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CTS (CTS) investor relations material
CTS Q4 2025 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.Executive summary
Achieved Q4 2025 sales of $137 million, up 9% year-over-year, and full-year sales of $541 million, up 5%, with diversified end markets growing 16% and now comprising up to 59% of total revenue.
Adjusted gross margin expanded by 150 basis points for both Q4 and the full year, reaching 39.1% and 38.5% respectively.
Adjusted diluted EPS was $0.67 in Q4 (up $0.29 year-over-year) and $2.23 for the full year, with net income of $20 million in Q4 and $65 million for the year.
Transportation sales declined 7% for the year due to market dynamics in China and commercial vehicles, but new business awards totaled $100 million in Q4.
Focused on diversification, margin expansion, and cash generation, with new product offerings and business awards in transportation.
Financial highlights
Q4 adjusted gross margin was 39.1%, up 150 basis points year-over-year; full-year adjusted gross margin was 38.5%, also up 150 basis points.
Q4 adjusted diluted EPS was $0.62, up from $0.50 in Q4 2024; full-year adjusted diluted EPS was $2.23, up from $2.12 in 2024.
Adjusted EBITDA margin for 2025 was 22.8%, with Q4 at 23.7%.
Operating cash flow was $29 million in Q4 and $102 million for the year; free cash flow for the year was $86 million.
Returned $62 million to shareholders in 2025 through dividends and share buybacks.
Outlook and guidance
2026 sales expected in the range of $550–$580 million; adjusted diluted EPS projected at $2.30–$2.45.
Diversified end markets expected to remain solid, with medical therapeutics and industrial demand to drive growth.
Aerospace and defense revenue anticipated to grow with improved government funding cycles.
Transportation production volumes expected to be flat to marginally down due to tariffs and global demand.
Growth in diversified end markets is expected to continue, while commercial vehicle-related sales are projected to remain soft.
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