CTS Corporation ( (CTS) ) has released its Q3 earnings. Here is a breakdown of the information CTS Corporation presented to its investors.
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CTS Corporation is a global leader in designing and manufacturing custom-engineered solutions that ‘Sense, Connect and Move,’ serving diverse markets such as aerospace, defense, industrial, medical, and transportation.
In its third quarter of 2025, CTS Corporation reported an 8% year-over-year increase in sales, reaching $143 million, with a notable 22% growth in diversified end markets. Despite a challenging environment, the company maintained solid profitability and strong cash generation.
Key financial highlights include a net income of $14 million, impacted by a $4.2 million charge related to an EPA cost recovery claim, and an adjusted gross margin improvement to 38.9%. The adjusted EBITDA margin slightly decreased to 23.8%, and adjusted diluted EPS was $0.60, reflecting a minor impact from recent US tax legislation. Operating cash flow stood at $29 million, a decrease from the previous year.
Looking ahead, CTS Corporation has narrowed its 2025 sales guidance to a range of $535-$545 million, with adjusted diluted EPS expected between $2.20-$2.25. The company remains focused on diversification as a strategic priority to drive growth and expand margins.