CTS Announces Third Quarter 2025 Results

Momentum on Diversification and Solid Execution LISLE, Ill., Oct. 28, 2025 (GLOBE NEWSWIRE) -- CTS Corporation (NYSE: CTS), a leading global designer and manufacturer of custom engineered solutions that "Sense, Connect and Move," today announced third quarter 2025 results. "Our business had another quarter of strong growth with sales up 22% year over year in the diversified end markets. The CTS team executed well in a challenging environment achieving solid profitability and strong cash generation," said Kieran O'Sullivan, CEO of CTS Corporation. "Diversification remains a strategic priority to drive growth and margin expansion." Third Quarter 2025 Results Get the latest news delivered to your inbox Sign up for The Manila Times newsletters By signing up with an email address, I acknowledge that I have read and agree to the Terms of Service and Privacy Policy. Sales were $143 million in the third quarter of 2025, up 8% year-over-year. Sales to diversified end markets increased 22%. Sales to the transportation end market decreased 7%.Net income was $14 million, or 9.6% of sales, including an extraordinary $4.2 million charge related to the previously disclosed EPA past cost recovery claim. Net income was $18 million, or 13.7% of sales, in the third quarter of 2024.Diluted EPS was $0.46, compared to $0.59 in the third quarter of 2024.Adjusted Gross margin was 38.9%, compared to 38.2% in the third quarter of 2024.Adjusted EBITDA margin was 23.8%, compared to 24.4% in the third quarter of 2024.Adjusted diluted EPS was $0.60, compared to $0.61 in the third quarter of 2024.The Adjusted diluted EPS includes an unfavorable impact of $0.03 from the recent US tax legislation.Operating cash flow was $29 million, compared to $35 million in the third quarter of 2024.2025 Guidance Assuming the continuation of current market conditions, CTS is narrowing its guidance of sales in the range of $535-$545 million and adjusted diluted EPS to be in the range of $2.20-$2.25. CTS does not provide reconciliations of forward-looking non-GAAP financial measures, such as estimated adjusted diluted earnings per share, to the most comparable GAAP financial measures on a forward-looking basis because CTS is unable to provide a meaningful or accurate calculation or estimation of reconciling items and the information is not available without unreasonable effort. This is due to the inherent difficulty of forecasting the timing and amount of certain items, such as, but not limited to, restructuring costs, environmental remediation costs, acquisition-related costs, foreign exchange rates and other non-routine costs. Each of such adjustments has not yet occurred, are out of CTS' control and/or cannot be reasonably predicted. For the same reasons, CTS is unable to address the probable significance of the unavailable information. Advertisement Conference Call and Supplemental Materials As previously announced, CTS has scheduled a conference call for 10:00 a.m. (ET) today. The dial-in numbers for access from the U.S. are: +1-833-470-1428 (Toll-Free) and +1-646-844-6383 (Local), if calling from outside the U.S., please refer to Global Dial In Numbers to identify the applicable dial-in number for your location. The passcode is 815166. In addition, CTS will be using a supplemental slide presentation that will be referred to during the call. The presentation and a live audio webcast of the conference call will be available and can be accessed directly from CTS' website at https://investors.ctscorp.com/news-events/events-and-presentations/. Any replay, rebroadcast, transcript or other reproduction or transmission of this conference call, other than the replay accessible through the website noted above, has not been authorized by CTS and is strictly prohibited. Investors should be aware that any unauthorized reproduction of this conference call may not be an accurate reflection of its contents. About CTS Advertisement CTS Corporation (NYSE: CTS) is a leading designer and manufacturer of products that Sense, Connect and Move. CTS manufactures sensors, actuators and electronic components in North America, Europe and Asia, and provides engineered products to customers in the aerospace & defense, industrial, medical and transportation markets. For more information, visit www.ctscorp.com/. Diversified end markets, previously referred as the "non-transportation" market, includes the industrial, aerospace & defense, and medical end markets. Cautionary Statement Regarding Forward-Looking Statements Advertisement Readers are cautioned that the statements contained in this document regarding expectations of our performance or other matters that may affect our business, results of operations, or financial condition are, or may be deemed to be, "forward-looking statements" as defined by the "safe harbor" provisions in the Private Securities Litigation Reform Act of 1995. Such statements are made in reliance on the safe harbor provisions of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical fact, included or incorporated in this document, including statements regarding our strategy, financial position, guidance, funding for continued operations, cash reserves, liquidity, projected costs, plans, projects, awards and contracts, and objectives of management, among others, are forward-looking statements. Words such as "expect," "anticipate," "should," "believe," "hope," "target," "continued," "project," "plan," "goals," "opportunity," "appeal," "estimate," "potential," "predict," "demonstrates," "may," "will," "might," "could," "intend," "shall," "possible," "would," "approximately," "likely," "outlook," "schedule," "on track," "poised," "pipeline," and variations of these terms or the negative of these terms and similar expressions are intended to identify these forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. These forward-looking statements are not guarantees of future performance, conditions or results. Forward-looking statements are based on management's expectations, certain assumptions, and currently available information. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof and are based on various assumptions as to future events, the occurrence of which necessarily are subject to uncertainties. These forward-looking statements are made subject to certain risks, uncertainties, and other factors, which could cause CTS' actual results, performance, or achievements to differ materially from those presented in the forward-looking statements. Examples of factors that may affect future operating results and financial condition include, but are not limited to: supply chain disruptions (including, but not limited to, the availability of rare earth elements, minerals and metals); changes in the economy generally, including inflationary and/or recessionary conditions and increased tariffs, and in respect to the business in which CTS operates; unanticipated issues in integrating acquisitions including, without limitation the integration of SyQwest; the funding of contracts by the US Government; the results of actions to reposition CTS' business; rapid technological change; general market conditions in the transportation, as well as conditions in the industrial, aerospace and defense, and medical markets; reliance on key customers; unanticipated public health crises, natural disasters or other events; environmental compliance and remediation expenses; the ability to protect CTS' intellectual property; pricing pressures and demand for CTS' products; risks associated with CTS' international operations, including trade and tariff barriers, exchange rates and political and geopolitical risks (including, without limitation, the impact of tariffs on China, Canada and Mexico, and other nations); the potential impact of U.S./China relations and the impact of the conflicts in Ukraine, and the Middle East may have on our business, results of operations and financial condition; the amount and timing of any share repurchases; and the effect of any cybersecurity incidents on our business. Many of these, and other risks and uncertainties, are discussed in further detail in Item 1A. of CTS' most recent Annual Report on Form 10-K and other filings made with the SEC. CTS undertakes no obligation to publicly update CTS' forward-looking statements to reflect new information or events or circumstances that arise after the date hereof, including market or industry changes. Contact Ashish Agrawal Advertisement Vice President and Chief Financial Officer CTS Corporation 4925 Indiana Avenue Lisle, IL 60532 USA Advertisement +1 (630) 577-8800 [email protected] Advertisement CTS CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS - UNAUDITED (In thousands, except per share amounts) Three Months Ended Nine Months Ended September 30, 2025 September 30, 2024 September 30, 2025 September 30, 2024 Net sales $142,970 $132,384 $404,047 $388,296 Cost of goods sold 87,629 83,195 249,727 247,645 Gross margin 55,341 49,189 154,320 140,651 Selling, general and administrative expenses 27,222 22,509 73,922 66,100 Research and development expenses 6,901 5,031 19,416 17,718 Restructuring charges 280 773 1,028 3,657 Operating earnings 20,938 20,876 59,954 53,176 Other (expense) income: Interest expense (1,110) (1,307) (3,398) (2,942)Interest income 535 973 1,603 3,800 Other income (expense), net (643) 1,306 665 (761)Total other (expense) income, net (1,218) 972 (1,130) 97 Earnings before income taxes 19,720 21,848 58,824 53,273 Income tax expense 6,033 3,764 13,243 9,364 Net earnings $13,687 $18,084 $45,581 $43,909 Earnings per share: Basic $0.47 $0.60 $1.53 $1.44 Diluted $0.46 $0.59 $1.52 $1.43 Basic weighted - average common shares outstanding: 29,348 30,300 29,698 30,517 Effect of dilutive securities 279 236 281 230 Diluted weighted - average common shares outstanding: 29,627 30,536 29,979 30,747 Cash dividends declared per share $0.04 $0.04 $0.12 $0.12 CTS CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS - UNAUDITED (In thousands of dollars) September 30, 2025 December 31, 2024 ASSETS Current Assets Cash and cash equivalents $110,296 $94,334 Accounts receivable, net 85,869 77,649 Inventories, net 54,246 52,312 Other current assets 25,767 17,879 Total current assets 276,178 242,174 Property, plant and equipment, net 90,580 94,357 Operating lease assets, net 23,613 22,939 Other Assets Goodwill 207,254 201,304 Other intangible assets, net 157,439 163,882 Deferred income taxes 24,387 27,591 Other 10,920 13,180 Total other assets 400,000 405,957 Total Assets $790,371 $765,427 LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities Accounts payable $48,071 $42,629 Accrued payroll and benefits 3,591 4,719 Operating lease obligations 19,027 15,754 Accrued expenses and other liabilities 34,081 35,361 Total current liabilities 104,770 98,463 Long-term debt 90,700 92,300 Long-term operating lease obligations 22,837 21,120 Long-term pension obligations 3,842 3,931 Deferred income taxes 12,937 12,743 Other long-term obligations 7,631 8,662 Total Liabilities 242,717 237,219 Commitments and Contingencies Shareholders' Equity Common stock 324,745 321,979 Additional contributed capital 42,244 44,662 Retained earnings 694,881 652,851 Accumulated other comprehensive loss 12,594 (4,266)Total shareholders' equity before treasury stock 1,074,464 1,015,226 Treasury stock (526,810) (487,018)