification, as these factors will be critical for future performance [11]

Core Insights - CTS Corporation reported a second quarter 2025 sales of $135 million, representing a 4% year-over-year increase, with sales to diversified end markets rising by 13% and a 6% decrease in transportation end market sales [10][2] - The company achieved an adjusted EBITDA margin of 23.0%, up from 21.7% in the same quarter of 2024, indicating solid profitability [10][2] - CTS maintains its 2025 sales guidance in the range of $520-$550 million and adjusted diluted EPS between $2.20-$2.35, assuming current market conditions persist [3] Financial Performance - Net income for the second quarter was $19 million, or 14% of sales, an increase from $15 million, or 11% of sales, in Q2 2024 [10] - Diluted EPS rose to $0.62 from $0.48 in the prior year, while adjusted diluted EPS increased to $0.57 from $0.54 [10] - Operating cash flow improved to $28 million compared to $20 million in Q2 2024 [10] Market Focus - The company emphasizes diversification as a strategic priority, focusing on organic growth and acquisitions to enhance its market position [2] - The diversified end markets include industrial, aerospace & defense, and medical sectors, previously referred to as the "non-transportation" market [8][2] Guidance and Future Outlook - CTS Corporation's guidance reflects confidence in maintaining sales growth and profitability amid current market conditions [3] - The company is committed to optimizing its operations and integrating acquisitions to drive future growth [2]

Core Viewpoint - CTS Corporation is set to release its second quarter 2025 earnings on July 24, 2025, at 8:00 a.m. (ET) [1] Group 1: Earnings Release Information - The earnings release for the second quarter 2025 will occur on July 24, 2025, at approximately 8:00 a.m. (ET) [1] - A conference call to discuss the results is scheduled for the same day at 10:00 a.m. (ET) [2] - Dial-in numbers for the conference call include +1-833-470-1428 (Toll-Free) and +1-404-975-4839 (Local) for U.S. callers [2] Group 2: Webcast and Archiving - A live audio webcast of the conference call will be available on the Investors section of the CTS Corporation website [3] - The webcast will be archived for one year for future access [3] Group 3: Company Overview - CTS Corporation is a leading designer and manufacturer of products that Sense, Connect, and Move [4] - The company produces sensors, actuators, and electronic components across North America, Europe, and Asia [4] - CTS serves various markets including aerospace/defense, industrial, medical, and transportation [4]

Company Announcement - CTS Corporation has appointed Mark Pacioni as Chief Legal & Administrative Officer and Corporate Secretary, effective July 1, 2025 [1] - Mark Pacioni previously served as Chief Legal Officer and Secretary of CareerBuilder, LLC and has held senior legal roles at Boeing, Molex, and Knowles [2] Leadership Insight - CTS Chairman and CEO, Kieran O'Sullivan, expressed confidence in Mark Pacioni's ability to contribute to the company's future success and global strategy [3] Company Overview - CTS is a leading designer and manufacturer of products that Sense, Connect, and Move, with operations in North America, Europe, and Asia [3] - The company provides engineered products to various markets including aerospace/defense, industrial, medical, telecommunications/IT, and transportation [3]

Additional Information This presentation may be deemed to be solicitation material in respect of the Business Combination, including the issuance of AAM's shares of common stock in respect of the Business Combination. In connection with the foregoing proposed issuance of AAM's shares of common stock, AAM expects to file a proxy statement on Schedule 14A (together with any amendments and supplements thereto, the "Proxy Statement") with the SEC. To the extent the Business Combination is effected as a scheme o ...