CTS Corp
NYSE:CTS
CTS Corp
CTS Corporation, with its roots tracing back to the late 19th century, has evolved into a significant player in the realm of electronic components and technology manufacturing. Founded in 1896 in Elkhart, Indiana, the company initially focused on producing resilient potentiometers for radios and other electronics as these technologies burgeoned. Over time, CTS strategically diversified its product offerings, aligning with the swift pace of advancements in various sectors. Today, its core operations revolve around designing and manufacturing complex sensor and connectivity devices, alongside components critical to communication infrastructure, automotive, industrial, defense, and aerospace sectors.
In crafting value, CTS leverages its engineering prowess, developing products that cater to the precise needs of its clientele. The company's revenue model is deeply intertwined with its ability to integrate state-of-the-art materials science and cutting-edge engineering processes. By investing in research and development, CTS ensures its products meet the exacting standards required in demanding environments, carving out a niche where precision and reliability are paramount. This strategic focus allows CTS to maintain robust customer relationships globally, ensuring its components are crucial in an ever-expanding array of advanced technologies that power modern society.
CTS Corporation, with its roots tracing back to the late 19th century, has evolved into a significant player in the realm of electronic components and technology manufacturing. Founded in 1896 in Elkhart, Indiana, the company initially focused on producing resilient potentiometers for radios and other electronics as these technologies burgeoned. Over time, CTS strategically diversified its product offerings, aligning with the swift pace of advancements in various sectors. Today, its core operations revolve around designing and manufacturing complex sensor and connectivity devices, alongside components critical to communication infrastructure, automotive, industrial, defense, and aerospace sectors.
In crafting value, CTS leverages its engineering prowess, developing products that cater to the precise needs of its clientele. The company's revenue model is deeply intertwined with its ability to integrate state-of-the-art materials science and cutting-edge engineering processes. By investing in research and development, CTS ensures its products meet the exacting standards required in demanding environments, carving out a niche where precision and reliability are paramount. This strategic focus allows CTS to maintain robust customer relationships globally, ensuring its components are crucial in an ever-expanding array of advanced technologies that power modern society.
Revenue Growth: CTS delivered Q4 revenue of $137 million, up 9% year-over-year, with diversified end markets growing 16%.
Diversification: Diversified markets made up almost 60% of total revenue, supporting CTS's strategic shift away from transportation.
Profitability: Adjusted gross margin improved by 150 basis points in Q4, reaching 39.1%, driven by operational improvements and mix.
EPS Performance: Adjusted diluted EPS for Q4 was $0.62, up from $0.50 last year; full-year adjusted EPS reached $2.23.
2026 Guidance: Management expects 2026 sales of $550–580 million and adjusted diluted EPS of $2.30–2.45.
Medical and Industrial Strength: Medical market sales rose 41% in Q4; industrial sales increased 16%, both showing continued growth momentum.
Transportation Headwinds: Transportation sales fell 7% for the full year, but new business awards reached $100 million in Q4.
Capital Returns: CTS returned $62 million to shareholders in 2025 through dividends and buybacks.
