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 - TransDigm Group Incorporated (TDG) is a Cleveland-based company specializing in the design, production, and supply of aerospace components, with a market capitalization of $75.2 billion [1] Performance Overview - Over the past 52 weeks, TDG shares have gained 6%, underperforming the S&P 500 Index, which increased by 11% [2] - Year-to-date, TDG's stock is up 5.4%, while the S&P 500 has returned 14% [2] - Compared to the SPDR S&P Aerospace & Defense ETF (XAR), which surged 29.6% over the past 52 weeks and 34.9% year-to-date, TDG's underperformance is more pronounced [3] Earnings Report - On November 12, TDG's shares rose by 1.1% following a stronger-than-expected Q4 earnings release [4] - The company's net sales for the quarter increased by 11.5% year-over-year to $2.4 billion, exceeding consensus estimates by 1.2% [4] - Adjusted EPS for the quarter was $10.82, reflecting a 10.1% improvement from the previous year and surpassing analyst expectations by 5.6% [4] Future Earnings Expectations - For fiscal 2026, analysts project TDG's EPS to grow marginally to $35.90 year-over-year [5] - The company's earnings surprise history is mixed, with three out of the last four quarters exceeding consensus estimates [5] Analyst Ratings - Among 23 analysts covering TDG, the consensus rating is a "Moderate Buy," consisting of 17 "Strong Buy," five "Hold," and one "Strong Sell" ratings [5] - The overall rating has shifted from "Strong Buy" to "Moderate Buy" in the past month [6] - BNP Paribas Exane initiated coverage with an "Outperform" rating and a price target of $1,775, indicating a potential upside of 32.9% [6] Price Targets - The mean price target for TDG is $1,579.70, representing an 18.3% premium from current levels [7] - The highest price target of $1,798 suggests a potential upside of 34.6% from current levels [7]

Core Insights - Regal Rexnord Corporation (NYSE:RRX) is identified as a strong investment opportunity, with Barclays analyst Julian Mitchell raising the price target to $165 from $161, maintaining an Overweight rating due to significant data center exposure [1][2]. Group 1: Company Performance - Regal Rexnord confirmed a 10% order growth at the Baird 55th Annual Global Industrial Conference, indicating robust demand [2]. - The company anticipates its data center business to double in the next two years, supported by a billion-dollar pipeline [2]. - Regal Rexnord has secured approximately $30 million in humanoid-related orders and is working on a $100 million bid pipeline, showcasing its strong position in the humanoid market [3]. Group 2: Strategic Focus Areas - The company is focusing on growth in data centers, the medical sector, and automation, which are driving overall growth [2]. - The aerospace segment is another strategic focus, with the aerospace business valued at roughly $350 million, including various products such as servo motors and actuators [3]. - Regal Rexnord manufactures engineered solutions for motion control across multiple industries, including industrial, commercial, aerospace, and energy [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]

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]